Apartment fundamentals are not likely to experience the same headwinds facing the office sector, says Hans Nordby, managing director with PPR, a CoStar company.
Apartment REIT vacancy rates are approximately 6.5%, he said. "They've already seen the decrease in vacancy rates. This is when you get the honest to goodness rent growth. We expect a lot of the benefits to continue to accrue for class A apartments, which is where REITs tend to play," he said.