Multifamily Sector Spurs Development

By Stevie Duffin Updated on 7/25/2012

Tom Lowder, chairman of Colonial Properties Trust, believes that fundamentals have been and are expected to grow robustly in the multifamily sector.  Lowder claims that he is seeing one of the most preeminent cycles for the multifamily business in the last forty years. 

There are many indicators in the market foretelling a continuation of growth and booming fundamentals.  Colonial Properties Trust has been able to enjoy an increase in traffic for all properties, as well as the ability to raise rents in new and current resident properties.  The company is also proud to announce that delinquency rates have been consistently under one percent.  Lowder thinks this is indicative of his residents being employed comfortably, since they have been able to afford the increase in rent as well as pay the rent on time.

Colonial Properties wants to waste no time jumping on new developments in the wake of positive fundamentals.  The company currently has 1,500 new units in the works – a 5% increase in Colonial’s portfolio of 30,000 already-existing units.

Lowder chose to place these new units in four markets that have shown positive job stability and room for growth: Charlotte, Austin, Tampa and Orlando.   Colonial Properties is also reigniting construction on several sites that were abruptly stopped without finish during the last recession.  The company states that they potentially have an additional six sites to build another 1,500 units.  This, however, will depend on the timing of occupancy growth and rental rate at the time.