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    In the first quarter of 2010, the negative net absorption rate was approximately 155 units, bumping up the rate to 5.2%. Small rent increases continue to occur, with a rate hovering around 2.0%. Expect 2010 to end with an average rate increase around 1.0%.

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    In the first quarter of 2010, the negative net absorption rate was approximately 155 units, bumping up the rate to 5.2%. Small rent increases continue to occur, with a rate hovering around 2.0%. Expect 2010 to end with an average rate increase around 1.0%.

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    30 views1 page

    SG Research Report Apt 2Q10

    Uploaded by

    siegelgallagher
    In the first quarter of 2010, the negative net absorption rate was approximately 155 units, bumping up the rate to 5.2%. Small rent increases continue to occur, with a rate hovering around 2.0%. Expect 2010 to end with an average rate increase around 1.0%.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PDF, TXT or read online from Scribd
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    of 1

    Siegel-Gallagher | 700 North Water Street | Milwaukee, WI 53202 | 414.225.9700 | www.sg-re.

    com

    2010 Milwaukee Apartment Investor


    Q2 RESEARCH REPORT
    Milwaukee Apartment Vacancy Rate Trends and Forecasts Apartment Inventory Growth Rates Comparison
    0.35%
    8.00%

    % CHANGE IN GROWTH RATE


    0.30%
    % CHANGE IN VACANCY

    7.00%

    6.00%
    0.25%
    4Q09
    5.00% Milwaukee 0.20% 1Q10
    Midwest
    4.00% YTD Avg
    US 0.15%
    3.00%
    0.10%
    2.00%

    0.05%
    1.00%

    0.00% 0.00%
    2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Milwaukee Midwest US
    YEAR (source REIS) GEOGRAPHY (source REIS)

    Milwaukee Asking Apartment Rent Milwaukee Apartment Inventory


    $834.00 100000
    90000
    $832.00
    80000
    TOTAL SQUARE FEET

    $830.00
    70000
    $828.00
    QUARTER

    60000 Milw aukee Inventory Vacant Stock

    $826.00 50000 Milw aukee Inventory Completions


    Milw aukee Inventory Occupied Stock
    $824.00 40000
    30000
    $822.00
    20000
    $820.00
    10000
    $818.00 0
    2Q09 3Q09 4Q09 1Q10 2Q10 2Q09 3Q09 4Q09 1Q10 2Q10
    ASKING RENT (source REIS) QUARTER (source REIS)

    Points of Interest From Reis Milwaukee Net Apartment Absorption


    • T he Milwaukee apartment market is arguably the most
    stable commercial real estate sector in 2009 and 2010. 200

    • In the first quarter of 2010, the negative net absorption rate
    0
    was approximately 155 units, bumping up the rate to 5.2% 2Q09 3Q09 4Q09 1Q10 2Q10
    but this could also be attributed to seasonal weakness.
    SQUARE FEET

    -200
    • Still growing concern over the countless condominium projects that are
    nearing completion as these can easily be converted into apartment -400

    units, creating destabilization in market rents and vacancy rates.


    -600
    • Small rent increases continue to occur, with a rate hovering around 2.0%.
    • Expect 2010 to end with an average rate increase around 1.0%. Although -800
    this increase seems trivial, in a market of negative rates, this is quite positive.
    -1000

    QUARTER (source REIS)

    YOUR INVESTMENT GROUP

    Patrick Gallagher Jason Hernandez John Kuhn


    414-270-4108 414-270-4118 414-270-4105
    pgallagher@sg-re.com jhernandez@sg-re.com jkuhn@sg-re.com
    All information gathered in this report was accumulated through research agencies including Reis and Xceligent. Although we feel all of this information is accurate, please make no assumptions to its completeness.
    We do not guarantee this data and any errors or incompleteness will not hold us liable. Many thanks to Reis, Xceligent, and other agencies for their research.

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