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Colliers International Q1 2016 Greater Phoenix Multifamily Market Report

06/01/2016
Published By: Colliers International in Greater Phoenix

Vacancy Dips, Rents and Sales Prices Surge Ahead

The Greater Phoenix multifamily remains on a roll. Vacancy reached a 20-year low during the first quarter, even as new development continues at a healthy clip. With vacancy tightening throughout the market, landlords are implementing healthy rent increases.

Vacancy ended the first quarter at 5.2 percent, 50 basis points lower than one year ago. The rate has been below 6 percent in four of the past five quarters. Following a flurry of sales activity in the final three months of 2015, investment activity slowed to start 2016. This is expected to be a short-term trend, and is not expected to persist into the rest of 2016.

Following a flurry of sales activity in the final three months of 2015, investment activity slowed to start 2016. This is expected to be a short-term trend, and is not expected to persist into the rest of 2016.

Even with fewer properties changing hands in the first quarter, prices rose and cap rates compressed. The median price ticked up over $100,000 per unit, while cap rates are averaging in the low-5 percent range. 

Release Date06/01/2016 - 11:00

Source

Colliers International in Greater Phoenix

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