Quarterly Rent Figures Rise

The average asking rent of Tulsa metro apartments increased by 1.1 percent in the first quarter of 2008, while effective rents increased by 1.2 percent, according to the 2008 1st Quarter Apartment Reports released by the Tulsa-based Apartment Brokerage Team.
The asking price equals the 1.1 percent increase realized in the fourth quarter of 2007.
The study also states that the Tulsa metro average vacancy rate decreased by 20 basis points in the first quarter from 8.7 percent to 8.5 percent, the lowest rate realized in the market in the last five years.
As with the increase in effective rents, the decrease in the vacancy rate in the first quarter is “yet another positive trend for this improving market,” the report states.
From a unit mix perspective, rent growth was primarily realized in efficiency units (2.3 percent) and two bedroom room units (1.4 percent), with one bedroom units (.06 percent) and three bedroom units (.08 percent) falling just below one percent growth each.
With the Tulsa metro weighted toward one-bedroom units (51.2 percent) with two bedroom units in second place (40.8 percent), a solid rent growth in the two-bedroom units helped lift the entire market, the report stated.
No new construction units were recognized in the first quarter of 2008 while 132 units were absorbed by the market, as compared to 869 units for all of 2007.
The historical correlation between construction, absorption, and vacancy demonstrates a positive trend toward improved performance for existing product in the market.
Within the Tulsa metro, East Tulsa/Broken Arrow outperformed the other submarkets with the highest ranking of rent growth, improved vacancy rate, and positive inventory growth relative to the previous quarter.
Despite lagging behind National and Southwest averages in asking and rent figures, the Tulsa metro was equal to the Southwest index and exceeded the National index in rent growth and just barely trailed the Southwest in decreasing vacancy by only 40 basis points.
The report also stated that the property management sentiment appears to correlate with the market statistics.
In a survey conducted by Apartment Brokerage Team, 51 percent of Tulsa metro property managers surveyed classified the market a “good”, while 15 percent classified it as “fair” and 34 percent classified it as “excellent.”
No one classified the market as “poor.”
When questioned whether the apartment market is in better condition this year as compared to last, an overwhelming 84 percent responded affirmatively.

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