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Aug 06
2010
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Portland's Apartment Sector Ranks Among the Best-of-the-Best
Posted by: Michael Cunningham on Aug 6, 2010 16:28 Tagged in: Rent , Occupancy , Multifamily , Construction , Blogs , Apartment Development , Apartment
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While almost every apartment market across the country has posted notably improved overall fundamentals during 2010, few can match the turnaround seen in Portland. The metro's stats looks good for both occupancy and rent change. And, perhaps most impressive of all, recovery is apparent in every single product niche across every single neighborhood.
Portland's apartment occupancy rate stood at 95.8 percent as of June. That's still a little below the peak readings seen in 2006-2007, when occupancy hovered around the 97 percent mark. But, it's important to realize that 2006-2007 wasn't a normal period for the metro. Today's occupancy performance, in fact, is a full percentage point over the norm logged during the past decade as a whole.
Occupancy stands near the 96 percent mark in every product age category throughout Portland's suburban markets and in the stabilized properties in the urban core. The only significant availability, then, is in the recent completions still moving through initial lease-up downtown, and those projects are making progress by leaps and bounds. The overall occupancy for developments built since 2000 in the urban core has soared from a low of about 73 percent in fall 2009 to a rate of 91.6 percent as of mid-2010. In another quarter or so, the newest completions seem likely to be essentially full.
With those occupancy results, you'd expect Portland's apartment rents to be moving ahead considerably; and, in fact, they are. Effective pricing climbed 3.5 percent during the initial half of 2010, with that growth split about evenly between 1st and 2nd quarters. Rents are way up in the metro's suburban apartment centers, while pricing in the urban core is edging forward.
There's just nothing not to like about this one.
*Portions of data collected were collated utilizing property management software, and various city, county, and state records.
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