Equity Residential Says Rents Are Softening In NYC and S.F.
Equity Residential lowered its revenue forecast for the second time this year amid softening rents in NYC and S.F. on newly signed leases.
Sam Zell’s multifamily REIT has put its expected revenue growth at 4.5% this year, down from a 5% forecast in April and a 5.25% forecast before that, Bloomberg reports.
“The revision is being driven by continued weakness in its NYC portfolio and recent underperformance in the company’s S.F. portfolio,” the firm says. “New lease rates are not meeting original projections due to new rental apartment supply.”
NYC’s apartment glut is giving tenants more bargaining power, meaning landlords like Equity Residential have to work harder to draw in renters, with some giving away sweeteners like a month’s free rent or payment of brokers fees. [Bloomberg]