FOR IMMEDIATE RELEASE
Contact:
Heather Schechter
Director of Marketing, Sunrise Management & Consulting
255 Washington Avenue Ext., Ste. 103, Albany, NY 12205
hschechter@sunrisemc.com; (518) 782-0200 ext. 103
Sunrise Management & Consulting Releases Spring 2016 Multifamily Rental Market Report
Capital Region Multifamily Rental Market Remains Strong as Rents Continue to Steadily Climb
Albany, NY (July 26, 2016) – Sunrise Management & Consulting today announced the release of its Spring 2016 multifamily rental market report. Data culled from over 1,900 apartment communities representing over 300,000 units shows a stable upward trend in rental markets across the Northeast, including in the capital region of New York. The annual survey of rental conditions in the multi-family housing industry details average asking rental rates by unit mix, by square footage, and tracks historical trending data on a county basis. The free report is available for download at www.sunrisemc.com/market-report/.
The research team at Sunrise Management & Consulting found that rents per square foot of all markets in the Northeast, except the North Country of NY (traditionally a small market) continue to rise. In addition, vacancy rates also seem to be remaining low across all market areas, even as new product are being brought to market, showing absorption rates are still very good.
Jesse Holland, president and founder of Sunrise Management & Consulting, explains that the findings show good news for multifamily property investors, “From a macro level, apartments are a favored class of real estate investment. Financing is still readily available at very attractive rates and investors are still looking to grow portfolios.”
The 2016 multifamily market report shows that there is a high percentage of new newly built property in the Capital Region of New York, which includes the counties of Albany, Rensselaer, Saratoga, and Schenectady counties. Of the 170 Capital Region multifamily properties surveyed, 33, reflecting 19 percent of the total, have been built since 2010, including:
- 18% in Albany County: 72 properties surveyed, 13 of which have been built since 2010.
- 12% in Schenectady County: 25 properties surveyed, three of which have been built since 2010.
- 23% in Saratoga County: 47 properties surveyed, 11 of which have been built since 2010.
- 23% in Rensselaer County: 26 properties surveyed, 6 of which have been built since 2010.
According to Holland, despite the increase in building of multifamily properties since 2010, the Capital Region shows a healthy multifamily property market for investors. Explains Holland, “New construction of apartments continues at a fast pace. New properties have raised the average rental prices in the area, but the underlying market remains stable and increasing. Rents continue to increase at a normal pace, which is two to three percent a year. Many new properties have been built and become available to rent since 2010, which is why the market is jumping so much. New properties typically have higher rents so our average is being reset. Properties are being built at a faster rate than in the past, but they are not destabilizing the underlying market. The economy and job market in the Capital Region are both strong.”
Holland predicts that the good news for multifamily property investors throughout the Northeast will continue. He explains, “We believe these macro trends will remain as the employment picture continues to improve. At the same time, building in the single family home market remains comparatively subdued.”
Sunrise Management & Consulting has been providing market reports on the Northeast rental market since 2001. Data is updated on an annual basis utilizing proprietary software. Please visit our website at www.sunrisemc.com to download the Spring 2016 market report and learn more about our services.
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About Sunrise Management & Consulting
Sunrise Management & Consulting provides development consulting, marketing, leasing and property management services for multifamily investors across the northeastern United States. The professionals at Sunrise Management & Consulting utilize innovative management and consulting programs to deliver consistent, dependable results that exceed industry performance standards. The company also provides real estate brokerage services in residential, multifamily, commercial and investment transactions through its subsidiary, Sunrise Realty Advisors. For more information, please visit www.sunrisemc.com.
