Ami

Ami asked about the expected impact of announced Amazon layoffs and Equity Residential's portfolio exposure to affected submarkets. She also inquired about leasing concessions, including what is being offered, concentration in certain markets, and whether concessions are offered on renewals.

Answer

Michael Manelis (COO) stated that only about 3% of their units had residents employed at Amazon at the time of move-in, with higher concentration in Seattle's South Lake Union. He views the diversified portfolio as de-risking direct pressure. He confirmed very limited concessions on renewals. For new leases, cash concessions increased in Q3, averaging about seven days of rent concessed per move-in, concentrated in Washington, DC, and expansion markets, expecting to tick up to about eight days per move-in in Q4.

Ami asked about the expected impact of announced Amazon layoffs on Equity Residential's portfolio and its exposure to specific affected submarkets. She also inquired about current leasing concession offerings, their market concentration, and whether concessions are being used for renewals.

Answer

Michael Manelis, Chief Operating Officer, noted that 3% of units had residents employed by Amazon at move-in, with higher concentration in Seattle's South Lake Union, but viewed the layoffs as dispersed and not a major concern due to the skilled workforce and severance packages. He stated that concessions are very limited for renewals. For new leases, cash concessions increased in Q3 (averaging 7 days of rent per move-in), concentrated in DC and expansion markets, and are expected to tick up to 8 days per move-in in Q4.