By Liviu Oltean, Associate Editor
In Q4 2014 the Dallas-Fort Worth Metroplex area multifamily market registered the region’s seventh consecutive quarter with an occupancy rate above 92 percent. According to recent research data from CBRE, in the last quarter of 2014 the DFW multifamily market had a 7.6 percent vacancy rate; 20,116 units under construction; 2,892 completed units; and a net absorption of 754 units.
While in the last quarter net absorption was significantly lower, the market absorbed more than 13,800 throughout 2014. Last year’s value exceeded those recorded in 2012 and 2013 by 1,640 units and 830 units, respectively.
The area’s average rent increased by $0.01 per square foot in the last quarter but shows signs of stability, seeing as Q4 2014 was the third consecutive quarter with an average monthly rate above $1 per square foot.
Overall, the occupancy rate has decreased 20 basis points to 92.5 percent due to declines in occupancy rates for Class C and D assets. In spite of this marginal decrease, CBRE underlines that the general performance of the market was not impacted and demand is expected to remain strong in 2015. Class A and B multifamily properties both experienced quarter-over-quarter increases in occupancy rates.
On account of employment and demographic growth, the multifamily market is expected to retain momentum in 2015. In the year ending in October 2014, the area had an annual employment growth of 3.7 percent, and an unemployment rate 30 basis points lower than Texas’ and over 100 basis points lower than the United States average.
Major Q4 2014 transactions include The Fairways at Wilson Creek in McKinney; the Gramercy on the Park in Dallas and the Parkside at Legacy Phase III and IV in Plano.
Charts courtesy of CBRE