With 4,546 new construction condo units delivering in 2009, we expect the number of condo units available for rent to continue escalating.
We continue to see condo rentals as providing notable competition to the traditional rental market. access to rental information is readily available on the Internet, creating a highly informed renter with regard to options in the market. Leasing agents are highlighting the inferior level of service in condo units compared to traditional rentals; the trade offs however appear to be accepted by the market at this time.
A secondary effect of the condo rentals is that the older Class A buildings may be forced into a renovation situation to maintain occupancy. Prospective tenants shopping for newer condo rentals have high expectations for finishes. We expect owners of both older A and standard B buildings will be analyzing return on investment scenarios for various renovation packages to capitalize on the demand for higher quality finishes.
– From the summary of Appraisal Research Counselors‘ 1Q 2009 Downtown Benchmark Report. More than 1,360 downtown condos were listed for rent in the first quarter of 2009, but the number of units that went under lease during that time hovered just over 700. More than 3,470 condos were leased downtown via the MLS between the first quarter of 2008 and the first quarter of 2009.