"Given the number of new additions to the inventory for the last three quarters, the increase in the vacancy rate was not unexpected," said von Stroh, who creates the quarterly report sponsored by the Apartment Association of Metro Denver and others. "However, historically there is generally a downward movement in the vacancy rate during the third quarter. There were more units rented this quarter and also more units vacant this quarter due to the significant number of new additions."
Buildings with more than 350 units have the highest vacancy rate at 9.5%, but that was from 10.5% in the second quarter. The average rental rate decreased to $807.71, down from $827 a year earlier and a drop of $2.64 from the second quarter of 2002. The average rents do not include discounts and concessions, which in the third quarter averaged 7.5%, up 0.1% from the previous quarter, according to von Stroh's study.
About 1,360 new units were added to the rental inventory in the third quarter. The market showed positive absorption of 963 units in the third quarter of 2002.
© Touchpoint Markets, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more inforrmation visit Asset & Logo Licensing.
