Richmond, Va.
Dallas
Greensboro, N.C.
Baltimore
Tulsa, Okla.
Washington
Fort Worth, Texas
Jacksonville, Fla.
Philadelphia
Revenue Loss Projected Through 2004: Under 3 percent
It’s a mixed bag of cities in the third tier. While some have comparatively low vacancy rates now, others contain some of the nation’s largest stockpiles of vacant units. What separates third-tier markets from those ranking a little better is a slightly more aggressive pace of construction that will make rent concessions harder to reduce, thus revenue projections predict losses at less than 3 percent.
Notable Market: Washington. The nation’s capital has been leading the country in employment growth. Its occupancy rate is well above the U.S. average, and a sizable difference between rental rates and homeownership costs leaves room for pricing increases. You might be expected it to rank higher than the third-tier group. However, momentum will be hard to sustain because the market is challenging for the national lead in ongoing construction.