Market Update Newsletter Q1 2017

MIAMI-DADE 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

2,458 $1,585

$1.62

1.0% $1,584

$1.61

1.0% 8.3% 27

-

Aventura

9,511

$1,369

$1.97

0.1% $1,352

$1.94

0.2% 7.5% 12

-

Bal Harbor/South Beach

10,182 $1,248

$1.69

1.0% $1,236

$1.68

1.5% 5.0% 89

-

Brickell/Downtown

2,341

$1,426

$1.95

2.0% $1,207

$1.67

-11.0% 5.8% 22

51

Coconut Grove

5,580 $1,913

$2.24

1.7% $1,897

$2.22

1.0% 6.5% 28

-

Coral Gables

22,135 $1,221

$1.39

0.0% $1,217

$1.38

0.0% 2.2% -11

-

Hialeah/Miami Lakes

18,653 $946

$1.09

-0.1% $942

$1.09

-0.1% 3.0% 39

-

Homestead/South Dade

13,451

$1,492

$1.66

0.4% $1,455

$1.62

0.2% 7.1% 112

417

Kendall

30,198 $1,007 $1.24

-0.2% $1,003

$1.23

-0.1% 3.3% 17

-

Miami Gardens/OpaLocka

17,089 $1,582

$1.70

2.0% $1,531

$1.64

1.2% 4.7% 83

-

Miami Springs/Doral

17,942 $1,132

$1.42

-0.5% $1,123

$1.41

-0.2% 4.2% 27

-

North Miami/Beach

Outlying Miami-Dade County

539 $1,342 $1.12

0.0% $993

$0.75

0.0% 2.4% 0

-

3,363 $1,250 $1.62

0.1% $1,239

$1.60

0.2% 3.6% -1

-

Westchester/Tamiami

153,442 $1,289 $1.52

0.4% $1,261

$1.49

0.1% 4.0% 444

468

TOTAL/AVERAGE

• In the first three months of 2017, there were 23 apartment sales totaling $165 million with a median price of $130,000 per unit or $177 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 0.4%. This is below the record 6.6% rent increase in 2015.

• Vacancies are at record lows. Some submarkets will experience short term vacancy increases in the coming months with new supply.

• There are 9,863 units forecasted for delivery to market. This represents only 6.4% of the current inventory in the market.

• Year-to-date net absorption was over 440 units. In 2016 new units outpaced net absorption by 2,000 units contributing to a slightly higher vacancy rate.

• Last year, median salary income in Miami-Dade increased by +/- 3.2%, one of the biggest increases since 2006. • The population has grown by 119,000 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

7