Occupancy Erosion
Oak Lawn multifamily has become the first casualty of the growing unit delivery in Dallas. It's among a rising number of urban submarkets across the country being loaded down with new units and shrinking occupancies. (Not a great place to be a paper boy.)
According to brand new Axiometrics research, Oak Lawn's occupancy stands at 95.4% for the submarket that includes the trendy Uptown area, VP Jay Denton tells us. Occupancy dropped 60 bps year-over-year as 1,102 units came on board last year. Another 3,271 units will join the ranks this year. (We need to get more people to move here. Start sending invitations!)
The occupancy decrease within these urban cores isn’t surprising, Jay says. These submarkets will probably continue to see occupancy drop throughout 2014 in the face of increasing supply. (Supply and demand have such a dysfunctional relationship.) Among the Oak Lawn construction pipeline for ’14 is the 299-unit 4110 Fairmont developed by Trammell Crow Residential in partnership with Behringer Harvard Multifamily REIT 1.
