CINCINNATI, May 2, 2008 — The supply/demand balance in Cincinnati will remain relatively stable this year, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. In the Class A sector, infill assets near major employers will continues to perform well, attracting young professionals that have been priced out of the high-end condo developments along the riverfront.
“Impressive revenue gains and favorable cap rates will drive investment activity in the metro this year, despite weakness in the local economy,” says Greg Moyer, regional manager of the Cincinnati office of Marcus & Millichap.
Following are some of the most significant aspects of the Cincinnati Apartment Research Report:
Builders are predicted to bring 200 units to the apartment inventory this year.
Vacancy is forecast to end the year at 7.3 percent.
Asking rents are forecast to tick up 2.3 percent to $708 per month, while effective rents will advance 2.6 percent to $670 per month.
The educational and health services and leisure and hospitality sectors have maintained steady growth, creating 2,400 positions and 500 positions, respectively, during the last year.
In 2008, local investors with in-depth knowledge will be the primary buyers of lower-tier properties, where the opportunity to grow rents is greater due to lack of competition with the single-family housing market.
For a copy of the complete Cincinnati Apartment Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.
With more than 1,300 investment professionals in offices nationwide, Encino, Calif.-based Marcus & Millichap Real Estate Investment Services is the largest commercial real estate brokerage in the nation focusing exclusively on real estate investments. In 2007, the firm closed $20.7 billion in transactions. Founded in 1971, the firm has perfected a powerful system for marketing properties that combines product specialization; local market expertise; the industry’s most comprehensive research and analysis capabilities; state-of-the-art technology; and established relationships with the largest pool of qualified investors nationally.