Q4-2017-MultifamilyReport

MARKET RATE MULTIFAMILY

4.5%

4.0%

TOTAL INVENTORY (UNITS)

TOTAL VACANT (UNITS)

TOTAL VACANCY RATE

Q4 NET ABSORPTION

YTD NET ABSORPTION

ASKING RENT ($/SF)

3.5%

Boston Metro

3.0%

149,991

5,250

3.5%

282

3,144

$2.39

Providence Metro

26,302

868

3.3%

44

52

$1.53

2.5%

Springfield/Worcester Metro

25,391

711

2.8%

74

(458)

$1.50

2.0%

Q1 2012

Q3 2012

Q1 2013

Q3 2013

Q1 2014

Q3 2014

Q1 2015

Q3 2015

Q1 2016 201,684

Q3 2016

Q1 2017

Q3 2017

TOTAL

6,8 9

3.4%

400

2,738

$2.17

Boston

Providence

Springfield/Worcester

VACANCY

TRENDS

4.5%

• Due to the progressive uptick in new construction, vacancy rates saw a slight increase in the fourth quarter of 2017. On the whole, rates ended 2017 at 3.4%, with Springfield/Worcester boasting the lowest vacancies at 2.8%. • Boston’s high apartment rents are continuing to push renters to relocate to more affordable locales. According to Apartment List, a large percentage of renters surveyed in Boston plan to move to another city due to affordability. The survey revealed Providence as the top spot for relocating Bostonians. • The Boston Planning & Development Agency (BPDA) recently approved a series of residential, commercial and hospitality projects across the city, which are expected to generate a total of 541 units and more than 1.4 million square feet of new space. Aside from two large projects, the Omni Boston Seaport Hotel and the 426- unit community development at 264 Huntington Ave., three smaller residential projects recently received approval. This includes a 22- unit project at 75-85 Liverpool Street in East Boston and a 46-unit project at 46 Hichborn Street in Brighton. • Brighton may also see a wave of new supply. The BPDA recently approved the construction and restoration of nearly 660 residential units at 159-201 Washington Street. The project will feature 98 affordable units, a 1,000-square-foot, publicly-accessible art gallery as well as a 1,200-square-foot multipurpose function room. • A joint venture of Twining Properties and Mass PRIM has been established on Mass+Main, a 308,000-square-foot, $190 million development in Cambridge. The project will include 308 mixed- income apartments and 17,000 square feet of retail space. Construction of the development will commence in the fall of 2018.

4.0%

3.5%

3.0%

2.5%

2.0%

Q1 2012

Q3 2012

Q1 2013

Q3 2013

Q1 2014

Q3 2014

Q1 2015

Q3 2015

Q1 2016

Q3 2016

Q1 2017

Q3 2017

Boston

Providence

Springfield/Worcester

Rents RENTS

Boston Providence Springfield/Worcester

$2,500

$2,000

$1,500

$1,000

$500

$0

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Boston Providence Springfield/Worcester

Units Completed UNITS COMPLETED Rents

8,000 $2,500

7,000

6,000 $2,000

4,000 $1,500 5,000

3,000 $1,000

2,000

$500

1,000

0

$0

2012

2013

2014

2015

2016

2017

Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017

Boston Providence Springfield/Worcester Boston Providence Springfield/Worcester

*Expected

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