The Portland apartment market was WHITE HOT in 2015 in just about all areas- rents and values dramatically increased.
On the transaction side, just how much did values jump in 2015?
As you can see, apartment values in Portland, Oregon in the 5-50 unit sector jumped from $99,387 per unit to $121,000 per unit from 2014 to 2015, basically a 22% increase. That is on the heals of a 35% increase from 2013 to 2014. We certainly have seen a jump in values over the past 24 months.
Cap rates dropped significantly to 5.67%, which mirrors the price per unit increases.
What about the bigger units? Basically, we are seeing more of the same, take a look at the 2012-2014 data:
The 2015 data shows a big jump (just like the 5-50 units):
Part II will show the transaction trends in Portland, and Part III will show the Salem market. Stay tuned!