Marin Apartment Rents Continue to Soften; Apartment Sales Still Strong
San Rafael—The softening of Marin apartment rents that started in the fall of 2016 is continuing through the winter 2017 with Southern Marin rents dropping from 3-8% in many locations.
The glut of high end remodeled luxury units that hit the Marin market last fall plus the dramatically slowing demand for San Francisco apartments has produced a falling market for Southern Marin apartments.
For example, I sold a 3 unit mixed use property in August 2016 with a three bedroom, two bath luxury apartment in Corte Madera at a proforma rent of nearly $5,000 per month. At close of escrow the unit was offered at $4950 and sat on the market through the fall in to the winter with two price reductions. The unit has now been reduced to $3750 and showings have picked up and applications have been received.
Surveying the remainder of the Southern Marin cities, this office has found price reductions up to $500 per month and one month’s free rent being offered by landlords now in an effort to get units filled. Many larger, newer built projects, like the Millworks building above Whole Foods Market in downtown Novato, are experiencing an unusually high vacancy rate at nearly 10% for luxury units.
In response to the softening demand for apartments over $3000 per month, owners are stepping up with move in incentives, lower rents and shorter lease terms.
Most landlords surveyed with moderately prices units under $2500 per month are having no problems keeping them filled and are reporting little or no vacancies throughout 2016.
Strong Demand for Marin Apartments Offered for Sale
Even with the softening rents, real estate investors are continuing to seek out Marin County apartment properties pushing the average price per unit in Marin to $338,000. This is up almost 25% from Marin apartment sales in early 2016.
Below find the complete list of apartment sales for Marin in 2016:
Marin County Apartment Closed Sales 2016 – 5+
| Address | Price | Units | Per Unit | GRM | COE |
|---|---|---|---|---|---|
| 145 Kent Avenue, Kentfield | $3,200,000 | 10 | $320,000 | 19 (P) | 11/23/16 |
| 401 Ash, Mill Valley | $3,730,000 | 10 | $373,000 | 17.3 (A) | 5/04/16 |
| 1025 Third St., Novato | $1,550,000 | 5 | $310,000 | 19.8 (A) | 11/29/16 |
| 729 Cherry St., Novato | $3,015,000 | 15 | $201,000 | 14.2 (A) | 1/15/16 |
| 5 Frances St., San Rafael | $2,700,000 | 9 | $300,000 | 18.5 (A) | 9/28/16 |
| 19 Merrydale Rd., San Rafael | $4,248,000 | 18 | $236,000 | 13.4 (A) | 9/21/16 |
| 27 Harbor St., San Rafael | $4,449,900 | 11 | $409,000 | 13.0 (A) | 12/16/16 |
| 310 Bayview St., San Rafael | $5,068,000 | 14 | $362,000 | 14.2 (A) | 4/02/16 |
| 805 Mar West, Tiburon | $2,950,000 | 5 | $590,000 | 15.1 (P) | 1/08/16 |
| 77 Bulkley, Sausalito | $10,689,000 | 21 | $509,000 | 19.0 (A) | 9/29/16 |
| 1441 Casa Buena Dr., Corte Madera | $10,272,000 | 32 | $321,000 | 4/02/16 | |
| 101 Piper Ct., Fairfax | $5,238,000 | 27 | $194,000 | 6/02/16 | |
| 21 Calle del Embarcadero, Stinson Beach | $3,00,000 | 8 | $375,000 | 9/03/16 | |
| 28 Ross St., San Rafael | $1,638,000 | 7 | $234,000 | 6/02/16 |
If you would like any details on these sales or are considering a sale of your own please contact me at 415-302-7730 or email me at katherine@khiggins.com and I would be happy to prepare a market valuation for your property.