What's Happening Next in Multifamily? Explore 3Q 2020 earnings sound bites from Equity Residential (EQR).
Equity Residential 3Q Soundbites – 10/28/20
“In urban markets, pricing trended down and concession use increased throughout 3Q. 70% of portfolio-wide concessions were in NYC, Brooklyn, Boston, Cambridge and San Fran”.
“In late July, demand was in excess of 2019 levels, albeit with significant rent reductions and concessions leaving occupancy stable. In August and early September, turnover increased significantly pressuring occupancy.”
“While we are not providing earnings guidance, our financial results will weaken over subsequent quarters as the full impact of the pandemic works its way through our rent roll.”
“We purchased a brand-new 158-unit property located in suburban Seattle for $49M in 3Q. We expect the cap rate at stabilization to be 4.7%.”
“After 8 consecutive quarters of improving resident turnover, 3Q was the first quarter with the number of residents moving out increasing on a yoy basis.”
“While NYC activity remains meaningfully suppressed, things are starting to feel a little on the Upper West and East side submarkets. Other submarkets notably Midtown, Chelsea, Soho, and the financial district have a long way to go.”
“NYC occupancy is just below 90%. Studio apartments which were once our highest occupied unit type pre COVID are now our lowest at 88%.”
“Overall San Fran occupancy is below 93%, while downtown assets are 87%, East Bay is 96%, and both Peninsula and South Bay are currently at 94%.”
“Two months concessions in San Fran are now common downtown and what used to be a 15-20% rent premium vs downtown Oakland is now flat to a 5% discount.”