Q3 2017 - Multifamily Market Update Newsletter

PALM BEACH MULTIFAMILY MARKET SUMMARY* CONTINUED

MU LT I FAM I LY I NVE S TMENT | SOUTH F LOR I DA T E AM

ASKING RENT GROWTH

EFFECTIVE RENT GROWTH

ASKING RENT

ASKING RENT PSF

EFFECTIVE RENT

EFFECTIVE RENT PSF

NET ABSORPTION

DELIVERED UNITS

SUBMARKET

UNITS

VACANCY

2,156 $734

$0.93

5.2% $729

$0.92

6.8% 9.0% -7

-

Belle Glade

13,674 $1,779

$1.70

0.9% $1,745

$1.67

0.5% 13.4% 774

680

Boca Raton

10,092 $1,366

$1.30

0.9% $1,323

$1.25

-0.7% 6.7% 212

50

Boynton Beach

5,384 $1,647

$1.51

4.0% $1,598

$1.47

2.6% 7.8% 46

146

Delray Beach

7,179 $1,075

$1.16

1.0% $1,062

$1.15

1.0% 4.5% 105

118

Greenacres

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

193

$668

$1.06

1.6% $666

$1.05

1.8% 3.6% 1

-

7,585 $1,619

$1.50

3.5% $1,610

$1.49

4.1% 5.8% -352

-

6,435 $1,454

$1.33

1.4% $1,440

$1.32

1.7% 7.4% 246

350

17,849 $1,252

$1.35

4.3% $1,230

$1.33

4.2% 7.8% -228

198

West Palm Beach

70,547 $1,451 $1.43

2.6% $1,429 $1.41

2.8% 8.0% 797

1,542

TOTAL/AVERAGE

• In the first nine months of 2017, there were 28 apartment sales totaling $895 billion with a median price of $137,500 per unit or $235 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 2.6%. This is below the record 7.9% rent increase from 2015.

• Vacancies increased in 2017 to an 8-year high of 8.0%. This was due to new supply continuing to out-pace net absorption.

• There are 4,867 units forecasted for delivery to market. This represents only 6.9% of the current inventory in the market.

• Year-to-date net absorption was almost 800 units. New supply outpaced net absorption by almost 700 units contributing to higher vacancy rates.

• By year-end 2017, median salary income in Palm Beach is expected to increase by +/- 3.8%, the significantly below 2016 levels of 5.5%. Population has grown by 106,850 in the past five years.

*Data as of October-2017, apartment sales of 10 units or more, in excess of $1MM in pricing, excluding all condo sales

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