Q4-2017-MultifamilyReport
MARKET RATE MULTIFAMILY
4.5%
4.0%
TOTAL INVENTORY (UNITS)
TOTAL VACANT (UNITS)
TOTAL VACANCY RATE
Q4 NET ABSORPTION
YTD NET ABSORPTION
ASKING RENT ($/SF)
3.5%
Boston Metro
3.0%
149,991
5,250
3.5%
282
3,144
$2.39
Providence Metro
26,302
868
3.3%
44
52
$1.53
2.5%
Springfield/Worcester Metro
25,391
711
2.8%
74
(458)
$1.50
2.0%
Q1 2012
Q3 2012
Q1 2013
Q3 2013
Q1 2014
Q3 2014
Q1 2015
Q3 2015
Q1 2016 201,684
Q3 2016
Q1 2017
Q3 2017
TOTAL
6,8 9
3.4%
400
2,738
$2.17
Boston
Providence
Springfield/Worcester
VACANCY
TRENDS
4.5%
• Due to the progressive uptick in new construction, vacancy rates saw a slight increase in the fourth quarter of 2017. On the whole, rates ended 2017 at 3.4%, with Springfield/Worcester boasting the lowest vacancies at 2.8%. • Boston’s high apartment rents are continuing to push renters to relocate to more affordable locales. According to Apartment List, a large percentage of renters surveyed in Boston plan to move to another city due to affordability. The survey revealed Providence as the top spot for relocating Bostonians. • The Boston Planning & Development Agency (BPDA) recently approved a series of residential, commercial and hospitality projects across the city, which are expected to generate a total of 541 units and more than 1.4 million square feet of new space. Aside from two large projects, the Omni Boston Seaport Hotel and the 426- unit community development at 264 Huntington Ave., three smaller residential projects recently received approval. This includes a 22- unit project at 75-85 Liverpool Street in East Boston and a 46-unit project at 46 Hichborn Street in Brighton. • Brighton may also see a wave of new supply. The BPDA recently approved the construction and restoration of nearly 660 residential units at 159-201 Washington Street. The project will feature 98 affordable units, a 1,000-square-foot, publicly-accessible art gallery as well as a 1,200-square-foot multipurpose function room. • A joint venture of Twining Properties and Mass PRIM has been established on Mass+Main, a 308,000-square-foot, $190 million development in Cambridge. The project will include 308 mixed- income apartments and 17,000 square feet of retail space. Construction of the development will commence in the fall of 2018.
4.0%
3.5%
3.0%
2.5%
2.0%
Q1 2012
Q3 2012
Q1 2013
Q3 2013
Q1 2014
Q3 2014
Q1 2015
Q3 2015
Q1 2016
Q3 2016
Q1 2017
Q3 2017
Boston
Providence
Springfield/Worcester
Rents RENTS
Boston Providence Springfield/Worcester
$2,500
$2,000
$1,500
$1,000
$500
$0
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Boston Providence Springfield/Worcester
Units Completed UNITS COMPLETED Rents
8,000 $2,500
7,000
6,000 $2,000
4,000 $1,500 5,000
3,000 $1,000
2,000
$500
1,000
0
$0
2012
2013
2014
2015
2016
2017
Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017
Boston Providence Springfield/Worcester Boston Providence Springfield/Worcester
*Expected
www.naihunneman.com
303 Congress Street Boston, MA 617.457.3400
3
Made with FlippingBook flipbook maker