CHICAGO-The time is now to increase apartment rental rates, according to Equity Residential executives during their first quarter conference call Thursday. The Sam Zell-led REIT, which owns 427 properties and may bid $1.5 billion for a share of Denver-based Archstone, said the lost leases will be replaced by renters who can afford the higher rates.

The locally based trust reported revenue growth of 5.5% and net operating income growth of 7.8% in the first quarter, but admitted it faced resistance to price increases in its core markets. “We believe trading some occupancy or holding those higher rates is actually a good strategy at this point in the cycle,” said Fred Tuomi, president of property management, during the call. “As we enter the leasing season, we fully expect and begin to see a recapture of that occupancy at those higher rates. New residents still showed no problem at accepting and achieving these new rates.”

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?


NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.