LOCAL APARTMENT NEWS STORIES
LOCAL APARTMENT NEWS II

Economic Overview    (click image to enlarge)
New and expanding companies are attracted to this area by its well-educated labor pool, which is produced from its three major universities and local colleges. It is also home to Research Triangle Park which attracts many multinational companies.
The Triangle added more than 16,000 jobs in the last year, according to the North Carolina Employment Securities Commission. The unemployment rate is now 8.2%, which is lower than the statewide rate of 10.1%.

Employment / Economic Announcements    (click image to enlarge)

• Affiliated Computer Services, an IT services provider, added 280 jobs at its call center in Raleigh.
• ACW Technology, a manufacturer of electronic devices, will hire 155 employees for its new facility in Durham.
• MeadWestvaco, a packaging and paper company, is moving its research center in Raleigh to Richmond, Virginia; eliminating 128 jobs.
• Deere & Co., which produces tractors and other heavy
equipment, cut 140 jobs in Cary as part of its restructuring.
• AW North Carolina, which makes transmissions for Toyota,
plans to hire 360 workers at its plant in Durham.
• Icarus Studios, which develops video games, laid off 75
employees at its offices in Cary.
• Gilead Sciences, a biosciences company, is closing its
office in Durham; eliminating 150 jobs.
• IBM Lender Business Process Services Inc., a subsidiary
of IBM, will hire 600 employees at its new service center
in Research Triangle Park.
• DB Global Technology, a division of Deutsche Bank, has
hired 120 workers at its center in Cary.
• Red Hat, a computer software company, added 100 jobs at
its corporate headquarters in Raleigh.

Triangle Market Summary    (click image to enlarge)
Average rents and vacancies have improved in the Triangle apartment market. The average rental rate is now $786, with
same-store rents increasing 2.5% in the last six months.
Apartments in lease-up currently hold the highest average rental rate in the market at $1,017 per month. The average vacancy rate has improved to 8.7%, which is down from 10.4% just one year ago. Demand for apartments in the Triangle has strengthened over the past year with 4,272 units absorbed. Thanks to such strong demand, the market was able to absorb the 2,912 new units added over the same time period and improve its average vacancy rate. The Wake County North-2 submarket currently holds the lowest vacancy rate in the market at 5.6%.

New development remains sluggish with just 1,273 units
currently under construction and 1,137 units proposed
throughout the region. Many projects are on hold due to lack
of financing and will be revived once banks start lending
again. Average rents and occupancies are projected to increase over the next year as demand increases and supply growth decreases.

Market Data Information Source: © August, 2010 Real Data Aptindex

from the Triangle Business Journal (081010):
Rates rise as vacancy falls in Triangle apartment market
by Amanda Jones Hoyle

Construction on Triangle apartments has slowed, helping to balance supply and demand in the market.

Apartment rental and vacancy rates for properties in the Raleigh-Durham region improved in first half of 2010, as demand strengthened and new construction slowed.

The average vacancy rate for the 103,383 apartment units tracked by apartment market research firm Real Data of Charlotte improved to 8.7 percent in July compared to a rate of 9.9 percent in January and a rate of 10.4 percent in July 2009, when the market’s vacancy rate peaked.

Renters signed to lease 2,912 vacant units between February and July, which was an improvement over the absorption of 604 units during the same period a year ago.

The Triangle apartment market’s average rental rate was $786 in July, which was up by 2.5 percent in the past six months. New apartments that are still in the lease-up stage have the highest average rental rate in the market, at $1,017 per month.

Real Data projects that average rents and occupancy levels will continue to rise over the next year as demand increases and new construction remains tempered.

top