How does class A affect long term market?

[Kristopher Raepple]

As someone who has only invested in the upswing from 2010 forward, I am curious how new build class A apartment buildings hold up over time.

IMO the appeal is the new look and feel of the property that drives the higher rents. Over 10, 15 years or longer, how does class A hold up. Obviously these apartments won’t be the newest and hottest, are they able to sustain the much higher rents they charge?

If it does, how do managers sustain the higher prices even without the newest features?

If not, how does that affect class B and C properties?

Is it more likely that class B and C rise to the rent current levels of class A, while class A continues to drive forward. On the other hand, do the current class A become class B and force current class B to modify to compete or is class B pushed down to class C?

Very curious to see what experience investors have seen.

[Jaysen Medhurst]

Except in very rare cases, they don't stay A-class properties over time, @Kristopher Raepple. There's an old saying, "If you want more C-class properties, build A-class and wait 30 years."