Berkadia: El Paso apartments 2Q 2015

EL PASO – In the last five years, absorption averaged 320 apartments. So far this year, renters occupied 100 additional apartments. During the same period in 2014, there was negative net absorption of 170 units.

In the first half of this year, builders completed approximately 150 units among the Santi Dwellings at Montecillo apartment community in northwest El Paso and The Quest at Edgemere development in northeast El Paso.

Completions in the first six months of this year were down 47.6 percent compared to first half 2014.

Over the next six months, 180 additional apartments are expected to be delivered metrowide.

Metrowide vacancy rose 40 basis points since the end of first quarter. Despite the recent increase, the rate was down 20 basis points from mid-2014, to 7.7 percent in June of this year.

The annual decline in vacancy was fueled by leasing activity that outpaced completions by 22 percent.

Market rent decreased 0.3 percent from mid-2013 to mid-2014. During the most recent four quarters, however, asking rents appreciated 1.3 percent to $796 per month.

Meanwhile, effective rents advanced at a slower rate, a 1 percent increase to $781 per month, as concessions edged up from 1.7 percent to 1.9 percent of asking rents.

Source: Berkadia

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