Friday, January 6, 2012

Reis: Apartment Vacancy Rate falls to 5.2% in Q4, Lowest since 2001 + as Rental Rates Climb + Office Vacancy Rate declines slightly in Q4 to 17.3%

[mEDITate-OR:
not see two very different RE markets...
going in the opposite directions.
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Tomorrow will report retail
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While these apartment numbers are looking very good.
There is, as the Seattle Times reported, a serious problem of potential overbuilding.
Possibly another "bubble economy".

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However, for Offices, tis still very bad, and not improving very fast.

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Multi-family starts are increasing,
These new starts will not be completed until 2012 or 2013
so vacancy rates will probably continue to decline. 
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A total of 8,865 new units became available in the fourth quarter
 the second-fewest for any three-month period in Reis records dating to 1999.
The first quarter of 2011 had the fewest units, at 7,473. 
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Some 12.3 million square feet of new office space came to market last year
the lowest such level in 15 years
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given the severity of the last downturn and the lackluster pace of economic growth
it will be years before the office sector climbs out of the hole.
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Reis: Apartment Vacancy Rate falls to 5.2% in Q4, Lowest since 2001
http://www.calculatedriskblog.com/2012/01/reis-apartment-vacancy-rate-falls-to-52.html
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Reis: Office Vacancy Rate declines slightly in Q4 to 17.3%
http://www.calculatedriskblog.com/2012/01/reis-office-vacancy-rate-declines.html
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