A'S RUNNIN' AWAY

When our sociology teachers were discussing class inequality, were they actually talking about  Atlanta apartment  property classes? Reis analyst Brad Doremus says of course they were. Both class A and B/C apartment properties in Atlanta have been following  national vacancy trends  over the last couple of quarters, experiencing minor declines in Q2 2010 and sizeable drops  in vacancy in Q3 2010. Class A vacancies fell 70 bps in Q3 and class B/C vacancies fell 80 bps, though class A rates fell at a faster clip year-over-year. But since the onset of the  Great Recession, the typical gap in vacancy seen between the two property classes widened as class  B/C vacancies climbed at a much faster pace. During Q3 2008, class A apartment vacancies were 150 bps higher than their lower quality counterparts. This spread slowly widened to 190 bps before jumping to 300 bps in Q2 2009 and 400 bps in Q1 and Q2 2010. Q3 2010 saw a slight dip to 390 bps, perhaps signifying a  peak  in the spread.

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