multifamily: real estate’s new darling · real estate’s new darling. we’ve come a long way,...
TRANSCRIPT
![Page 1: Multifamily: Real Estate’s New Darling · Real Estate’s New Darling. WE’VE COME A LONG WAY, BABY! ... Q3 2010. Q3 2015. THE MULTIFAMILY OUTLOOK IN HAMPTON ROADS VALUE ADD SHINY](https://reader034.vdocuments.site/reader034/viewer/2022042413/5f2d5b1b7b51f261b00b6bb3/html5/thumbnails/1.jpg)
Wendy DruckerManaging Director
Drucker & Falk, LLC
Multifamily: Real Estate’s New Darling
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WE’VE COME A LONG WAY, BABY!
OCCUPANCY IS UP
RENT GROWTH IS ABOVE INFLATION
NOI GROWTH IS STRONG
CAP RATES ARE LOW
NEW DEVELOPMENT IS STRONG
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HOME OWNERSHIP DECLINE
35
45
55
65
75
85
HO
MEO
WN
ERSH
IP R
ATE
(%)
Q3 2000 Q3 2010 Q3 2015
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THEMULTIFAMILY
OUTLOOK IN HAMPTON
ROADS
VALUE ADD
SHINY AND NEW
HISTORY IN THE MAKING
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VALUE ADD
55% OF APARTMENTS PRE-1980
HIGHEST VACANCY RATES
STRATEGIC RENOVATIONS AND AMENITY ENHANCEMENTS YIELDING DOUBLE DIGIT RETURNS ON A 4-5 YEAR HOLD
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SHINY AND NEW
3,000 UNDER CONSTRUCTION, 2,800 PROPOSED
SMALL SQUARE FOOTAGE, HIGH END MATERIALS AND AMENITIES
HIGH TECH, HIGH TOUCH
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HISTORY IN THE MAKING
USE OF HISTORIC TAX CREDITS
RENOVATING HOTELS, BANKS, OFFICE BUILDINGS, RETAIL
APARTMENTS OFFER HIGH END LUXURY AMID HISTORIC INTEGRITY
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KEY MARKET INDICATORS
Sup
ply Supply 96,902
Direct vacancy rate 5.75%
Under Construction 3,198
Dem
and
Net absorption 1,545+P
ricin
g
12-month overall rent % change 1%-2%
Class A Overall asking rent $1,295
Class B Overall asking rent $ 966
Class C Overall asking rent $ 806
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2016 WILL BE A VERY GOOD YEAR
DEMAND EXCEEDS SUPPLY
RENOVATE, RENOVATE, RENOVATE
BUILD IT “SMALL & SMART,” AND THEY WILL COME
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E.V. Williams Center for Real Estate2088 Constant HallNorfolk, VA 23529
www.odu.edu/business/center/creed
2016 Hampton Roads Real Estate Market Review & Forecast