Average Downtime - Multifamily
Hello, just had a quick question. Does anyone have an idea of what average downtime for a Class B/B+ urban multifamily asset would be? Thanks!
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which market?
Just trying to look at the US's average. Found a stat that it is around ~25 days, does that sounds right?
no idea what the national average would be.
Probably about a month assuming the property is in pretty good shape.
A month in new construction Type A, yes. I'm not sure what the B market looks like, and I agree with @Jim1234" that it will be highly market dependent.
what do you mean by downtime? As in turnover time of each unit?
Downtime? Slap a 5% vacancy factor on rents and call it a day.
Ain't nobody have time for a unit by unit Argus style underwriting
This is the correct answer if the property is already stabilized.
Just to piggy back on this comment, I was being facetious but it approximates just fine.
1) your lender is going to do the same with little thought about why
2) If you want some math on why everyone uses it: 50% roll each year * one month downtime = 4% average yearly vacancy. Round up to 5 because why not and there you go.
That's literally how we do it, for what it's worth.
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