The occupancy rate in the fourth quarter fell to 91.8%, a drop of 1.29%, according to the Trend Report compiled by Austin Investor Interests. The usual first quarter rebound should notch the rate to a full 92%. Rental rates were 77 cents per sf, up one cent for the year. There's been little rent movement among the classes of apartments.
"San Antonio is showing real stability," Robin Davis of Austin Investor Interests says. "We're getting a lot of interest in it."
Apartment sales totaled 51 properties in 2002. The average unit price of $38,860 was the highest in 10 years, according to the report.
For all of 2002, 2,341 units were added to the market and 2,305 were occupied. That's an improvement over 2001, when 2,700 of 3,253 new units were occupied, researchers said.More than 55% of apartment complexes are offering concessions, a 4% increase over the third quarter. Class A units led the way, with 83% of them offering concessions. Geographically, concessions were available at 100% of the complexes in the far northwest submarket.
The report mentioned two factors that could influence the apartment market in 2003. One cuts into occupancy: a troop deployment as the US edges closer to a war with Iraq. And the other adds: A Toyota decision to build an assembly plant in south San Antonio, a surefire jumpstart for multifamily development in the area.
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