Q3-2018 B Erhardt Tampa Bay Area Land

Erhardt’s Tampa Bay Land Market Overview TAMPA BAY MULTIFAMILY MARKET OVERVIEW AxioMetrics, Inc. Market Performance Summary, Q2-2018, Tampa – St. Petersburg – Clearwater, Florida Metropolitan Statistical Area Apartment Performance Effective rent increased 2.6% from $1,158 in 1Q18 to $1,188 in 2Q18, which resulted in an annual growth rate of 4.5%. Annual effective rent growth is forecast to be 3.2% in 2019, and average 2.6% from 2020 to 2022. Annual effective rent growth has averaged 2.7% since 3Q96. The market’s annual rent growth rate was above the national average of 2.5%. Out of the 120 markets ranked by Axiometrics nationally, Tampa-St. Petersburg-Clearwater, FL Metro Area was 33rd for quarterly effective rent growth, and 22nd for annual effective rent growth for 2Q18. The market’s occupancy rate increased from 95.2% in 1Q18 to 95.6% in 2Q18, and was up from 95.0% a year ago. The market’s occupancy rate was above the national average of 94.9% in 2Q18. For the forecast period, the market’s occupancy rate is expected to be 95.3% in 2019, and average 94.8% from 2020 to 2022. The market’s occupancy rate has averaged 94.0% since 3Q95.

Market Survey Results and Forecasts

Sequential

Month

Annual

3Q17 4Q17 1Q18 2Q18 June-18 2016

2017 2018F 2019F 2020F 2021F 2022F

Effective Rent Per Unit

$1,152 $1,151

$1,158 $1,188 $1,207 $1,109 $1,140 $1,187 $1,225 $1,250 $1,288 $1,323

Per Sq. Ft

$1.22 $1.22 $1.22 $1.25

$1.28

$1.17

$1.20 $1.25 $1.28 $1.32 $1.36 $1.40

Effective Rent Growth - Annually Effective Rent Growth - Quarterly

2.4% 2.9% 3.4% 4.5% 4.6% 5.6% 2.8% 4.1% 3.2% 2.1% 3.0% 2.7%

1.3% -0.1% 0.6% 2.6%

Occupancy Rate

95.2% 95.0%

95.2% 95.6% 95.5% 95.3% 95.0%

95.5% 95.3% 94.8% 95.0% 94.5%

Occupancy Change - Annually Occupancy Change - Quarterly Economic Concessions Concession Value

-0.2% 0.3% 0.4% 0.7% 0.6% -0.2% -0.3% 0.5% -0.2% -0.6% 0.3% -0.5%

0.2% -0.2% 0.2% 0.5%

$-4.01

$-5.33 $-4.98 $-2.58 $-3.03 $-4.47 $-5.51

As a % of Asking Rent

-0.4% -0.5% -0.4% -0.2%

-0.3% -0.4%

-0.5%

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