| All the multifamily talk lately has been about demand, but the sector?s stunning fundamentals owe quite a bit to supply, too, as functionally obsolete stock comes off the market, says Pinnacle Management prez Rick Graf, who's speaking at our first national Bisnow Multifamily Annual Conference in DC on Monday and Tuesday. Keep reading to see what makes an apartment obsolete. |
| Decreasing inventory creates an even larger vacuum for apartment investors and developers to fill in the face of surging demand, Rick says. The old stock can only raise rents so much before renters just won't pay anymore, and it starts to make sense to replace the property. The Mid-Atlantic region?s apartments are older than those in Rick?s home base of Dallas, where he was snapped this morning. So even if the location is great, two- or three-bedroom units with one bathroom (popular in the ?40s, ?50s, and ?60s) just don't cut it anymore. Kitchens and baths, Rick says, are the rooms where obsolescence comes into play the most. Rick?s take: despite concerns about overbuilding in the Mid-Atlantic, national multifamily is in the early stages of a five- to eight-year healthy run. Sign up nowto hear more from Rick and more than 30 other speakers at DC's JW Marriott Nov. 19 and 20. |
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