Shafiq Hirani CCIMReal Estate Advisor, REMAX Distinctive · Real Estate Advisor at RE/MAX Distinctive Commercial | Washington, DC | Your Guide To Profitable Real Estate Ventures

Real Estate Market: New vs. Established Buildings Explained #shorts

15 Aug 2026 · 1 min

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In this short explainer, the speaker highlights a paradox in the current real‑estate market: while new apartment buildings are experiencing strong leasing activity, older, established properties are seeing rising vacancy rates. The driver of this shift is the aggressive concessions offered by new developments—such as two months of free rent and waived fees—which attract tenants away from existing buildings. Consequently, the apparent market recovery is misleading, as the demand is being pulled from the existing stock rather than generated anew.

Chapters

Those 2 numbers are moving in opposite directions. And this is the critical part. The market looks like it is recovering because new buildings are leasing up. Established buildings are seeing vacancy go up, not down. Those buildings are offering concessions. 2 months free, waived fees. When a renter can get a brand new unit with a month or 2 free, that pulls demand away from established buildings, including yours. The new buildings filled up by taking tenants from somewhere, and that somewhere was existing properties.