Apartment Leasing is Coming Back to Life

Apartment Leasing is Coming Back to Life

Results for the third quarter appear positive, though other metrics for apartments activity were mixed.
By Rayna Katz | October 02, 2020 at 07:18 AM

Apartment leasing appears to be on the rebound.

The indicator showed signs of improvement in the third quarter, according to a new report from RealPage, and other recent data also showed healthy activity in the space, possibly pointing up the beginnings of recovery for the second half of 2020.

Greg Willett, chief economist at the real estate technology and analytics firm expressed cautious optimism. “While the US economy has a long way to go before it’s fully healed, there’s enough job production to allow new household formation to return in some areas, so apartment demand is back,” he said in prepared remarks.

Occupied apartments climbed by nearly 147,000 units, outpacing absorption in the second quarter by more than four times. Even more promising, demand in Q3 increased by 8% year-over-year.

This research comes on the heels of AppFolio data that also found improvement in apartment leasing after the first six weeks of the pandemic, following a sharp decline during the early days of COVID-19’s arrival in the US.

“At the outset of the pandemic, as people adjusted to stay-at-home orders and physical distancing mandates across a number of states, our early data suggested a significant decrease in lead volume,” said Stacy Holden, industry principal and director. “However, after about six weeks, leasing activity largely rebounded to expected levels. People still want to move to places that meet their needs.”

Societal trends, such as the surge in both working from-home and remote learning, also drove leasing up. “With many people having had the ability to work remotely this year, the need to live close to the office may have diminished for some,” she explained.

Still other metrics for recent apartment activity paint a mixed picture.

US effective asking rents as of the third quarter are off 1.2 percent from the rates seen a year earlier, according to RealPage. More recently, the ApartmentList reported that rents have dropped in nearly half of the nation’s top 100 markets.

Originally posted on GlobeSt.com

We provide a service that is second to none.
We understand that each property is unique and that a one-size-fits-all approach to property management is ineffective. We have a knowledgeable team of property management experts with experience and understanding. Placing ourselves in the shoes of a landlord, we find savings and solutions that will improve or maintain asset value, retain tenants and identify cost efficiencies. Our goal is to achieve maximum returns for our clients by improving cash flow and adding value over the life cycle of the property.

As a part of the SVN network, we are highly connected through a culture of collaborations, from property management companies, maintenance companies, residential real estate and even pest control in San Diego. These partners inform us on best practices being implemented nationwide. SVN has approximately 41,000,000 square feet of commercial properties under management, along with more than 25,000 multifamily units and 4,800 student housing beds. This places us within the top 10 firms in the nation according to Commercial Property Executive magazine.

Contacts us online or by phone for details.

San Diego Retail Property for lease
SVN Vanguard
San Diego commercial rental property
San Diego commercial office
4455 Murphy Canyon Rd
Ste 200
San Diego, CA 92123
License # 01881593
Phone Number
San Diego commercial office
450 S Melrose Dr
Vista, CA 92081
San Diego commercial real estate listings
San Diego commercial lease

©SVN Vanguard | SAN DIEGO| All SVN® Offices Independently Owned and Operated