Q3 2016: Multifamily Market Update

MIAMI-DADE 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

2,371

$1,696

$1.68

9.6% $1,577

$1.63

2.3% 3.4% -25

-

Aventura

9,254 $1,328

$1.91

1.1% $1,278

$1.84

0.7% 3.1% -50

-

Bal Harbor/South Beach

9,952 $1,223

$1.69

2.0% $1,177

$1.64

1.4% 3.8% 50

120

Brickell/Downtown

2,206 $1,388

$1.94

2.4% $1,314

$1.84

0.2% 2.6% 40

-

Coconut Grove

5,521

$1,842

$2.18

2.3% $1,789

$2.12

3.8% 5.0% 578

458

Coral Gables

22,147 $1,216

$1.39

2.6% $1,197

$1.37

3.0% 1.2% 82

-

Hialeah/Miami Lakes

18,379 $927

$1.07

1.2% $918

$1.06

0.9% 1.3% 51

-

Homestead/South Dade

12,799 $1,505

$1.68

6.7% $1,461

$1.64

9.3% 3.5% 827

906

Kendall

31,096 $1,004 $1.23

1.3% $986

$1.21

0.6% 2.5% 162

112

Miami Gardens/OpaLocka

16,810 $1,525

$1.66

4.5% $1,477

$1.61

3.7% 2.8% 356

-

Miami Springs/Doral

17,333 $1,133

$1.41

0.6% $1,097

$1.37

-0.7% 2.8% 61

-

North Miami/Beach

Outlying Miami-Dade County

539 $985

$0.74

1.3% $985

$0.74

1.3% 0.4% 1

-

3,380 $1,231 $1.60

3.5% $1,207

$1.57

3.0% 1.1% 4

-

Westchester/Tamiami

151,787 $1,247 $1.48

2.4% $1,211

$1.44

2.0% 2.5% 2,137

1,596

TOTAL/AVERAGE

• In the first nine months of 2016, there were 102 apartment sales totaling $710 million with a median price of $125,000 per unit or $178 per square foot. This is the second highest ever amount of sales in Miami-Dade and the highest from a price per square foot perspective.

• For an eighth year in a row, average asking and effective rents were at record levels. • Year-to-date, average asking rents grew by 2.4%. This is below the record 7.9% 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 9,023 units forecasted for delivery to market. This represents only 5.9% of the current inventory in the market.

• Year-to-date net absorption was over 2,100 units. Net absorption outpaced new supply by over 500 units contributing to a slightly lower vacancy rate.

• Last year, median salary income in Miami-Dade increased by +/- 3.4%, the biggest increase since 2006. • The population has grown by 119,000 in past five years.

7

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