Apartment Rents make the news! January 21, 2010
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As owners of commercial real estate, East Bay commercial real estate specifically, you are no doubt aware of market rents and vacancy levels. Recently the trend has been a mild deterioration in rents coupled with a mild deterioration in vacancy. During the last Rental Housing Association of Northern Alameda County (RHANAC) brokers’ meeting, hosted by Executive Director Steve Edrington and sponsored by Teresa Moss of Chicago Deferred Exchange Company, industry experts shared their view of the market place and confirmed the above statement. Most vacancies and the biggest rental losses are on the studios and one bedroom apartments. Brokers shared what owners confirmed, that many units are occupied by more than the minimal amount of persons. People are doubling up with family or roommates in an effort to save living expenses.
Look for the Alameda county Apartment Rent Survey during the RHANAC trade show on March 13, 2010. This is an all day event from 9am to 5pm at the Greek Orthodox Church located on 4700 Lincoln Avenue in Oakland.
Carolyn Said, a San Francisco Chronicle staff writer wrote a news story about rents and occupancy. In it she reiterates what my blogs have shared in the past- economic uncertainty. Read Carolyn’s story at http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2010/01/21/BUE21BKUVE.DTL
If you or someone you know is looking to sell or buy apartments or commercial real estate or just one commercial property OR if there is a consideration to learn more about group investments in commercial real estate please contact me. I can be reached via email at Pete@CommercialMasterMinds.com or just call (925) 719-3569
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Continued Success, Pete
As Resident Manager of a 16-unit, East Bay apartment community, I too have my share of challenges. I receive notices in waves of three and four at a time for some strange reason. Just a few vacancies at once can drop my VR to 80%! (I know of other Resident Managers having it even worse, so believe me when I say I am grateful for the little bumps in the road I get.) Some Resident Managers may respond by taking the next walk-in just to fill a unit. However, I hold firm in marketing heavy to draw the numbers and screening thoroughly for the best qualified prospects. I affirm is true that placing better qualified tenants foster community. Moreover, as community managers our fiduciary responsibility may be to maximize profits but it is also to bring stabilization to our properties during these challenging times, and times are challenging! Thank you Castle Management and National Tenant Network, (NTN)!
Nice website Pete.