ATLANTA—The commercial real estate market has made leaps and bounds since 2008, but there are still “negative” trends to look out for. In many cases, it's no longer soft markets but overbuilding in the rush to meet demand in segments like multifamily.
GlobeSt.com wrapped up its three-part exclusive interview with Kevin Finkel, executive vice president of Resource Real Estate, with a discussion about those negative trend and what he sees for the market ahead. You can still read parts one and two of this interview: Four Multifamily Trends Spilling Into 2015 and Industry Watcher Picks Hottest Cities and Sectors if you missed it.
GlobeSt.com: Are you seeing any "negative" trends in the Southeast?
Finkel: There is a growing abundance of new supply in high growth cities such as Raleigh. This new supply will put downward pressure on rents and occupancy for class A apartments. Fortunately, the majority of new supply is concentrated in the urban core so certain suburban submarkets will be quite insulated from this negative impact, especially for class B and C apartments in strong suburban markets.
GlobeSt.com: How do you expect commercial real estate climates in the Southeast market to change in the quarters ahead?
Finkel: At this point in time, we see no reasons that the Southeast commercial real estate climate will substantially change in the near future. The strong markets will continue to be strong and the weak markets will continue to be weak.
New apartment supply in some urban submarkets may quell class A apartment rent growth a bit, but we do believe that there will be enough absorption for the new supply. The workforce renters continue to be the rental class most in need of product, and we expect renovated class B apartment targeting the workforce to continue to experience relatively high rent growth.
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