Q3 2016: Multifamily Market Update

PALM BEACH MULTIFAMILY MARKET SUMMARY CONTINUED

MULTIFAMILY INVESTMENT PROPERTIES GROUP | 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

2,107 $682

$0.86 $1.69 $1.28 $1.49 $1.17

1.2% $675

$0.85 $1.62 $1.25 $1.45 $1.16

1.0% 3.0% 6

-

Belle Glade

12,273 $1,731 9,650 $1,359 5,128 $1,601 7,036 $1,064

9.5% $1,664 3.6% $1,322 1.9% $1,554 1.4% $1,054

5.7% 5.7% 633 1.8% 4.2% -84

595

Boca Raton

-

Boynton Beach

1.0% 5.9% 7

103

Delray Beach

0.9% 2.0% -51

-

Greenacres

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

193

$655

$1.04

11.6% $600

$0.95

11.7% 9.3% 1

-

7,466 $1,483

$1.39

0.7% $1,461

$1.37

-0.5% 4.1% 344

340

6,091 $1,410

$1.29

2.5% $1,359

$1.27

-0.7% 4.8% -34

-

17,916 $1,188

$1.28

0.7% $1,166 4.0% $1,355

$1.25

0.3% 2.7% 784

-

West Palm Beach

67,860 $1,393 $1.38

$1.35

2.1% 4.0% 1,606

1,038

TOTAL/AVERAGE

• In the first nine months of 2016, there were 35 apartment sales totaling $926 million with a median price of $138,514 per unit or $136 per square foot. This is the highest ever sale activity in Palm Beach County. Palm Beach County has experienced the most year-to-date sale activity in South Florida.

• For an eigth year in a row, average asking and effective rents were at record levels. Year-to- date, average asking rents grew by 4.0%. This is below the record 9.4% rent increase from 2015.

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

• There are 1,838 units forecasted for delivery to market. This represents only 2.7 % of the current inventory in the market.

• Year-to-date net absorption was over 1,600 units. Net absorption outpaced new supply by over 500 units contributing to a slightly lower vacancy rate.

• Last year, median salary income in Palm Beach increased by +/- 3.1%, the second biggest increase since 2007.Population has grown by 102,000 in past five years.

*Data as of Sept-2016, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales

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