International economic factors may interfere with the commercial multifamily industry this year, according to experts.
Aside from slowing overall economic growth, experts say trouble in European economies could impede job growth in the U.S., National Real Estate Investor reports. Retail and other commercial property types are recovering slowly, while the apartment market continues to lead the national improvement. National average fundamentals are improving, and data firm Reis reported effective rent growth in 82 metro areas.
The only exception was Fairfield County, Connecticut, in which rents fell slightly. Even there, the vacancy rate was 4.7 percent. Rental property management firms and owners should have a profitable year, the news source suggests. Average apartment vacancies have been the strongest since 2001, dropping below 5 percent during the first quarter.
Americans' lack of enthusiasm for homebuying continues to contribute to the success of the multifamily market, despite increased competition from single-family rentals and accelerated construction in certain metro areas. This could allow investors and stakeholders to expand their operations in a number of areas, rather than adopting a cautious approach and sticking to core markets.