Search
 

Easing Demand Dampens Multifamily Deal Flow

ELMWOOD PARK, NJ-In the past 12 months, statewide deals have declined 43%, while the median sales price has dropped 15% to $75,000 per unit, according to a report from Marcus & Millichap.

By Alyson Grala | Updated on November 02, 2009

ELMWOOD PARK, NJ-New Jersey employers have shed 94,400 jobs thus far in 2009, reducing the ability of households to meet monthly expenses. As a result, statewide apartment vacancy rose 130 basis points year-over-year to an estimated 4.8% in the third quarter, according to a recently released report from Marcus & Millichap Real Estate Investment Services.

After 1,740 rentals came online in 2008, 1,620 units will be added to stock statewide this year, with around 1,330 units delivered in Northern New Jersey, and 290 units brought online in the central region, the report predicts. Meanwhile, asking rents have dipped 1.5% to $1,287 per month, and effective rents dropped 2.9% to $1,233 per month.

In the northern portion of the state, apartment revenues declined the least in Passaic County, where more modest rent cuts have kept vacancy below 4%. Meanwhile, revenues remain stable in the Princeton/East Mercer County submarket as a result of steady demand generated by high student and employer concentrations.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.