Apartment Index Places San Francisco In The Lead
SOURCE: National Real Estate Investor
Marcus & Millichap's Annual National Apartment Index reports that San Francisco will lead the nation for 2008. Strong rent growth and robust investment activity in the area are being driven by professional and business services which support the technology companies in the bay area.
The for-sale apartment properties in San Francisco are effectively depleted and investors are willing to accept lower initial returns just to get in the door. Over the years, existing landlords have been dragging their feet in bringing rents up to market rates. This means that there will be a substantial increase in revenues available in the near future. In fact, the belief is that rents will most likely increase by 7.8%.
Although some areas of the country aren't improving at the same rate, the vacancy rate is expected to hold at 5.8% across the nation. The single-family market foreclosures that are beginning to sweep the nation will grow the renter pool and increase the asking rents by 4%. The multi-family housing sector is expected to hold strong for the future.
Read full report »
Marcus & Millichap's Annual National Apartment Index reports that San Francisco will lead the nation for 2008. Strong rent growth and robust investment activity in the area are being driven by professional and business services which support the technology companies in the bay area.
The for-sale apartment properties in San Francisco are effectively depleted and investors are willing to accept lower initial returns just to get in the door. Over the years, existing landlords have been dragging their feet in bringing rents up to market rates. This means that there will be a substantial increase in revenues available in the near future. In fact, the belief is that rents will most likely increase by 7.8%.
Although some areas of the country aren't improving at the same rate, the vacancy rate is expected to hold at 5.8% across the nation. The single-family market foreclosures that are beginning to sweep the nation will grow the renter pool and increase the asking rents by 4%. The multi-family housing sector is expected to hold strong for the future.
Read full report »
