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Multifamily Trends & Predictions from Axiometrics

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We've partnered with Jay Denton, VP of Research, Axiometrics, Inc. to provide you with an insider look at how much new apartment supply is on the way, where it is located and how it is expected to …

We've partnered with Jay Denton, VP of Research, Axiometrics, Inc. to provide you with an insider look at how much new apartment supply is on the way, where it is located and how it is expected to impact the various markets across the country.
Learn how new supply will impact existing properties and what’s on the horizon for the development pipeline for properties.

Published in: Real Estate, Business

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  • 1. Multifamily Trends & Predictionsfrom Axiometrics
  • 2. AppFolioComplete Solution Includes:Web-BasedPropertyManagementSoftware• Property management and accounting• Online rent collection (free)• Prospect / guest card tracking• Marketing• Website• Payment processing• Online applications• Resident ScreeningSo You Run A More Successful Business
  • 3. • Leading Education Provider• Apartment-IndustrySpecific Training• Vision LearningManagement System (LMS)• www.gracehilllearning.com
  • 4. Axiometrics Inc.ApartmentData andAnalytics Provider• TracksPropertiesMonthlyAcrossMoreThan400U.S.MetropolitanStatisticalAreas(MSAs)• CollectsAskingRents,Concessions,andEffectiveRentsattheFloorPlanLevel;OccupancyatPropertyLevel• ReportsatProperty,CompSet,Submarket,MSA,andPortfolio Levels• PropertiesTrackedFromPlanningthroughStabilization• AlsoTracksStudentHousinghttps://twitter.com/axiometrics
  • 5. CURRENT MARKET TRENDS• National Effective Rent Growth is Good, No Longer Great;Occupancy Rates are Very Strong• Key Economic Drivers – Job Growth Steady, New DeliveriesIncreasing• NorCal,TX, and CO areAmongTop Performing MSAs; DCis Weakest of Major MSAs• ClassARent Growth is Slowing• TheThreat of Oversupply is the Hottest TopicSource: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 6. NATIONALMONTHLYTRENDSSource: Axiometrics Inc.90.0%90.5%91.0%91.5%92.0%92.5%93.0%93.5%94.0%94.5%95.0%-8%-6%-4%-2%0%2%4%6%May-09Jul-09Sep-09Nov-09Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Sep-12Nov-12Jan-13Mar-13May-13Annual Effective Rent Growth Occupancy RateRent Growth Occ RateTHENATIONALOCCUPANCYRATECONTINUESTOIMPROVE,BUTEFFECTIVERENTGROWTHHASBEENMODERATINGSINCEJULY2011©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 7. ANNUALEFFECTIVE RENT GROWTHSource: Axiometrics Inc.-14%-12%-10%-8%-6%-4%-2%0%2%4%6%8%10%May-09Jul-09Sep-09Nov-09Jan-10Mar-10May-10Jul-10Sep-10Nov-10Jan-11Mar-11May-11Jul-11Sep-11Nov-11Jan-12Mar-12May-12Jul-12Sep-12Nov-12Jan-13Mar-13May-13Houston, TX Las Vegas, NVWashington, DC NationalWASHINGTON,DCWASONEOFTHESTRONGESTMSASEARLYINTHECYCLE,BUTITSGROWTHISNOWONEOFTHEWEAKESTINTHEU.S.;HOUSTONRECENTLYPEAKED;LASVEGASISIMPROVING©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 8. U.S. JOB GAINAND GROWTH-6%-5%-4%-3%-2%-1%0%1%2%3%4%-7,000-5,000-3,000-1,0001,0003,0005,0001Q894Q893Q902Q911Q924Q923Q932Q941Q954Q953Q962Q971Q984Q983Q992Q001Q014Q013Q022Q031Q044Q043Q052Q061Q074Q073Q082Q091Q104Q103Q112Q121Q134Q13F3Q14F2Q15F1Q16F4Q16F3Q17FJob Gain (000) Job Growth (%)Sources: Axiometrics Inc., BLSEXPECTJOBGAINTOPEAKIN2014AND2015DURINGTHISCYCLE©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 9. U.S.JOBANDRENTGROWTHEff. Rent Growth Job GrowthSources: Axiometrics, BLS-5%-4%-3%-2%-1%0%1%2%3%4%-8%-6%-4%-2%0%2%4%6%8%1997 1999 2001 2003 2005 2007 2009 2011 2013F 2015F 2017FRent Growth Job Growth©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 10. HISTORICALJOBAND RENT GROWTH TRENDS BYMSASources: Axiometrics Inc., BLSRent Growth Job GrowthAnnual Eff Rent Growth Annual Job GrowthRent GrowthRent Growth Rent GrowthJob GrowthJob Growth Job Growth-8%-6%-4%-2%0%2%4%6%-15%-10%-5%0%5%10%15%2Q962Q972Q982Q992Q002Q012Q022Q032Q042Q052Q062Q072Q082Q092Q102Q112Q12May-13Los Angeles-8%-6%-4%-2%0%2%4%6%-15%-10%-5%0%5%10%2Q962Q972Q982Q992Q002Q012Q022Q032Q042Q052Q062Q072Q082Q092Q102Q112Q12May-13Atlanta-8%-6%-4%-2%0%2%4%6%8%-15%-10%-5%0%5%10%2Q962Q972Q982Q992Q002Q012Q022Q032Q042Q052Q062Q072Q082Q092Q102Q112Q12May-13Dallas-4%-2%0%2%4%6%-15%-10%-5%0%5%10%15%20%2Q962Q972Q982Q992Q002Q012Q022Q032Q042Q052Q062Q072Q082Q092Q102Q112Q12May-13Washington, DC©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 11. TEXAS HAS FOUR OFTHE TOP13 (AUSTIN)Source: BLS*Absolute job growth in thousands..Annual Absolute Change* Annual Relative ChangeRank MSA Apr-11 Apr-12 Apr-13 Apr-11 Apr-12 Apr-131 Houston, TX 63.6 85.8 111.2 2.5% 3.3% 4.2%2 New York, NY 94.6 79.3 98.6 1.8% 1.5% 1.9%3 Los Angeles, CA 11.3 57.7 76.5 0.3% 1.5% 2.0%4 Dallas, TX 50.7 51 67.7 2.5% 2.5% 3.2%5 Atlanta, GA 41.6 36.8 48.2 1.8% 1.6% 2.1%6 Boston, MA 31.7 27.5 47.3 1.3% 1.1% 1.9%7 Chicago, IL 48.9 46.5 47.3 1.4% 1.3% 1.3%8 Phoenix, AZ 22.4 33.3 42.8 1.3% 1.9% 2.4%9 Fort Worth, TX 23.2 23.2 37.2 2.8% 2.7% 4.2%10 Tampa, FL 20.5 26.5 35.4 1.8% 2.3% 3.1%National 1,509 2,121 2,094 1.2% 1.6% 1.6%ABSOLUTE JOB GROWTH BYMSA©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 12. MULTIFAMILYPERMITTINGHASBEENSTEADILYINCREASINGSINCETHEBEGINNINGOF2010;TOTALUNITSPERMITTEDISSTILLLESSTHANHALFOFWHATITWASIN2005WHENITEXCEEDED2MILLIONUNITSSource: CensusPermitting numbers represent the trailing 12-month total.Units PermittedSingle-family Multifamily Total Residential0100,000200,000300,000400,000500,000600,000700,000800,000900,0001,000,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13NATIONALRESIDENTIALPERMITTINGTRENDS©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 13. RESIDENTIALPERMITTING BREAKDOWN BYMSASource: CensusPermitting numbers represent the trailing 12-month total.Units PermittedUnits PermittedUnits PermittedUnits PermittedSingle-family Multifamily Total Residential02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Atlanta05,00010,00015,00020,00025,00030,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Dallas02,0004,0006,0008,00010,00012,00014,00016,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Charlotte02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Washington, DC©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 14. STRONGEST MSAS FOR RENT GROWTH FOR MAY 2013Results are only displayed for MSAs where Axiometrics tracks 10 or more properties.Source: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 15. WEAKEST MSAS FOR RENT GROWTH FOR MAY 2013Results are only displayed for MSAs where Axiometrics tracks 10 or more properties.Source: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 16. ANNUAL EFFECTIVE RENT GROWTH BY MSA FOR MAY 2013Results are only displayed for MSAs where Axiometrics tracks 10 or more properties.Source: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 17. MSAS WITH OCCUPANCY RATES ABOVE 95% FOR MAY 2013Results are only displayed for MSAs where Axiometrics tracks 10 or more properties.Source: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 18. MSAS WITH OCCUPANCY RATES BELOW 92% FOR MAY 2013Results are only displayed for MSAs where Axiometrics tracks 10 or more properties.Source: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 19. OCCUPANCY RATE BY MSA FOR MAY 2013Results are only displayed for MSAs where Axiometrics tracks 10 or more properties.Source: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 20. THE TOP11 MSAS FOR EFFECTIVE RENT GROWTHSource: Axiometrics, Inc.Rank is based on May 2013 annual effective rent growth compared to the top 88 MSAs.Annual Eff Rent Growth Occupancy RateRank MSA May-11 May-12 May-13 May-11 May-12 May-131 Oakland, CA 7.6% 5.9% 10.1% 96.1% 95.8% 96.4%2 Boulder, CO 9.2% 5.3% 10.0% 95.8% 95.3% 95.7%3 Corpus Christi, TX 2.7% 5.5% 8.9% 94.6% 95.4% 95.6%4 Palm Bay, FL 2.2% 0.1% 8.4% 90.1% 92.2% 94.9%5 Cape Coral, FL 8.6% 4.0% 8.4% 93.3% 94.2% 94.7%6 San Jose, CA 13.7% 8.3% 7.4% 97.4% 96.6% 96.4%7 San Francisco, CA 10.2% 14.9% 7.3% 96.0% 96.2% 95.9%8 Denver, CO 6.8% 7.2% 6.9% 95.3% 95.1% 95.6%9 North Port, FL 5.0% 4.9% 6.8% 95.6% 96.1% 95.1%10 Houston, TX 4.3% 6.1% 6.0% 91.1% 93.1% 94.4%11 Seattle, WA 8.7% 5.3% 5.8% 95.7% 95.4% 96.0%National 5.0% 4.1% 3.3% 94.0% 94.3% 94.8%©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 21. CURRENT PERFORMANCE OFOTHER MSASSource: Axiometrics, Inc.Rank is based on May 2013 annual effective rent growth compared to the top 88 MSAs.Annual Eff Rent Growth Occupancy RateRank MSA May-11 May-12 May-13 May-11 May-12 May-1315 Miami, FL 4.4% 5.7% 4.5% 95.8% 96.5% 96.3%16 Austin, TX 9.4% 6.5% 4.4% 95.1% 95.1% 95.3%19 Charlotte, NC 6.3% 7.4% 4.2% 93.9% 94.8% 95.0%22 Dallas, TX 6.8% 5.7% 4.0% 93.7% 94.4% 95.0%23 Atlanta, GA 4.4% 3.3% 4.0% 91.4% 91.9% 93.3%36 Los Angeles, CA 2.0% 4.4% 3.4% 94.7% 95.1% 95.0%39 Boston, MA 7.9% 7.0% 3.4% 96.6% 96.0% 96.3%51 San Diego, CA 2.3% 2.3% 3.2% 95.6% 95.2% 96.0%62 Las Vegas, NV -1.3% -1.0% 1.0% 92.1% 92.1% 92.5%79 Washington, DC 5.7% 3.1% 0.4% 95.7% 95.4% 95.1%National 5.0% 4.1% 3.3% 94.0% 94.3% 94.8%©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 22. POLLING QUESTIONWhich asset class is performingthe best in you market(s)?
  • 23. NATIONALASSET CLASS PERFORMANCESource: Axiometrics Inc.88%90%92%94%96%98%Dec09Feb10Apr10Jun10Aug10Oct10Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Occupancy RateABC0%1%2%3%4%5%6%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Effective RentABC0510152025303540Dec09Mar10Jun10Sep10Dec10Mar11Jun11Sep11Dec11Mar12Jun12Sep12Dec12Mar13Concession ValueABCDays of Free Rent-0.5%0.0%0.5%1.0%1.5%2.0%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Occupancy GrowthABCCLASSAPROPERTIESWERELEADERSEARLYINTHERECOVERY,BUTCLASSCPROPERTIESCURRENTLYHAVETHEBESTGROWTH©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 24. ANNUALEFFECTIVE RENT GROWTH BYASSET CLASSSource: Axiometrics Inc.ABC0%1%2%3%4%5%6%7%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Atlanta0%2%4%6%8%10%12%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Austin0%1%2%3%4%5%6%7%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Baltimore-2%0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Charlotte©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 25. ANNUALEFFECTIVE RENT GROWTH BYASSET CLASSSource: Axiometrics Inc.-2%0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Dallas0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Denver-6%-4%-2%0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Houston-4%-2%0%2%4%6%8%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Los AngelesABC©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 26. ANNUALEFFECTIVE RENT GROWTH BYASSET CLASSSource: Axiometrics Inc.-6%-4%-2%0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13New York0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Raleigh-4%-2%0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13Washington, DC0%2%4%6%8%10%Dec10Feb11Apr11Jun11Aug11Oct11Dec11Feb12Apr12Jun12Aug12Oct12Dec12Feb13Apr13SeattleABC©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 27. POLLING QUESTIONWill your property or portfolio beimpacted by new supply this year?
  • 28. WHAT ISOVERSUPPLY? DEFINITIONS FROM THE WEBMerriam-Webster“Thestateoraninstanceofgoingbeyondwhatisusual,proper,orneeded.”Investopedia“Anexcessiveamountofagoodorothersubstance.Oversupplyresultswhendemandislowerthansupply,thusresultinginasurplus.”“Therearemanyreasonswhyoversupplymayoccur.Ifthereisdemandforaspecificproductthatmeetsacertainneed,thenthatproductmightbecomeoversuppliedifanewandimprovedproductisintroducedthatmakestheolderproductobsolete.Oversupplycanalsooccurinsituationswherethepriceofthegoodorserviceistoohigh,oraboveequilibrium.”Sources: www.Merriam-Webster.com; www.Investopedia.com
  • 29. WHATDOESOVERSUPPLYLOOKLIKEINTHEAPARTMENTMARKET?Source: Axiometrics Inc.Properties Currently Under Construction or in Lease-upWithin 20 Miles of the Center of Washington, DC©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 30. LEASE-UP AND UNDER CONSTRUCTION UNITSSHADING REPRESENTS % LEASE-UP AND UNDER CONSTRUCTION UNITS WHEN COMPARED TO EXISTINGSTOCK BY STATENot all units under construction have begun to deliver.The chart is based on data as of May 2013.Sources: Axiometrics Inc., Census©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 31. PLANNED UNITSSHADING REPRESENTS % OF PLANNED UNITS WHEN COMPARED TO EXISTING STOCK BY STATE.Not all planned properties will reach the construction stage.The chart is based on data as of May 2013.Sources: Axiometrics Inc., Census©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 32. LARGEAMOUNTOFPLANNEDPROPERTIESINTHESUBURBSAtlanta, GABoston, MAAustin, TXCharlotte, NCSource: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 33. LARGEAMOUNTOFPLANNEDPROPERTIESINTHESUBURBSDallas, TXNashville, TNHouston, TXNY/Northern NJSource: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 34. LARGEAMOUNTOFPLANNEDPROPERTIESINTHESUBURBSSource: Axiometrics Inc.Orlando, FLTampa, FLRaleigh/Durham, NCWashington, DC©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 35. LARGEAMOUNTOFPLANNEDPROPERTIESINTHESUBURBSSEATTLE, WANORTHERN CALIFORNIASOUTHERN CALIFORNIADENVERPHOENIXSource: Axiometrics Inc.©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 36. EXPECTSUPPLYTOPEAKDURING2014INTHISCYCLESources: Axiometrics Inc., Census0.0%0.2%0.4%0.6%0.8%1.0%1.2%1.4%1.6%1.8%050,000100,000150,000200,000250,000300,000350,000400,0001997 1999 2001 2003 2005 2007 2009 2011 2013F 2015F 2017FNew Supply Inv GrowthWhy would construction activity slow?-Construction costs rising quickly-Effective rent growth slowing, especially with Class A-Already concerns of oversupply in urban core of someMSAs; More construction is needed in the suburbs tomaintain elevated construction totalsU.S. NEW SUPPLYAND INVENTORYGROWTH©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 37. APARTMENT UNITS STARTED NATIONALLYSource: Axiometrics Inc.The pace of new starts increasedrapidly in 2011 and early 2012, but itbegan to level-off in the summer of2012.These statistics are based onconventional apartment propertiestracked in Axiometrics’ pipelinedatabase.05,00010,00015,00020,00025,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Monthly Starts010,00020,00030,00040,00050,00060,00070,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Trailing 3 Month-Starts050,000100,000150,000200,000250,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Trailing 12 Month-Starts©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 38. APARTMENT UNITS STARTED BYMSA(SUMOFTHETRAILING12-MONTH)Source: Axiometrics Inc.02,0004,0006,0008,00010,00012,00014,00016,00018,00020,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Washington, DC02,0004,0006,0008,00010,00012,00014,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Dallas02,0004,0006,0008,00010,00012,000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Houston0200040006000800010000Jan-10Apr-10Jul-10Oct-10Jan-11Apr-11Jul-11Oct-11Jan-12Apr-12Jul-12Oct-12Jan-13Apr-13Seattle©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 39. TOP 10 MSAS FORAPARTMENT CONSTRUCTION*Delivery schedule is only based on identified properties that have started construction. The 2014 total will be higher as planned propertiesbegin construction.**Not all planned properties will reach the construction stage.Note: The delivery schedule is dynamic and changes as construction timelines change on individual properties. The chart is based on dataas of June 2013.Source: Axiometrics Inc.Deliveries By YearMSA Total UC 2012 2013 2014* Planned**Washington, DC 21,756 6,209 11,509 13,077 106,415Dallas, TX 14,110 5,882 10,514 6,235 30,068Houston, TX 15,403 4,522 8,632 6,983 15,199New York, NY 21,483 4,147 8,198 6,629 51,255Seattle, WA 10,421 2,821 7,419 5,901 40,098Austin, TX 10,528 2,763 7,058 6,409 26,567Atlanta, GA 7,100 1,537 5,207 3,749 26,118Denver, CO 8,239 2,242 5,100 5,488 20,934Los Angeles, CA 10,403 781 5,038 7,042 25,800Raleigh, NC 5,815 688 4,993 3,309 10,016National 382,587 87,205 185,063 145,523 1,040,329MORETHANONE-FOURTH OFTHENATION’S 2013DELIVERIESWILLBEINDC,DALLAS,NY,HOUSTON,SEATTLE,ANDAUSTIN©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 40. WHICHMSASAREATRISKFOROVERSUPPLYIN2013?Sources: Axiometrics Inc., BLSApril 2013 Job Growth/2013 FY Identified DeliveriesMay2013RevenueGrowthATLAUSBALBOSCHARCHIDALDENFOTFTWHOUJACLAMIANASHNYOAKORLPHILPHOPORTRAL RICHSDGSFRSJOSANASEATMPWASH-DCWPB0.0%2.0%4.0%6.0%8.0%10.0%12.0%0.0 5.0 10.0 15.0 20.0 25.0Above U.S. average revenue growthand more than 6 jobs for each newunit deliveredRisk of slowing revenuegrowth if job growthdoes not improveSupply exceeds demandPotential for improved revenue growthbecause demand is outpacing supply©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 41. TOP10 SUBMARKETS FOR DELIVERIES IN2013Source: Axiometrics Inc.*Delivery schedule is only based on identified properties that have started construction. The 2014 total will be higher as planned propertiesbegin construction.**Not all planned properties will reach the construction stage.Note: The delivery schedule is dynamic and changes as construction timelines change on individual properties. The chart is based on dataas of June 2013.Deliveries by YearMSA Submarket 2012 2013 2014+* Planned**Houston, TX Montrose/River Oaks 260 3,952 4,757 4,283Seattle, WA Downtown/Capitol Hill/Queen Anne 1,396 3,493 2,677 18,307San Jose, CA Northeast San Jose 994 2,435 959 8,131San Antonio, TX Bexar County/Other 875 2,127 714 2,049Baltimore, MD Central Baltimore City 397 2,010 691 10,564Atlanta, GA Atlanta/Fulton 103 1,965 2,839 8,044Chicago, IL Gold Coast/River North 406 1,904 698 4,499Minneapolis, MN Minneapolis 594 1,865 1,598 4,813Dallas, TX Plano/Allen/McKinney 1,269 1,845 902 3,118Dallas, TX North Irving 570 1,733 526 3,716©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 42. CURRENTPERFORMANCEFORLEASE-UPPROEPRTIES*Average absorption per property March 2013 – May 2013Source: Axiometrics Inc.Current Lease UpsExistingProductMSA Submarket Props Units Abs* Erent PSF Erent PSFHOU Montrose/River Oaks 9 1,583 23 $1,742 $1.91 $1,634 $1.67SEA Downtown/Capitol Hill/Queen Anne 12 2,407 28 $2,068 $2.95 $1,797 $2.33SJO Northeast San Jose 5 1,963 32 $2,501 $2.85 $2,185 $2.39SAZ Bexar County 6 2,259 21 $1,302 $1.35 $1,065 $1.06BAL Central Baltimore City 5 1,441 13 $2,126 $2.31 $1,525 $1.75ATL Atlanta/Fulton 4 1,237 24 $1,724 $1.97 $1,177 $1.22CHI Gold Coast/River North 4 1,658 27 $3,051 $3.18 $2,163 $2.65MINN Minneapolis 8 1,516 12 $1,906 $2.22 $1,502 $1.75DAL Plano/Allen/McKinney 5 1,527 25 $1,227 $1.35 $1,006 $1.07©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 43. U.S.METROSFORECAST:2013JOBGROWTHANDRENTALREVENUESources: Axiometrics Inc., BLS2013 Revenue Growth2013 Job GrowthJG Rate > U.S.Rev Growth > U.S.ATLAUSBALBOSCHARCHIDALDENHOULSVLAMIAMINNNASHNYOAKORLPHORALRIVSDGSFRSJOSANASEATMPWASH-DC1.0%1.5%2.0%2.5%3.0%3.5%4.0%1.0% 2.0% 3.0% 4.0% 5.0% 6.0% 7.0% 8.0%©2013 AXIOMETRICS INC. ALL RIGHTS RESERVED
  • 44. Disclaimer NoticeDisclaimer Notice.All advice, consultations, queries, data and reports (collectively referred to asthe “Reports”) provided herein are prepared from data believed reliablewithout verification or investigation and are not guaranteed or warranted byAXIOMETRICS INC., its directors, officers, employees, and contractors anddo not purport to be complete or error free or useful for any purpose. Thefacts and opinions contained herein are not guaranteed or warranted to becomplete or error free or useful for any purpose. The opinions expressed insuch information are subject to change without notice. AXIOMETRICS, itsdirectors, officers, employees, and contractors assume no liability for or fromits advice, consultations, queries, and reports provided HEREIN. Please usesuch information at your own risk. This material is the property ofAxiometrics, Inc. and may not be reproduced, copied, or otherwisedistributed without the explicit written consent of Axiometrics, Inc.