Q3 2016: Multifamily Market Update

BROWARD 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

20,318 $1,423 14,422 $1,540 11,127 $1,216 5,232 $1,137 13,976 $1,112

$1.38 $1.75 $1.44 $1.29 $1.27

3.0% $1,396 6.1% $1,482 2.7% $1,200 6.2% $1,121 3.5% $1,090

$1.35 $1.68 $1.43 $1.27 $1.24

1.5% 3.3% 186 3.6% 4.9% 171 2.7% 2.6% 130

240 254 168

CoraL Springs

Fort Lauderdale

Hollywood/Dania Beach

5.4% 1.5% 5

-

Miramar/Hallandale Beach

2.8% 2.9% 148

179

Oakland Park/Lauderhill

Pembroke Pines/West Miramar

8,929 $1,701

$1.56

1.3% $1,686

$1.55

1.3% 3.8% 282

-

16,279 $1,466

$1.42

2.4% $1,432

$1.38

0.9% 3.5% 261

-

Plantation/Sunrise

Pompano Beach/Deerfield Beach

14,425 $1,179

$1.35

4.8% $1,141

$1.31

2.6% 2.1% -937

-

8,083 $1,495

$1.48

3.0% $1,471 4.1% $1,354

$1.45

2.0% 4.0% 168 2.8% 3.3% 414

340

Weston/Davie

112,791 $1,384 $1.43

$1.40

1,181

TOTAL/AVERAGE

• In the first nine months of 2016, there were 65 apartment sales totaling $820 million with a median price of $109,073 per unit or $130 per square foot. This is the third highest amount of sales in Broward and the highest from a price per unit 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 4.1%. This is below the record 8.1% 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 3,485 units forecasted for delivery to market. This represents only 3.1 % of the current inventory in the market.

• Year-to-date there were 600 more units delivered than absorbed in Broward. This caused the vacancy to slightly increase to 3.3% up from 3.1% in 2015.

• Last year, median salary income in Broward increased by +/- 3.7%, the biggest increase since 2006. • Population has grown by 111,000 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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