There doesn’t appear to be any slowdown in the demand for this product type, particularly with the increasing use of technology and the growth of remote working.
A good sub-market for a value-add play should show a difference of several hundred dollars between the cost of renting a new, luxury apartment and the cost of renting an older unit.
Among the key factors affecting the sudden rise in TI allowances is a significant increase in new inventory that impacted supply and demand dynamics nationally.