Excerpted from Tampa Bay Business Journal story
Before coronavirus, Tampa Bay’s apartment boom showed no signs of slowing. For the last five years, the Tampa Bay region developed an average of 4,300 apartments annually, and absorption of those units has outpaced delivery, according to CBRE Group Inc. In 2019, more than 4,000 apartments were delivered, with just over, 8,300 under construction.
“Concessions to new residents have recently dipped, as has been the case in many other markets, suggesting that the recent construction boom remains in line with demand,” CBRE wrote in its 2020 outlook for multifamily real estate.
Some submarkets, however, were already showing signs of strain before the pandemic, with rent growth slowing as more new units were delivered, said Darron Kattan, managing director at Franklin Street in Tampa.
“There is a good chance that a jolt like this will cause similar rent reductions as the great financial crisis,” Kattan said. “In those times, we saw up to 30 percent or more swing on the income for multifamily owners.”
Luxury rents began to fall as the pandemic took hold, according to data from CoStar Group.For full story, visit: https://www.bizjournals.com/tampabay/news/2020/04/09/tampa-bays-apartment-market-has-been-white-hot-for.html