The downtown rental market saw no relief this spring as we gear up for busy season. Effective rents at class A buildings are at a record high $2.70 square foot, up 2.7% from last year. Occupancies also rose 3% from the first quarter to 95.1%, about what it was this time last year.
Skyrocketing rents continue to be great for landlords but it has been proved to be a challenge for renters who aren't seeing equal pay increases every year. Many tenants had to swallow 7-10% rent increases on their renewals this year.
So what about this glut of supply so many speak of? I still feel it coming, but with the 1,000s of well paying tech companies setting up shop downtown there will surely be more demand to follow the increase in supply.
What are your thoughts on the market? Is it worth it to continue paying rent increases or lock in an interest rate on an investment by purchasing? How much did your rent increase this year?