Encouraged by improving fundamentals in the apartment sector, Colonial Properties Trust plans to begin developing new apartment communities for a fourth-quarter 2011 or early 2012 delivery.
Chairman and CEO Thomas Lowder confirms, “Should multifamily fundamentals continue to improve in markets where we have sites ready for development, we would be more likely to start selective multifamily development that we had previously postponed so we can deliver units in late 2011 or 2012 where we expect significant rent growth.”
During the first three months of this year, occupancy for the REIT’s apartment portfolio rose by 200 basis points to 96.7 percent. Colonial witnessed occupancy rates improve in 11 of its 12 markets as net rental income has trended positive for three consecutive months. In total, Colonial Properties has an apartment development pipeline totaling $74.6 million.
Source: NAA’s Industry Insider and GlobeSt.com