With all of the negative press regarding soft rental markets around the United State, it’s good to get some positive news. A recent report released Grubb & Ellis found that Portland, OR had the third lowest vacancy rate in their survey of 47 different markets. According to an article on OregonBusiness.com which highlighted the findings, Portland had only a 6.1% retail vacancy rate.
The only cities reported with lower rates were New York (2.0%) and Washington DC (5.5%). The national retail vacancy rate was 10.9%. David Hill, a senior investment specialist at Grubb & Ellis was quoted in the article stating that “It’s more of a reflection of supply and demand. We never overbuilt; the downtown in particular has shown some resilience.”
On the residential rental property front, Aaron Douglas of NorthWestApartmentInvestor.blogspot.com noted that Portland has the 4th lowest vacancy rate among the nation’s largest seventy-five metros.
In Other Market News – Vacation Homes Out Performing Primary Residences and Investment Properties
Broderick Perkins recently reported on how well the market for vacation homes and rental properties was stacking up against that for primary residences. According to the report, vacation homes have fared better than investment properties and primary homes in that the percentage decline in sales from the previous year was minimal. Vacation home sales fell just 1.8% while rental properties dropped 7.8% and primary residence sales sunk 5.6%. Sources used in the article noted that vacation home sales were strong thanks in part to lower real estate prices. It’s to believe but nearly 59% of second home buyers paid cash for their second homes according to the National Association of Realtors.
The median home price for vacation homes fell to $150,000 in 2010 which was a 11.2% decline from 09′. Median investment property prices also fell 10.5% during the same period and the median price for primary residences dropped 4.5% to $176,700.