I hope you are all having a good week! Here is the latest CoStar Denver Multifamily Market Report.
The overall theme is that Denver is second only to Salt Lake City in regards to the % increase some type of landlord offered rent concessions. With roughly 25% of all property multifamily owners in Denver doing so and roughly 40% of all Class A properties in the metro area, according to their data.
Overall collections and leasing reports have been positive from our clients. Please let us know if you are currently offering concessions at your properties and if so, what you are executed to stay leased up.
The positive news is that online searches on apartments.com is trending higher, indicating that tenants who have been doubling up with family/friends and working from home are eager to lease their own apartment in the near term and help absorb existing supply.
Please let us know how our team can help add value to you and your business as we all navigate this unusual time.
–Joe Hornstein – Principal, AQYRE Real Estate Advisors
Joe@northpeakcre.com | 720-738-1944
Originally Posted April 28, 2020 CoStar News
Rents are falling at apartment properties, and landlords are now offering bigger concessions.
According to CoStar’s John Affleck, vice president of market analytics, since the coronavirus pandemic started, apartment rents have fallen sharply. And landlords have responded with breaks for prospective tenants.
“CoStar’s multifamily research team collects concessions data for more than 80,000 properties each month,” said Affleck in a new state of the market video. “And this data shows that the percent of properties offering concessions rose in April to 25% — up from about 20% in March. The average concession also rose to just under 3% of monthly rent.”
According to Affleck, renters are most likely to find deals in Salt Lake City and Denver, where 40% of the apartment properties contacted by CoStar said they are offering concessions.
CoStar’s daily rent-tracking data shows a further decline. As of Friday, rents for upper-tier properties were officially down year over year. The pace appears to be slowing, however. In Florida, where the tourism-based economy has been hard hit by the outbreak, Palm Beach County and Orlando have posted the largest declines since their March peak.
As landlords brace for May 1, when industry executives said tenants may come up short paying rent, CoStar is also tracking what it sees as pent-up demand.
“This forced experiment in telecommuting has many roommates longing for space of their own, and perhaps a dedicated home office rather than using the kitchen table,” said Affleck, who added searches on CoStar’s Apartments.com have returned to — and now surpassed — pre-pandemic levels. This demand offers a ray of hope for new developments leasing up their units.
