multifamily housing
Multifamily market also struggling
(PHILLY.com) - Multifamily housing is where commercial and residential real estate cross paths. So it should come as no surprise that the same financing problems that office- and retail-property owners struggle with are being faced by developers of rental apartments and condo buildings.
“No city has gone unscathed in the last 18 to 20 months,” said New York developer Don Monti, who focuses on downtown revitalization.
But he said he believed that financing for rental properties was available to “aggressive” developers, “since rental is the last market to go and the first to come back.”
When demand shrinks, as it has over the course of the current recession, there is a danger that too many units will be built. Rising unemployment remains the main cause of vacancies in the Philadelphia region.
At the end of the third quarter, the metro Philadelphia apartment-vacancy rate was 6.2 percent, compared with 4.1 percent a year earlier, according to the real estate consulting firm Delta Associates.
Thirty-four hundred more units are to be completed in the next 36 months, and that may help boost the vacancy rate, Delta’s report said.
Discussion
No comments for “Multifamily market also struggling”
Post a comment