Zillow reports, per the article, that 30% of all properties are currently offering concessions. This figure is likely to increase. I’ve read where 50%+ of Class A multifamily properties in Salt Lake are offering concessions. Not surprising given the number of new units entering the market here. Beyond Salt Lake, the article suggests that heavy concessions in other markets are offered due to increased interest rates.  The logic? Sellers of new, and relatively new, properties who were waiting for rates to come down with a plan to refinance and hold or sell (with assumable debt), have realized rates aren’t coming down anytime soon and they’d better get to 90% occupancy and secure debt now before another rate increase.     

 

Heavy Concessions 

 

Svikhart & Associates, a Salt Lake City-based real estate services company, focuses on asset management, brokerage listings and sales, and all aspects of a multifamily investment. Specific diligence regards property operations and strategies to maximize asset performance and value. Additionally, the firm assists owners regarding economic, financial and market factors that impact returns on investment. The firm targets ‘Mid-Tier’ assets which it defines generally as 10-to-60-unit properties.

 

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