We work in a firm that is predominantly a leasing brokerage. If you want to find out how the economy is really working, leasing is a true indicator. Lease up is generally happening for the wrong reasons, either because a better lease rate is going there, a sub lease, or a smaller space.
Paradoxically, the nationwide apartment market continues on a steady recovery. Effective rents increased or remained unchanged from last quarter in 29 out of 30 markets, as is occupancy. Decreasing cap rates followed the reduction in interest rates and increased buyer activity, while new construction was virtually nonexsistent.
San Francisco Bay Area Multi-Family parallels the nationwide market.
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