Kompas Group

Many of the new-resident apartment leases signed in recent weeks were for prices meaningfully under the levels that effective asking rents would suggest (according to Real Page June Report).

Cincinnati, Dayton, and Columbus markets still show slow and steady performance. California property owners had to adjust rents already.

Thanks to the Greater Dayton Apartment Association and Kurt Shoemaker with CBRE for the presentation on the State of the Multifamily Industry.

Kurt gave a complete compendium of the macro- and micro-level economic indicators, updates on capital market trends, Dayton local rent and occupancy survey results, multifamily development numbers.

2020 Forecast from CBRE:

- Year-over-Year rent increases tick down to 3% (vs 3.4% in 2018-2019)

We underwrite based on 0% rent growth in current market conditions (have to mention that we already have high rent in our submarket since we do full remodeling)

- Current vacancy in our submarket is 4.6%

A few lenders I recently talked about this metric are comfortable to use regular 5%.

- Sales volume will decrease to $125-$150 million range

And 10-year history avg sale price/unit MF sales slide ( #41) is pretty impressive (a huge jump from 10-11k/unit in 2011 to 65k/unit in 2019 :) )

- 2020's most used brokerage term - "workforce housing"

That's our current niche for the last two years.

- Dayton has strong market foundations for sustained stability or success (with small population growth next 5 years - 0.85%).

Its location within 500 miles of 60% of the United States population making it one of only two major logistics centroids in the US. Home to Wright Patterson Air Force Base, University of Dayton, Wright State University, and a large diversified service industry including legal and healthcare, Dayton keeps its slogan “Meds, Eds and Feds”.

Halloween Window and Door Decoration Contest among our residents was a blast and we were impressed by their creativity and effort 🏆👍