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Comments
This is exciting news for the CRE market in TX! How do you think annual effective rent growth will affected in the period prior to new construction initiatives that come on line?
Posted by schwartzd06 | Friday, November 30 2012 at 12:16PM ET
This is exciting news for the CRE market in TX! How do you think annual effective rent growth will be affected in the period prior to new construction initiatives that come on line?
Posted by schwartzd06 | Friday, November 30 2012 at 12:16PM ET
P.S.
Amy Wolff Sorter, I tried to message you but your email awsorter@alm.com bounced back. Is there an alternate way to contact you?
Posted by schwartzd06 | Friday, November 30 2012 at 12:17PM ET
Hi David -- in answer to your question about ERG in Texas, it's a somewhat mixed bag. In sitting in on earnings calls, I'm hearing that the multifamily REITs here have been able to push rents somewhat aggressively without much loss of occupancy. But other trends, such as affordable single family residences, are starting to siphon off renters. As you probably know, Texas wasn't impacted nearly as much as the rest of the country when it came to the recession, so its home prices and sales weren't as poorly impacted. My prediction, at least though 2013, is to expect effective rent growth to increase, especially among class A properties. I think we'll start to see a tapering off of that, however, at the end of 2013 and into 2014, especially as more units come online and more renters opt to own. It'll be gradual though.
Posted by Amy Wolff Sorter | Friday, November 30 2012 at 12:30PM ET