New Apartment Construction Swamping Market

New Apartment Construction Swamping Market?

Posted January 28, 2013

In Apartments, California, Columbus, Commercial, Los Angeles, Office, Santa Monica

CoStar News reports that new apartment construction at four or five times the national average for other types of commercial construction in certain markets will cause vacancies to increase.

“Apartment construction has been on a tear in certain markets,” CoStar says. “With the inventory growing at more than four or five times the national rate, vacancies will most likely increase.”

CoStar found that apartments currently under construction make up 1.4 percent of the total apartment inventory in the top 54 markets. Apartment developers are now far ahead of the developers of other property types. “New office construction makes up only 0.8 percent of the total inventory,” CoStar says. “New warehouse construction also makes up only 0.8 percent while new retail construction makes up only 0.6 percent.

CoStar wrote that new multifamily construction comprises 1.4 percent of the total in the top 54 markets in the United States and is far ahead of other types of commercial construction. Office is 8 percent, warehouse / distribution is also 8 percent and retail is 6 percent

CoStar poses the question whether multifamily construction is oddly high or every other segment is oddly low.

Commercial Real Estate

Commercial realtor

Commercial real estate with a focus on out-of-state investment property for my Southern California investors. My clients are Southern California local buyers looking for a return far better than what is available around here and that generally means out-of-state. We have expert property management, legal, and contracting services available.