The rental rates will likely go up from 2% to 3% in the next year or so. One reason is asoftening in the market. Although the vacancy rates are reported to be in the 1.5% to 2.5% range, Appert thinks the actual range is more likely in the 3% to 5% range.
"Some owner/managers have reported vacancies in the 8% to 10% area for certain properties," Appert says.
Meanwhile, Tom Cooper, co-partner in Minnesota Brokerage Group, says vacancy rates will likely to be highest in the higher-ended properties, which will be more likely to feel the effects of new construction and tenants who buy their own homes.
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