Average Downtime - Multifamily

Analyst 1 in RE - Comm

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!

Comments (13)

Jan 5, 2020

which market?

  • Analyst 1 in RE - Comm
Jan 7, 2020

Just trying to look at the US's average. Found a stat that it is around ~25 days, does that sounds right?

Feb 19, 2020

no idea what the national average would be.

Feb 19, 2020

Probably about a month assuming the property is in pretty good shape.

Feb 20, 2020
Peg Leg:

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.

Feb 20, 2020

what do you mean by downtime? As in turnover time of each unit?

Most Helpful
Feb 20, 2020

Downtime? Slap a 5% vacancy factor on rents and call it a day.

    • 7
Feb 20, 2020

Ain't nobody have time for a unit by unit Argus style underwriting

Feb 20, 2020

This is the correct answer if the property is already stabilized.

Feb 20, 2020

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.

Feb 20, 2020
SHB:

I was being facetious but it approximates just fine.

That's literally how we do it, for what it's worth.

Feb 20, 2020
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