Commercial Investment Real Estate November/December 2019 | Page 9

Rent’s Up:
Apartment
Demand
Rises in 2Q
Inpatient rehabilitation
facilities (IRFs) are the
fastest-growing area
of p o s t-acu te c a re
( PAC ) facilities, says
Colliers International. In
its Healthcare Service:
Summer 2019 research
report, Colliers notes that
of the 117 freestanding PAC
facilities built between 2015
and 2018, 62 — more than
half — were IRFs. Eighteen
more — with 910,000 sf
— are due for delivery
this year at a cost of $426
million. Colliers points out
IRFs “tend to have a healthy
operating margin” and are
attractive to investors
because they offer lower-
cost care settings.
Apartment demand in the
U.S. accelerated in 2Q2019.
Net move-ins, totaling
155,515, rose to a five-
year high, beating 2Q2018
absorption by 11 percent.
Here are the top markets
in demand:
Quarterly
Completions
(units)
10,443
7,418
6,969
6,759
6.008 6,441
2,617
2,373
2,768
2,768
Dallas-Fort Worth
Chicago
Houston
New York
Washington, D.C.
Quarterly
Demand
(units)
Source: RealPage
Major Global Cities See Jump in Demand
Six-Month Change (1H2019)
One-Year Change (1H2018–1H2019)
Prime residential rental rates showed the greatest growth in Los Angeles among global cities
in 1H2019. The top 21 leading cities averaged a YOY growth rate of 1.3 percent.
Healthy Outlook for IRFs
Source: Savills
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November | December 2019
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