CORPUS CHRISTI - In 2014, 440 units are forecast to be absorbed, up from the 120 units absorbed in 2013. Leasing activity should increase again in 2014 with the absorption of 520 units.
Deliveries are skyrocketing as 980 apartments are scheduled to come online during the next 12 months, a four-fold surge in deliveries from 2013. Deliveries will ease in 2015 as 450 units are completed.
Multifamily permit submissions are expected to increase 60.3 percent with 590 units over the upcoming four quarters. Following two years of increased permitting activity, developers should pull back requests to 270 units in 2015.
The influx of new apartments will exceed demand, pushing up vacancy 130 basis points to 5.5 percent by December 2014. Vacancy will drop 30 basis points to 5.2 percent in 2015 as fewer apartments come online.
Average asking rent will advance 3.2 percent during the next 12 months to $861 per month. With increased competition, operators will raise concessions 140 basis points to 2.2 percent of asking rents. Asking rents will grow 1.7 percent in 2015 to $876 per month. Concessions will again rise, ascending 40 basis points to 2.6 percent of asking rents.
Employment will continue to grow at a healthy clip as businesses create 5,800 positions in 2014, rising 3 percent and supporting rental demand.
Construction of TPCO America's $1 billion seamless pipe mill is scheduled to complete in the second half of 2014 across from the Port of Corpus Christi's La Quinta terminal site. This project will support 600 to 800 new permanent jobs once operational.
The Schlitterbahn's Waterpark and Resort is scheduled to open in spring 2014, and will support 400 jobs directly and indirectly. The hiring of mostly lower-wage workers will support demand among Class B/C apartment properties in the southern portions of the metro.
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