Olde Town Rental Market Update

 

 

 Hi, Today we are talking about a rental market update for the Old Town neighborhood.

 

Overall, in Old Town, we see rental rate rising.  We see young professionals increasingly being tenants in the Old Town neighborhood. They want to be close to downtown work. We’re seeing a trend that buyers and tenants tend to be overwhelmingly young and female. Tend to be young professionals.  And we’re also seeing more families with children moving into the neighborhood.  

In the video you’ll see a diagram of the rent rate curves.  The curve can help you visualize rental rates as a function of size, so you  can deduce that if you have 500 SF apartment, on average your guessing about 80 cents a foot.

The next chart is a diagram of rent per SF against average score–we gave each unit a ranking from one to five for condition and location.  And so we averages those two numbers together to give us and average score and of course, you can see here that there is a correlation between location and the rental rate.   Now, it’s not as tight as you would expect. so there are some people that are leasing units that are not quite that nice or not in a great location and their still getting $1.05 a square foot.

You know, so I think would tell you if it’s not a perfect market in Old Town and that there’s a lot of demand and sometimes people are making due with units that aren’t quite that nice.

The overall trend of the rental rates is rising, so here you see that over the past four years the rental rates have gone from an average of 80 cents a square foot to about 87 cents a square foot. So your seeing slow and steady increase in the rental rate.

We also have a shown the changes in the rent curves over time.    You see a for a 500 square foot apartment it would give you about $1.10 and then these are the two curves for 2019 and 2020. So you see pretty evenly spread here. We actually removed a few rentals form 401 Broad, listened to their legacy, rents, they actually brought the curve down so when you remove those outliers, the curve actually fits pretty steadily in there.

So, that is our Old Town rental market report. Overall, a great trend, we are seeing a lot of good things happening in the neighborhood.

We would love to hear from you. What are you seeing Downtown?  What are you experiencing with rental rates? Please like and share, comment below, subscribe. We’d love to hear from you and thanks for watching, and have a great day.

 

Development Authority negotiates Greenjackets Stadium Lease

 

The former home of the Augusta Greenjackets is getting a second life. Last week Augusta leaders agreed on a deal to bring more entertainment to the Augusta area. A 10-year master lease agreement to bring big acts and events to the Lake Olmstead Stadium will have us seeing the area around Lake Olmstead transformed starting this April. The Augusta Commission voted and approved for the Augusta Development Authority’s “stadium master lease” of the facilities. C4 Live, the subtenant, will be spending hundreds of thousands of dollars to make upgrades to the structure and in addition to Masters Week, we can expect other entertainment events through out the year. This is great news for Augusta and this piece of land getting a second life!

 

What’s a master lease, you may ask?  Here’s Bigger Pocket’s summary, but in short, it’s when an owner leases a space to a tenant who then has the right to sublease to another tenant.  The city of Augusta will lease to the EDA, who in turn will lease to C4 Live.  This is generally good when the landlord trusts the master tenant, but has no relationship to the subtenant–the master tenant is guaranteeing the performance of the lease.  

 

 

https://www.augustachronicle.com/news/20200108/entertainment-company-approved-to-bring-events-to-olmstead-stadium

 

https://www.wrdw.com/content/news/Augusta-leaders-strike-10-year-deal-for-acts-at-Lake-Olmstead-Stadium-for-Masters-Week-566840601.html

The Four Stages of Gentrification

When talking about Gentrification, I think the four stages that Phillip Clay identified in his 1979 book “Neighborhood Renewal” are a helpful gauge:

 

1)Pioneer–Small group of Risk Oblivious Pioneers.  Artists, Designers, Gays, Lesbians.  These pioneers generally renovate homes that are vacant and in bad shape.  These folks are visionaries.  

2)Expanding Gentrification–Risk Takers– Flipper and remodelers move in, start renovating buildings.  

3)Displacement–Risk Neutral–Values start rising, middle class people start moving into neighborhood.  This is when major changes come to a neighborhood.  

4)Mature Gentrification–Risk Averse–The neighborhood becomes desirable, often with new resources and businesses.  Often the original residents and early gentrifiers are displaced.  

 

How are we seeing this in Olde Town now?  We’re seeing single females purchase homes in the neighborhood.  We’re seeing section 8 apartments turned into market rate housing.  We see young women pushing strollers down Greene Street, rather than old women pushing shopping carts down Greene Street (most of those folks are gone now).  The neighborhood is changing quickly.  

 

Do you live in an urban neighborhood?  Where do you think your neighborhood is in this process?  What signs do you see to confirm that?  

 

Helfpul Links:

https://sites.google.com/site/gg2wpdermotmitchell/gentrification-processes

https://www.cnu.org/publicsquare/2018/04/27/%E2%80%98jacobs-curve%E2%80%99-and-gentrification