In more positive news for multifamily landlords: the gap between average asking and effective rents is expected to continue to narrow this year, as Chattanooga effective rents see gains of 5.9%, according to Reis, Inc., bringing the average monthly rate here to $638 per unit by yearend. (The anticipated growth in rents this year follows last year’s gains of 1.8% and 3.4% in average asking and effective rents, respectively.) Rental development is also on the rise here. Following last year’s building hiatus, Reis is reporting the addition of 316 units in Chattanooga this year, with the completion of the Amberleigh Ridge at Panorama rental apartments in the metro’s South submarket. Another 128 units are forecast to be completed in the metro in 2012, which are expected to be delivered to the South submarket as well.
For more apartment, retail, and office property insights in 200 metro areas and 1,800 submarkets/neighborhoods nationwide, go to ReisReports.com.