Generating Submarket Data the Right Way

apartment jobs, apartment careers

Generating Submarket Data the Right Way

When apartment operators are evaluating the performance of their communities, data about the surrounding submarket is absolutely critical. But not all submarket data is created equally. Although metro market reports produced by research organizations have an undeniable value in the assessment of a market’s performance, it would be a mistake for operators to rely on the submarket information presented in these reports to compare against their own property (we will get to why in just a moment).     Ultimately, the best way to understand what’s going on in your submarkets is to understand what’s going on with your comps. And to understand what’s going on with your comps, you need to do market surveys (comp benchmarking).     Beware of Regression AnalysisMetro reports from third-party organizations can provide a great sense of the overall economic and rental trends in a metro area, such as Phoenix. This is extremely valuable information for an operator to have when evaluating the current performance of the market and when making projections about the future. This is valuable information when making strategic market-wide decisions, such as do we want to acquire/build in this market or is disposition and exit a better option. Recall how some of the public REITs years ago decided to exit all other markets and focus solely on East and West coasts. However, the most relevant data for most operators is submarket data. And, unfortunately, the submarket stats in these reports can be flawed.Here’s why: the surveys used to produce these reports are conducted at the b……