Luxury MF Builds Pressure Rents Overall


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About 80% of 2014’s apartment deliveries were in the upper tier of market rents, says CBRE.

LOS ANGELES—As the trend toward luxury development in multifamily has spread outward from the Texas cities where it began some 10 or 12 years ago, the rate of upward pressure on rents has varied from market to market, and building to building. For investors who know when and where to go in, the rent growth offers opportunities, CBRE Group says in a new report.

About 80% of the 179,000 apartments that were delivered to 62 US markets in 2014 carried rents in the top 20% of their respective markets, CBRE says. This is part of a shift that has taken place since 2006: over time, those cities that had relatively high new construction premiums nine years ago no longer have them today, while relative latecomers to the luxury development trend continue to command those premiums…

Luxury MF Builds Pressure Rents Overall

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