San Antonio Apartment Market Continues Growth Streak

FOR IMMEDIATE RELEASE

Contact:
Kathryn Koepke
Manager, Market Research
koepke@poconnor.com
713-375-4239

Scott Sherrill
Director of Marketing 
ssherrill@poconnor.com
713-375-4264 

Houston, TX (August 2, 2007) -The San Antonio apartment market saw continued growth in occupancy and absorption this quarter. Absorption rates are the highest since the third quarter of 2005.

This is according to the second-quarter San Antonio Apartment Market Update report by O'Connor & Associates, the Houston-based real estate consulting firm and leader in apartment market research data in Texas. The report tracks the growth of apartment living in the San Antonio and surrounding areas.

Overall, the market absorbed an impressive 1,264 units this quarter, with most of that in the Classes A and B markets. The Class A market absorbed 306 units over the second quarter and 1,404 units over the past 12 months. Class B demand continues to be the strongest of any class over the quarter, as quarterly absorption was 597 units. The Class C market showed signs of recovery, posting positive quarterly absorption of 479 units. The Class D market is the only market to show a loss with -118 units.

San Antonio area apartment occupancy increased from last quarter, up 0.44 points overall. On average, apartments in the San Antonio area show a 90.87 percent occupancy rate. Class A properties lost 0.57 points to 90.67 percent. Class B gained ground, with a 0.67 point increase to 91.62 percent. Class C had the most increase with 1.27 points to 90.17 percent. Class D had the largest decrease of 1.31 points to end at 90.69 percent. The highest occupancy levels were in the Far Northwest submarket at 98.84 percent. The West submarket had the lowest occupancy rate at 84.70 percent.

On average, San Antonio apartment rent rose $0.007 per square foot (psf) to $0.839 psf. Class A properties posted a $0.005 increase to $1.000 psf. Classes B continued to rise with a $0.008 psf increase to $0.842. Class C properties posted a $0.005 increase, bringing the average rent to $0.762. Class D properties also increased by $0.008 to $0.694. Rental rates ranged from $1.153 psf for Class A property in the Downtown submarket to $0.584 psf for Class D properties in the Northeast 1 submarket.

San Antonio has a total of 671 operating or under-construction projects greater than 25 units with a total of 131,651 units. Class A properties make up 24 percent, Class B make up 38 percent, Class C make up 31 percent and Class D make up seven percent.

For a complete report on the San Antonio apartment market, visit http://www.poconnor.com/apartment_market_update/san_antonio_2Q_2007.html.  The report measures demand (absorption), occupancy, rates and apartment inventory.

About ApartmentLink
ApartmentLink is your best source for apartment market data in Houston, Dallas/Ft. Worth, Austin and San Antonio. With information on owners, occupancy, rent, ammenities, detailed property information, comparable information, and much more, ApartmentLink provides vital apartment information for on-site managers, vendors, brokers, owners and investors. The database is available online at oconnordata.com.

Ask about your FREE 10-Day trial for the most accurate online Texas apartment data today! Click here to sign up or contact Heather Wiesner at 713-375-4262.

About O'Connor & Associates
O'Connor & Associates, a Texas-based national real estate service firm providing appraisals, market research, cost segregation studies and federal and ad valorem tax reduction services, has been in business since 1974 and has more than 40,000 clients. Patrick O'Connor, MAI, president of O'Connor & Associates since 1983, is frequently acknowledged by national publications as a respected source of information on real estate trends. Visit www.poconnor.com.

ApartmentLink is your best source for apartment market data in Houston, Dallas/Ft. Worth, Austin and San Antonio. With information on owners, occupancy, rent, amenities, detailed property information, comparable information, and much more, ApartmentLink provides vital apartment information for on-site managers, vendors, brokers, owners and investors. The database is available online at oconnordata.com.

Ask about your FREE 10-Day trial for the most accurate online Texas apartment data today! Click here to sign up or contact Heather Wiesner at 713-375-4262.