Investor interest remains strong even as vacancy rates are expected to rise from 7.5% at the beginning of 2002 to 8% at year's end, Marcus & Millichap predicts. Meanwhile, the company predicts sales prices will edge up 1.5% from the current $66 per sf, which is up 10.5% over the last four years.
Rents are predicted to increase by 2% to 2.5%, Marcus & Millichap predicts, with suburban submarkets expected to outperform the city. Asking rents now average $650 per month, according to the firm.
Although 400 units will come on the market, construction activity has been conservative, according to Marcus & Millichap's recent report.
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