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Quick Facts: Market Conditions

Vacancy and Absorption Rates 
  Vacancy1 Absorption2
Year  Rental Apartment Vacancy Rate (5+ Units)  Rented within 3 months of completion  Rented within 6 months of completion
1995 9.5% 80% 93%
1996 9.6% 73% 89%
1997 9.1% 72% 88%
1998 9.4% 73% 90%
1999 8.9% 72% 89%
2000 9.2% 72% 89%
2001 9.6% 72% 87%
2002 10.4% 64% 82%
2003 11.4% 59% 78%
2004 11.5% 61% 79%
2005 10.4% 62% 81%
2006 9.9% 64% 84%
2007 10.3% 58% 76%
2008 11.2% 55% 74%
2009 12.3% 50% 68%

1. http://www.census.gov/hhes/www/housing/hvs/historic/index.html 
2. www.census.gov/hhes/www/housing/soma/soma.html
Updated 4/2010

Prices, Rents and Capitalization Rates
for "Class A" Apartment Properties
Year

Price
($ per sq. ft.)

Annual Rent
($ per sq. ft.)

Cap Rate
(%)
2001 74.22 1.09 8.5
2002 79.52 1.07 8.0
2003 82.10  1.08 7.3
2004 100.84  1.12 6.7
2005 115.81  1.15 6.1
2006 117.85  1.17 6.1
2007 113.82 1.21 6.1
2008 109.31  1.23 6.4
2009 94.35 1.21 7.0
Source: Real Capital Analytics (price per square foot and cap rate) and M/PF Research (annual rent per square foot). Cap rate is net operating income divided by value. Updated 8/2010

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