ILLINOIS REAL ESTATE JOURNAL (May 15, 2018) – Lease-up concessions remain common in top development markets, according to research by RealPage, a provider of comprehensive property management software solutions. Among the top 15 markets that RealPage looked at, Chicago came in sixth, with reported concessions of 7.4 percent in March.
These 15 markets—which combined have received roughly half of all new supply delivered in the U.S. since 2010—are witnessing larger than average giveaways during this cycle. As annual apartment completion volumes remain at their highest point in more than three decades, the flood of new units to the market is broadening the options for prospective renters. In this more competitive leasing environment, it should be no surprise that rent concessions designed to entice renters are commonplace at lease-up properties.
Nationally, the share of apartments offering rent discounts has actually reduced, driven by a shift away from the practice in recent years among stabilized properties. For properties in lease-up, however, the drive to fill as many units as quickly as possible has led to more concessions among this segment of the rental market.
Read more at: Illinois Real Estate Journal