October 2013 • Vol. 50 No. 10
The Official Publication of the Arizona MultiHousing Association
Phoenix Rents Up, Vacancies and Concessions Down By Pete TeKampe, Marcus & Millichap The April issue of Apartment News reported ‘Valley Rents Set to Increase’; subsequently, Phoenix area rents posted their fourth consecutive YOY rental increase and the period marked the fourteenth consecutive quarter in which area vacancies were lower than the same quarter of the prior year. Second quarter 2013 was also the thirteenth consecutive quarter in which concessions declined over the same period of the prior year. “The April issue of Apartment News reported ‘Valley Rents Set to Increase’; subsequently, Phoenix area rents posted their fourth consecutive YOY rental increase.”
RENTS In second quarter 2013, Phoenix area rents stood at $760, up $13 compared to second quarter 2012. In the last three Trends updates, future rental increases were forecast. Previously, Trends reported that ‘rental rate increases will be augmented and potentially accelerated by the demand manifested in the latest eviction information.’ As of the writing of this article, all indicators are pointing toward increasing rental rates in theremaining two quarters of 2013. Highest Submarket Rents in Second Quarter 2013 North Scottsdale/Fountain Hills........$978 South Scotsdale......................................$937 North Tempe...........................................$893 Chandler..................................................$892 North Paradise Valley...........................$891
North Scottsdale/North Scottsdale/Fountain Hills claimed the top spot in terms of highest rents in the metro area with rents of $978. This
Fairytales Come True with BHLH
By AMA
F
or the kids at UMOM, some fairy tales did come thru because of the creativity and generosity of the AMA members during the annual Bowl a Thon. Dr. Seuss characters stepped out of children’s books and on to the bowling lanes at Christown in late August during the Big Hearts for
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Little Hands event that drew nearly 300 attendees. An oversize storybook set the scene for the lively afternoon as costumed teams competed for best dressed. Forty seven lanes were filled with competing teams but the real fun was had in front of the scene created by Kowalski Construction where everyone posed Continued on page 10
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rental rate is $38 higher than the average rent recorded for the submarket in second quarter 2012 and it was accompanied by a half of a percentage point increase in vacancy over the same time. New construction in the area is bolstering rental rates and increases in vacancy are likely in the near- and intermediate terms as the area absorbs the newly constructed units. South Scottsdale was ranked second in the high rent category for the period posting the Valley’s largest percentage rental increase since second quarter 2012. Chandler rents stood at $906 during second quarter 2013, breaking the previous high rent record for the submarket of $905 set in third quarter 2007. Lowest Submarket Rents in Second Quarter 2013 Central Black Canyon...........................$575 West Central Phoenix............................$581 Metrocenter.............................................$620 West Phoenix .........................................$622
Central Black Canyon and West Central Phoenix were the only two submarkets with rents below $600 in second quarter 2013 and each had respective increases of $10 and $5 over second quarter 2012 levels. Vacancies in these submarkets are relatively high, however, as demand for affordable rental housing within proximity of employment and transportation increases, vacancies in these submarkets will mollify and the areas will see modest rent growth. VACANCY Valley vacancies during second quarter 2013 stood at 8.4 percent, compared to 9.2 percent recorded in second quarter 2012. Second quarter 2013 was the fourteenth consecutive quarter that vacancies were lower than the same period of the prior year. From second quarter 2012 to second quarter 2013, 63 percent of Continued on page 3
Partner Spotlight Kowalski Construction By AMA
E
vents like the Bowl a Thon bring together hundreds of AMA members to network and get to know each other as a team. The Big Hearts for Little Hands program often creates specially themed event to corporate teams can come together to “brand” themselves and have fun with coworkers. Jim Kowalski, president of
Kowalski Construction, has earned an impressive reputation as a great industry partner and a champion for UMOM and Big Hearts for Little Hands. His Kowalski team repeatedly, and deservedly win costume, theme and spirit awards at AMA events. We asked Kowalski, AMA’s Industry Partner of the Year 2012, what opportunities he sees for his company at these events. What are some of your favorite Continued on page 4