Upload
others
View
0
Download
0
Embed Size (px)
Citation preview
Integra Realty Resources, Inc. irr.com 4747
MULTIFAMILY
Page 22
MULTIFAMILY
Pittsburgh Multifamily Market Timeline
EXPANSION
HYPERSUPPLY
RECESSION
2012, 2013, 2014
2015, 2016, 2017
RECOVERY
MultifamilyLocal Urban Markets by Vacancy
Las Vegas, NV – 0.85%Boise, ID – 2.0%Detroit, MI – 2.6%
Pittsburgh, PA 9.1%
Portland, OR – 14.8%Nashville, TN – 15.0%Birmingham, AL – 18.9%
TOP TH
REE
BOTTOM THRE
E
Local MarketClass A
9.1% (40th out of 59)
Multifamily Metro Pittsburgh Submarkets By Vacancy
SOURCE: REIS
TOP THREEMonroeville ‐ 2.3%
West ‐ 4.3%Southeast ‐ 4.4%
(McKeesport, Baldwin, Whitehall)
BOTTOM THREESouthwest ‐ 4.9%
North ‐ 5.1%City ‐ 6.1%
Class A Urban Apartment Cap Rate Trends
National Average Pittsburgh Average
SOURCE: Integra Realty Resources – Pittsburgh, 2017
NationalPittsburgh
20165.3%6.00%
20175.3%6.00%
Class A Suburban Apartment Cap Rate Trends
NationalPittsburgh
20165.5%6.0%
20175.45%6.0%
National Average Pittsburgh Average
SOURCE: Integra Realty Resources – Pittsburgh, 2017
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Class A Multifamily Cap Rates
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Class B Apartment Cap Rates
SOURCE: Integra Realty Resources – Pittsburgh, 2017
Pittsburgh Class A/B MultifamilyCap Rate Comparison
Overflowing Development PipelineUrban Markets• Continues to be significant urban development.• Newly delivered (1,806 units in 2016).
– Southside Works City Apartments– The Yards at Three Crossing– Bakery Living Blue– Skyvue– Eastside Bond
Projected 2017‐18 Deliveries ►1,741 units under construction►Heinz Lofts Expansion►The Empire►Former Schenley H.S.►The Vitmore on Baum►The Foundry at 41st
►Arsenal Terminal►Emerald on Centre►River Front Landing (Phase I)
Riverfront Landing
Overflowing Development PipelineUrban Market
Unit D
elivered
*Currently Under Construction
Apartment Forecast 2019And Beyond
►Planned 5,000+ units►Civic Arena Site►River Park►Produce Terminal►Station Square►North Shore►Macy’s Building►Former Penn Plaza Development
►Riverfront Landing (Phase II)
►OtherStation Square
Recent Suburban Deliveries
Ridge at Robinson
342 Units
West
1400 MainSouthpointe
376 Units
Ascent430
319 Units
Park PlazaAt
Meadowlands
206 Units
South North South
Apartment Forecast 2017Suburban Markets Under Construction
South Hills T‐Station SOUTHVillage of Cranberry Woods NORTHEden Square NORTHThe Kane at Gray’s Landing BEAVERCosmopolitan @ Ross Park NORTH
Apartment Forecast 2018+Suburban Markets ‐ Planned
Castle Shannon Station SOUTHNewbury Village SOUTH
Recent Absorption Data
• Absorption of new construction in urban markets has been in the range of 6 to 22 units per month.
• Average urban absorption has been approximately 15 units per month.
• Absorption of new construction in suburban markets has been in the range of 5 to 13 units per month.
• Average suburban absorption has been approximately 10 units per month.
• Best located• Best physical offerings•Market oriented unit mixes/unit sizes•Market oriented amenity packages
• Older/dated inventory• Secondary locations / poor access• Lack of amenities• Inefficient unit mix/unit sizes
Winners
Losers