Greystar Real Estate Partners 1

Burnside 26
Portland, OR
The Parker
Portland, OR
Asa Flats + Lofts
Portland, OR
Multifamily NW
Lisa Nerheim
October 14, 2015
Portland Market Overview
Portland, OR
Portland, OR
2
Portland Market Overview
State of the Portland Market
Total apartments:
Average occupancy:
112,372
Units to deliver in
2015:
2,772
3
Data from:
Reis Inc
AXIOMetrics Inc
96.4%
100.0%
99.0%
98.0%
97.0%
96.0%
95.0%
94.0%
93.0%
92.0%
91.0%
90.0%
89.0%
Portland Market Overview
Average asking rent:
$982
$1,400
$1,200
$1,000
$800
$600
$400
$200
$-
4
Data from:
Reis Inc
Portland Market Overview
Average asking rent new deliveries:
$1,604
$2.13
$2,500
$3.00
$2,000
$2.50
$2.00
$1,500
$1.50
$1,000
$1.00
$500
$0.50
$0
$Vancouver
$1,247
5
Data from:
AXIOMetrics Inc
Beaverton
$1,384
Northeast
$1,453
Northwest
$2,027
Vancouver
$1.44
Beaverton
$1.62
Northeast
$2.43
Northwest
$2.78
Portland Market Overview
Major Employers:
Intel
OHSU
Fred Meyer
Providence
US Government
Nike
10,176
16,700
13,900
Intel
Providence
14,132
14,106
6
Data from:
Portland Business Journal
OHSU
US Government
Fred Meyer
Greystar Market Overview
Savier Street Flats
Savier Street Flats
Portland, OR Portland, OR
7
Greystar Market Overview
19,643 units under management in Oregon
Oregon
Market
Beaverton
Canby
Corvallis
Eugene
Happy Valley
Hillsboro
Lake Oswego
Longview, WA
Portland
Salem
Sherwood
Springfield
Tigard
Tualatin
Vancouver, WA
Wilsonville
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Expertise
Lease-up
Conventional
Renovation
Mixed-use
Portfolio transitions
Product
Class A-C
Urban
Suburban
Garden-style
High-rise
Mid-rise
Trends
The Emery
Portland, OR
•
Absorption of New Units
•
Soft & Strong Spots in the Market
•
Parking
Absorption
Macro - Historical & Projected Net Deliveries
3,027
3,027
2,946
2,772
2,407
1,600
1,935
71
Deliveries
Trough | Year
Peak | Year
10 Year Avg.
5 Year Avg.
2014
2015
2016
2017
Macro - Historical and Projected Absorption
3,153
2,758
1,899
2,107
1,868
1,956
1,495
118
Absorbtion Assumption
Trough | Year
10
Data from:
Reis, Inc
AXIOMetrics Inc
Peak | Year
10 Year Avg.
5 Year Avg.
2014
2015
2016
2017
New Units 2015
Block 17
Portland, OR
281 Units
Portland, OR
86 Units
Columbia View
Apartments I
Vancouver, WA
176 Units
Eastside 101
Portland, OR
101 Units
Glendoveer Woods
Apartments
Portland, OR
113 Units
HUB 9
Latitude
Mason-Williams
Modera Goose Hollow
Hillsboro, OR
124 Units
Happy Valley, OR
138 Units
Portland, OR
76 Units
Portland, OR
134 Units
Monroe Apartments
Parkside Lofts
Rowlock Building
Springville Oaks
The Janey II (East)
Portland, OR
46 Units
Vancouver, WA
91 Units
Hillsboro, OR
255 Units
Portland, OR
112 Units
Portland, OR
62 Units
Hassalo on Eighth
Portland, OR
10 Units
11
Cameron
Data from:
AXIOMetrics Inc
New Units 2015
LL Hawkins
The Northwood
The Union Apartments
Portland, OR
113 Units
Portland, OR
57 Units
Portland, OR
186 Units
West Parc at Bethany
Village
Portland, OR
149 Units
12
Data from:
AXIOMetrics Inc
Victory Flats at
Elmonica Station
Beaverton, OR
312 Units
Yacht Harbor Club I
Portland, OR
175 Units
Waterline
Portland, OR
243 Units
Soft & Strong Spots in the Market
2015 Annual Rent Growth
2015 Units Absorbed
12.4%
20.0%
18.0%
16.0%
14.0%
12.0%
10.0%
8.0%
6.0%
4.0%
2.0%
0.0%
13
Data from:
AXIOMetrics Inc
1,735
800
700
600
500
400
300
200
100
0
Concessions
2015 Concessions
-0.1%
Submarket
Vancouver
Northeast
Northwest
Beaverton
East Gresham
Milwaukie/Oregon City
Tigard/Lake Oswego/Wilsonville
Market Average
14
Data from:
AXIOMetrics Inc
Concession Value
% of asking Rent
-0.1%
-0.1%
-0.1%
-0.1%
0.0%
0.0%
0.0%
-0.1%
Urban Parking
Average Cost of Parking
$160
15
Data from:
Greystar Market Survey’s
Average Parking Ratio
0.8
What’s Working Well & What’s Not
Cyan
Portland, OR
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What’s Working Well
Air Conditioning
Vinyl Plank
Gas Appliances
Car Stacking Parking
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Dog Wash Stations
Package Concierge
Bike Wash Stations
Fitness on Demand
Rooftop Gathering Spaces
Secure Bike Storage
Quartz Countertops
Outdoor Lounges
Outdoor Lounges
Outdoor Lounges
Indoor Lounges
Indoor Lounges
Indoor Lounges
Pet Amenities
Creative Fitness
Thinking outside the box?
Arcade
Rock Climbing Wall
26
Karaoke Room
What’s Not Working Well
Low Security Bike
Storage
Laminate Countertops
Paper Based Leasing
Underperforming Ground
Floor Retail
27
Multi-Station Weights
Market Forecast
Burnside 26
Portland, OR
28
Market Forecast
Market Overview - Portland, OR
US-OR-Portland-Vancouver Occupancy
97.0%
96.1%
US-OR-Portland-Vancouver Rent Growth
Rent Growth
95.8%
96.0%
95.2%
95.0%
94.8%
95.0%
94.9%
US Rent Growth
12.0%
10.0%
94.0%
8.0%
93.0%
6.0%
92.0%
4.0%
91.0%
2.0%
90.0%
10.1%
5.0%
4.5%
3.1%
3.1% 3.6%
4.1% 4.2%
4.5%
3.4%
3.4% 3.0%
0.0%
2015
2016
2017
2018
2019
2020
2015
2016
2017
2018
2019
2020
US - O R - Por tla nd- Vanc ouve r J o b G r owt h
Job Growth
Stats - AXIO
US Job Growth
Occupancy
3.0%
Rent Growth
29
Data from:
AXIOMetrics Inc
Reis Inc
2015
2.4%
2016
2017
2018
2019
2.1%
US Job Growth
1.7%
1.9%
2.0%
1.7%
1.6%
1.5%
1.9%
Job Growth
1.8%
2.1%
US Rent Growth
2020
2015
2016
2017
2018
2019
2020
96.1%
94.8%
95.0%
95.2%
95.8%
94.9%
10.1%
4.5%
3.1%
4.1%
4.5%
3.4%
5.0%
3.1%
3.6%
4.2%
3.4%
3.0%
3.0%
2.4%
1.9%
1.6%
2.0%
2.1%
2.1%
1.8%
1.5%
1.7%
1.9%
1.7%
THANK YOU
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