Torto Wheaton: Oakland is Top Multifamily Market

OAKLAND-Although demand is expected to slow this year in the multi-family market here, the vacancy rate is still projected to be below 6% until 2004, according to Torto Wheaton (TWR) research.

Boston-based Torto Wheaton is the econometric market analysis unit for CB Richard Ellis. According to TWR analysis multi-family housing cap rates are strongly driven by local market fundamentals, including rent levels, rent growth and general price inflation.

TWR experts state that a demand surge in Oakland pushed the apartment vacancy rate below 3% last year. Even with a slowing demand the tight market is expected to cause a rise in rents of about 22% by 2005. Net operating incomes are expected to grow by as much as 54%. Further, this city’s strong multi-family housing market will likely push cap rates down to 6.18% by 2005.