Effective rent growth for each of these markets was at or below 2.0 percent for the same time periods.
Not exact matches
That sentiment is supported by industry data as seven of the top 10 markets
for effective rent growth were in California, according to Reis.
Owners in suburban Chicago,
for example, reported 7 % to 10 % net
effective rent growth during the first three quarters of 2010.
Average
effective rents, meanwhile, are expected to go up 4.9 percent
for the year, compared to
growth of 4.1 percent in 2015.
In fact, the top four on the list, San Jose (+7.2 percent
effective rent growth in 2014), San Francisco (+6.8 percent), Dallas (+5.2 percent) and Houston (+5.1 percent), hail from California and Texas, typically considered the bellwether states
for their respective sectors.
The Dallas — based research firm says annual
effective rent growth has been moderating at the national level
for the past two years, though many metropolitan statistical areas (MSAs) in California, Florida and Texas continue generating
rent growth of more than 5 percent.
Effective rent growth is still positive
for the quarter, but falls somewhere in the middle to lower half of national rankings (Washington, at 0.5 percent, is at number 25 out of 82; suburban Virginia, at 0.4 percent, is at number 31.
While this represents a slight slowdown from the prior quarter's
growth rate of 0.8 percent
for both asking and
effective rents, it is well above the quarterly average of about 0.4 percent since
rents began rising consistently in the fourth quarter of 2010.
For example, the year - over-year
effective rent growths at the metro level range from a high of 7.3 percent in San Francisco to a low of -0.3 percent in Fort Lauderdale, Fla..
The same markets are on top of the rankings
for year - over-year changes
for both asking and
effective rent growth.
However, Muoio is quick to point out that the apartment segment and nearly every market still enjoy very healthy fundamentals and the outlook is solid
for growth in
effective rents.
According to Savills research, net
effective rents in the Sydney CBD enjoyed year - on - year
growth in 2016 of +60 %
for B Grade office space, +48 %
for A Grade and +26 %
for Premium.
In the face of moderating job
growth... despite the massive amount of supply identified
for delivery in 2017... even though several large metros are expected to remain in negative
rent -
growth territory... Axiometrics apartment market data is resulting in a forecast that shows annual
effective rent growth in 2017 matching the long - term average.
Annual
effective rent growth averaged 2.7 %
for properties located in new - supply markets, compared to 1.6 % in markets without new supply.
Effective rent growth,
for instance, slowed by 160 basis points nationally, to 3.0 percent.