Apartment market
EQR’s Q4 Earnings call transcript
Equity Residential Q4 2008 Earnings Call Transcript — Seeking Alpha
The first nine months of the year really carried the day for us and the fourth quarter saw a dramatic fall off of pricing power. We are clearly experiencing one of the worst economic climates in anyone’s memory. According to some, unemployment could climb as high as nine to 10%. These would be levels we have not seen since the late ’70s or early ’80s.
That perspective from one of the most well respected multifamily REIT’s in the country. I can’t help but to feel that there is a major ping happening in our space. Having worked at EQR for nearly ten years, I have the confidence that leadership is doing everything possible to weather the storm.
I can’t help but to be optimistic in the sense that we have an opportunity to pick up a serious education during this catasrophic hiccup. You can’t buy this kind of experience at even the most prestigious of instituions. Those of us that look at each and every nuance of the business, especially in this climate, will be positioned to take advantge of an insanely great upturn that is sure to come.
Your looking forward to the next eighteen to twenty-four months optimist,
M
EQR and Avalon Bay give lower than expected forecasts
Just one more reason to really design a phenomenal employee, prospect and resident experience.
NEW YORK (Reuters) – Shares of apartment landlords fell on Thursday
after two large apartment real estate investment trusts (REITs) issued
lower-than-expected forecasts for 2009, citing the weak U.S. job market.
“It is jobs that are the single most important determinant to the
health of the multifamily industry, and today’s jobless claim data is
further evidence of just how bad the job picture currently is,” said
David Neithercut, CEO of Equity Residential EQR.N, the largest U.S.
apartment REIT.
The U.S. government said on Thursday the number of U.S. workers
filing new claims for jobless benefits last week hit a 26-year high.U.S. apartment stocks fall on weaker outlook | Reuters
Unemployment rate and the apartment market
It will be really interesting to see how unemployment rates affect the multifamily industry in the near term. With 533k more jobs gone with today’s announcement, unemployment has crept up to 6.7%. And, if my math serves me correct then 5,330 apartments were given to vacancy today.
The fundamentals for household formation turn for the worse with each and every American that is laid off. And, don’t look to the supply side for much hope. Even though it has come to a near halt, single family home foreclosures and condo reversions are stepping in to prop up inventory. The hard part about that market is that there are no formal tracking mechanisms. We are left to speculate what the impact will be on the rental market.
Be the difference that makes a difference is what I will leave you with. Whether you choose to be the value play and or the crazy and over the top all out frills apartment community, you must differentiate yourself. You must stand out in the crowd. It is no longer and option to be mediocre, run of the mill or plain white vanilla.
What are you doing to stand apart? Check out some of the prior entries on this blog to get some ideas. A few of my fellow apartment maniacs have been generous enough to share some amazing treasures that you can apply today.
Feel free to share some of your ideas as well in our comment section below.
When Sam speaks people should listen
I watch this show nearly every morning when I am on the treadmill and I love it. I particularly enjoy the aggressive nature of the three hosts of the show. Very rarely do I see them agree completely and or stall before they respond to guests. I saw that yesterday when Sam Zell was on the show. It’s a great 40 min. and I have attached a link to the video here.
