February 2010

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Overall occupancy in San Antonio multifamily sector has performed the best of all the major Texas markets, posting almost a full half percentage point increase during February. Rental rates per unit experienced a more significant decline then on a per square foot basis, most evident by Class A properties which have seen rents per unit decrease $7.530 to $929.51 and rents psf have fallen by $0.008 to $1.016 during the month. However, strong positive absorption on both a monthly and annual basis may foretell of a return to stable metrics for the market over the next couple of months, while the construction pipeline continues to deliver new communities at a steady pace.

San Antonio apartment market occupancy increased 0.49 points in February to 88.58%, but is down 0.38 points over the previous year.  Rental rates per square foot decreased $0.002 over the month to $0.862 per square foot.  Over the year, per square foot averages are up $0.006.  At $700.10, rental rates per unit posted a monthly decrease of $2.62 and are up $7.44 over the previous year.  Absorption in February was positive 686 units, while annual absorption totals positive 1,329 units.

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