Consolidation In The Apartment Industry

Unlike the many other industries dominated by a handful of giant firms, the apartment business has long been the province of numerous, relatively small players. Traditionally, the vast majority of apartment properties have been “mom and pop” operations—that is, the proprietors have owned and managed a handful of units. Given the importance of “location, location, location” in real estate and the concomitant need for detailed knowledge of local markets, this is not surprising.As the national economy has changed dramatically over the last decade, so too has the apartment industry. Recently, economic forces have spurred considerable consolidation and supported the emergence of a substantial number of large, professionally managed apartment firms—public and private real estate investment trusts (REITs) and non-REITs.

Thanks to Urban Land Magazine