APARTMENT MARKET REPORT

Transcription

1 APARTMENT MARKET REPORT GREATER SALT LAKE AREA A Cushman & Wakefield Commerce Research Publication SUMMER 2015

2 Concept / Layout / Design / Data: COMMERCE REAL ESTATE SOLUTIONS Information Services Group Copyright 2015 COMMERCE REAL ESTATE SOLUTIONS - All Rights Reserved The enclosed information, while not guaranteed, has been secured from sources we believe to be reliable. Cover: The Alloy at Geneva Apartments, Vineyard, Utah

3 EXECUTIVE SUMMARY On behalf of all of our Investment Group Agents and Brokers, it is our privilege to present our annual Apartment Market Report for The study was conducted and authored by James Wood, who is the Director of the Bureau of Economic and Business Research at the University of Utah. Mr. Wood s objectivity, methodology and depth of experience combine to produce the most accurate apartment statistics in the Salt Lake County market. In addition, apartment construction data was provided by Jeff Neese, MAI, Western States Multifamily. The Apartment Market in Salt Lake County is the strongest in 14 years. The highlights of this year s study include: 2.7% vacancy rate valley-wide; lowest vacancy rate in 14 years. Rent growth of 5% over prior year. Number of rental units increased by 2.2% in 2014 with only 922 permits issued year-to-date, Only 13% of apartment communities offered specials or concessions, usually discounting first month s rent or reduction in deposit. Current level of new construction (5,100 units) does not pose a threat to the market. Despite unprecedented demand from buyers, transaction volume is down; 25% reduction from 2014 and 55% from 2013, due only to a lack of willing sellers. Annual demand for new apartment units in Salt Lake County is estimated to be 3,000 units per year, a 2.5% increase. 22,936 units have been added between , an average of 1,529 units per year. Average rental rate is $1.04 per square foot. The forecast for the upcoming year includes: Market conditions for apartment owners will continue to be favorable. Vacancy rates will remain under 5%. Planned projects for 2015/2016 will not destabilize the market; however, more than 5,800 units are proposed over the next 2 years. Rental rates will increase 3% or more. Demand continues to increase from both institutional and private investors. Thank you to our clients and partners for making Salt Lake County such a wonderful market in which to invest in commercial real estate. Sincerely, Kip Paul Executive Director, Investment Sales

4 SUMMER 2015 SUMMARY OF CURRENT MARKET CONDITIONS Apartment communities in Salt Lake County are fully occupied. Currently, July 2015 s vacancy rate is 2.7 percent, which is the lowest rate in the fourteen years of rental market surveys. Last year the rate was 3.0 percent. Rental rates have increased by 5% over the past year. The average rate for a two bedroom two bath unit is $1,050, and $1,132 for a three bedroom unit. The combined average rate for all types of units is $907. The highest rents are in large apartment communities 250 units or more have an average per square foot rent of $1.08, and a vacancy rate of 2.8 percent. Communities to the east of I-15 have higher rental rates ($1.09/square foot) than communities to the west ($0.99/sf). For projects built since 2000, overall rent per square foot is $1.09, with an average monthly rate of $1,045. Approximately 2,800 new apartment units received building permits in Salt Lake County during 2014, increasing the County s rental inventory by 2.2 percent. The market has had no trouble absorbing new units. Presently, 5,100 new apartment units are under construction in the County. The near historic level of construction will certainly push vacancy rates higher, but won t likely exceed 5 percent over the next year, due to a current, very low 2.7 percent rate and strong economic growth. SALT LAKE COUNTY: DEMOGRAPHICS AND EMPLOYMENT TRENDS Salt Lake County s 2014 population was 1,091,742, Table 1. Since 2000, the County s population has increased at an average annual rate of approximately 1.4 percent. In 2014, population growth was slightly lower, at 1.1 percent. Recent, net out-migration has reduced the County s population growth, but strong job growth will likely increase net in-migration, and a demand for housing in both renter and owner occupied units. Job growth in Salt Lake County continued at a strong pace during 2014, increasing 3.7 percent by adding 15,096 jobs to 2013 s total, Table 2. The County s labor market has more than fully recovered from The Great Recession s severe employment decline of 2009, Employment in the County is now nearly 6 percent higher than the pre-recession peak of 603,000 jobs. 5.0% rent growth over the past year. TABLE 1 Demographic Trends for Salt Lake County YEAR POPULATION CHANGE NET MIGRATION ,843 17,627 4, ,716 10,873-2, ,198 6,481-6, ,532 8,334-5, ,247 14,716 1, ,017 23,770 10, ,362 18,344 4, ,648 10,286-3, ,007,205 11,558-2, ,018,737 11,531-2, ,033,299 14, ,045,829 12,530 3, ,064,069 18,240 4, ,079,721 15,652 3, ,091,742 12,021 na Source: Governor s Office of Planning and Budget. Presently, 5,100 new apartment units are under construction in the County. The near historic level of construction will certainly push vacancy rates higher, but won t likely exceed 5 percent over the next year, due to a current, very low 2.7 percent rate and strong economic growth. 4 Cushman & Wakefield Commerce

5 APARTMENT MARKET REPORT RENTAL INVENTORY IN SALT LAKE COUNTY In 2013, the American Community Survey (U.S. Census Bureau) reported an average 112,423 renter occupied units in Salt Lake County during the previous five year period ( ), Table 3. One third of that average was located in Salt Lake City. The average number of rental units during that period show a 2,291 increase compared to the year West Jordan had the highest increase in rental inventory, with an additional 3,774 unit average over the period. The average rental inventory within Unincorporated Salt Lake County declined by 854 units from 2000, due primarily to annexations. 20,879 new apartment units added to Salt Lake County between TABLE 2 YEAR NONFARM JOBS CHANGE UNEMPLOYMENT RATE ,153 13, % , % ,715-11, % ,956-5, % ,274 7, % ,983 19, % ,780 24, % ,224 21, % ,927 1, % ,449-29, % ,259-2, % ,122 11, % ,934 20, % ,370 20, % ,466 15, % Source: Utah Department of Workforce Services CITY AVERAGE CHANGE Salt Lake City 34,869 37,160 2,291 Unincorporated SL County 17,421 16, West Valley 8,835 11,933 3,098 West Jordan 3,419 7,193 3,774 Midvale 5,241 6,297 1,056 Murray 4,225 6,246 2,021 Sandy 4,029 5,991 1,962 Taylorsville 5,328 5, South Salt Lake 4,972 5, Holladay 922 2,660 1,738 South Jordan 773 2,546 1,773 Draper 1,020 2,343 1,323 Riverton 382 1, Herriman ,140 Bluffdale Salt Lake County 91, ,423 20,879 Source: U.S. Census Bureau. Employment Trends in Salt Lake County TABLE 3 Renter Occupied Dwelling Units by City (represents a 5 year average ( ) Summer 2015 Apartment Market Report 5

6 SUMMER 2015 VACANCY AND RENTAL RATES As noted, Salt Lake County s rental inventory is fully occupied. The 2.7 vacancy rate in July 2015 is the lowest vacancy rate reported in fourteen years of annual surveys, Table 4. New construction of 2,800 units in 2014 was not sufficient to prevent further decline in the vacancy rate. The market has seen a steady drop in vacancy rates over the past six years, from 7.2 percent to 2.7 percent. The number of vacant units in the County s rental inventory has dropped from 7,700 units to around 3,000 units. All types of apartment units experienced increases in average rental rates. The combined average monthly rate for all types is currently $907, an increase of 4.9 percent from the average rate of $865 in 2014, Table 5. Rates by square foot increased by 5 percent this year, from $0.99/sf in 2014 to $1.04/sf in Two bedroom two bath units had the largest increase of 6.8 percent. A summary of rental market characteristics, including average rent, size of unit, rent per square foot, and vacancy rate is given in Table 6. APARTMENT VACANCY RATES 9% 6% 3% 0% Studio One Two, One Bath Two, Two Bath Three, Two Bath Overall TABLE 4 Apartment Vacancy Rates STUDIO 1 BEDROOM 2 BEDROOM 1 BATH 2 BEDROOM 2 BATH 3 BEDROOM 2 BATH OVERALL % 5.6% 4.3% 6.0% 4.5% 5.4% % 8.5% 8.0% 5.7% 3.9% 7.6% % 6.7% 7.6% 7.7% 7.4% 7.2% % 5.3% 7.7% 5.5% 7.0% 6.1% % 3.2% 4.6% 3.2% 3.4% 4.0% % 2.9% 3.1% 3.4% 3.8% 3.2% % 4.3% 4.1% 5.2% 4.8% 4.6% % 6.6% 7.7% 8.0% 6.6% 7.2% % 5.2% 6.5% 5.5% 6.3% 5.7% % 5.1% 6.2% 4.4% 3.6% 5.2% % 3.8% 4.0% 3.6% 3.7% 3.8% % 3.2% 3.7% 5.1% 4.1% 3.9% 2014 <2.0% 2.5% 2.8% 3.9% 2.8% 3.0% 2015 <2.0% 2.5% 3.8% 2.5% 2.0% 2.7% 6 Cushman & Wakefield Commerce

7 APARTMENT MARKET REPORT CHANGE IN AVERAGE RENTAL RATES BY TYPE OF UNIT $1,200 $1,100 $1,000 $900 $800 $700 $600 $500 OVERALL RATES AND SIZE BY TYPE OF UNIT 1,500 1, $ Studio One Two, One Bath Two, Two Bath Three, Two Bath Overall Rents ($) Square Footage 0 Studio One Two One Bath Two Two Bath Three Two Bath Overall TABLE 5 Change in Average Rental Rates by Type of Unit TYPE OF UNIT % CHANGE Studio $496 $558 $504 $480 $515 $538 $586 $603 $ % One $644 $703 $654 $629 $659 $709 $745 $757 $ % Two, One Bath $695 $760 $723 $706 $725 $759 $792 $809 $ % Two, Two Bath $842 $915 $834 $816 $862 $943 $969 $983 $1, % Three, Two Bath $950 $1,066 $1,000 $956 $1,025 $1,051 $1,075 $1,085 $1, % Overall $728 $793 $740 $720 $754 $814 $850 $865 $ % TABLE 6 Overall Rental and Vacancy Rates in 2015 by Type of Apartment Unit TYPE OF UNIT RENTS SQUARE FEET RENT/S.F. VACANCY Studio $ $1.52 <2.0% One $ $ % Two, One Bath $ $ % 2.7% overall vacancy rate - lowest in 14 years Two, Two Bath $1,050 1,014 $ % Three, Two Bath $1,132 1,242 $ % Overall $ $ % Summer 2015 Apartment Market Report 7

8 SUMMER 2015 VACANCY AND RENTAL RATES BY SIZE OF APARTMENT COMMUNITY 2.4% Vacancy and rental rates vary depending on the size of the apartment community. In 2015, the overall average rental rate for apartment communities of 100 to 250 units was $960, higher than the overall rate of $896 for communities with over 250 units, Table 7. Conversely, large properties (250+ units) have higher rents per square foot, at $1.08/sf. Vacancy rates are vacancy rate for properties with less than 100 units. lowest in small-size communities (less than 100 units): 2.4 percent, compared to 2.6 percent for mid-size, and 2.8 percent for large properties. TABLE 7 Vacancy and Rental Rates by Size of Apartment Community TYPE OF UNIT LESS THAN 100 UNITS 100 TO 250 UNITS MORE THAN 250 UNITS Monthly Rent / SF Monthly Rent / SF Monthly Rent / SF Studio $520 $1.16 $744 $1.73 $629 $1.50 One $725 $1.05 $858 $1.19 $785 $1.19 Two One Bath $777 $0.85 $832 $0.88 $879 $0.99 Two Two Bath $894 $0.85 $1,157 $1.12 $1,007 $1.00 Three Two Bath $963 $0.76 $1,160 $0.90 $1,228 $1.02 Overall Vacancy Rate 2.4% 2.6% 2.8% Overall Rental Rate $823 $960 $896 Overall Rent / SF $0.85 $1.06 $1.08 RENTAL RATES BY SIZE OF COMMUNITY $1,200 $1,000 $800 $600 $400 $200 $0 Studio One Two One Bath Two Two Bath <100 units units >250 units Three Two Bath Overall HAWTHORNE COURT APARTMENTS 8 Cushman & Wakefield Commerce

9 APARTMENT MARKET REPORT VACANCY AND RENTAL RATES BY LOCATION Vacancy and rental rates were determined for two broad locations: west and east of I-15. Vacancy rates to the east were lower in 2015, which is historically typical: 3.1 percent in west side properties, compared to 2.4 percent to the east. Monthly rental rates are higher on the west, while per square foot rates are 10 percent higher to the east: $1.09/sf, compared to $0.99/sf, Table 8. TABLE 8 Vacancy and Rental Rates by Location of Apartment Community TYPE OF UNIT EAST OF I-15 WEST OF I-15 Monthly Rent / SF Monthly Rent / SF Studio $645 $1.58 $620 $1.37 One $802 $1.23 $805 $1.13 Two, One Bath $828 $0.91 $838 $0.92 Two, Two Bath $1,069 $1.09 $1,029 $0.98 Three, Two Bath $1,132 $0.92 $1,131 $0.90 Overall Vacancy Rate 2.4% 3.1% Overall Rental Rate $894 $920 Overall Rent / SF $1.09 $ % overall vacancy rate for apartment communities east of I % overall vacancy rate for apartment communities west of I-15. RENTAL RATES BY LOCATION OF COMMUNITY $1,200 $1,000 $800 $600 PARK LANE VILLAGE APARTMENTS $400 $200 $0 Studio One East of I-15 West of I-15 Two One Bath Two Two Bath Three Overall Summer 2015 Apartment Market Report 9

10 SUMMER 2015 RENTAL AND VACANCY RATES BY AGE OF APARTMENT COMMUNITY 2.7% The apartment communities surveyed were divided into three age categories: (1) built before 1980, (2) built between 1980 and 1999, and (3) built between 2000 and the present. Survey results show that the overall rental rate for apartment communities built since 2000 is 21 percent higher than apartment communities built between 1980 and 1999, and 33 percent higher than apartment communities built prior to Rent per square vacancy rate for apartment communities built since foot in recent developments is 4 percent higher than in communities built between 1980 and 1999: $1.09/sf, compared to $1.05/sf, Table 9. TABLE 9 Vacancy and Rental Rates by Age of Apartment Community TYPE OF UNIT PRE TO PRESENT Monthly Rent / SF Monthly Rent / SF Monthly Rent / SF Studio $523 $1.25 $629 $1.50 $874 $1.95 One $711 $1.00 $771 $1.20 $927 $1.24 Two One Bath $762 $0.81 $845 $0.95 $921 $0.96 Two Two Bath $978 $0.98 $999 $1.00 $1,123 $1.08 Three Two Bath $903 $0.73 $1,128 $0.90 $1,196 $0.96 Overall Vacancy Rate 5.0% 2.2% 2.7% Overall Rental Rate $785 $865 $1,045 Overall Rent / SF $0.88 $1.05 $1.09 RENTAL RATES BY AGE OF COMMUNITY $1,200 $1,000 $800 $600 $400 $200 $0 Studio One Two One Bath Two Two Bath Pre to to Present Three Two Bath Overall 1ST AVENUE APARTMENTS 10 Cushman & Wakefield Commerce

11 APARTMENT MARKET REPORT CONCESSIONS OFFERED BY APARTMENT COMMUNITIES Each apartment community was surveyed regarding move-in specials or concessions offered to new renters. Concessions are comprised generally of reductions in one or more of the following: rental deposit, rental rate, and/or application fee. Only 11 of 82 apartment communities offered move-in specials in 2015, about half the number from Eight of the 11 communities offering move-in specials offered a rent discount, usually the first month s rent. The remaining 3 offered a reduction in the rental deposit. THE CROSSING AT DAYBREAK ELEMENT31 NEW APARTMENT CONSTRUCTION IN SALT LAKE COUNTY Salt Lake County s apartment market had an inventory of 112,300 rental units in Permits were issued for 2,800 new units in the same year, Table 10. The 2015 increase in inventory is modest given the extremely low vacancy rate. Through June 2015, permits have been issued for 922 new apartment units, still insufficient to meet the current growth in demand. 922 permits issued for new apartment units yearto-date in TABLE 10 Permits Issued for New Apartments YEAR UNITS YEAR UNITS , , , , , , , , , , , , , , , , , , , , , , , YTD Source: Bureau of Economic and Business Research, University of Utah and Construction Monitor Summer 2015 Apartment Market Report 11

12 SUMMER 2015 RENTAL MARKET OUTLOOK Apartment market conditions for property owners will continue to be favorable over the next year. Currently, 5,100 units are under construction in Salt Lake County, Table 11. In some cases, these units have received building permits as long as 18 months ago, representing a substantial share of the 4,500 units permitted since 2013 *. In addition, 31 new apartment communities are proposed (5,400 units) for development over the next 2 years. Of course, not all of these projects will be built, and some will have development periods extended beyond will not destabilize the market. Lastly, tight market conditions, coupled with the introduction of new, high-priced projects will push rental rates up by at least 3 percent over the next year. Over the next year, vacancy rates will increase above the very low current level, but will not likely reach as high as 5 percent. The market has easily absorbed the units completed in the last 4 years and the projects under construction in 2015 Rental Rates will increase by 3% or more in the coming year. Vacancy will remain under 5%. THE ALLOY AT GENEVA *Difference does exist between permits, starts and occupancy, and the lag time in apartment development. Typically the permits for an apartment project precede starts by several months, and starts precede occupancy by several months. Consequently, impacts on supply conditions and vacancy and rental rates may not be seen for as much as 2 years after the issuance of building permits. Unfortunately, only building permit data is available for specific apartment developments. Start and time of occupancy data are not published for specific projects. The 5,100 rental units under construction in 2015 will accommodate some of the cumulative demand that has built-up from 2013 to the present, easing supply conditions without destabilizing the 120,000 unit market with 2.7 percent vacancy. METHODOLOGY This report provides rental and vacancy data on small to large apartment communities in Salt Lake County. An approximate 380 apartment communities, ranging from 25 to 588 units, make up this segment of Salt Lake County s rental market. A random sample of 82 communities was drawn from the total. Each of the 82 apartment communities was surveyed during July The group is spread throughout Salt Lake County s residential areas and include 371 studio units, 6,344 one bedroom units, 3,379 two bedroom one bath units, 4,569 two bedroom two bath units, and 1,562 three bedroom two bath units. The oldest community was built in 1909, and the newest built in 2014; the smallest is 25 units, the largest 588; the northernmost property was at 1200 North, the southernmost at South. A few newly built communities are added to the sample each year to ensure the sample is representative of the expanding rental inventory. 12 Cushman & Wakefield Commerce

13 APARTMENT MARKET REPORT TABLE 11 Apartment Projects Under Construction in Salt Lake County May 2015 PROJECT UNITS ADDRESS CITY STATUS Fourth West Apartments West 300 North Salt Lake City Excavation West Station West Gertie Avenue Salt Lake City Framing Liberty Crest South 200 East Salt Lake City Excavation TBD (tax credit) South State Street Salt Lake City Steel above grade 360 Apartments South 400 West Salt Lake City Foundation Neff Floral South 500 East Salt Lake City Framing Seasons on Denver South Denver Street Salt Lake City Framing Ball Park Apartments (tax credit) South West Temple Salt Lake City Excavation Enclave (tax credit) South 300 West Salt Lake City Framing Sage Gate at Haynes Landing South 5600 West Salt Lake City Framing Element31 at Brickyard South 1243 East Salt Lake City Framing Taylor Springs (tax credit) South West Temple Salt Lake City Foundation TBD South 8400 West Magna Excavation Beacon Hill Apartments South Heritage Crest Wy. Bluffdale Framing Triton Terrace 177 Bangerter Parkway & Vestry Draper Framing Herriman Senior Apartments Freedom Park Drive Herriman Framing Birkhill Seniors South Main Street Murray Framing Victoria Woods (tax credit seniors) South 617 East Sandy Framing Cobblegate East 9000 South Sandy Near finish The East Village East Sego Lily Drive Sandy Foundation Dry Creek at East Village East Dry Creek Ridge Ln. Sandy Three Bldgs Finished; framing others Jordan Station South Jordan Gateway South Jordan Framing Meadowbrook Lofts South West Temple South Salt Lake Foundation Bangerter Station South 3400 West West Jordan Start in 2 weeks. Total 5,091 Summer 2015 Apartment Market Report 13

14 SUMMER 2015 Market Rate Projects Built Since 2000 PROJECT NAME YEAR COMPLETED UNITS ADDRESS CITY Allegro South Pony Express Draper Liberty Hills East Highland Drive Draper Parc at Day Dairy South 400 East Draper Farm Gate West South Herriman San Moritz West Powder Hill Road Midvale Meadows at Riverwalk South 70 West Midvale Tuscany Villas South 1000 West Midvale Frontgate South Commerce Dr. Murray Fireclay Villages West Fireclay Ave. Murray Lionsgate at Fireclay West Fireclay Ave Murray Birkhill South Main Street Murray Legacy Spring South 4800 West Riverton Monarch Meadows West South Riverton North Gate Apartments West South Temple Salt Lake City City Front Apartments West North Temple Salt Lake City Emigration Court South 500 East Salt Lake City Seasons at City Creek West North Temple Salt Lake City City Creek Landing South Main Street Salt Lake City Eastside Apartments South 600 East Salt Lake City Brickyard Apartments East Brickyard Rd. Salt Lake City Wasatch Advantage South 400 East Salt Lake City Liberty Gateway South 500 West Salt Lake City 644 City Station West North Temple Salt Lake City The Lotus East South Temple Salt Lake City Sugarhouse Apts South 1200 East Salt Lake City Rendon Terrace North 600 West Salt Lake City Broadway Place East 300 South Salt Lake City Cityscape South 400 East Salt Lake City Liberty Gateway South 500 West Salt Lake City The Vue South 1100 East Salt Lake City Liberty Village McClelland Salt Lake City Meadowbrook Station Howick Street Salt Lake County Bud Bailey South West Temple Salt Lake County Legends at River Oaks South Riverside Drive Sandy Source: Bureau of Economic and Business Research, University of Utah 14 Cushman & Wakefield Commerce

15 APARTMENT MARKET REPORT Market Rate Projects Built Since 2000 (continued) PROJECT NAME YEAR COMPLETED UNITS ADDRESS CITY Liberty Bend South 1300 East Sandy Rosegate South 700 East Sandy Hills at Sandy East Sego Lily Drive Sandy Pinnacle Southtowne Cadbury Lane South Jordan San Marino West South South Jordan Crossing at Daybreak West Frogs Leap Dr. South Jordan San Tropez West South South Jordan District Heights River Heights South Jordan Brick Stone Apts East 3300 South South Salt Lake Liberty Landing South Campus View Dr. West Jordan Boulder Canyon South 5600 West West Jordan Serengeti Springs South 6500 West West Jordan Wilshire Apartments West New Bingham West Jordan Cascade Springs West 8580 South West Jordan Willow Cove VI South Redwood Rd West Jordan Woodgate West 7000 South West Jordan E-Gate West Ruddy Rd. West Valley Village at River s Edge West 3300 South West Valley Fairbourne Station Lehman Avenue West Valley Total 11,347 Source: Bureau of Economic and Business Research, University of Utah AERIAL PHOTO BY RICHARD GREEN Summer 2015 Apartment Market Report 15

16 SUMMER 2015 Projects Completed July 2015 LOCATION UNITS NAME COMMENTS 168 North 600 West - Salt Lake City 70 Rendon Terrace LIHTC, Seniors public housing 644 West North Temple - Salt Lake City City Station Class-A, market rent 50 North 600 West - Salt Lake City 115 North Sixth LIHTC 650 W. South Temple - Salt Lake City 91 Phase 2 of Bridges at Citifront Class-A, Market Rent 230 W. North Temple - Salt Lake City 130 Seasons on City Creek Class-A, Market Rent 10 South 500 West - Salt Lake City 160 Liberty Gateway Class-A, Market Rate 338 E. South Temple - Salt Lake City 84 Lotus Class-A, Market Rent 30 South Main Street - Salt Lake City 105 City Creek Landing Class-A, Market Rent 309 East 100 South - Salt Lake City 125 Providence Place Tax Credit Bond Project 134 South 400 East - Salt Lake City 122 Cityscape Class-A, Market Rent 556 East Broadway - Salt Lake City 73 Broadway Place Market Rent, Seniors Project 350 South 600 East - Salt Lake City 173 Eastside Class-A, Urban Mid-Rise 306 East 500 South - Salt Lake City 119 Seasons at Library Square Class-A, Urban Mid-Rise 550 East 500 South - Salt Lake City 61 Newhouse Class-A, Market Rent 1706 South 900 East - Salt Lake City 20 Lotus BlueKoi Class-A, Townhouse Project 1812 S. West Temple - Salt Lake City 95 Taylor Springs LIHTC, Seniors Project 21st & View - Salt Lake City 29 21st & View Class-A, Market Rent 2033 South 1200 East - Salt Lake City 70 Sugar House Apartments Class-A, Market Rent 2130 South 1100 East - Salt Lake City 211 The Vue at Sugar House Crossing Class-A, Market Rent 2124 South McClelland St. - Salt Lake City 171 Liberty Village Class-A, Mixed-Income 1235 E. Wilmington Ave. - Salt Lake City 105 Wilmington Flats Class-A, Market Rent 2500 South 5600 West - West Valley City 278 Sage Gate at Haynes Landing Class-B+, Market Rent 2550 South Main Street - South Salt Lake 112 Brick Stone on Main Class-B, Market Rent 2800 South 5600 West - West Valley City 290 Pinnacle Highbury Class-A, Market Rent 2900 West Lehman Ave - West Valley City 225 Residences at Fairbourne Class-A, Market Rent, Transit 3960 So. West Temple - Millcreek 62 Bud Bailey, Phase 1 LIHTC, Affordable 4003 So. West Temple - Millcreek 74 Bud Bailey, Phase 2 LIHTC, Affordable 59 E. Gilbride Avenue - Murray 65 Birkhill, Phase 2 LIHTC 4221 South Main Street - Murray 137 Birkhill LIHTC, Urban Mid-Rise 120 West Fireclay - Murray 400 Lionsgate at Fireclay Class-B, Market Rent 150 West Fireclay - Murray 268 Brickgate LIHTC, Project 4500 South 2200 West - Taylorsville 186 SilverCrest Class-B, Market Rent, Seniors 4560 South 700 East - Murray 37 Madrona Class-A,Townhouses 6880 South 700 West - Midvale 180 Canyon Crossing at Riverwalk LIHTC, 4% Bond Project 7650 South Euro Drive - Midvale 192 Lofts at 7800 Class-A, Market Rent 7442 S. Bingham Jct Blvd - Midvale 76 Tuscany Villas LIHTC, Seniors Source: Jeff Neese, MAI, Western States Multifamily 16 Cushman & Wakefield Commerce

17 APARTMENT MARKET REPORT Projects Completed July 2015 (continued) LOCATION UNITS NAME COMMENTS 7500 S. Bingham Blvd - Midvale 214 Florentine Villas. Class-B, Tax Credit 1004 W. Tuscany View - Midvale 252 Talavera at the Junction Class-B+, Market Rent 7850 South 3200 West - West Jordan 72 West Village Class-B, Market Rent, Seniors 9206 South 700 East - Sandy 159 Rosegate in Sandy Market Rent, Seniors 150 E. Sego Lily Drive - Sandy 55 Hills at Sandy Station, Phase 1 Class-A, Market Rent 1890 W. South Jordan Pkwy - South Jordan 186 Legacy Cottages at South Jordan Market Rent, Seniors S. Redwood Road - South Jordan 60 The Gardens LIHTC, Seniors S. River Heights Dr - South Jordan 258 District Heights Village Class-A, Market Rent S. River Heights Dr - South Jordan 170 Promenade at the District Class-A, Townhouse Project 3600 West South - South Jordan 84 San Tropez West Class-A, Market Rent 650 East South - Draper 42 Victoria Woods Draper LIHTC, Seniors South 400 East - Draper 228 Day Dairy Class-A, Market Rent S. Bangerter Hwy - Draper 277 Rosegate in Draper Class-A, Market Rent, Seniors Total 6,900 Source: Jeff Neese, MAI, Western States Multifamily Likely Starts LOCATION UNITS NAME COMMENTS 252 South 500 East - Salt Lake City 158 The Bonneville Class-A, Market Rent 444 South 900 East - Salt Lake City 68 9th East Lofts LIHTC, Transit-Oriented 258 West 700 South - Salt Lake City 134 Granary Place Class-A, Market Rent 255 West 800 South - Salt Lake City 21 Prana Townhomes Class-A, Market Rent 928 S. Washington Street - Salt Lake City 45 Central 9th Studios Class-A, Market Rent, Micro-Units 1015 South 200 West - Salt Lake City 48 Tenfifteen Class-B, Market Rent, Micro-Units 3750 South 700 West - South Salt Lake 288 Riverfront Class-B+, Market Rent 1559 West 3860 South - West Valley City 59 Truong Townhomes Market Rent, Townhouse 4205 South Main Street - Millcreek 118 Artesian Springs, Phase 1 LIHTC, Transit-Oriented 7682 South Center Square - Midvale 102 The Station at Midvale, Phase 1 LIHTC, Transit-Oriented 7720 South Holden Street - Midvale 97 Kimpton Square LIHTC, Seniors, Transit-Oriented 9300 S. Redwood Road - West Jordan 72 Phase 7 of Willow Cove Class-B, Market Rent 234 E. Sego Lily Drive - Sandy 146 Hills at Sandy Station, Phase 2 Class-A, Market Rent Daybreak Parkway - South Jordan 180 Daybreak Condos For Lease Class-A 1925 West South - Riverton 121 Meadows on Park Avenue Class-B+, Market Rent Draper FrontRunner Station - Draper 250 Draper Vista Station Class-A, Market Rent Total 1,907 Source: Jeff Neese, MAI, Western States Multifamily Summer 2015 Apartment Market Report 17

18 SUMMER 2015 Potential Starts or Later LOCATION UNITS NAME COMMENTS 140 North 600 West - Salt Lake City 350 North Temple Micro Micro-Units 650 East 400 South - Salt Lake City 266 Liberty Boulevard Class-A, Market Rent 600 East 500 South - Salt Lake City 138 Liberty Square Class-A, Market Rent 2255 South 300 East - South Salt Lake 175 Zellerbach site Class-A, Market Rent 2265 South State Street - South Salt Lake 300 Ritz Bowling site Class-A, Market Rent 314 Vine Street - Murray 280 Murray Crossing Class-A, Market Rent 7250 S. Canyon Centre Dr - Cottonwood Hts 101 Canyon Centre Class-A, Market Rent 1300 W South - West Jordan 272 Station at Gardner Mill Class-A, Market Rent 8350 South State Street - Sandy 226 East Town Village Class-A-, Market Rent 8000 South 5600 West - West Jordan 192 The View at 5600 Class-B+, Market Rent 1881 East 9800 South - Sandy 264 Little Cottonwood Class-A, Market Rent 150 W. Civic Center Drive - Sandy 330 The District at City Hall Class-A, Market Rent Anthem Park Boulevard - Herriman 422 Sagegate at Anthem Class-B+, Market Rent Draper Pkwy & Draper Gate - Draper 100 Liberty Pointe Class-A, Market Rent South 855 West - Bluffdale 244 Independence Class-B+, Market Rent South 855 West - Bluffdale 60 Independence Townhomes Class-A, Townhouses South Redwood Road - Bluffdale 176 Edge at the Connection Class-B+, Market Rent Total 3,896 Source: Jeff Neese, MAI, Western States Multifamily WASATCH COMMONS APARTMENTS 18 Cushman & Wakefield Commerce

19 SALT LAKE CITY INVESTMENT SPECIALISTS Kip Paul Mike Carroll Diane Taylor James Bekker Ralph Riedel, ccim Nancy Edwards Mark Cannell Dave Christenson For more information about Commerce Research, contact: Scott Lovell Corporate Research Director ABOUT CUSHMAN & WAKEFIELD COMMERCE Cushman & Wakefield Commerce, headquartered in Salt Lake City, Utah is an independently owned and operated member of the Cushman & Wakefield Alliance with offices throughout Utah, Nevada, Washington and Idaho. The firm partners with its sister company Cushman & Wakefield NorthMarq to provide innovative commercial real estate solutions to occupier and investor clients, offering transaction services, capital markets services, occupier and investor services, and real estate advisory. Together the firms manage more than 52 million sq. ft. of retail, industrial, and office assets, have annual revenues of more than $100 million, and employ more than 750 professionals. Learn more at C&W Commerce and C&W NorthMarq are part of the Cushman & Wakefield platform, which is the world s largest privately-held commercial real estate services firm with 248 offices in 58 countries globally.

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