IRR-Greensboro Mid-Year Viewpoint 2015 Local Market Report - Multifamily
According to Real Data demand for apartments in the Triad remains strong, with 673 units absorbed from September 2014 to April 2015. The average vacancy rate has remained steady at 6.9%. New development continues with 3,004 units currently under construction in 2015 up from 1,993 in mid-2014. The Triad market Central submarket in Greensboro is the most active submarket, with 600 units currently under construction. The region has posted rent growth of 2.2% over the past twelve months and is estimated at 2.7% presently. Rent growth has resulted in average rents to increase to $740 per month which is up from $710 in March of 2014.
Based on the current development pipeline, the Triad’s average vacancy rate will remain around 7% over the next year. Rents are expected to grow between 3% and 4% over the same time period. According to RealData, demand will meet supply growth in the coming year and the Triad vacancy rate will remain slightly higher than the overall southeast region average vacancy moving into 2016 because of lease-up of planned units coming on-line.
Notable transactions include the recent sale of CityView at Southside in the Greensboro CBD in May 20105. Carroll Companies purchased the 446 unit property for a reported $101,444 per unit in an off-market transaction. The actual overall rate was 6.52%. This property is currently in the process of adding 91 more units for Phase III of the complex. Attempts to revive the downtown area with new development that includes breweries, restaurants and renovated offices has spurred the popularity of downtown residential uses.
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IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.