MADISON, Wis., May 13, 2008 — Despite a cooling economy, Madison’s apartment fundamentals will improve this year, supported by a lack of development activity and continued softness in the residential for-sale market, according to a first-quarter Apartment Research Report by Marcus & Millichap, the nation’s largest real estate investment services firm. Lack of new stock has caused four consecutive quarters of healthy occupancy improvements, with current market conditions some of the tightest of the past several years.
“Madison’s apartment investment market is showing signs of increasing investor interest, supported by tightening conditions that will likely lead to healthy revenue growth and potential appreciation,” says Matthew Fitzgerald, regional manager of the Madison office of Marcus & Millichap.
Following are some of the most significant aspects of the Madison Apartment Research Report:
Employers are expected to expand payrolls by 0.6 percent, or 2,100 positions.
Developers are projected to deliver approximately 450 units to inventory in 2008.
A reduction in new stock, coupled with growing tenant demand, will cause vacancy to decline 60 basis points to 5 percent this year.
Asking rents are expected to rise 2.2 percent to $802 per month in 2008.
During the past 12 months, revenue has increased by roughly 2 percent.
For a copy of the complete Madison Apartment Research Report, as well as reports on other markets nationwide, visit our website at www.MarcusMillichap.com.