Monthly Archives: June 2014

How Will Glendale's New Multifamily Developments Impact Private Owners?

Back in 2008, we saw hundreds of vacant multifamily units hit the market as newly constructed projects became deliverable. I distinctly remember reading articles on Glendale News Press that had comments from furious residents who opposed the squalor of the construction, the environmental impact and traffic they would create, etc. You see the same exact things today. Not-so-coincidentally, if you trail back to 2003, you’ll see an even smaller amount of units hitting the market and the same amount of disapproval. On a chart, it looks something  like this:

Absorption, Deliveries and Vacancy in Glendale (10 yrs)

Absorption, Deliveries and Vacancy in Glendale (10 yrs)

So, why should a private investor care about these new developments? 

Historically, construction surges have raised vacancy rates, thus reducing rental rates. This effect lasts two to three years and then begins recovering naturally. However, if you look at the 10 year graph above, you’ll notice that today’s construction boom of apartment buildings in Glendale is much more intense than previous years. That doesn’t even account for the ones that will still begin construction after this year.

More units on the market means more competition for landlords when leasing a vacant apartment.

 

We’ll be sharing more data and interesting information  on this topic more frequently  from now on. Please subscribe to our blog to receive updates.

 

BREAKING: Water Rates and Apartment Buildings in Glendale

For months we’ve been following the issue of water rates being hiked up in Glendale. This is obviously pretty important for people who own multiple buildings in the city because a majority of landlords pay the water bill for their tenants. Brittany Levine of LA Times has been keeping a close eye on this and really giving us a good look at how the rate increases could impact landlords. Her May 28th article has a cool data visualization chart that shows what 20.4% increase over the next four years looks like. Looking through her tweets, you’ll get a sense of how urgent this really is. Thanks for all your hard work Brittany!

I’ll be releasing a series of shorter posts about this topic in the coming days, including some responses from apartment owners here in Glendale.

In the meantime, if you own property in Glendale, I highly recommend checking out the data in the previously mentioned article and taking a look at how your own expenses will change in the coming years.