Bisnow Events Around The Country
Stratospheric growth of apartment fundamentals may finally be slowing, a handful of multifamily execs told our audience at our 4th Annual Atlanta Multifamily Summit. Both CEOs of AMLI Residential Partners and Post Properties say revenue growth from rents will drop from 7% last year to nearly 5% this year, and could slow further in the coming years as more new apartment complexes open. "Corn's corn. And when you grow row to row, and you got too much corn, there's no question you got oversupply, and there's no question it's coming," AMLI's CEO Greg Mutz says. (Though if there's extra corn we'll happily take it off your hands.) Probably not in 2014, but "somewhere out there we'll overdo it and rents will soften."
At our San Diego Multifamily Summit, OliverMcMillan SVP/principal Jim Reynolds told us cities have finally figured out that infilling and bringing people back into the city is wise. In the County's smaller burgs, city council or mayors will gladly provide help with incentives, rezoning, and upzoning. Jim expects the Downtown inventory will get absorbed thanks to San Diego's high rent-to-own ratio, though he cautions that those looking a year and a half out to start building may run into some risks--namely, rents not rising as fast as previously and construction costs that seem to be reeling out of control. So "build it now or forever hold your peace." Video. (Courtesy of Allen Matkins)