ORLANDO—Tampa multifamily vacancy rate will slip 30 basis points in 2015 to 4.9% on the back of net absorption of more than 5,000 units. Tenants also moved into 5,000 rentals last year, slicing the vacancy rate 60 basis points. That’s according to Marcus & Millichap.
Projects containing 5,000 apartments will come online in 2015, outpacing last year’s production of approximately 4,100 units, M&M reports. And nearly 2,100 multifamily rentals will be placed in service in Pinellas County this year, an increase from 1,900 units during 2014.
But what do Franklin Street multifamily gurus see? GlobeSt.com caught up with Kevin Kelleher, senior director of multifamily investment sales in the firm’s Tampa office, to get his thoughts.
“We continue to see demand exceeding supply for well-located apartments in the Tampa Bay MSA,” Kelleher tells GlobeSt.com. “Pricing has certainly increased, but relative to other markets in the US, investors are finding value and growth potential in our market. We believe this trend will continue into 2016 despite the additional supply coming to the market.”
Luxury multifamily is part of the bigger picture.Construction is underway on Aurora, a $67 million luxury multifamily property in Downtown Tampa, FL. Richman Group is building the property, one of five market rate projects the firm has closed in the last 12 months.
Located at 124 South Morgan Street, Aurora sits along the new Selmon Greenway bike path and next to the $1 billion redevelopment project around the Amalie Arena. The multifamily project should start leasing in Spring 2016.
“Excitement is growing about Downtown Tampa’s urban waterfront renewal,” Todd Fabbri, executive vice president for Richman, tells GlobeSt.com. “Aurora’s modern amenities and chic industrial vibe will enhance this revitalized destination.”