Online Apartment Finder Reports Spike in Traffic

Norvolk, Va.–ForRent.com and its affiliate sites (including CorporateHousing.com and SeniorOutlook.com) report a 65 percent increase in traffic during August 2010 compared with the same month in 2009, according to the company, which specializes in providing information to apartment seekers. This finding matches other recent reports, in particular by the National Multi-Housing Council, that characterize demand for apartments as increasing nationwide.

The spike in visits to ForRent.com, a division of Norfolk, Va.-based Dominion Enterprises, comes at a time when the apartment rental market typically sees a seasonal decline. Other factors are at work in buoying the market, and thus overriding seasonal factors, according to Terry Slattery, president of For Rent Media Solutions (the parent company of ForRent.com and the others). “90 percent of the top apartment markets in the nation experienced demand growth as leasing activity improved during the first half of 2010,” he said in a statement.

The decline in home ownership is driving more consumers to an apartment living lifestyle, Slattery notes. In August, For Rent Media Solutions clients saw a year-over-year increase in total leads by 35 percent. The most recent quarterly survey conducted by the NMHC offers clues about what’s driving this kind of demand, and the fact that many people have lost their homes since the onset of the Great Recession is only part of the equation. A deeper shift seems to be under way, one that has longerterm implications for the apartment business. Namely, the NMHC report identified a shift in consumer mentality toward short-term rental agreements and away from long-term mortgage debt, as the prospect of homeownership now spooks more people than it used to.

Moreover, the NMHC report found that its Market Tightness Index, standing at 83 as of July 2010, was as tight as it has been in four years. Since a reading of 50 for the index means that, on balance, apartment markets nationwide are getting tighter, such a high number indicates an upswing in demand. And a sudden upswing at that, since as recently as January 2010, the organization’s Market Tightness Index was as low as 38, and in July 2009, it was 20.

Article written by Dees Stribling, Contributing Editor to Multi-Housing News Online
View the original article here:  Multi-Housing News Online

Analysts See Demand for Multifamily Strengthening Through 2011

The outlook for the multifamily sector is stabilizing, with vacancies that peaked in late 2009 continuing to decline as demand slowly grows and the new supply pipeline all but shut off. That's the conclusion of a recent Fitch Rating report, drawing extensively from CoStar Group data and presented during a recent webinar on the varying degrees of recovery in U.S. commercial and residential real estate sectors.

Private-sector job growth has led to positive net absorption for multifamily properties, with supply constrained markets such as Washington, D.C./Northern Virginia, San Jose and Boston ranking among the best in the country, while markets bombarded by the weak economy and single-family housing collapse such as Florida, Las Vegas, Detroit, Norfolk, and Memphis faring the worst, according to Adam Fox, senior director, U.S. CMBS.

Citing statistics from CoStar subsidiary PPR, Fitch Managing Director Steven Marks said vacancy declined to 8.1% in the second quarter from a historic high of 8.4% in fourth-quarter 2009. Vacancies will continue to decline over the next year, fueled by job growth, new household formation and limited supply driving renter demand in the near term. That will result in rising rent revenue and net operating income for apartment owners.

"The effects of a stabilizing economy combined with an advantageous supply-demand dynamic are expected to benefit multifamily fundamentals," Marks said. "Over a longer time frame, favorable demographics, relatively limited supply growth and tighter lending conditions in the single-family housing market should support fundamentals in the multifamily sector."

That said, "Ultimately, we believe a recovery will require job growth in order to be sustainable; but rents are rising in the meantime."

Solid liquidity driven by access to both public market debt and equity and a continuing flow of mortgage debt capital from government-sponsored enterprises (GSEs) Fannie Mae and Freddie Mac also bolsters Fitch's view of the sector, Marks said.

Fitch expects a below-average construction pipeline to churn out little supply for the rest of 2010, and even less in 2011, for two main reasons: most developers can't achieve economical pro forma returns on projects, and developers are having ongoing difficulty obtaining construction financing from traditional capital sources, namely banks, Marks said.

Given the weak amount of new apartment space, even a modest improvement in job growth will strengthen demand and absorption, though there will be a lag. The current improvement in demand has very little to do with job growth and more to do with new households, with many single people and young marrieds who were doubling or tripling up with friends and family decoupling to enter the ranks of renters.

Single-family housing affordability has improved somewhat over the last few quarters, theoretically reducing demand for rentals on the margins. However, given the amount of equity that home buyers need to get a mortgage -- combined with tighter underwriting and limited confidence that prices will stop falling anytime soon -- increased affordability may not significantly impair apartment demand going forward, Marks said.

In the 10 most expensive U.S. markets to buy a home, apartment owners generally have had above average pricing power over the past three years, as indicated by stronger rent growth relative to the national average, Marks said, pointing to CoStar data on historical and forecasted changes in rentals rates.

More volatile markets like New York and the San Francisco Bay Area experienced weaker performance in 2009 compared to the broader market due to severe job losses. Going forward, apartment landlords will not be able to increase rents aggressively in several of these large markets, and properties are expected to generate only slightly above-average rent growth compared to the nation over next five years.

In contrast, landlords have had less pricing power in the 10 least affordable housing markets, with demographics and higher home ownership rates working against apartment owners in such Midwest markets as Indianapolis, Detroit, Cleveland, Cincinnati and Pittsburgh.

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By Randyl Drummer

October 6, 2010

Read the original article on CoStar.com here:  http://www.costar.com/News/Article.aspx?id=74FAA7B8699C6FD04745E558D82D32D2&ref=1&src=rss

Business Briefing with Brian Bushlach - October 3, 2010

Joseph Chaplik is a routine guest speaker on the Business Briefing with Brian Bushlach on 750 KXL AM on Sunday afternoons.  Topics discussed on the October 3, 2010 show include a current apartment market update, how to choose the right broker, and much more.

Listen to the First Segment Here: http://www.josephbernard.net/uploads/files/1286226507.mp3
Listen to the Second Segment Here:  http://www.josephbernard.net/uploads/files/1286226604.mp3

SOLD! - Six Units on N Rosa Parks Way

We are pleased to announce the sale of a 1975-built six unit property located at 2513 N Rosa Parks Way in Portland, Oregon.  This property sold for $315,000 at a 6.75% Cap Rate.  View the detailed property website here:  http://www.josephbernard.net/index.php?page=Properties&func=view&pid=648

More People Are Now Renting By Choice

Chicago-According to a new survey conducted by Apartments.com, a notable percentage of people actively looking to lease in today’s apartment market are not hunting because they have to rent but because they want to rent. The Chicago-based national apartment Internet listing subscription service found that of the 2,700 website visitors who participated in the survey, 60 percent noted that they would rather rent than buy.

The survey respondents’ preference for renting is not all about money or a lack thereof; it’s about the advantages apartment living offers. Their top reason for foregoing the homebuyer route is the ability to live maintenance-free and have easy access to coveted amenities. Surely, the average homebuyer is not going to end up with a single-family residence encompassing a clubhouse and well-furnished, state-of-the-art fitness center. The opportunity to live in a great neighborhood that would otherwise be unaffordable and greater freedom to relocate also made the list of reasons why renting is more desirable.

Apartments.com also found that the nation’s pool of renters consists of an increasing number of newbies. Approximately 30 percent of those who participated in the survey noted that they are entering the apartment market for the very first time, and 34 percent have been apartment dwellers for four years or less. Of course, there are former homeowners in the growing renter population, too. And while financial challenges have spurred many of them to take to the apartment market, a whopping 34 percent indicated that they simply prefer to rent.

Apartments.com has found the survey’s conclusion that the nation’s population of renters is on the rise again is backed by additional evidence. The apartment listing service saw “record-breaking traffic” during the first six months of 2010.

Article by Barbra Murray, Contributing Writer to Multi-Housing News Online.
Read the original article posted at Multi-Housing News Online

SOLD! - 8 Units on N Portsmouth Avenue in Portland, OR

We are pleased to announce the sale of an 8 unit apartment building located at 7816 N Portsmouth Avenue.  This property sold for $347,063 on September 14, 2010 at an 8.65% cap rate.  The building was built in 1910 and featured individual storage units, on-site laundry, and a large parking lot.  For further information on this transaction, please contact the selling broker Joseph Chaplik.

ProSchools Students: Commercial Real Estate Job Opportunity

ProSchools is proud to offer an exciting opportunity for ProSchools’ students to meet and interview with one of the top commercial real estate companies in Portland! Normally it takes years of experience for a real estate broker to be considered for this type of position.


I met with Joseph Chaplik, President/Principal Broker at Joseph Bernard Investment Real Estate who will be attending our upcoming ProSchools’ Broker Fair . Joseph Bernard, LLC is a leading commercial real estate company located in Portland.  They specialize in apartment brokerage, and working with investors on wealth building through apartment investing.  Joseph Chaplik will consider hiring and training the right individual straight out of real estate school. This is an amazing opportunity for the right individual!


What I found inspiring about Joseph Chaplik, was his sense of professionalism and integrity. The Portland Business Journal presented him with a “ Top 40 Under Forty” business leader award and recognized Joseph Bernard, LLC as one of the Top 25 Commercial Real Estate Firms in Oregon in 2009 and 2010. Oregon Business Magazine named Joseph Bernard, LLC on their Top Commercial Real Estate Firms POWERLIST.  Joseph Bernard, LLC was also named as a finalist for the  Oregon Ethics in Business Award. Joseph Chaplik is routinely a guest speaker on radio station 750 KXL AM for the Business Briefing with Brian Bushlach on Sundays. These are outstanding accomplishments for an entrepreneur under the age of 40!


The right person(s) will be success driven, highly motivated individual. Joseph Bernard, LLC will provide training in apartment brokerage, pre-sales analysis, asset management, 1031 exchanges and so much more! The Joseph Bernard, LLC  website has great information on the company, their team and the apartment industry. Also, check out the Barry Apartment Report which demonstrates the latest trends and statistics in the apartment sales.


ProSchools’ Broker Fairs bring together ProSchools’ students and a variety of residential real estate companies in the Portland metro area. We are glad to welcome Joseph Chaplik to our broker fair team! He will definitely bring ProSchools’ students a different prospective in starting a career in real estate. 
Broker Fair: Tuesday, September 14, 2010, 4:30 - 6:00 at our Cedar Hills classroom location. Contact ProSchools for more information and directions at 503-297-1344.   The classroom is accross the street from our administration building, in the Cedar Hills mall.


Original article posted by Cindy Lewis of ProSchools. View the blog here:
http://blog.proschools.net/realestate/

SOLD! - Hunter's Highland Apartments in Gresham, OR

Joseph Bernard Investment Real Estate is pleased to announce the sale of the Hunter's Highland Apartments, a 23 unit complex located in Gresham, Oregon.

SOLD! - Rancho Real Apartments in Downtown Canby, OR

Joseph Bernard, LLC is pleased to announce the sale of the Rancho Real Apartments, a 16 unit complex located in downtown Canby, Oregon. Rancho Real sold on August 26, 2010 for $873,500, at an 8.23% Cap Rate.  Click Here to visit the detailed property website for Rancho Real.