Rents at recently-built Downtown apartments in the first quarter rose year over year for an all-time high of $3.08 per square foot.
The 2.3 percent increase came even after developers in 2017 completed more than 4,300 apartments Downtown, the most in a year, according to a report from consulting firm Integra Realty Resources analyzed by Crain’s.
The report eased fears of a glut as developers continue to bring on more apartments — and people continue to rent them. Absorption hit a record of some 1,400 units in the first quarter, according to Integra.
Total Downtown absorption last year was almost 3,400, out of the more than 4,300 new apartments. Integra forecasts developers will deliver 3,000 units this year, while absorption will hit 3,300.
The occupancy rate was 93.2 percent in the first quarter, up from 91.7 percent in the fourth quarter. The rate has held between 92 and 95 percent over the past three years, according to Crain’s. [Crain’s] — John O’Brien