Oc­cu­pancy, rents climb in Sept.

Apart­ment mar­ket­place tight, ‘con­sis­tently sta­ble’

Albuquerque Journal - - BUSINESS - BY STEVE SINOVIC JOUR­NAL STAFF WRITER

Oc­cu­pancy rates and rents were up in Septem­ber, ac­cord­ing to the lat­est apart­ment mar­ket re­port.

De­scribed as a mar­ket that is con­sis­tently sta­ble, the av­er­age rent price in Al­bu­querque, which in­cludes both mar­ket-rate and af­ford­able units, in­creased 3.3 per­cent over the year, from $799 to $823 in Septem­ber of this year, with all unit types show­ing gains. The mar­ket oc­cu­pancy rate of 95.8 per­cent was up from 95.4 per­cent the prior year.

The num­bers come from CBRE Al­bu­querque’s lat­est apart­ment mar­ket sur­vey, a re­port that looks at rents at 194 apart­ment com­plexes across town, to­tal­ing more than 40,000 units.

The sur­vey says the av­er­age mar­ket-rate apart­ment unit in Al­bu­querque was $843 in Septem­ber.

The apart­ment mar­ket is even tighter in Santa Fe due to the rel­a­tively high prices on sin­gle-fam­ily res­i­dences cou­pled with slow sup­ply growth and, as re­ported by the Jour­nal in re­cent years, more homes and apart­ments be­ing con­verted into short-term va­ca­tion rentals.

With so much de­mand in the City Dif­fer­ent, oc­cu­pancy rates are high — 97.6 per­cent in Septem­ber, CBRE re­ports. The sup­ply-de­mand im­blanace in the next six months might be mit­i­gated some­what with the open­ing of the 58-unit mar­ket-rate Rai­l­yard Apart­ments.

In Al­bu­querque, in­vestors are con­tin­u­ing to add sup­ply, ac­cord­ing to CBRE. An es­ti­mated 1,000 mar­ke­trate units are ex­pected to be de­liv­ered between 2017 and late 2019, and about 400 af­ford­able units will hit the mar­ket in the next 12 months, ac­cord­ing to the re­port.

Help­ing to meet de­mand, but de­cid­edly on the high-end side, will be the Markana and Broad­stone North­point projects in North­east Al­bu­querque.

The 232-unit Markana at 6301 Alameda NE will be a highly ameni­tized com­plex of­fer­ing one-, two- and three­bed­room units rang­ing in size from 807 to 1,307 square feet. The pet-friendly com­plex will fea­ture “well-de­signed, spa­cious floor plans with high-end fin­ishes, sim­ple el­e­gance, clean lines and so­phis­ti­cated styling,” with rents rang­ing from $1,100 to $1,800.

The com­pany’s web­site touts a fall open­ing.

North­point, a 226-unit on Modesto NE between San Ma­teo and I-25, broke ground in Novem­ber 2016 and will be com­pleted in early 2018.

ADOLPHE PIERRE-LOUIS/JOUR­NAL

A for-rent sign wel­comes po­ten­tial res­i­dents at an apart­ment com­plex near Wy­oming and Me­naul NE. Oc­cu­pancy rates and rents were up in Septem­ber.

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