California CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
San Jose Outperforms on Apartment Rent Growth
San Jose’s average-quality apartment rents jumped by 4.8% in the first half of 2023, the second-highest growth among the top 50 markets, Green Street reported. “Amid difficult times for Bay Area real estate fundamentals and valuations, San Jose’s resilient apartment environment has emerged as a bright spot” and its outperformance is forecast to continue over the near term, according to the Newport Beach-based research firm.
Although the Bay Area markets possess many similar supply and demand dynamics, Green Street said San Jose’s recent outperformance relative to San Francisco and the Oakland-East Bay can be attributed primarily to three core drivers:
• Societal Issues: Fewer societal issues (crime, homelessness etc.) than San Francisco and Oakland-East Bay have resulted in higher desirability.
• Supply Growth: Constrained supply growth in the face of improving demand has helped to stimulate rent growth.
• Return-to-Office: While this is less of a factor, Essex Property Trust highlighted on its second-quarter earnings call that big tech companies’ return-to-office plans have meant an uptick in demand and leasing activity.
Connect Orange County will take place Sept. 27, 2023 at VEA | Newport Beach Marriott in Newport Beach, concurrently with Connect Healthcare Real Estate on Sept. 27 and 28. Click here to register for Connect Orange County, and here to register for Connect Healthcare Real Estate.
- ◦Lease
