Heating up the market by ProQuest

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[...] Ladell predicted that echo boomers (those between 20 and 30 years old) "will look for rental housing more than for for- sale housing." Layoffs in the financial services and pharmaceutical industries hurt the state's rental housing market, but landlords have kept vacancies low by offering concessions on rent, security deposits and amenities, according to Cushman & Wakefield's Multifamily Overview report.

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									                                                                                 Real Estate




                                                                                                                                                                                                                                        Christina Mazza
   Heating up the market                                                                                                                                                             Multifamily properties
                                                                                                                                                                                     o er multiple bene ts
                                                                                                                                                                                     to property owners

The market for multifamily properties is encouraging AvalonBay to start a project in West Long Branch, said Ronald Ladell, vice president of development, standing before a fireplace in the leasing office of a Lyndhurst property.



                   BY SHANKAR P.                            and Freddie Mac, which are ensuring credit by boomers (those between 20 and 30 years old)                                Layoffs in the financial services and phar-
  MORE INVESTORS ARE finding multifam-                      actively securitizing home mortgages, he said.      “will look for rental housing more than for for-               maceutical industries hurt the state’s rental
  ily portfolios attractive, as they bring robust                The credit tightening that followed the sale housing.” Cushman & Wakefield’s Brian                            housing market, but landlords have kept vacan-
  occupancies and should feel the effects of eco-           subprime crisis will drive more demand to Whitmer wrote in his firm’s Fall 2009 Multifam-                          cies low by offering concessions on rent, security
  nomic recovery faster than other commercial               rental housing if employers resume hiring, ily Overview report, “Young mobile corporate                            deposits and amenities, according to Cushman
  real estate property types, executives said.              which could start late                                                       professionals will also               & Wakefield’s Multifamily Overview report.
         Increasing investor interest in the “strong”       next year, said Ronald                                                       gravitate towards this                      Land constraints also kept vacancies low
  multifamily market “is a trend,” said Jose Cruz,          Ladell, vice president
                                                                                        “Historically, [multifamily] has choice, as job uncer-                                 in the Hudson Waterfront — the region that
  executive director in charge of multifamily sales         of development at              been proven to be the rst                     tainty will persuade                  was the epicenter of the multifamily housing
  at real estate services firm Cushman & Wake-              AvalonBay Commu-              sector to recover; it is a more                them from planting                    boom in the past decade, the report said.
  field, in East Rutherford. However, although              nities Inc., in the Iselin            exible option than                     permanent roots with                        Ladell said that in addition to jobs growth,
  capital is available to fund that investor appe-          section of Woodbridge.                                                       a house.”                             2010 will also bring supply constraints in rent-
  tite, the deal flow is slow, as not all institutional     The luxury apartment
                                                                                            single-family housing is.”                         AvalonBay now                   al housing. Multifamily housing
								
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