Pent-up demand and a strong economy will absorb the thousands of luxury rental apartments being developed downtown, and this spring’s leasing will reveal just how strong the yearning is, says AvalonBay Communities SVP for development Michael Roberts who will be a panelist at Bisnow’s 4th annual Multifamily Summit next Thursday at the Sheraton Back Bay. 2013 was a “very good” year for AvalonBay and the outlook for the next few years is “very positive,” he tells us. AvalonBay, a $22B company that owns 82,000 apartments, has 1,700 apartments valued at about $500M in construction in our region and another 1,500 in the pipeline.
At the $110M, 187-unit AvalonExeter in the Prudential Center where first occupancy is slated for the spring, 15% of the apartments have been committed before formal leasing has started, Michael says. In the ‘burbs, the 407-apartment AvalonNatick achieved 95% occupancy within a year. Average rental rates are quite different—approaching $2/SF in the 'burbs versus $4.50/SF downtown--but the eagerness for new apartments is similar. Downtown, AvalonBay is also building the 400-apartment 45 Stuart St, which starts leasing in a year, and is developing a 500-apartment building in North Station at the TD Garden. The next few years look promising if “we’re disciplined” with our investments. Hear more from Michael and our other experts: Register.
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