Stopping by the Interbay Starbucks today, I noticed a sign in front of the neighboring new blockhouse-like “Flats” apartments that they are now offering 1st month rent free. This is new and seems to indicate that they are having trouble leasing out all their apartments. Not sure why — who wouldn’t want to live right next to a major 24-hour BN train switching yard and mainline?
Disagree with you krow. No need to offer rent incentives if the market is hot. In addition, small guys as well as big mgmt companies offer incentives depending on market conditions and incentives are by no means an invention of the last 10 years. Right now, today, few incentives are offered. Next year will be a different story when all of the new places under construction come on line.
The place Mondo mentioned doesn’t have much to offer except that it’s new. It’s not really walkable to anywhere interesting. No view. Clanging & smashing trains 24/7 in the rail yard on one side, busy 15th on the other and ball field lights shining windows at night on another. Around a year ago, one of my former tenants moved there. Looks like tenants are fleeing as their one year leases are up.
Krow, I’ve been around watching the ups and downs of the rental market in this area for over ten years. When a building that hadn’t offered rental incentives in the last year suddenly starts offering them, something’s up with that building. When many buildings start offering incentives, something’s up with the market. We’re not in the latter situation yet that I’ve noticed, but as lak points out, it’ll be interesting to see what happens once many of the new local mega-projects are available for occupancy.