Multifamily Developers Offer Generous Concessions to Fill New Buildings
Up to two months of free rent along with other concessions are now becoming prevalent as builders attempt to lease up new projects.
September 9, 2020 | Bendix Anderson | National Real Estate Investor
A robust pipeline of new apartments planned prior to the COVID-19 pandemic has continued to deliver projects throughout 2020. To attract tenants to properties at a time when many Americans are facing economic uncertainty and others are considering whether to leave cities and move to the suburbs, owners are now offering generous concessions, including months of free rent.
“In the urban core, some of the concessions are scary,” says Ryan Davis, chief operating officer for Witten Advisors, an apartment research firm based in Dallas. “Not just three months of free rent, but free parking too.”
Concessions are broadly available through the apartment market. The share of listings on real estate Zillow offering concessions rose to 30.4 percent in July up from 16.2 percent in February.
