Market Update Newsletter Q1 2017

PALM BEACH MULTIFAMILY MARKET SUMMARY CONTINUED

MULTIFAMILY INVESTMENT SOUTH FLORIDA TEAM | SOUTH FLORIDA

ASKING RENT GROWTH

EFFECTIVE RENT GROWTH

ASKING RENT

ASKING RENT PSF

EFFECTIVE RENT

EFFECTIVE RENT PSF

NET ABSORPTION

DELIVERED UNITS

SUBMARKET

UNITS

VACANCY

2,111

$670

$0.85

1.3% $667

$0.84

1.4% 8.6% 5

-

Belle Glade

12,641

$1,772 $1.70

1.3% $1,741

$1.67

0.0% 8.8% 245

-

Boca Raton

9,910 $1,368 $1.30

1.4% $1,345

$1.28

0.4% 7.4% 107

-

Boynton Beach

5,284 $1,622 $1.49

3.0% $1,572

$1.44

0.1% 6.2% -8

-

Delray Beach

7,142 $1,077 $1.16

0.5% $1,071

$1.15

0.5% 4.8% -4

118

Greenacres

Outlying Palm Beach County Palm Beach Gardens/ Jupiter Royal Palm Beach/ Wellington

193

$666

$1.05

0.1% $664

$1.05

0.2% 4.6% 1

-

7,455 $1,510 $1.40

0.6% $1,508

$1.39

0.7% 5.6% 29

-

6,087 $1,441 $1.31

-0.1% $1,399

$1.30

-0.1% 6.4% -5

-

17,653 $1,209 $1.31

0.3% $1,204

$1.30

0.2% 5.3% 36

-

West Palm Beach

68,476 $1,411

$1.39

0.6% $1,387

$1.37

-0.3% 6.3% 406

118

TOTAL/AVERAGE

• In the three months of 2017, there were 5 apartment sales totaling $45 million with a median price of $137,381 per unit or $147 per square foot.

• For a ninth year in a row, average asking and effective rents were at record levels. Year-to- date, average asking rents grew by 0.6%. This is below the record 8.1% rent increase from 2015.

• Vacancies increased in 2016 to a 6-year high of 6.9%. This was due to new supply out-pacing net absorption.

• There are 3,634 units forecasted for delivery to market. This represents only 5.3% of the current inventory in the market.

• Year-to-date net absorption was over 400 units. Net absorption outpaced new supply by almost 300 units contributing to a slightly lower vacancy rate.

• Last year, median salary income in Palm Beach increased by +/- 4.1%, the second biggest increase since 2007. Population has grown by 103,000 in the past five years.

*Data as of March-2017, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales

Cushman & Wakefield

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