Effective rent and occupancy levels during October showed declines of -0.28% and -0.14% respectively, almost the same as the slight declines recorded over the same period of 2010 and 2011, according to the latest data reported by Dallas-based Axiometrics Inc.
Year-to-date (YTD) effective rent growth slowed from 4.69% in September to 4.4% in October, after reaching a peak for the year of 4.73% in August. This is slightly below YTD growth rates of 4.94% in October 2010 and 4.88% in October 2011.Â
At 9.63%, San Francisco has the highest YTD effective rent growth rate in the country, while Las Vegas, at -0.07%, and Savannah, Ga., at -0.08%, are the only two markets with negative YTD effective rent growth. However, some of the decline in Savannah can be attributed to overseas troop deployments by the local military population.
Looking ahead, Axiometrics predicts that the fourth quarter looks to be relatively mild in terms of the typical seasonal slowdown expected for effective rent growth and occupancy.
‘So far, we are not seeing any macro-level indications signaling a larger-than-normal seasonal decline this fourth quarter, and the slight softening in effective rent growth and occupancy was to be expected,’ says Jay Denton, vice president of research for Axiometrics. ‘Heading into the last part of the year, the overriding trend for effective rents continues to be stable, positive growth.’