The scenario is all too common in the multifamily housing industry. An apartment portfolio will unnecessarily spend itself out of a good thing. The fruits of years of planning and executing the next move in a major market or acquiring a new set of properties are slower to come simply because a spend management program through vendor consolidation and product standardization is not in place.
Successful marketing of your community is key for drawing in prospects, but it’s also important to stay in tune with what amenities they are seeking in a rental, so you can be prepared to meet their needs. Updating your property can be costly, but consider making small investments within your community from time to time in order to appeal to the Next Generation of Renters searching for their ideal community.
Rising visitor volume and growing payrolls in higher-paying professional and business services fields provide momentum to the expanding Las Vegas economy. Since hiring bottomed four years ago, local employers have added 100,000 jobs, generating new demand for rental housing. Construction payrolls remain well below the prior peak, but other employment sectors continue to come back respectably and new large-scale projects are emerging that will provide future employment opportunities. Development of new sports complexes will begin soon and a $4 billion casino project from the Genting Group has restarted following a sale of the site by the original developer. Signs of growth are evident in non-tourism segments. These include the $350 million downtown redevelopment spearheaded by Zappos that aims to create a live-work-play environment that would attract businesses and young workers to the area. Also, several power-generating stations for solar facilities are being developed in the Southwest submarket. Overall, the outlook for the metro’s apartment sector remains positive, with additional declines in vacancy forecast this year and next. Rising multifamily construction is a factor, though residents thus far have demonstrated a willingness to pay up for new amenity-laden rentals.
Autumn typically finds annual effective rent growth sliding down a little, but not during the “Year of the Apartment Market.” And the continued increase has caused Axiometrics to amend its forecast for 2014 as a whole.
It’s a well-known fact that job growth drives an apartment market. In fact, effective rent growth correlates to job growth 83% of the time, according to Axiometrics studies.
With over 2.6 million apartment units updated each month, ALN Apartment Data is one of the most complete and accurate data provider available anywhere in the country. The Las Vegas Apartment Market Overview for October 2014 is now available to view.
Cap rates hit historic lows in the third quarter -- falling 40 basis points (bps) to 5.9 percent, according to New York-based Real Capital Analytics (RCA). The previous low over the past decade was 6.1 percent, which occurred in the fourth quarter of 2012.
Reis is the nation's most trusted provider of commercial real estate market data, research and analytics. For over 30 years, we have maintained an objective, transparent approach to data collection. We cover 275 metros and over 6,800 market segments across the Apartment, Office, Retail, Industrial, and Self-Storage sectors.
Exciting Times for NVSAA!
Introducing Our New Billing Structure
This is a very exciting time for us! We are offering more opportunities for our members than ever in key areas: Education, Legislative, Networking.
We are also creating ways to do business better. This allows us to build upon our foundation, and facilitate future growth.
The Nevada State Apartment Association is pleased to announce a streamlined billing structure for our membership. We are moving to a calendar year membership cycle where all members will pay their dues in January and enjoy membership benefits through December of that year.
The goal is to shift our entire membership to this more efficient billing cycle by January 1, 2017.
As such, it’s important to begin the process now. Handling membership in this manner is in line with many other Associations across the country and is design designed to minimize confusion on expiration dates and make the budgeting process easier.
Our goal is to make the transition as easy as possible:
If your membership renewal falls due between September 1, 2015 and December 31, 2015. You will receive an invoice that includes the remaining months of 2015 and all of 2016. Conveniently, your membership will be paid through the end of 2016. The remaining association members expiring in 2016 will receive prorated invoices to finish out next year’s membership. This process puts us on track to begin annual billing for the association, as a whole, in 2017.
Thank you for your cooperation as we make these changes! YOU are what makes the NVSAA the premier multi-family housing association in the region. Let’s keep going and growing!
If you have questions, you can reach me at 702.862.0165
My best to you,
Shelly A. Cochran
Record-setting tourism and the strongest convention attendance in several years are driving employment growth and creating apartment demand Las Vegas. Job growth is well above the national average, spurring developers to complete projects that were mothballed since the recession. In addition, multifamily permitting is trending more than 60 percent higher as builders rush to keep up with demand for rental space. While more than 1,400 apartments have been completed during the past year, vacancy fell sharply and concession activity nearly halted on well-located properties near employment hubs. The leisure and hospitality sector is providing the biggest job gains in the economy, although more corporations are relocating to the metro due to its position as a travel destination and the lack of a state income tax. The new workers hired by these companies are choosing to rent in prime areas to the southwest of the city, close to shopping centers, freeways and the Strip. Single-family housing costs in these areas are above the metro average, spurring strong rental growth and pushing vacancy down. Tightening operations will lift rents up 3.4 percent this year, more than 100 basis points above inflation.
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