Cushman & Wakefield | Commerce, announced the release of the 2013 annual Apartment Market Report. This report provides rental and vacancy information on mid-size to large apartment communities in Salt Lake County and forecasts a hearty and stout market with strong projections for the next year.

 

“The Salt Lake City apartment market is growing stronger each year and vacancy rates continue to remain low year over year,” said Kip Paul, executive director, investment sales for Cushman & Wakefield | Commerce. “Market conditions for property owners will continue to be favorable over the next year, although vacancy rates may see a slight rise due to the completion of several new apartment communities over the year. With the addition of 21,000 jobs to Salt Lake County, the threat of overbuilding remains low and new projects will not destabilize the market.”

The highlights of this year’s study on Salt Lake County include:

  • 3.9% vacancy rate valley-wide
  • Rent growth of 4.4% over 2012 analysis
  • Number of rental units increased by 1.4% over 2012, now totaling 117,500 units
  • 32% of apartment communities offered specials or concessions

The forecast for the upcoming year includes:

  • Demand continues to increase from institutional investors
  • Rental rates will increase 3-4%
  • Vacancy rates will remain under 5%
  • Market conditions for apartment owners will continue to be favorable

“The state of the Salt Lake area market remains robust and investors continue to benefit from the available properties and low vacancy rates,” Paul added. “Buyers are anticipating the completion of several properties in the next year and the opportunity to strengthen positioning and relationships within the market.”

The full Apartment Market Report for 2013 can be accessed at http://www.comre.com/reports/2013Reports/Utah/Rental_Market_Report_2Q13.pdf