REIS ON APARTMENT RENTS

Class-A apartment property owners may be the first class passengers of the Boston market, but it's those who ride coach and own Class-B and C apartment buildings that have been spared the major turbulence over the past few years, says Reis analyst Brad Doremus. Asking rents for both apartment classespeaked in Q3 ?08 and bottomed in Q1 '10. However, Class-A rents took a steeper plunge, falling 4.7% peak-to-trough versus a 1.2% decline for Class-B and C properties. Moreover, Class-A rents have yet to reclaim their previous peak while Class-B and C rents surpassed their previous peak back in Q2 '10, just one quarter after bottoming out. Still, the comparison is not all bad news for higher class properties: Rent growth in Class-A apartments has outpaced Class-B and C growth in the past two quarters, rising 1.1% in Q3 and 0.6% in Q4. Class-B and C rents were up 0.4% in Q3 and 0.3% in Q4. 

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