Rent Growth Hits 44-Month High

___MAIN 11128-27-2013 2-45-40 AM_ Impossible






A dream doesn’t become reality through magic;

it takes sweat, determination and hard work.

Colin Powell


February Metrics Up  Apartment Market at 44-Mo.

High  Contributed by Stephanie McCleskey, March 16, 2015

Anybody who thought the strength that fundamental apartment market metrics demonstrated in 2014 would suddenly change with the new year thought wrong. Annual effective rent growth, for one, has reached heights not seen in 44 months.

The annual effective rent growth rate was 5.0% in February 2015, the second time in three months the metric has reached that mark – when rounded to one decimal place. Extending the figure a second decimal place, we learn that February’s rate of 5.05% was 8 basis points (bps) higher than December 2014’s 4.97, according to Axiometrics’ apartment market research.

The last time the annual rent growth rate exceeded Febuary’s was in July 2011, when rents increased 5.3%.




February’s annual effective rent growth rate was 16 bps higher than the 4.9% of January 2015 and 223 bps above the 2.8% of February 2014 (which was the second lowest annual effective rent growth rate in the past three years).

Year-to-date (YTD) rent growth was 1.0% in February, tied for second with 2010 and 2012 among post-recession years, and behind only 2011. The February rate was also 10 bps higher than the post-recession second-month average of 0.9%, according to the apartment data.

As the chart below shows, however, predicting full-year performance from February metrics isn’t always viable. Though 2011 tops the February list, it finished the year in third place. And 2014 ended up as the strongest post-recession year though it was near the bottom of the February rankings.


Occupancy Reverses Down Streak

February’s occupancy rate of 94.7% was the highest of any February since the end of the recession. This marks the 61st straight month in which the occupancy rate has been higher than the same month of any preceeding year since 2009.

More importantly, the February increase of 12 bps from January’s 94.6% occupancy ended a five-month streak of occupancy rate decreases since the metric reached its post-recssion peak of 95.2% in August 2014. The February 2015 rate is a 45 bps increase over the 94.3% of apartments occupied in February 2014.




Denver Rises to 2nd, but California Still Dominates

As mentioned above, Denver rose to second place in annual effective rent growth among Axiometrics’ top 50 markets, breaking the grip that San Francisco Bay Area metros have had on the top two spots for the better part of the last year.  Denver’s 12.7% rent growth was enough to displace San Francisco from the No. 2 spot.

But fear not for the Bay Area, as its three metros were all among the top four. Oakland remained No. 1 with 15.5% annual rent growth in February. Oakland also had the second-highest occupancy rate out of Axiometrics Top 50 markets at 96.6%, behind only New York’s 97.0%. That’s 180 basis points above the national occupancy rate, which was 94.8%.

Seven out of 17 markets on the list below are California markets, and three are in Florida.







I am actively looking to build relationships with Real Estate Investors and Owner / Users for Phoenix  –  Scottsdale   –  Tucson   –  Maricopa County  – Pima County  –  Pinal County  –  Cochise County  –  Santa Cruz County   –Yavapai County  –  Gila County   –   Arizona ,  USA   

Walter Unger CCIM –   – 1-520-975-5207  –



Timeline of Phoenix, Arizona history,_Arizona_history



Phoenix, Arizona,_Arizona




Facts of Arizona – year 1848 to 2013

Feel free to contact Walter regarding any of these stories, the current market, distressed commercial real estate opportunities and needs, your property or your Investment Needs for Comercial Properties in Phoenix.




View my listings and my profile at:



What is a CCIM?


Join My Mailing List


Investors and owner/users need to really know the market before making a move in commercial investment properties as the market has a lot of moving parts today. What’s going on socio-economically, what’s going on demographically, what’s going on with location, with competing businesses, with public policy in general — all of these things affect the quality of your commercial properties/investment properties.  Therefore, you need a broker who understands commercial properties.  Please go to my web-site and get all the newsflashes and updates in Commercial Real Estate.



Check out my professional profile and connect with me on LinkedIn.

Follow me on Facebook:


Follow me on Twitter:


Follow Me on Google+

Walter Unger CCIM, CCSS, CCLS

I am a successful Commercial / Investment Real Estate Broker in Arizona now for 20 years.  I am also a commercial land specialist in Phoenix and a Landspecialist in Arizona. If you have any questions about Commercial / Investment Properties in Phoenix or Commercial /  Investment Properties in Arizona,  I will gladly sit down with you and share my expertise and my professional opinion with you. I am also in this to make money therefore it will be a win-win situation for all of us. 

Please reply by e-mail or call me on my cell 520-975-5207 or Office:480-948-5554




Thank You


Walter Unger CCIM

Associate Broker,  West USA Commercial Real Estate Advisers

7077 E. Marilyn Road, Bldg 4, Suite 130

Scottsdale, AZ 85254

Cell:      520-975-5207   

Office :  480-948-5554

Fax: (480-658-1172


View my listings and my profile at:


a little about me and my expertise – video


commercial-investment real estate adviser-land specialist



What is a CCIM?


Delivering the New Standard of Excellence in Commercial Real Estate 

  • Commercial Real Estate Scottsdale
  • Commercial Real Estate Phoenix
  • Commercial Real Estate Arizona
  • Commercial Investment Properties Phoenix
  • Commercial Investment Properties Scottsdale
  • Commercial Investment Properties Arizona
  • Land Specialist Arizona
  • Arizona Land Specialist
  • Land Specialist Phoenix
  • Phoenix Land Specialist
  • Land For Sale Phoenix
  • Land for sale Arizona
  • Commercial Properties For Sale Phoenix
  • Commercial Real Estate Sales Phoenix
  • Commercial Properties Phoenix
  • Commercial Properties Arizona
  • Commercial Land Specialist Phoenix
  • Commercial Land Phoenix
  • Multifamily land Phoenix
  • Retail Land Phoenix
  • Industrial Land Phoenix
  • Land Commercial Phoenix
  • Land Retail Phoenix
  • Land Industrial Phoenix
  • Land Multifamily Phoenix
  • Industrial Land for sale Phoenix
  • Land Industrial
  • P
  • Investment Real Estate


Disclaimer of Liability

The information in this blog-newsletter is for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.