VIEWS: 10 PAGES: 2 CATEGORY: Business & Economics POSTED ON: 6/26/2010
[...] 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.
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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