Tenant, investor demand rises for San Antonio Class B, C apartments​​Tenant, investor demand rises for San Antonio Class B, C apartments​​https://www.recenter.tamu.edu/news/newstalk-texas/?Item=140952016-08-08T05:00:00Z2016-08-08T16:00:00Z

​​​​​SAN ANTONIO – Job growth within area retail stores, restaurants, and healthcare facilities is boosting demand for Class B and C apartments, reports Marcus & Millichap in its second quarter market update.

"[Class B and C] units tend to attract and retain tenants hired in these sectors, as well as San Antonio’s large manual labor class and government employers," the report said. "Though overall market vacancy will adjust upward this year, tenant demand for apartments will allow rental rates to rise, albeit at a slower pace than the previous year."

Other findings from the report:

  • J​ob growth will ​remain strong this year with local employment expected to increase 2.5 percent, or by 25,000 workers. Employment gains will be led by the healthcare, trade, and hospitality industries. In 2015, jobs grew by 2.7 percent.
  • After 4,425 units were completed last year, developers will bring 6,900 rentals online this year. Since the recession, apartment inventory has grown by 24 percent, compared with a 15 percent expansion between 2002 and 2007.
  • This year, vacancy will rise 40 basis points annually to 6.5 percent with net absorption of 5,100 units. Despite the increase, apartment demand will climb 3.1 percent. Last year, vacancy dropped 110 basis points year over year.
  • Strong apartment demand will keep vacancy below the previous five-year average, encouraging rent gains. The average rent will rise 4.2 percent in 2016 to $933 per month. Last year, the average rent grew 4.4 percent.​
Marcus & Millichap Real Estate Investment Services
San Antonio-New Braunfels
Read more at {Source}

 Search NewsTalk Texas