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Byline: Jack Snyder
Jun. 11-- SLOWING APARTMENT CONSTRUCTION MAY BOOST RENTS: Two things appear to bode well for apartment owners in the near future, according to a new report by Grubb & Ellis' apartment experts Steve Flanagan and Keith Ray.
First, the number of apartments under construction on March 31 was 8,202, down 42 percent from the peak of 14,155 units under construction on Sept. 30, 1999. Second, land acquisitions for new construction have fallen off sharply in the past six months.
If rental activity continues to be strong -- the market absorbed 11,147 units in the 12 months ended March 31 -- then occupancies and rents will rise.
The overall market occupancy on March 31 was 92.4 percent, down only 0.6 percent despite delivery of 12,898 new units.
Heaviest construction currently is in Lake Mary/Sanford, the Hunter's Creek area in south Orange, and northeast and south Polk County, according to Flanagan and Ray. All three submarkets have slipped below 90 …