Q3 2016: Multifamily Market Update

4,000

MULTIFAMILY INVESTMENT PROPERTIES GROUP | SOUTH FLORIDA PALM BEACH MULTIFAMILY MARKET SUMMARY YEAR $ SALES VOLUME # OF SALES TOTAL # OF UNITS ASKING RENT ASKING RENT PSF ASKING RENT GROWTH EFFECTIVE RENT EFFECTIVE RENT PSF 2016 926,878,096 35 67,860 $1,393 $1.38 4.0% $1,355 $1.35 2015 833,436,251 44 66,832 $1,339 $1.33 9.4% $1,327 $1.32 2014 482,599,189 37 64,770 $1,224 $1.22 7.3% $1,218 $1.21 2013 269,892,418 23 62,800 $1,141 $1.13 5.2% $1,126 $1.12 2012 353,381,000 21 60,089 $1,085 $1.09 4.1% $1,067 $1.07 2011 279,995,600 14 59,686 $1,042 $1.05 1.6% $1,021 $1.02 2010 268,935,358 13 59,010 $1,026 $1.03 1.4% $995 $1.00 2009 121,138,414 10 58,590 $1,012 $1.02 -3.4% $972 $0.98 $925 MILLION $26.48 MILLION $136 PSF 2016 Sales 2016 Average Sale Price $1,393 96.0% 1,606 UNITS Average Rent Per Unit Occupancy Rate -500 0 500 1,000 1,500 2,000 2,500 3,000 3,500 2007 2008 2009 2010 2011 2012 2013 Net Absorption (Units) Deliveries (Units) 3,0 0 3,500

$138,514

YTD Median Sale PSF

YTD Median Sale per Unit

67,860 UNITS

Annual Unit Net Absorption Inventory of Rentable Units

EFFECTIVE RENT GROWTH 2014

NET ABSORP

NEW UNITS

VACANCY

2015

2016

2.1% 4.0% 1,606 1,038 8.9% 4.4% 1,596 2,096 8.2% 3.8% 2,080 2,129 5.5% 4.0% 2,887 2,722 4.5% 4.5% 828 416 2.6% 5.2% 896 710 2.4% 5.7% 1,172 466 -3.3% 7.0% 443 672

2,500

2008 100,031,000

9

58,178 $1,048 $1.05

-1.8% $1,005 N/A $1,021

$1.01

-1.6% 7.1% 61

488

2007 202,600,999 14 57,884 $1,067 $1.08 2,0 0

$1.03

N/A 6.9% 254 239

1,500

Palm Beach Apartments Under Construction 8 apartment buildings totaling 1,838 units under construction in Palm Beach BUILDING Boca City Walk Elan Boca 500 Ocean -500 0 500 1,000 2007 2008 2009 2010 2011

# OF UNITS

EXPECTED COMPLETION

CITY

Boca Raton Boca Raton

229 2016 378 2017

Boyton Beach 341

2017

2012

2013

2014

2015

2016

Delray Beach 146 2016

Uptown at Delray

Net Absorption (Units)

Deliveries (Units)

Lake Worth

118 2016

Village at Lake Osborn

Palm Beach Deliveries Versus Absorption

3,500

3,000

2,500

2,000

1,500

1,000

500

0

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Net Absorption (Units)

Deliveries (Units)

10