VALLEY
Professional Publishing, Inc www.TheLandlordTimes.com
Vol. 17 Issue 2
February 2013
EUGENE • SALEM • ALBANY • CORVALLIS
MONTHLY CIRCULATION TO MORE THAN 5,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL Published in association with: METRO Multifamily Housing Association & Rental Owners Association
Multifamily Markets Albany and Corvallis
By Anita Risberg, CCIM Senior Broker, HFO Investment Real Estate, Apartment Specialist Demand for apartments has brought the developers back into the market. Albany and Corvallis have a number of new construction project either proposed or permitted for this coming year. Albany has a vacancy factor under 5% and currently Corvallis is reporting “negative” vacancy with waiting list on many properties. Albany Update Albany currently has a 90-unit apartment complex permitted and ready for construction on 34th and Hill. There is a proposed 120 unit development in North Albany at North Albany Rd. and Hwy 20, near Continued on page 4
Expansion Moderates for Apartment Markets in January After a seven-quarter run, expansion moderated for apartment markets according to the National Multi Housing Council’s (NMHC) January Quarterly Survey of Apartment Market Conditions. For the first time since 2010, two of the four indexes – Market Tightness (45) and Sales Volume (49) – dipped below 50, though just barely. The two financing indexes show continued improvement for the 8th consecutive quarter, as the Equity Financing (56) and Debt Financing (57) Indexes remained above the breakeven level of 50. “The pace of improvement in the apartment industry is moderating, but the expansion remains solid,” said Mark Obrinsky, NMHC’s Vice President for Research and Chief Economist. “Lease-up demand is seasonally weak in January, which would fully explain the small drop in the Market Tightness Index. Beyond
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that, markets were quite tight three months ago, and remain tight today. New construction has picked up considerably since its 2009 low, but is still playing catch-up with the increase in demand for apartment residences.” Key findings include: Financing remains constrained to top markets. Only 12 percent reported construction financing as available for all types of apartments in all markets. Similarly, slightly more than a quarter (28 percent) thought acquisition financing was available for all properties in all markets. For both construction and acquisition financing, 43 percent of respondents indicated that capital was available for primary markets but constrained in secondary and tertiary markets. Market Tightness Index declined to 45 from 56. The change ends an
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11-quarter run for the index at 50 or higher. Fifty-nine percent of respondents said that markets were unchanged, reflecting stable demand conditions. One quarter of respondents saw markets as looser, up from 14 percent in October, while 16 percent viewed markets as tighter. The Sales Volume Index decreased slightly from 51 to 49. Nearly half (47 percent) of respondents said that markets were unchanged, reflecting stable demand conditions. One quarter of respondents saw markets as tighter, with nearly the same (26 percent) indicating looser markets. The Equity Financing Index remained unchanged at 56. This reflects the 14th quarter in a row with the index above 50. Approximately two-thirds (68 percent) viewed equity financing as unchanged, while 20 percent of respondents thought equity financing was more available and only 8 percent indicated equity financing was less available. Debt Financing Index declined from 65 to 57. Seven in ten (71 percent) reported conditions as unchanged, and only 6 percent believed that borrowing conditions for debt financing had worsened – the eighth consecutive quarter in the Continued on page 7
Name Change to Better Represent Membership of the Southern Willamette Valley
Portland, Oregon: At a recent strategic planning meeting, the Board of Directors of Metro Multifamily Housing Association revealed the name change to Multifamily NW. This name change better reflects the current and future membership and work of the association. The new name was chosen to retain the association’s brand equity while more broadly representing the industry’s varied and changing business climate. “Making the change to ‘Multifamily NW - The association promoting quality rental housing’ retains our brand and accurately reflects the growth and work of our membership,” states Immediate Past Board President Jeff Denson. “It builds on our collective strength and will also make our individual businesses stronger in the long term. Continued on page 7 Page 2
PRESIDENT'S MESSAGE Page 4
A MESSAGE FROM YOUR PRESIDENT …