Multifamily 2019 Outlook
Investment Trends
• Value-add opportunities remain the focus of many investors. Properties
that can be improved through added amenities, management changes
or cosmetic upgrades, and have rent adjusted to market rate are particularly desired. Over the past 12 months, trading of Class B/C rentals in
the metro jumped 22 percent, with the largest increase in transactions
of more than $20 million, indicating that well-capitalized buyers are
expanding portfolios to include this asset Class.
• The wave of new inventory is drawing more out-of-state investors to the
region. So far this year, Class A buildings less than 10 years old and containing more than 200 units changed hands at an average of $272,300
per door. Cap rates for these trades were in the 4 percent span.
• Rising prices and more uncertainty among investors is resulting in
many buyers taking a more cautious stance. Some searching in the Tampa-St. Petersburg metro will wait longer for the right deal, while others
spend more time on due diligence, which can extend the time it takes to
close transactions.
CONSTRUCTION: Completions climb by roughly 125 units
above last year’s 5,475 rentals. The
Peninsula area of Tampa will receive the
largest number as 1,200 units are placed
into service here.
VACANCY: Following a 30-basis-point decline last
year, vacancy will finish 2019 at 4.5 percent. The rate is less than half of 2009s
cyclical peak.
RENT: In 2019, the average effective rent will set
a new high of $1,252 per month, building
on last year’s 7.3 percent hike. The rate is
almost 13 percent below the U.S. average.
These are some excerpts from the detailed report, we produce through Marcus & Millichap, using such sources as Costar, Real Capital Analytics, Experian, Census, Yardi, etc
If you would like some additional information or the entire report, please contact me directly or visit us here <—————-
Sean Dreznin
Marcus & Millichap
(941) 961-8199
sean.dreznin@marcusmillichap.com
The Commercial Real Estate Alpha Site 
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