With Vacancy Rates Rising, High-Rise Managers Need a Hyperlocal Strategy

“With Vacancy Rates Rising, High-Rise Managers Need a Hyperlocal Strategy” 
Bisnow  – Dec 5, 2018

In major metropolitan areas across the U.S., there is a market glut for luxury high-rise apartments. Of the 49 high-rise buildings under construction in Chicago last summer, 42 were dedicated to rental apartments. With so many new assets coming online, high-rise buildings served by elevators recorded the highest overall vacancy rate of apartment buildings nationwide for 2018, according to the Institute of Real Estate Management’s 2018 Income/Expense Analysis. IREM reports that vacancies rose across the board for conventional apartments in 2018. But vacancy is highest for high-rise “elevator” apartments, which posted 7.1% vacancy nationwide, compared to larger low-rise apartment buildings (6.9%) and garden-style communities (6.8%).