While some thought the skyrocketing rents of 2014 couldn’t be sustained, they did, and then some.
Source: www.cnbc.com
The apartment market is without question the hottest asset class in commercial real estate as it continues its strong run, however, it is clearly a tale of two apartment markets.
The pipeline of new product is rich and full in urban downtowns, which will likely temper the rent gains there over the next few years. When doing the math on suburban or Class B markets, however, developers and investors just don’t see desirable returns. Weak income growth will simply not support rent growth