HOUSTON RENT DEALS A broker tells reporter Amy Wolff Sorter that no new multifamily apartments — beyond the 14,000 units currently “in the pipeline” — are likely to be built in the Houston area until 2012. MPF Research says the multifamily occupancy rate for this area is hanging at around 89.7 percent, not too far from where it was last year: “. . . rents continue to hold steady and concessions aren’t being jacked up in response, though they do exist. [MPF’s Greg] Willett points out that about 38% of the product on the market today has some sort of concession, with the typical giveaway hovering at a 9% discount, which translates to a little more than one month of free rent. Still, ‘that really hasn’t moved,’ Willett remarks. ‘We’ve been at that 9% figures for awhile.’ Both [Apartment Realty Advisors’ Matt] Rotan and [CB Richard Ellis’s Craig] LaFollette say that the infill locations are faring better than the outer submarkets, which are giving away up to two months free rent.” [Globe St.]
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Does that 14,000 units coming online number include Regent Square (first phases) and Finger’s apartments at Waugh and Dallas?
kjb, the commercial purveyors of real estate market data don’t do their job very well. O’Connor & Associates misses a lot of inner city complexes, Apartment Data Services misses a lot of suburban complexes, and MPF just generally sucks.
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Based on my analysis of their collective data–which I stopped doing when I got laid off–I would suspect that the true number of units currently under construction is probably around 60% to 80% above what MPF is quoting.
Thanks TheNiche.