CBRE Houston multifamily on-line, just in time 3Q 2015 CBRE Houston multifamily on-line, just in time 3Q 2015 https://www.recenter.tamu.edu/news/newstalk-texas/?Item=114302015-12-15T06:00:00Z2015-12-15T23:00:00Z

​​HOUSTON - Robust demand over the past several years created an urban renaissance for Class A renters as developers aimed to keep pace with new product — and Houston is now seeing the result as these deliveries arrive on-line — just in time as job growth has slowed, albeit only for the time being. ​

Houston saw an additional 3,000 units break ground in 3Q 2015, up from 2Q 2015 and 56 percent of the units presently under construction are expected to deliver within six months and in 2016 Houston will continue to see a high number of deliveries with approximately 17,000 units slated to deliver. ​

Houston rental rates remained stable in third quarter 2015 at $1.10 per sf, while the overall rental rate has continued to see an increase of 6.6 percent year-over-year.

Overall occupancy dropped 30 basis points (bps) to 91.1 percent in 3Q 2015. 

The Montrose/Museum District submarket is recording the highest average rental rate in Houston at $1.82 per sf, followed by the Inner Loop West/Greenway Plaza submarket at $1.81 per sf.

In the Eastern submarket, Gulfgate/Almeda Mall and Baytown are the two submarkets with exponential rent growth, 10.9 percent and 10.3 percent year-over-year, respectively.​

Class B occupancy rates are still strong at 94.2 percent, whereas Class A occupancy rates fell 20 bps to 84.3 percent, including properties in lease-up. The number of units under construction remains a robust 26,667 in 3Q 2015, an increase of 3,000 units from 2Q 2015.

Units delivered this quarter totaled 4,319 units, bringing the year-to-date to 14,129 units.

The top three suburban markets with the most units under construction are West Memorial/Briar Forest, Katy/ Far West, and Conroe/Montgomery, totaling 6,357 units. ​​

Houston-The Woodlands-Sugar Land

​Take a look at the CBRE 3Q 2015 Multifamily MarketView Report.

See the full report at {Source}

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