Marcus & Millichap report: Hope for Cincinnati multi-family market
May 11, 2010 | Dan Rafter | Print Article | Email this Article
Hope has been in short supply lately when it comes to commercial real estate. The Cincinnati multi-family market, though, is showing signs of life, at least according to the latest research report from Marcus & Millichap.
According to the company’s 2010 Cincinnati apartment report, the city’s apartment market in early 2010 entered its third consecutive year of declining rents and vacancies. That may not sound like good news, but the declines in both rents and vacancies aren’t nearly as steep as they were in 2009.
That’s reason for hope. The numbers suggest — and they suggest this in many Midwest markets, not just Cincinnati — that the multi-family market here has already made it through the worst.
As for the numbers, they shake out like this: The vacancy rate for Cincinnati apartments will rise 40 basis points by the end of the year, ending 2010 at 8.4 percent, according to Marcus & Millichap’s report. That may not seem like particularly good news. But when you consider that the multi-family vacancy rate rose 120 basis points in 2009, this year doesn’t seem quite so bad.
Asking rents in Cincinnati are forecast to slip 0.9 percent to an average of $636 a month this year, while effective rents will fall 1.7 percent to $639 a month. Again, this is an improvement over 2009, when asking rents fell 2.5 percent and effective rents 3.3 percent.
Tags | Cincinnati, Marcus & Millichap, multi-family
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