Foreclosures- help or hurt Apartment Owners? Jun 9 2008

Discussions with my peers led to the topic of foreclosures and the amount of available units that will come to market because of "single family deals" being purchased by commercial real estate investors. The concensus was that the "high rent" apartment dwellers would prefer renting a single family house over an apartment.  Also in this "high rent" group are the families that can no longer afford to pay their fully indexed mortgage (see my blog on Chairman Bernanke's speech) and are forced to rent. Shy of selling off lots of household goods to squeeze into an apartment, these folks also prefer to rent a single family house over an apartment.  Additionally, the oversupply and the reversal of the condo conversion market brings additional competition for apartment owners. What does all this mean to apartment owners, vacancy factors and the direction of monthly rents? My thoughts are: more competition for owners which requires more work to stay competitive with a stagnation to decrease in apartment rents going forward which leads to lower values.

I am curious to hear from apartment owners- please offer your thoughts via email: Pete@CommercialMasterMinds.com or call to discuss               925-719-3569       .  I argued for the last 4 years that apartment values with respect to rents are HUGELY disproportionate. It is time to take the appreciation off the table and reinvest it elsewhere- apartment values are headed in the wrong direction now and this trend is expected to continue for several years. We are just past the peak of historic highs for apartment values- what is the trend for apartment rents? What is the trend for apartment values?  Have you considered what your 5 year plan might be? I am always interested in a discussion on our apartment market place.  Call to discuss               925-719-3569       .

Your feedback and comments are always appreciated. Many thanks to my listeners and readers for providing feedback. To learn more about Pete, visit Consult Pete , To learn more about the company strategy , visit Commercial MasterMinds<!-- –></p> <p><! –></p> <! -->