Quote:
Originally Posted by mdpx
You are just incorrect. Here are the facts on Downtown's Top 20 High-value Multifamily properties:
Last quarter overall vacancy: 13.6%
This quarter overall vacancy: 9.8%
Occupancy last quarter: 86.4%
Occupancy this quarter: 90.2%
Concessions are down (good sign). They don't need as many incentives to lease up.
These figures are similar to totall Downtown multifamily regardless of quality. It's across the board.
Biggus-You have been singing the imminent death of multifamily song for sometime and arguing against facts with several on the forum. What repressed anti-apartment pain are you processing, dude? I'm curious. Thanks.
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What you have just stated is absolutely 100% counter to every anecdotal piece of information given to me by people who are in the buildings (either owners or management) every single day, I trust them much more than some stat that may or may not be out dated (depending on what opening date they chose for many of the new units) or even worse could be biased. Maybe these stats were published two weeks before 380 units became available, maybe since they became available things have been harder, there's no way of knowing unless you're actually there. My sources are whining already.
When management tells me "we had to drop the rents again because there's too much competition in the neighborhood" I interpret it to mean there are more units than there are buyers. It's no different than if you were selling a car. Porsche GT cars are produced in numbers of about 1000-2000 per run and there may be 25,000 ready, willing, and able buyers so the prices skyrocket. There's an almost unlimited amount of Chevrolet Malibus out there so anyone can walk onto a lot and make whatever deal they want. A year ago running apartment buildings downtown you were closer to the Porsche end of that spectrum, now they've fallen back to reality with signs pointing toward continuing over-saturation. I doubt downtown will ever be the Chevy Malibu of apartments but I think you must understand the concept of supply and demand.
I've been in the industry my whole (long) life buying, selling, and running apartments. I know a lot of people who do the same thing, I'm not singing some death song for the hell of it, there's starting to be stiff competition for tenants around Central Phoenix.