Phoenix rising
Is the apartment market in Phoenix, like the mythical bird for which the city is named, still going down in flames? Or is it rising from its own ashes? It all depends on your point of view.
The same set of circumstances that forced Fairfield Residential into a short sale last summer in Gilbert and Camden Property Trust to predict double-digit drops in NOI in the Valley of the Sun is bringing prosperity to Arizona native Mark-Taylor Residential's doorstep and lured California-born Western National Group to open a fee-management office in Scottsdale in July.
During his Q4 2008 market report, Camden President Keith Oden said his standard response to the question, "What is an F market," has echoed the sentiment of Supreme Court Justice Potter Stewart, when the legislator was asked to define pornography. "I cannot define an F market, but I will know an F market when I see it.
Phoenix with an F
"This year we have one market where we are budgeting net effective rents to decline by seven percent and NOI to be down by low double digits and that most certainly meets our definition of an F market," he said last February and that dismal prophesy turned out to be somewhat optimistic.
Camden saw NOI decline 16.5 percent year-over-year, as of the end of September, in Phoenix, the worst performing of the 15 coast-to-coast markets across which the REIT's 63,000 units are located in 183 properties. The portfolio-wide year-over-year NOI
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