43
March | April | 2016
W E S T
Ä
Bay Area Tops Multifamily Index
Four California multifamily markets held onto the top slots on
Marcus & Millichap's 2016 Multifamily Index, with three of them
clustered in the Bay Area. The index is based on strong job growth
and low vacancy rates that will boost rental rates.
Market Effective monthly rent Average price per unit
San Francisco $3,230 $402,400
San Jose, Calif. $2,725 $285,700
New York $4,080 $383,300
Oakland, Calif. $2,175 $279,200
San Diego, Calif. $1,750 $242,400
Source: Marcus & Millichap
Ä
E A S T
"Cambridge, Mass.,
remains one of the most
desirable and tightest
offi ce markets in the
country with a direct
vacancy rate of 4.9
percent. Overall asking
rent in the class A market
jumped an unprecedented
$3.41 to surpass all
previous highs and reach
$70.19 psf gross."
— Lisa Strope, JLL New England Research Manager
Greater Boston Top
Tenants by Industry
Technology 25% of market
Banking, fi nance,
insurance 10%
Life sciences 10%
Telecom 10%
Source: JLL
N A T I O N A L
Hospitality: Have We Peaked Yet?
Nearly 3,000 hotel owners, operators, and investors attended the American Lodg-
ing Summit in Los Angeles in January, where the buoyant mood seemed to be
tempered by stock market gyrations, according to HotelNewsNow.com. At the
meeting, they debated whether the hotel market had reached its peak or had further
to go. T e hotel industry is coming of a strong 2015, in terms of fundamentals,
but publicly traded hotel real estate investment trusts are wary of what the future
holds. "Over the short term, investors are concerned that with public REITs sit-
ting on the sidelines, it could af ect the pricing of assets and buyers won't want to
take a hit," reported HNN.com editor-in-chief Stephanie Ricca. However, "Many
private investors said they plan to continue buying — and even building here and
there — and recognize that operating fundamentals are at great levels. Right now,
the overall consensus is that buyers now should look for assets they'd like to hold
through the next downturn."
Hospitality Forecast
Annual percentage increase
Metric 2016 2017
RevPAR growth 5.0% 4.5%
Occupancy 0.6% 0.2%
Average daily rates 4.4% 4.3%
Source: STR
justinroque/Thinkstock