The Tough Get Creative (GlobeSt.com)
This is a good, and realistic, article from the new GlobeSt.com blog called MultiViews by Sule Aygoren Carranza. Positioning the multifamily market with “compared to its counterparts in the other property types, multifamily assets rank at the top of the list as the sector hurt the least by the recession.” Apartments still have their problems and those problems don’t appear to be going away in 2010. Loan maturities are still facing a lot of buyers from the mid to late 2000’s.
However, Northern Colorado (specifically, Fort Collins, Loveland, Windsor, and to a lesser extent Greeley) has continued to outperform the nation and the state of Colorado with occupancy and rental rates. We don’t anticipate much change in 2010. Meaning that occupancies will hover between 93% and 97% and rents will hold relatively strong. If the employment market improves in 2010 I think we will see a steady increase in property performance.
So buckle down and pay attention to your operations. Keep those tenants and manage your expenses.