Is demand slowing for corporate apartment programs in the current economy?
Demand for corporate apartments has slowed. The declining demand is impacting not only occupancy but is also putting stress on current pricing models. The slowdown is impacting each of our markets equally and seems to be reflective in general of a slowdown in corporate travel. With the challenging economic conditions, we believe there is pressure on many companies’ travel budgets. And this is reflected in the current activity we are experiencing in our corporate homes division. Interestingly, 2008 was one of the strongest years our corporate homes division has ever experienced, and this was driven primarily by a strong demand cycle. We began to see evidence of a decline in the fourth quarter of 2008. What’s your strategy for retaining residents during the downturn and beyond? Resident retention is always an important issue to monitor and control in any economic cycle. In periods of increasing rents, a higher level of turnover is often not a negative factor as it enhances a property’s a
