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Market Reporting that Matters

Some New Properties Increase Lease Concessions

Up to Two Months' Free Rent in Some Areas

By Jay Denton | Friday, October 28, 2016

One sign of a moderating apartment market is an increase in lease concessions. And in many markets — especially those experiencing steep declines — owners of lease-up properties are offering potential residents up to two months' free rent to boost their occupancy. In other markets, these generous concessions are generally concentrated in the urban core.

Here's a look at concessions nationwide:

You see the red dots concentrated in center-city areas. Houston is a prime example. 

The bulk of the red dots are in the Montrose/River Oaks subdivision, which has a ton of new supply in a negative-rent-growth market.

But in metros with strong rent growth, such as Seattle and Southern California, potential residents are unlikely to get the maximum benefits.

Very few red dots in these areas...in fact, Southern California renters are lucky to get even one month's free rent.

As the weaker markets regenerate over the next couple of years, the red dots will become less prominent, and the yellow and green dots will return to dominance.

Jay Denton

Jay Denton

SVP Analytics

Jay Denton leads Axiometrics’ analytics team of economists and researchers. Denton’s many accomplishments, combined with a devotion to cutting-edge data, have been invaluable in his direction of Axiometrics’ research and analytics development platform.

Denton and his team provide incisive statistics and exceptional analytics that assists clients in making productive and profitable investment decisions when it comes to buying, selling, building and owning apartment and student housing properties.

As one of Axiometrics’ pioneers, Denton helped grow the company into a nationally recognized market research firm known for its trusted and unspoiled apartment market and student housing solutions. Throughout his tenure, Denton has introduced and perfected state-of-the-art research methodologies, processes, products and scheduling to help ensure the quality, consistency and timeliness of the information collected. Much of Denton’s innovations became the gold standard by which other companies endeavored to duplicate.

Denton works closely with Axiometrics clients—ranging from REITs, to large owners and operators, to high net-worth syndicates—on areas including acquisition and development studies, supply and demand forecasts and market selection.

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