IF YOU BUILD IT, THEY WILL RENT
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OK, Charlotte, everyone says they want apartments, but nobody?s building. Builders are expected to complete 900 apartment units this year, compared to 2,200 last year. (Do we have to sprinkle this medicine over pudding?) Marcus & Millichap?s Art Gering tells us that rents are climbing, vacancy is at its lowest level in three years, and there are 9,200 units in the pipeline, but none of these projects has a scheduled start date. Meanwhile, investment sales of existing apartments appear to be a no-brainer. Of multifamily properties that have sold in the past 12 months, the average sales price per unit was $100k, compared to about $41k per unit last year. The bright spot in all this weirdness? ?All lending sources have increased funding for apartment deals,? Art says. |
