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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (17231)	2/12/2004 8:42:16 PM
From: Wyätt Gwyön	Respond to of 306849

yeah, but that article said SF rents are only down 6% even though you're seeing much bigger markdowns in practice. the point is that the REITs don't lower their rentals, or mask the reductions (with months off, etc.) so that the official rents are the same. the only people who mark their rents to market are the individual investors. so you can see the true picture of the market there. btw, anecdotally Austin rental market also very poor, but they keep building more apartments.

To: Lizzie Tudor who wrote (17231)	2/12/2004 9:08:00 PM
From: Elroy Jetson	Read Replies (1) \| Respond to of 306849

Office market rents collapsed in the late 1980's. Residential projects experienced high vacancy rates in the early 1990's, but rents generally did not decline. I think small owners remember that time and are unwilling to experience that pain again. So they have lowered their asking rents. As a consequence the vacancies exist almost exclusively in the REIT owned projects. According to published studies the strongest residential rental markets have been Boston and Los Angeles. Based on what I noted above, I think is is something of a statistical anomaly. Driving around Los Angeles you see "For Rent" signs on most apartment buildings, which you only saw on the REIT owned properties until a few months ago. You also see big temporary canvas banner signs hanging on buildings saying "Pets Welcome" or "Three Months Free". A tremendous number of buildings suddenly have signs on them for a new rental agency. web2.westsiderentals.com This is the first time I can recall building owners dealing with a rental listing agency, other than the in-house rental agency of those being managed by a particular property management firm. Someone had a good idea for the times.