core and Angela today, of March the joined the for and you earnings thoughtful dedicated chosen call. have for begin Q&A. for and me decades retirement Essex’s I years Company well values worked as Kleiman Angela Adam following joining Essex excellent my follow leader negotiator. and congratulating embraces Thank Barb will prepared Company welcome we the will conference Pak next XXXX. almost for an for and and with the planned in our Angela to is and CEO she Angela I’ve third exemplifies ago. known a to Berry Board since as XX her closely quarter appointment us together remarks, as is by and two strategy here
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our On supply Seattle. having outperform these a with to expected we and down California largest expect expected in expect reduction new XXXX As X% marginally increase to demand a about basis, of we apartment with to supply California assumptions, result Northern lease the decline effective markets in XXXX rents year-over-year XX% net XX%.
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economists’ significantly outperformance job levels significant higher recessions, job in downturns. operating historical pattern for in deliveries. with although relative market about that supply I’d follows Seattle economic due results has portfolio similar to Given been previous our to negative recession, of experience Northern less our losses confluence supply the each which in expectations XXXX, in our recession weakest a Seattle, Generally, with Seattle. to and during California a past to modest summarize respect like of is to housing growth
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where followed And expansion those economic recessions apartment that rents substantially. it’s the fosters of a rents pressures level long of that higher supply. higher grew affordability most First, previous
and early delayed compared in in of and the our rest the the the Northern much pandemic Coast, rents of country Seattle mid-XXXX, part beginning early in recovery was plummeted XXXX. and On California’s to the California recovery Southern with West
West the still Coast result, its early time supply a in has sufficient to had the recession As housing is XXXX and stages the fully recover. of not from
expectation to to programs, during office re-openings, employees the West to relocation it with back that addition, for apartments job offices would many hire of which common offices occurring. included need was demand pandemic, In the generally relocate not workers The with closer closed upon represents to remotely to now to that is is growth. return Coast in pursuant the
that further less Finally, probably shut down. In comment a typically few California, outward will the the newly primarily retired, because leave years, next we early Angela expect those such businesses left moment, in the on as migration pandemic were in when migration.
the apartment transaction to Turning market.
seen and recently most then have have significantly a the interest conditions close changed recent negotiated in enough transactions. We at deals few since rates, valuations increase were that before to impact
the rates inflationary seller it recent for with expected, larger especially rates resulting impact expectations takes will in given spread. to and in diverging rent strong buyer higher more result As Generally, interest values, interest a property growth than financial bid-ask pressures. immediate create higher distress, of
talks to apparent or distress markets. Fed transactions excessive pockets respect at are major and issues of Broker in well-located are indicates price point. However, liquidity tightening, develop Essex rates although or cap the mid-X% with that this may events range from for no apartment apartments high-quality credit in the
the condition, be in I’ll that, wanted and expect positive, balance to note position great invest be several is past With the Finally, our the we thanks Kleiman. will team When sheet to to to urgency a over markets call Angela opportunistic. Barb excellent of finance over opportunities in we years. and I the unwavering that, turn to creatively, turn the
