Rent Change Moderates Across Orlando Product Lines
The extremes in rent positing across the product spectrum in Orlando have moderated, after seeing notably wide gaps earlier in the pandemic. While Class C product is still the top performer in terms of rent change – growing average effective asking rents at 3.7% annually in March – the performance has come down from the 5.2% growth seen in October. Operators in Class B and Class A units, meanwhile, continue to cut rents, though not quite at the extremes seen in the fall of 2020. Class B units, which bottomed out at cuts of 3.5% in August, are now logging milder cuts of 1.5% as of March. Class A rent cuts – at 3.3% in March – are at roughly half of the 6.3% decline seen in this product’s worst moment in September 2020. Overall, rents were cut by 1.3% in Orlando in the year-ending March 2021, a performance that is much better than the cuts that got deeper than 3% in this market throughout much of 2020.