Multi-Housing News - July 2009 - (Page 12)

market forecast Mid-Atlantic Region Stability and strong fundamentals appeal to investor confidence By Al Cissel & Scott Melnick, Transwestern Institutional Multifamily Group The apartment rental market within the MidAtlantic region continues to be one of the strongest in the nation. This performance is due in part to strong fundamentals and the reduction of excess supply. The continued stability of the region, combined with the loosening of credit markets, has resulted in increased investor confidence. At the same time, abundant capital and the alignment of buyer and seller pricing expectations has created a significant increase in investor activity during the second quarter of 2009. Though there have been very few institutional transactions during the first half of 2009, the improved market conditions should generate significantly increased transactional volume during the second half of 2009. Washington, D.C. outperforms The Washington, D.C. metro is the top apartment market in the Mid-Atlantic region, partially due to its sustained job growth and transient work JBG Cos.’ Reston Heights, a 35-acre mixed-use, transit-oriented development, is the first community in Va. to achieve LEED-ND Silver certification. It is approximately 100 miles from Richmond. force fueled by government spending, and it is wellpositioned for stronger market conditions in the near term. The Washington, D.C. metro outperformed every other major metro area in the nation in annualized net absorption, with 7,389 units for Class A and B apartments for the 12 months ending March 2009. This is the highest absorption ever recorded for the Washington area. The Class A apartment pipeline shrunk nearly one-third, from 36,951 units in December 2007 to 25,228 units in first quarter 2009. Based on current pipeline and absorption trends, there will be a supply shortage by 2012-2013, creating higher rents and occupancy. Rents for Class A and B apartments in the D.C. metro increased 0.5 percent over the past 12 months, with a stabilized occupancy of 95.4 Stabilized Vacancy Rates (Class A Apartments) Projected Deliveries (Projects Under Construction) Source: Delta Associates, 1Q09 12 July 2009 | Multi-Housing News | Official Publication of Multi-Housing World

Table of Contents for the Digital Edition of Multi-Housing News - July 2009

Multi-Housing News - July 2009
Contents
From the Editor
Executive Insight
Market Pulse
Profile
Market Report
Management
Case Study: Luxury
Finance
Kitchen & Bath
Products & Services
Tech Trends

Multi-Housing News - July 2009