Regions West | San Diego
May 28, 2008
The San Diego apartment market will continue to post relatively tight fundamentals in 2008, though some threats will linger, such as failed conversions and unsold condos competing for space demand, according to a first-quarter apartment research report by Marcus & Millichap. With the condo conversion trend having reached an end, many unsold condo units are returning as high-end rentals and competing with traditional apartment properties. Builders are anticipated to complete approximately 990 rental units. Vacancy is projected to end the year at 4.5 percent. Asking rents are forecast to increase 2.9 percent to $1,336 per month. Effective rents will advance to $1,297 per month, an increase of 2.9 percent. Gaylord Entertainment plans to build a $1 billion hotel and convention center in Chula Vista. Additionally, apartment fundamentals will remain strong in San Francisco this year, buoyed by low housing affordability, but the pace of economic growth will slow and rent gains will ease, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.the report. Towering construction costs will restrict construction and allow owners to step-up rents in 2008. Vacancy is forecast to end the year at 4 percent. Asking rents will end the year at $1,958 per month, an increase of 5.2 percent. Effective rents will reach $1,851 per month, a gain of 4.9 percent.
The San Diego apartment market will continue to post relatively tight fundamentals in 2008, though some threats will linger, such as failed conversions and unsold condos competing for space demand, according to a first-quarter apartment research report by Marcus & Millichap. With the condo conversion trend having reached an end, many unsold condo units are returning as high-end rentals and competing with traditional apartment properties. Builders are anticipated to complete approximately 990 rental units. Vacancy is projected to end the year at 4.5 percent. Asking rents are forecast to increase 2.9 percent to $1,336 per month. Effective rents will advance to $1,297 per month, an increase of 2.9 percent. Gaylord Entertainment plans to build a $1 billion hotel and convention center in Chula Vista. Additionally, apartment fundamentals will remain strong in San Francisco this year, buoyed by low housing affordability, but the pace of economic growth will slow and rent gains will ease, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm.the report. Towering construction costs will restrict construction and allow owners to step-up rents in 2008. Vacancy is forecast to end the year at 4 percent. Asking rents will end the year at $1,958 per month, an increase of 5.2 percent. Effective rents will reach $1,851 per month, a gain of 4.9 percent.
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