Downtown rents for the average two-bedroom apartment fell by double-digits between summer 2001 and 2002, according to a survey by GVA Marquette Advisors.
Two-bedroom rents plunged to $1,296 from $1,463 a year ago, or 11.4 percent, according to the survey. One-bedroom rents increased 2.3 percent, to a $964 average.
Not unexpectedly, overall Downtown vacancy rates are also rising, from 2.5 percent in summer 2001 to 6.8 percent this summer. However, vacancy rates are down from the spring quarter when they were at a nearly unprecedented 8.3 percent.
According to Brent Wittenberg, assistant vice president with GVA Marquette Advisors, vacancy rates won't firm up much more.
"I don't think we'll see the vacancy rate come down a whole lot more until we start adding more jobs and the economy turns around," Wittenberg said. "I would predict that it's not going to dip below 5 percent until we see some kind of a substantial economic turnaround."
Wittenberg says Downtown property owners have been offering deals. "There are many properties in Downtown - at least half of the properties in Downtown - offering rent specials. A typical concession is one-month free rent, with some offering more than that," he said.