Market Report Feb13

Market Report

The following article is excerpted from an article by Keith Loria in the January issue of Multi-Housing News. Find the the full story at Market Report: Ones to Watch. Pierce-Eislen is a subsidiary of Yardi Systems. Ron Brock, vice president and general manager of Pierce-Eislen, located in Scottsdale, Ariz., says that his Top 10 list of markets to watch in the upcoming year is projected to have a combined 6 percent rent growth in the next 12 months. He also believes his list is going to surprise some people, because some markets that were doing well this year are not going do very well next year. “If you look at the Bay area of Northern California, it’s all very good. You have the East Bay market, the San Francisco Peninsula and the South Bay/Silicon Valley market,” he says. “There are good jobs there. Like everything else, a composition of jobs brings some good income.” Austin, Texas is also on his list, and while Brock admits that it does seem to be overbuilding right now, the jobs being created are very attractive and pay handsomely, boding well for its future. “Other markets to say “yes” to in 2014 are West Palm Beach, Boca Raton, suburban Atlanta, which is a surprise, Miami, Denver, Orange County and the Southwest Florida Coast,” Brock says. “West Palm Beach is interesting because job growth isn’t so much a factor, but it’s the empty nester crowd. Retirees go there and are willing to pay. Same thing with the Southwest Florida Coast­—people are showing up with money.” The Miami office space market meanwhile is being driven by money from outside the country, most notably South America. Suburban Atlanta is seeing an increase in job creation, which is the complete opposite of what’s...