Houston Apartment Overview

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The Houston area multifamily sector posted positive changes in all key metrics in the month of October. Although absorption declined in comparison to the previous month, overall occupancy increased by 0.05% points; Class A properties recorded the highest occupancy at 91.63%. Overall average rental rates increased both on per unit and per square foot basis.

Class A properties registered the largest increases, recording a positive change of $1.64 per unit and $0.002 per square foot. The construction pipeline reduced significantly over the last month, the lowest figure in over two years. With just over 20% of the construction pipeline pre-leasing, there should not be a major impact on the overall metrics from delivering units during the coming month.

Houston apartment market occupancy increased 0.05% points over the adjusted figure of the previous month to 87.09%. Occupancy is up 0.84% points over the last year. Average rents per square foot increased by $0.001 in October, and are up $0.004 over October 2009. Average rent per unit increased $0.95 in October to $766.21, which represents an annual increase of $7.16. Monthly absorption was positive 452 units, while annual absorption (rolling twelve months) totals positive 10,809 units.

The Market Research and Consulting division of O’Connor & Associates provides information necessary to make decision to commercial real estate professionals. Occupancy and Rental Data, ownership and management information are routinely gathered for four major land uses – multifamily, office, retail and industrial. This information allows investors to compare competitive properties, facilitate business decisions and track market and submarket performance.

In addition the data is useful to brokers who for example continually monitor Houston retail space leasing, Houston office space leasing, Houston industrial space leasing, Houston apartments, Dallas apartments, Ft. Worth apartments, Austin apartments, and San Antonio apartments.

This capacity to research, analyze and interpret market trends and the impact of specific transactions is a major reason for why developers and acquisition experts rely on O’Connor & Associates for real estate market research, real estate market studies, market studies, feasibility studies, rent studies, tax credit studies, project design guidance, property performance evaluation and lease audits. O’Connor & Associates is an acknowledged source of trends in real estate investing and market activity.

Patrick C. O'Connor has been president of O'Connor & Associates since 1983 and is a recipient of the prestigious MAI designation from the Appraisal Institute. He is also a registered senior property tax consultant in the state of Texas and has written numerous articles in state and national publications on reducing property taxes. He continues to set the standard in direction and quality of our appraisal products, adding services ranging from business valuations and business appraisals to cost segregation analysis for income tax reduction. For more information please www.poconnor.com today!

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