Trends & Insights
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Trends & Insights
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At Northmarq, we are committed to offering our clients the latest trends and expert analysis to power their decision making. Our MarketSnapshot suite of reports contains critical market data covering a variety of commercial real estate property sectors. In each report, you will find: Investment sales volume data Average cap rate information Buyer distribution analysis... and more! Single-Tenant Overall Market Single-Tenant Office Single-Tenant Industrial Single- Tenant Retail Multi-Tenant Retail
San Antonio 3Q23 Multifamily Market Insights Report: Class A sales provide a spark in the third quarter
Highlights:Operating conditions in the San Antonio multifamily market softened during the third quarter, as asking rents inched lower while the vacancy rate trended higher. Developers are active, with roughly 5,900 units completed year to date and another 15,505 units under construction.The vacancy rate rose in recent months after improving slightly in the preceding quarter. Area vacancy trended higher by 60 basis points during the third quarter to 6.5%. Year over year, the rate has climbed by 150 basis points.Asking rents inched lower to $1,150 per month, but rents are slightly higher than one year ago. Asking rents have advanced 1.4% during the past 12 months after double-digit gains throughout much of 2021 and 2022.Multifamily sales activity picked up in recent months although year-to-date sales velocity is down from 2022 levels. In sales where pricing was available, the median price to this point in the year is $114,000 per unit, essentially unchanged from last year.Read the report, or engage with our San Antonio office to learn more.
December 28, 2023
Chicago 3Q23 Multifamily Market Insights Report: Vacancies hold steady as demand keeps pace with supply growth
Highlights:Market performance in Chicago stabilized in the third quarter with vacancy rates holding steady even as deliveries accelerated. Some modest improvements were recorded in Class A assets and in properties located in Downtown Chicago.Vacancy remained at 5%, matching levels from the first two periods of the year. During the past 12 months, vacancy has inched up 30 basis points.Asking rents in Chicago pushed higher in the third quarter with a rise of 1.3% to $1,853 per month. Rents inched lower at the beginning of the year but have reversed course and are on a modest upswing; year-over-year, rents have advanced by 3.5%.Sales of multifamily properties accelerated slightly in recent months, although transaction levels are still down about 40% from the 2022 pace. The median price year to date is $248,000 per unit, pushed higher by the sale of Class A properties.Read the report, or engage with our Chicago office to learn more.
December 27, 2023
St. Louis 3Q23 Multifamily Market Insights Report: Sales of top-tier properties gaining momentum
Highlights:Property fundamentals in the St. Louis multifamily market posted a solid performance during the third quarter, as vacancy held steady and asking rents continued to advance. Developers remain active in the region with more than 3,500 units underway.Local vacancy leveled off during the third quarter after posting slight upticks in the preceding three quarters. The vacancy rate remained at 4.4%, but current conditions have increased 50 basis points one year ago.Apartment rents continued to tick higher, ending the third quarter at $1,184 per month. Year over year, rents rose 4.6%.Multifamily transaction volume to this point in 2023 is down approximately 50% from levels recorded in the same period last year. In transactions where pricing was available, the median price thus far in 2023 is $106,200 per unit, up 17% from last year’s figure.Read the report, or engage with our St. Louis office to learn more.
December 21, 2023
San Diego 3Q23 Multifamily Market Insights Report: Steady construction levels supporting tight conditions
Highlights:The San Diego apartment market posted a very steady performance in the third quarter, with vacancy rates and rents essentially unchanged from midyear levels. Multifamily deliveries picked up in recent months and new projects should continue to come online through the end of the year.The local vacancy rate remained unchanged during the third quarter, finishing the period at 3.8%. Year over year, the rate rose 50 basis points.After trending higher for a period of more than two years, area rents were largely flat throughout much of the third quarter. Asking rents ended the period at $2,350 per month, closely tracking levels from the second quarter. Year over year, rents are up 2.8%.Multifamily transaction activity in San Diego remains light as deal volume so far in 2023 is well below last year’s levels. The median sales price year to date is $307,500 per unit, down 14% from the median price in 2022.Read the report, or engage with our San Diego office to learn more.
December 13, 2023
Denver 3Q23 Multifamily Market Insights Report: Vacancy steadies even as deliveries remain elevated
Highlights:Multifamily property fundamentals in Denver generally improved during the third quarter with rents pushing higher and vacancy stabilizing. Apartment developers remain active, completing nearly 9,900 units thus far in 2023.Area vacancy held steady from the second quarter to the third quarter, finishing the period at 5.4%. Year over year, the rate increased by 60 basis points.Local apartment rents rose 1.2% during the third quarter to $1,928 per month. During the past 12 months, rents have grown by 1.6%, although gains in 2023 have been occurring at a faster pace.Apartment sales activity picked up in recent months but remains well below last year’s pace. The median sales price year to date is $311,500 per unit, and prices rose in the transactions that closed in recent months.Read the report, or engage with our Denver office to learn more.
December 15, 2023
Kansas City 3Q23 Multifamily Market Insights Report: Vacancy dips, even as new units continue to come online
Highlights:The Kansas City multifamily market posted a solid third quarter, as the vacancy rate continued to trend lower while asking rents inched higher. Developers have been active, bringing roughly 3,100 units online year to date.The vacancy rate declined by 20 basis points for the second consecutive quarter. Area vacancy currently sits at 5.1%, unchanged from one year ago.Asking rents ticked higher by 0.5% during the third quarter, reaching $1,171 per month. Local rents advanced 2.8% from one year ago.Multifamily sales activity was light in recent months, lagging levels from the first half of the year. Transaction volume to this point in 2023 is down 45% from levels recorded last year. The median price to this point in 2023 is $113,500 per unit.Read the report, or engage with our Kansas City office to learn more.
December 14, 2023
Los Angeles 3Q23 Multifamily Market Insights Report: Supply outpacing demand in 2023
Highlights:The Los Angeles multifamily market softened during the third quarter as vacancy rates ticked higher and asking rents inched lower. Apartment developers remain active with a steady flow of new projects expected to come online through the end of the year.The local vacancy rate continued to tick higher during the third quarter, rising 20 basis points to 4.2%. Year over year, the rate increased by 70 basis points.Asking rents dipped during the last three months after jumping in the previous quarter. Local rents fell 0.3% during the third quarter to $2,440 per month. Despite the recent decline, apartment rents are up 3.5% from one year ago.Multifamily sales activity in Los Angeles continued to slow in recent months as the number of deals to this point in the year is down more than 50% from the same period in 2022. The median sales price year to date is $283,400 per unit while cap rates are averaging around 5%.Read the report, or engage with our Los Angeles office to learn more.
December 14, 2023
Dallas 3Q23 Multifamily Market Insights Report: Sales velocity picks up spurred by economic growth
Highlights:Vacancies were flat and rents ticked higher in Dallas-Fort Worth in the third quarter. Renter demand is being fueled by rapid growth in the local labor market, and developers are meeting heightened demand by delivering new rental properties.Vacancy held steady at 6.6% in the third quarter, although the rate has risen 160 basis points during the past 12 months. The bulk of the increase occurred in the final few months of 2022, and vacancy levels have been mostly flat throughout much of this year.Rents inched up to $1,552 per month, slightly higher than at midyear and 0.8% higher than one year ago. Rents are expected to advance by about 1% per quarter for the next few periods.Transaction counts are down from 2022 levels, but sales velocity has gained some momentum in each of the past two quarters. In transactions where pricing is available, the median price reached $156,300 per unitRead the report, or contact our Dallas office to learn more.
December 7, 2023