… Greensboro/Winston-Salem is the key locale in the region where the performance is, in fact, not so hot.
That comparative weakness shows up a bit in terms of occupancy. As of 3rd quarter, apartment occupancy in the Triad stood at 93.1 percent. While that was about in line with the results posted in Columbia and Memphis, it was roughly 200 basis points or more under the occupancy rates across Charleston, Charlotte, Greenville/Upstate, Knoxville, Lexington, Louisville, Nashville and Raleigh.
Greensboro/Winston-Salem’s lackluster showing is even more pronounced in the rent growth metric. Effective rents for new leases moved up just 0.9 percent during the year-ending 3rd quarter in the Triad. Annual rent growth approximately doubled that in Knoxville and Memphis, and the region’s other notable markets all realized much, much stronger pricing jumps at least near 4 percent and up to whopping levels near 6 percent in Charlotte and Louisville…
With near-term job expansion anticipated to look only a little better than it does right now, Greensboro/Winston-Salem seems apt to remain among the weaker apartment sector performers in the region.
From the MPF Research report page for the Triad referenced by PMI:
The Triad area absorbed 439 units in 3rd quarter, while 293 units were estimated to have completed. That brought occupancy up a mere 0.3 points in the typically stronger 3rd quarter leasing period. Annually, demand topped supply, 1,307 units to 1,126 units, taking occupancy up 0.4 points to 93.1%. That put Greensboro/Winston-Salem in a tie with Tulsa for the 10th-weakest occupancy rate among the nation’s core 100 markets. With vacancies still problematic almost across the board in the Triad area, apartment operators haven’t achieved much rent growth. Same-store rental rates climbed just 0.9% year-over-year. That marked two straight quarters of annual rent growth under 1%. Of course, the key problem is that the Triad economy is still ailing. Employment growth is coming, but at a slow pace – with just 4,100 jobs added in the past year. Source MPF Research, www.mpfresearch.com