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Equity Residential is offering up to six weeks free rent for new leases at its apartment properties in Cambridge. Courtesy photo
Apartment landlord Equity Residential is increasing its concessions to renters in Boston and other high-priced coastal markets that have been the most severely-impacted by the pandemic, executives said.
Many of the new tenants are moving within urban centers to take advantage of the promotional offers, rather than fleeing to the suburbs, Chief Operating Officer Michael Manelis said during a conference call with analysts to discuss the company’s third-quarter earnings.
“Previous addresses provided on applications suggest that the large majority of these new residents are deal seekers who are moving to us from within the same market,” Manelis said.
In April, the company raised transfer fees on residents looking to relocate within the same building to save on rent or trade up to a bigger unit, he said.
The turnover rate for the Greater Boston portfolio was 20.6 percent in the third quarter, second-highest of nine metro areas where Equity Residential owns properties. Average rents were $3,079, down 3 percent from the third quarter of 2019, while occupancy declined 2.8 percent to 93.6 percent.
Equity Residential owns approximately 6,400 units at 25 properties in Greater Boston and is developing the 470-unit Alcott tower in Boston’s West End, which is scheduled for completion in the third quarter of 2021.
The pandemic and an “inopportune” completion of several large apartment projects in Boston by competitors has put pressure on rents, Manelis said.
Other newly-completed towers in lease-up periods such as the 414-unit NEMA Boston are now offering free rent incentives of two-and-a-half months to new residents.
In Cambridge, Equity Residential has been offering four to six weeks of free rent since July.
“Leasing activity is predominantly coming from intra-city moves with the lack of international students and workers continuing to pressure rates,” Manelis said.
