AvalonBay’s Size Advantage

AvalonBay Communities has a history of steady development and this current cycle is no different. What is different, though, is the advantages the REIT has in a market where capital has become more expensive and very selective: namely a strong balance sheet and access to capital. Simply put, it has an advantage in access and the cost of capital compared to other firms and while its own capital is also more expensive its incremental competitive advantage increases more in a more challenging environment.

“We leverage that advantage by continuing to work on projects through down cycles and matching funds for all development,” Scott H. Fishbone, vice president of development for AvalonBay Communities, tells GlobeSt.com. In other words, its current development is being funded with capital at yesterday’s pricing.