July 29, 2016
In a sign that the San Francisco market has peaked, offers of free rent are cropping up in landlords’ efforts to lease high-end multifamily projects. Markets taking the greatest hits nationally include Northern California, New York and New England.
The news comes after five straight years of strong market fundamentals, though elevated levels of new supply and slowing growth of higher-paying jobs are ushering in new tenant incentives. San Francisco expects to see roughly 5,100 new units deliver in 2016, the most in 26 years.
Chicago-based Equity Residential cut its revenue forecast for the third time this year to 3.5%-4%. Arlington, VA-based AvalonBay Communities Inc. says it stepped up its lease-signing concessions in Q2 to a level four times higher than in the same period a year earlier.
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