August 2015 – MacLaren Group

Marcus & Millichap Releases 3rd Quarter Apartment Research Market Report

Marcus & Millichap’s 3rd Quarter Apartment Research Market Report has been released. Overall, the outlook of the Philadelphia apartment market remains bright as rising employment fosters stable economic growth, which in turn is strengthening apartment operations. Total employment is on the cusp of recovering all the jobs lost during the recession. These favorable conditions are boosting demand for apartments and rapidly improving performance throughout the metro.

Click the link below to view the full report.

Philadelphia 3rd Quarter Apartment Research Market Report

The Apartment Spotlight: Apartments Outperform in Second Quarter

Marcus & Millichap’s Research Services just released their Apartment Spotlight, detailing the first half of 2015. Some of the major talking points include:

Steady job gains in the first half of 2015 generated robust demand for rental housing, while the modest rise in wages supported lease renewals.
Growing demand drove U.S. apartment vacancy lower by 40 basis points to 4.1 percent in the second quarter, despite the most substantial pace of apartment construction in more than 20 years.
The lengthy cycle of vacancy improvements and rent gains is supporting an elevated volume of activity among investors.
The spread between the average cap rate of 5.5 percent and the 10-year U.S. Treasury remains relatively wide at 320 basis points, but continues to tighten as intense sales activity pushes down first-year return

View the full report below:

2Q Report: Lower Vacancy Rate, Rising Rents

The Philadelphia region’s apartment market continued to thrive in the second quarter, with monthly rents rising and vacancies plummeting even as new product appeared in the city and suburbs. The lower vacancy rate manifested while competition (especially in Center City) continued to ramp up – A testament to strong absorption in the Class A market.

Click here to read the full article on Philly.com