Average Vacancy Rates in NC

[Scheryl McDavid]

I'm new to BP and am studying deal analysis. Quick question: How do I find out the average vacancy rate for Wake Forest/Raleigh, NC? Thanks for your help!

[Chris Martin]

No, using someone's made up numbers with poor methodology is worse than not using any numbers at all.

Do primary research in the market you are interested in and you will have some real numbers. It's not like Raleigh is the size of LA. Just make the calls! Maybe there are 30 or 50 apartments in the space you are interested in. If that is too much to ask, then just make stuff up. 20%. Great. Using that number, if it is inaccurate, may lead you to bad business decisions.

I know vacancy rates in my space, for property we rent in Raleigh. You can gauge each market by calling (or knowing) the managers of your competition. Some managers will count lock boxes on doors. I know this because one manager (this was several years ago, but still relevant) called me and told me just that. That metric could be helpful if you know the 'make ready' processes of your competition.

I know 99% of people won't do anything to find real numbers. Those of us that do know exactly what's going on.

My 2 cents