The Commercial Real Estate Alpha Site

1Q 2022 – 12-Month Period

CONSTRUCTION

6,184 unit completed

• Rental inventory grew by 2.1 percent over the past four quarters, exceeding

the previous yearlong span’s growth rate of 1.6 percent.

• Development activity exceeded 5 percent of local existing inventory

in the Central Tampa, New Tampa-East Pasco County and Peninsula

submarkets during this span.

RENT

28.4% increase in the average effective rent Y-O-Y

• Historically low vacancy throughout the metro stimulated the largest

annual rent increase ever recorded in Tampa. The average effective

rate rose to $1,734 per month in March 2022.

• The average effective rate in North St. Petersburg climbed 31.6 percent

over the past 12 months, leading all submarkets in rent gains.

VACANCY

200 basis point decrease in vacancy Y-O-Y

• All of the metro’s four largest submarkets, each with over 20,000 units

of rental inventory, recorded vacancy compressions of at least 190

basis points over the past year ended in March.

• Despite the market experiencing a record supply wave, Class A vacancy

contracted 130 basis points in 2021 to 2.9 percent.

To inquire about a complimentary property analysis, CLICK HERE <—-

Investment Highlights

• Tampa-St.Petersburg’s multifamily fundamentals are appealing to

a wider range of investors, evident by recent trading activity. Transaction

velocity more than doubled the previous year’s pace in 2021,

resulting in the largest annual transaction total on record for the metro.

The average sale price grew nearly 13 percent over the past year,

compressing the mean cap rate to 5.4 percent, still the second-highest

yield among major Florida metros.

• Class A deal flow rose to a two-decade high in 2021, as activity from

cross-border and institutional capital sources elevated over the past

year. Buyers targeting high-end assets are most active in the Brandon-

Southeast Hillsborough County submarket, where rent growth

exceeded 30 percent over the past year. Entry costs for luxury assets

here often rise above $250,000 per unit, with cap rates that average in

the high-3 percent range.

• Yield-driven buyers are targeting listings in the New Tampa-East

Pasco County submarket. Entry costs here often fall below the market

mean of $156,700 per unit, with first-year returns that average in the

To view recent closed sales along the Gulf Coast and stay on the pulse of the market moving forward, CLICK HERE <——- DPCRE LLC

Researched & Written by Carlos Pietri & John Chang

Marcus & Millichap 2022 | www.MarcusMillichap.com

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein. Note: Preliminary estimates for 1Q 2022 apartment completions, net absorption, vacancy and rent. Metro-level employment growth is calculated based on the last month of the quarter/year. Sales data includes transactions sold for $1 million or greater unless otherwise noted. This is not intended to be a forecast of future events and this is not a guaranty regarding a future event. This is not intended to provide specific investment advice and should not be considered as investment advice. Sources: Marcus & Millichap Research Services;

Bureau of Labor Statistics; CoStar Group, Inc.; Real Capital Analytics; RealPage, Inc.