Fall 2014 Market Study - Commercial Real Estate Lexington KY

Fall 2014
Market Study
SILVESTRI-CRAIG Realtors
Silvestri Commercial Group
3292 Eagle View Lane, Suite 350
Lexington, KY 40509
(859) 263-2300
www.KenSilvestri.com
Ken Silvestri, President
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TABLE OF CONTENTS
Our Team ...................................... 3
Lexington Submarket Map .... 4
Overview....................................... 5
RENTAL RATES
Average Monthly Rent ............. 6
Average Monthly Rent/SF ..... 7
UNIT SUPPLY
Supply by Floor Plan................ 8
Supply by Year Built ................. 9
OCCUPANCY
Occupancy by Year Built....... 10
Occupancy Trends .................. 11
SUMMARY
Summary Review ............ 12, 13
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OUR TEAM
Silvestri Commercial Group is a full service commercial real estate organization within
SILVESTRI-CRAIG Realtors. Ken Silvestri’s standing in the local market is the result of
consistency of performance. The team focuses on the customer’s needs. Our goal is to get
fast, professional results.
Ken Silvestri
Ken is President of SILVESTRI-CRAIG Realtors and is the marketing and sales specialist. Ken
serves as the team leader and rainmaker. Ken is a native of Lexington with a deep network of
relationships. His driving obsession is to be the best at just one thing...Commercial Real
Estate. Ken can be reached at 859-255-0000 or Ken@KenSilvestri.com.
Brandon Cutwright
Brandon is the Real Estate Transactions Manager of SILVESTRI-CRAIG Realtors and is a
specialist of real estate analytics and operations. Brandon has a degree in Finance from the
University of Kentucky and worked in the Property Management industry prior to joining
Silvestri-Craig . Brandon can be reached at 859-556-0190 or Brandon@KenSilvestri.com.
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LEXINGTON SUBMARKET MAP
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OVERVIEW
Survey Summary
In order to collect the data to support this study, a market survey of Lexington’s Southeast submarket was
conducted. This year we conducted an in person tour of the property to see any new trends in landscaping,
renovations, and amenities. Some of the information was also collected by doing over-the-phone or email surveys.
This took place during the months of October and November 2014. The information collected was based on the
total number of units, unit breakdown, unit size, current rental rates, and occupancy. Over 40 Lexington apartment
communities were toured and/or contacted for the survey.
More than 50% of the apartment properties that participated in the 2013 market survey are located in the
Southeast region of Lexington. This is primarily due to the fact that the Southeast has the highest density of
apartment complexes in the Lexington Market. Which is why the 2014 market survey has been focused solely on
the Southeast region.
For this Market Study, we compare the current numbers to the numbers from the 2013 Market Survey.
Lexington Southeast Submarket
SOUTHEAST
Park Hill
The Village
Brandywine
Park Place
Valleyfield
Brighton 3050
Patchen Oaks
Cedarwood
Patchen Place
Chinoe Creek
Pinebrook
Colts Run
Raintree
Cove Lake
Reserve at Merrick
Crescent at Shadeland
Resort at Lake Crossing
Enclave Hartland
Retreat at Hamburg
Fairway
Richmond Commons
Gate House
Shillito Park
Gleneagles
Shorelake
Hamburg Farms
Springs at Winchester
100 Chevy Chase
Steeplechase
Lake Pointe
Stoney Brooke
Lakewood Park
Stoney Falls
Lexington Villas
Tarleton Crossings
Man O War Crossing
The Fountains at Andover
Merrick Place
The Pines
Old Farm
The Racquet Club
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AVERAGE MONTHLY RENT
$1,400
$1,318
$1,200
Monthly Rent
$1,055
$1,009
$1,000
$882
$800
$674
$722
$945
$732
$600
$400
Nov-14
$200
$0
Floor Plan Type
2014 information categorized each floor plan based on the number of bedrooms and bathrooms. 2013 information only
categorized each floor plan by the number of bedrooms. Due to the discrepancy in the information a comparison between the
Average Monthly Rental Rates by floor plan type would not be accurate. Comparison will be included in the 2015 Market Survey.
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AVERAGE MONTHLY RENT/SF
$1.40
$1.31
$1.20
Monthly Rent/Sqft
$1.00
$0.94
$0.85
$0.80
$0.76
$0.71
$0.76
$0.79
$0.60
$0.53
Nov-14
$0.40
$0.20
$0.00
Floor Plan Type
2014 information categorized each floor plan based on the number of bedrooms and bathrooms. 2013 information only
categorized each floor plan by the number of bedrooms. Due to the discrepancy in the information a comparison between the
Average Monthly Rent/Sqft by floor plan type would not be accurate. Comparison will be included in the 2015 Market Survey.
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UNIT SUPPLY
283
2
11
606
522
Eff/Studio
4145
2801
1x1
2x1
2x2
3x1
3x2
1476
Four
Townhome
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UNIT SUPPLY
669
402
890
1766
1834
Pre 1970
1970-1979
1980-1989
1990-1999
2000-2009
3779
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2010-Newer
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OCCUPANCY
98%
98%
97%
96%
97%
95%
96%
94%
94%
94%
93%
94%
92%
90% 90%
90%
88%
Nov-14
88%
Nov-13
86%
84%
82%
Pre 1970
1970-1979
1980-1989
1990-1999
Year Built
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2000-2009
2010-Newer
OCCUPANCY
Occupancy Trends
Year Built
13-Nov
14-Nov
Percent Change
Pre 1970
96%
88%
-8%
1970-1979
90%
90%
0%
1980-1989
94%
95%
1%
1990-1999
93%
97%
4%
2000-2009
94%
97%
3%
2010 or Newer
94%
98%
4%
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SUMMARY REVIEW


Efficiency/Studio floor plans attain the highest rent/sqft

Followed by 1Bd/1Ba and then
2Bd/2Ba

4 bedroom floor plans have the
lowest rent/sqft
1Bd/1Ba floor plans make up the
biggest category of available units

Followed by 2Bd/2Ba and then
2Bd/1Ba respectively

The 1Bd/1Ba and 2Bd/2Ba floor
plans combined make up about
75% of the total number of
available units in the Southeast region
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SUMMARY REVIEW

The average rents for 2Bd/2Ba are within $50 of the average rents for 3Bd/2ba and are
actually higher than the average rents for 3Bd/1Ba


During our survey, some of the property managers noted the market for 3 bedroom
apartments has softened
The majority of the units built in the Southeast region were constructed between 19801989

Over 1,000 units have been constructed since the year 2000

The occupancy trends show that there has been an increase in occupancy in the
newer properties since the 2013 Market Survey

The largest increase was at 4% occupancy growth shared by the 1990-1999 and
2010-Newer construction year ranges

The largest decrease was in Pre-1970
construction which dropped from 96%
average occupancy to 88% average
occupancy
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