To: bentway who wrote (697665 ) 2/7/2013 1:02:36 AM From: tejek Respond to of 1573878 Marcus & Millichap sent me their annual apt projection for metro areas throughout the country. This is their projection for SLC..........I thought you'd like to see it.Tech Sector Boosts Apartment Demand, Out-Of-State Investors Increasingly Active Job growth in the technology industry will support improving apartment operations in Salt Lake City this year. The completion of the new Adobe campus in Lehi late last year is contributing to additional tech sector investment in the area. In early 2012, Workday, Inc., a business software company, entered an incentive agreement and planned to create 250 jobs in the metro. The company has modified their agreement and pledges to create 500 highpaying positions over the next 15 years. Qualtrics, a data collection software firm, is also planning a major expansion right outside the metro. The company will receive a multimillion dollar tax break if it grows local payrolls by 1,100 positions in the next seven years. Technology firms have centered themselves in southern Salt Lake and northern Utah counties, and apartment operations close to these areas will realize steady improvement through this year. Transaction volume remained flat during 2012, though not due to a lack of interested buyers; however, this year, many owners will be encouraged to divest assets held through the downturn and take advantage of compressed cap rates. These owners will be faced with high buyer interest and, in some cases, may see multiple offers. Institutional-grade investors began purchasing Class B assets in prime locations in 2012 due to the limited stock of Class A listings, shifting many private buyers down the quality scale. As builders add new projects this year, many large investors will transfer their attention back to the Class A market. Out-of-state buyers, particularly those from the West Coast, began moving off the sidelines in late 2012, and, as operations improve this year, the enlarged the buyer pool will increase competition for stabilized, lower-tier product. 2013 Market Outlook ¦ 2013 NAI Rank: 22, Up 2 Places. An outsized gain in effective rent growth gave Salt Lake City a lift in this NAI. ¦ Employment Forecast: Local employers will create 16,900 positions during 2013, expanding payrolls by 2.6 percent. ¦ Construction Forecast: Builders have 2,000 units scheduled for completion this year, more than four times the amount delivered in 2012. ¦ Vacancy Forecast: Additions to supply will exceed demand growth in the metro this year; however, vacancy will remain near historically low levels at 3.9 percent, up 20 basis points from last year. ¦ Rent Forecast: High demand will give owners leverage to raise rents this year. Asking rents will rise 4.5 percent to $808 per month and effective rents will jump 5.1 percent to $767 per month. ¦ Investment Forecast: Supply increases will draw institutional-grade buyers to the Class A market. Meanwhile, limited value-add options will push private investors toward stabilized, Class B/C properties.