Multi-family Sector Could Soar to New Heights

July 15, 2011 - PRLog -- The multi-family segment continues to be a rockstar in the commercial real estate market, with another stellar performance in second quarter.  
 
The “Commercial Real Estate Show” this week talked with experts from the multi-family market for the latest statistics and insights into why multi-family continues to be one of the best success stories in commercial real estate.

Nationally, the multi-family market boasted quarterly revenue growth of 2.4 percent, while occupancy soared to 94.2 percent and effective rents jumped 1.7 percent, according to MPF Research, a division of RealPage Inc.

“Pricing can go to new highs as long as the occupancy is there to support the increases,” Greg Willett, vice president of research and analysis at MPF Research. “At this point, it is starting to look like that is the case.”

Revenues are on track to rise about 6 percent this year, with another 6 percent increase in 2012, Willett said. The last time the market saw growth like this was during the dot-com era in 2000 and early 2001.

There is a long list of demand drivers for the multi-family market. Demographics point to a growing population of 20 to 34-year-olds, who are typically renters. This age group also has absorbed most of the job growth during the economic recovery.

Meanwhile, very few renters are leaving the market to buy homes. This means that new tenants typically cause occupancy to rise since existing tenants are not moving out, Willett explained.

As for supply, there are new construction projects in the pipeline, but most won’t be coming online until late 2012 or early 2013.

“Because of lack of availability, vacancies continue to shrink, so our members are having a great market,” said Doug Culkin, president of the National Apartment Association.

The show airs Saturday on Biz 1190 and Sunday on Talk 920 in Atlanta and is available for download here. Other guests included Ernie Eden, Senior Vice President of The Apartment Group at Bull Realty and Jerry Wilkinson, 2011 Chairman Elect of the National Apartment Association and Founder and Chairman of Wilkinson Companies.

The next “Commercial Real Estate Show” airs July 23 and will dive into the land and development industry. Tune in to get second quarter statistics, market trends, a preview of what’s going to be hot in the coming year and much more.

About the “Commercial Real Estate Show”:

America’s “Commercial Real Estate Show” is an entertaining and enlightening national talk radio show about commercial real estate. New shows air every Saturday morning at 10AM EST available worldwide at the show website, www.CREshow.com as well as on several AM stations including Atlanta stations biz 1190 Saturday at 10 am and talk 920 Sunday at 9am. Show podcasts are available on-demand at any time worldwide on iTunes and on the show website.

The “Commercial Real Estate Show” has quickly gained a national and international audience. Each show starts with a national commercial real estate market update related to the show topic by well-known national experts. Then the show host Michael Bull and a panel of industry expert guests share information, insight and best practices related to each show’s main topic. The show host is 30-year commercial real estate veteran Michael Bull, CCIM, the president and founder of commercial brokerage firm Bull Realty, Inc.