commercial loan news

February 18, 2008

Developers Look Toward Building Multifamily Dwellings

SOURCE: GlobeSt.com

HOUSTON-At the end of 2007, occupancy among multifamily properties posted lower than 2006. Yet, as home foreclosures rise, developers are betting that more and more people will be returning to rentals.

"Absorption is at its lowest that it's been in 10 years. And we have an unprecedented number of new units under construction at 19,526 and an additional 18,254 units proposed," says Teresa Lowery, principal with Colliers International in Houston.

Lowery and Douglas Lockwood, vice president in Grubb & Ellis Co.'s Houston office, agree that the region's economic and market fundamentals are so strong that developers and investors are taking note and taking action to position themselves.

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