MF Occupancy Erodes in Urban Cores

DALLAS—The steady pace of apartment deliveries in urban submarkets during 2013 has made inroads on occupancy in those submarkets as of this year’s first quarter, Axiometrics Inc. said Friday. Although the multifamily data firm noted an uptick in the occupancy rate nationally over the past two months, it’s expecting the erosion of occupancy in urban core submarkets to continue throughout the year.

“The occupancy decrease within these urban cores isn’t surprising, especially given the amount of new supply coming to the market,” says Jay Denton, VP of research with Dallas-based Axiometrics. “These submarkets will likely continue to see occupancy drop throughout 2014 in the face of increasing supply.”