Tampa’s Bright Outlook Multifamily Report Fall 2018
Rent Growth Accelerates Despite Heavy Supply
Migrant Millennials Fuel Apartment Demand
Property Values Climb to Cycle High TAMPA MULTIFAMILY
Market Analysis Demand Keeps Up With Surging Supply Fall 2018 Population and employment gains fuel multifamily demand in Tampa–St. Contacts Petersburg, where low housing costs, a tax-friendly environment and a high Paul Fiorilla quality of life continue to attract new residents and businesses. Associate Director of Research Leisure and hospitality led employment growth by far, adding 14,100 jobs. [email protected] Tourism revenue hit a new record in Hillsborough County in the year ending (800) 866-1124 x5764 in September, which will likely continue as new hotel projects come online, Jack Kern including the 519-key JW Marriott within the 9 million-square-foot Water Director of Research and Publications Street Tampa. Employment gains were also significant in education and [email protected] health services (7,800 jobs) and trade, transportation and utilities (4,300), (800) 866-1124 x2444 which is thriving following increased trade through the Panama Canal.
Author Multifamily deliveries hit a cycle peak in 2017, when roughly 5,400 units were Adriana Pop completed, and continued at a strong pace in 2018. However, occupancy Senior Associate Editor in stabilized properties recorded just a slight decrease of 20 basis points year-over-year, to 95.6% as of August, indicating strong apartment demand. Rent growth remained above the national average, at 5.2% as of September, while the average price per unit rose to a cycle peak of $142,655. As the metro’s population is projected to grow at a faster pace than the nation through 2020, we expect positive net absorption and above- average rent growth to continue in the foreseeable future.
Recent Tampa Transactions
Camden Pier District The Cove
City: St. Petersburg, Fla. City: Tampa, Fla. Buyer: Camden Property Trust Buyer: Gamma Real Estate Purchase Price: $126 MM Purchase Price: $97 MM Price per Unit: $352,793 Price per Unit: $140,058
Avana Westchase Fusion 1560
City: Tampa, Fla. City: St. Petersburg, Fla. Buyer: Greystar Buyer: TH Real Estate Purchase Price: $82 MM Purchase Price: $81 MM Price per Unit: $205,000 Price per Unit: $249,538
On the cover: Photo by Sean Pavone/iStockphoto.com 2 Transactions: Price Per Unit (Tampa)
$160,000
$140,000 Transactions: Price Per Unit (Tampa) $120,000 $160,000 $100,000 $140,000 $80,000 $120,000 $60,000 $100,000 $40,000 0 1 2 3 4 5 6 7 8 $80,000 1 1 1 1 01 01 01 20 20 2 201 20 2 2 201 20 $60,000
$40,000 National Tampa 0 1 2 3 4 5 6 7 8 1 1 1 1 01 01 01 20 20 2 201 20 2 2 201 20
0 1 2 3 4 5 6 7 8 1 1 01 01 01 01 01 01 2 20 2 20 2 201 2 2 2 National Tampa
0 1 2 3 4 5 6 7 8 1 1 01 01 01 01 01 01 Employment Growth: YoY 6mo-avg (Tampa) 2 20 2 20 2 201 2 2 2
4.0% Employment Growth: YoY 6mo-avg (Tampa) 3.5% 4.0%
3.0% 3.5%
2.5% 3.0%
2.0% 2.5%
1.5% 2.0% 6 7 7 8 8 -1 -16 -17 1 -1 -17 -1 1 -18 n r- n r- ct a ct a 1.5% Jul O J Ap Jul O J Ap Jul 6 7 7 8 8 -1 -16 -17 1 -1 -17 -1 1 -18 n Nationalr- Tampa n r- ct a ct a Jul O J Ap Jul O J Ap Jul
Supply: Percentage of Stock (Tampa) National Tampa
3.0% Supply: Percentage of Stock (Tampa) 2.5% 3.0% 2.0% 2.5% 1.5% 2.0% 1.0% 1.5% 0.5% 1.0% 0.0% 0.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
0.0% National Tampa 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
Supply: Development Pipeline as of Sep 2018 (Tampa) National Tampa
Supply: Development Pipeline as of Sep 2018 (Tampa)
6,974 Units 8,756 Units
6,974 Units 8,756 Units
25,511 Units Rent Trends
25,511 Units Rents in Tampa rose 5.2% year-over-year as of September, outpacing the 3.0% national rate. The metro’s average rent stoodPlanned at $1,230,Prospective below theUnder $1,412 Construction national figure. Following a supply surge of roughly 5,400 units in 2017, which continued at a strong pace in 2018, occupancy in stabilized properties
onlyTransactions: saw a slight Total Volume decrease (Tampa) Planned of 20 basisProspective points year-over-year,Under Construction to 95.6% as of August.
$2,500 120 Rents in the working-class Renter-by-Necessity segment rose 5.5% to $1,044, while Lifestyle rates Transactions: Total Volume (Tampa) increased 4.7% to $1,440. Population gains, boosted by out-of-state Millennial migrants, should100 $2,000 continue$2,500 supporting apartment demand, along with employment growth and household formation.120 80 Despite$1,500 a relatively low cost of single-family homes, which is putting a limit on rental demand, 100Tampa’s $2,000 multifamily market is expected to remain steady over the coming years, as its population increase60 is 80 $1,000 projected$1,500 to continue to outpace the nation, generating positive net absorption and rent growth. 40 60 All submarkets$500 saw year-over-year rent increases. Growth was led by Mullis City (10.0% to an average $1,000 20 of $1,076), Gandy/Ballast Point (9.8% to $1,362) and Wellswood (9.6% to $1,047). The average40 rate in $0 0 Hyde Park/Davis$500 Island, which commands the metro’s highest rents, rose 4.1% to $1,984. In Downtown 20 Tampa/Ybor City,2009 Downtown 2010 St. 2011 Petersburg 2012 and 2013 Land 2014O’Lakes/Odessa, 2015 2016 which 2017 had a 2018 total of more than
3,500 units$0 underway as of September,Volume rents in Millions were up 5.5%,Number of0.7% Properties and 3.2%, respectively. 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Tampa vs. National Rent Growth (Sequential 3 Month, Year-Over-Year) Rent: YoY vs National (Tampa) Volume in Millions Number of Properties
6.0%
Rent: YoY vs National (Tampa)
6.0% 4.0%
4.0% 2.0%
2.0% 0.0%
0.0%
National Tampa
Source: YardiMatrix Rent: Lifestyle vs RBN (Tampa) National Tampa 8.0% Tampa Rent Growth by Asset Class (Sequential 3 Month, Year-Over-Year) Rent: Lifestyle vs RBN (Tampa)
8.0%6.0%
4.0% 6.0%
2.0% 4.0%
0.0% 2.0%
0.0%
Lifestyle Renter-by-Necessity
Lifestyle Renter-by-Necessity
Source: YardiMatrix
Tampa Multifamily | Fall 2018 3 Economic Snapshot
Tampa added 35,600 jobs over the 12 months ending in July, a 2.4% year-over-year increase, outpacing the 1.9% national average. The unemployment rate stood at 3.8%, lower than the 3.9% national average and slightly higher than the state’s 3.7%, which hit an 11-year low in July.
Leisure and hospitality led employment growth by far, adding 14,100 jobs. Tourism revenue hit a new high in Hillsborough County in the 12 months ending in September with the collection of $33.8 million in Tourist Development Tax, up 10.8% year-over-year and nearly 60% over the last five years, according to Visit Tampa Bay. And despite a modestTransactions: guestroom Price Per Unit (Tampa) supply increase of just 4%, hotel revenues grew 8.5% to more than $718 million. New$160,000 projects include a 519-key JW Marriott within the $3 billion, 9 $140,000
million-square-foot Water Street Tampa;$120,000 a dual-branded Hampton Inn by Hilton & Home2 Suites in the Channel district; and the $1.5 billion Seminole$100,000 Hard Rock Hotel expansion. $80,000
$60,000 Education and health services added 7,800 jobs, followed by trade, transportation and utilities $40,000 0 1 2 3 4 5 6 7 8 1 1 1 1 (4,300). Port Manatee, which generates more than01 $2.3 billion01 01 in annual economic impact for the 20 20 2 201 20 2 2 201 20 community, supports additional jobs due to increased trade through the expanded Panama Canal. National Tampa Office-using employment has also been significant in recent years, boosting demand for space and
0 1 2 3 4 5 6 7 8 1 1 bolstering01 rent01 growth.01 01 01 01 2 20 2 20 2 201 2 2 2 Tampa vs. National Employment Growth (Year-Over-Year) Employment Growth: YoY 6mo-avg (Tampa)
4.0%
3.5%
3.0%
2.5%
2.0%
1.5% 6 7 7 8 8 -1 -16 -17 1 -1 -17 -1 1 -18 n r- n r- ct a ct a Jul O J Ap Jul O J Ap Jul
National Tampa
Sources: YardiMatrix, Bureau of Labor Statistics (not seasonally adjusted) Supply: Percentage of Stock (Tampa)
3.0% Tampa Employment Growth by Sector (Year-Over-Year) 2.5% Current Employment Year Change Code2.0% Employment Sector (000) % Share Employment % 70 Leisure and Hospitality 190 12.2% 14,100 8.0% 1.5% 65 Education and Health Services 242 15.5% 7,800 3.3% 1.0% 40 Trade, Transportation and Utilities 307 19.7% 4,300 1.4% 150.5%Mining, Logging and Construction 91 5.8% 3,900 4.5%
550.0%Financial Activities 128 8.2% 3,100 2.5% 30 Manufacturing2010 2011 2012 201387 2014 20155.6% 2016 2017 3,000 2018 YTD 3.6%
80 Other Services National 52 Tampa 3.3% 1,000 1.9% 60 Professional and Business Services 266 17.1% 400 0.2% Supply:50 DevelopmentInformation Pipeline as of Sep 2018 (Tampa) 26 1.7% -900 -3.3% 90 Government 170 10.9% -1,100 -0.6%
Sources: YardiMatrix, Bureau of Labor Statistics
6,974 Units 8,756 Units
Tampa Multifamily | Fall 2018 4
25,511 Units
Planned Prospective Under Construction
Transactions: Total Volume (Tampa)
$2,500 120
100 $2,000
80 $1,500 60 $1,000 40
$500 20
$0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Volume in Millions Number of Properties
Rent: YoY vs National (Tampa)
6.0%
4.0%
2.0%
0.0%
National Tampa
Rent: Lifestyle vs RBN (Tampa)
8.0%
6.0%
4.0%
2.0%
0.0%
Lifestyle Renter-by-Necessity Demographics Affordability
The median home price in Tampa rose to a cycle peak of $183,196 in the first half of 2018, up 6.7% since 2017 and 105% above the 2011 level. The average rent accounted for 26% of the area’s median income, while the average mortgage payment equated to 16%.
The metro continues to attract residents, thanks to its low housing costs, tax-friendly environment and quality of life compared to other metros throughout Florida and across the country. Between 2010 and 2015, the Millennial population increased by 3.6% in Tampa, which placed it among the nation’s top 25 cities where Millennials are moving, according to real estate analytics firm RCLCO.
Tampa Rent vs. Own Affordability as a Percentage of Income
30%30%
25%25%
20%20%
15%15%
10%10%
5%5%
0%0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Mort/Income Rent/Income Mort/Income Rent/Income
Sources: YardiMatrix, Moody’s Analytics
Tampa Median Home Price
$200,000 $200,000 $175,000 $175,000 $150,000 $150,000 $125,000 $125,000 $100,000 $100,000 $75,000 $75,000 $50,000 $50,000 $25,000 $25,000 $0 $0 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Source: Moody’s Analytics
Population Tampa vs. National Population
The metro gained more than 2013 2014 2015 2016 2017 54,800 residents in 2017, a 1.8% increase, outpacing the National 316,234,505 318,622,525 321,039,839 323,405,935 325,719,178 0.7% national growth rate.
Tampa added 218,869 Tampa 2,872,530 2,916,839 2,973,756 3,036,525 3,091,399 residents between 2013 and Metro 2017, a 7.6% uptick, well above the 3.0% national rate. Sources: U.S. Census, Moody’s Analytics
Tampa Multifamily | Fall 2018 5 Transactions: Price Per Unit (Tampa) Transactions: Price Per Unit (Tampa) $160,000 $160,000 $140,000 $140,000 $120,000 $120,000 $100,000 $100,000 $80,000 $80,000 $60,000 $60,000 $40,000 $40,000 0 1 2 3 4 5 6 7 8 1 1 1 0 1 2 1 3 4 5 6 7 8 01 01 1 01 1 1 1 20 20 2 201 20 2 2 201 01 20 01 01 20 20 2 201 20 2 2 201 20
Supply National Tampa National Tampa
0 1 2 3 4 5 60 17 28 3 4 5 6 7 8 1 1 1 1 01 01 Thirteen01 0101 properties01 0101 01 totaling01 01 2,83201 units came online this year through September, representing 1.5% 2 20 2 20 2 201 22 202 22 20 2 201 2 2 2 of total stock, below the 1.8% national average. Ten of the 13 new projects are Class A, catering to
Lifestyle renters. AlmostEmployment 5,400 Growth:units YoYwere 6mo-avgEmployment delivered (Tampa) Growth: YoYin 2017,6mo-avg (Tampa) marking a cycle peak and representing 2.6% of stock, in line with the national figure. 4.0% 4.0%
More than3.5% 6,900 units were under construction as of September, while another 34,000 units were in 3.5% the planning and permitting stages. Favorable demographic and employment trends are expected to support3.0% the metro’s ability to absorb new product. 3.0%
Construction2.5% is intense in high-density urban areas, including Downtown Tampa/Ybor City, which had 2.5% 1,311 units underway, followed by Downtown St. Petersburg (1,163 units) and Land O’Lakes/Odessa 2.0% 2.0% (1,040 units). Manor Riverwalk—an eight-story, 400-unit community replacing the old Tampa Tribune building—ranked1.5% as the largest project as of September. Related Group, which has completed several 1.5% other properties in Greater6 Tampa, is developing 7the project.7 The development8 is also set8 to include a -1 -16 -17 1 -1 -17 -1 1 -18 n r- n r- 6 ct 7 a 7 8 ct 8 a Jul J Ap Jul J Ap Jul 400-plus-foot-1 -16 river trail-17 thatO will 1connect with-1 similar-17 paths on -the1 O west side1 of the -18Hillsborough River. n r- n r- ct a ct a Jul O J Ap Jul O J Ap Jul National Tampa Tampa vs. National CompletionsNational as aTampa Percentage of Total Stock (as of September 2018) Supply: Percentage of Stock (Tampa)
Supply: Percentage of Stock (Tampa)3.0%
3.0% 2.5%
2.5% 2.0%
2.0% 1.5%
1.5% 1.0%
1.0% 0.5%
0.0% 0.5% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
0.0% National Tampa 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD Source: YardiMatrix Supply: Development Pipeline as of Sep 2018 (Tampa)National Tampa
Supply: Development PipelineDevelopment as of Sep 2018 (Tampa) Pipeline (as of September 2018) Tampa Completions (as of September 2018) Transactions: Price Per Unit (Tampa)
$160,000 6,974 Units 8,756 Units $140,000
$120,000
6,974 Units 8,756 Units $100,000 $80,000
25,511 Units $60,000 $40,000 0 1 2 3 4 5 6 7 8 1 1 1 1 01 01 01 20 20 2 201 20 2 2 201 20 25,511 Units
Planned Prospective Under Construction National Tampa
Transactions: Total Volume (Tampa) 0 1 2 3 4 5 6 7 8 1 1 01 01 01 01 01 01 2 20 2 20 2 201 2 2 2 $2,500Planned Prospective Under Construction 120
100 Source:$2,000 YardiMatrix Source: YardiMatrix Transactions: Total Volume (Tampa) Employment Growth: YoY 6mo-avg (Tampa) 80 $2,500 120 $1,500 4.0% 60 100 $2,000 $1,000 Tampa Multifamily | Fall 2018 6 40 3.5% 80 $500 $1,500 20 60 $1,000 $0 3.0% 0 2009 2010 2011 2012 2013 2014 2015 2016 201740 2018
$500 Volume in Millions Number2.5% of Properties 20
$0 0 2009Rent: YoY 2010 vs National 2011 (Tampa) 2012 2013 2014 2015 20162.0% 2017 2018 6.0% Volume in Millions Number of Properties 1.5% 4.0% 6 7 7 8 8 -1 -16 -17 1 -1 -17 -1 1 -18 Rent: YoY vs National (Tampa) n r- n r- ct a ct a Jul O J Ap Jul O J Ap Jul 6.0% 2.0% National Tampa 4.0% 0.0%
Supply: Percentage of Stock (Tampa) 2.0% 3.0% National Tampa
0.0% Rent: Lifestyle vs RBN (Tampa) 2.5%
8.0% 2.0%
6.0% National Tampa 1.5% 4.0% Rent: Lifestyle vs RBN (Tampa) 1.0% 8.0% 2.0%
6.0% 0.0% 0.5%
4.0% 0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD 2.0% Lifestyle Renter-by-Necessity
National Tampa 0.0%
Supply: Development Pipeline as of Sep 2018 (Tampa)
Lifestyle Renter-by-Necessity
6,974 Units 8,756 Units
25,511 Units
Planned Prospective Under Construction
Transactions: Total Volume (Tampa)
$2,500 120
100 $2,000
80 $1,500 60 $1,000 40
$500 20
$0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Volume in Millions Number of Properties
Rent: YoY vs National (Tampa)
6.0%
4.0%
2.0%
0.0%
National Tampa
Rent: Lifestyle vs RBN (Tampa)
8.0%
6.0%
4.0%
2.0%
0.0%
Lifestyle Renter-by-Necessity Transactions: Price Per Unit (Tampa)
$160,000
$140,000
$120,000
$100,000
$80,000
$60,000
$40,000 0 1 2 3 4 5 6 7 8 1 1 1 1 01 01 01 20 20 2 201 20 2 2 201 20
National Tampa
0 1 2 3 4 5 6 7 8 1 1 01 01 01 01 01 01 2 20 2 20 2 201 2 2 2
Employment Growth: YoY 6mo-avg (Tampa)
4.0%
3.5%
3.0%
2.5%
2.0%
1.5% 6 7 7 8 8 -1 -16 -17 1 -1 -17 -1 1 -18 n r- n r- ct a ct a Jul O J Ap Jul O J Ap Jul
National Tampa
Supply: Percentage of Stock (Tampa)
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
National Tampa
TransactionsSupply: Development Pipeline as of Sep 2018 (Tampa)
Fifty-five properties worth a combined $1.6 billion changed hands this year through September, at an average price per unit of $142,655, which marks a new cycle peak but remains below the $151,135 national average. In 2017, $2.2 billion in assets traded at an average per-unit price of $123,083. 6,974 Units 8,756 Units
More than half of the properties that changed hands were Renter-by-Necessity, with acquisition yields ranging between 6.75% and 7.25% in infill locations, and between 7.0% and 7.5% for suburban stock.
Camden Property Trust’s acquisition of Camden Pier District—the 18-story, 358-unit former AER Luxury Apartments in downtown Tampa—ranks25,511 Units as the largest transaction in the 12 months ending in September. American Land Ventures sold the property for $126.3 million, or a record-breaking $352,793 per unit, which was 5% to 10% below replacement cost, according to the buyer.
Planned Prospective Under Construction
Tampa Sales Volume and Number of Properties Sold (as of September 2018) Transactions: Total Volume (Tampa)
$2,500 120
100 $2,000
80 $1,500 60 $1,000 40
$500 20
$0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Volume in Millions Number of Properties
Source: YardiMatrix Rent: YoY vs National (Tampa)
6.0% Top Submarkets for Transaction Volume1 TampaTransactions: vs. National Price Per UnitSales (Tampa) Price per Unit
4.0% Submarket Volume $160,000 ($MM) $140,000 Downtown St. Petersburg 258 2.0% $120,000 Westchase 199 $100,000 Clair–Mel City 163 $80,000 0.0% Riverview/Valrico 161 $60,000 Gandy/Ballast Point 117 $40,000 0 1 2 3 4 5 6 7 8 1 1 1 1 01 01 01 Downtown Tampa/YborCity 112 20 20 2 201 20 2 2 201 20 National Tampa Mainlands 112 National Tampa
Rent: Lifestyle vs RBN (Tampa) Sunset Park/Bayside 105 Source: YardiMatrix 0 1 2 3 4 5 6 7 8 8.0%1 1 Source:01 YardiMatrix01 01 01 01 01 2 20 2 20 2 201 2 2 2 1 From October 2017 to September 2018 6.0%
Employment Growth: YoY 6mo-avg (Tampa) 4.0% 4.0% 2.0%
Tampa Multifamily | Fall 2018 7 3.5%0.0%
3.0%
Lifestyle Renter-by-Necessity 2.5%
2.0%
1.5% 6 7 7 8 8 -1 -16 -17 1 -1 -17 -1 1 -18 n r- n r- ct a ct a Jul O J Ap Jul O J Ap Jul
National Tampa
Supply: Percentage of Stock (Tampa)
3.0%
2.5%
2.0%
1.5%
1.0%
0.5%
0.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 YTD
National Tampa
Supply: Development Pipeline as of Sep 2018 (Tampa)
6,974 Units 8,756 Units
25,511 Units
Planned Prospective Under Construction
Transactions: Total Volume (Tampa)
$2,500 120
100 $2,000
80 $1,500 60 $1,000 40
$500 20
$0 0 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Volume in Millions Number of Properties
Rent: YoY vs National (Tampa)
6.0%
4.0%
2.0%
0.0%
National Tampa
Rent: Lifestyle vs RBN (Tampa)
8.0%
6.0%
4.0%
2.0%
0.0%
Lifestyle Renter-by-Necessity News in the Metro Brought to you by:
Oxford Properties Sunshine State Sells Newly Built Portfolio Changes FL Community Hands for $98M
PGIM Real Estate Finance Priderock Capital Partners provided the buyer with picked up the two Class B a 10-year, non-recourse communities totaling 550 Freddie Mac acquisition units with $67 million in mortgage, which amortizes acquisition financing from over 30 years. Freddie Mac.
NKF Capital Markets, Inland Real Estate Berkeley Point Buys Tampa Capital Refinance Community for $22M
Tampa Asset Carroll Organization Brookview at Citrus Park traded Laurel Oaks includes 400 units as well Apartments, a 192-unit as a sports pub, a dog park property located 11 miles and a fireside lounge. from downtown Tampa.
ARA Newmark Tampa Asset Arranges Tampa Sale Commands $31M
Vice Chairman Patrick Franklin Street arranged Dufour and Director Ryan the sale of River View Crowley represented seller Apartments on behalf of Pollack Shores and equity both parties. The commu- partner HQ Capital Real nity includes 296 units. Estate in the transaction.
Log on to Multi-HousingNews.com to get the latest metro-specific news.
Tampa Multifamily | Fall 2018 8 Tampa Submarkets
Area # Submarket Area # Submarket Area # Submarket 1 Downtown Tampa 24 Lake Magdalene 45 Pinellas Park 2 Hyde Park/Davis Island 25 Forest Hills 46 Mainlands 3 Gandy/Ballast Point 26 Sulphur Springs 47 Feather Sound/High Point 4 Sunset Park/Bayside 27 Del Rio/College Hill 48 Largo 5 Oakford Park 28 Harney 49 Belleair 6 Wellswood 29 Temple Terrace 50 Clearwater Beach 7 Tampa Heights 30 University of South Florida 51 Clearwater 8 Ruskin 31 University Square 52 Coachman 11 Clair–Mel City 32 Livingston 53 Safety Harbor 12 Orient Park 33 Tampa Palms/Pebble Creek 54 Dunedin 13 Highland Pines 34 Thonotosassa 55 Palm Harbor/Tarpon Springs 14 Lakeland Highlands 35 Brandon/Seffner 56 Oldsmar 15 Rivercrest 36 Riverview/Valrico 57 Lake Wales 16 Egypt Lake 37 Plant City 58 Davenport/Haines City 17 Winter Haven 38 Bartow 59 Land O'Lakes/Odessa 18 Garver City 39 Sun City Center 60 Zephyr Hills 19 Rocky Creek 40 Downtown St. Petersburg 61 Dade City 20 Town ‘n’ Country 41 Upper St. Petersburg 62 New Port Richey 21 Mullis City 42 Gulfport/Lealman 63 Port Richey 22 Carrollwood Village 43 St. Pete Beach/Pasadena 65 Spring Hill 23 Westchase 44 Seminole/Indian Shores 66 Brooksville
Tampa Multifamily | Fall 2018 9 Definitions
Lifestyle households (renters by choice) have wealth sufficient to own but have chosen to rent. Discretionary households, most typically a retired couple or single professional, have chosen the flexibility associated with renting over the obligations of ownership.
Renter-by-Necessity households span a range. In descending order, household types can be:
A young-professional, double-income-no-kids household with substantial income but without wealth needed to acquire a home or condominium;
Students, who also may span a range of income capability, extending from affluent to barely getting by;
Lower-middle-income (“gray-collar”) households, composed of office workers, policemen, firemen, technical workers, teachers, etc.;
Blue-collar households, which may barely meet rent demands each month and likely pay a disproportionate share of their income toward rent;
Subsidized households, which pay a percentage of household income in rent, with the balance of rent paid through a governmental agency subsidy. Subsidized households, while typically low income, may extend to middle-income households in some high-cost markets, such as New York City;
Military households, subject to frequency of relocation.
These differences can weigh heavily in determining a property’s ability to attract specific renter market segments. The five-star resort serves a very different market than the down-and-outer motel. Apartments are distinguished similarly, but distinctions are often not clearly definitive without investigation. TheYardi® Matrix Context rating eliminates that requirement, designating property market positions as:
Market Position Improvements Ratings Discretionary A+ / A High Mid-Range A- / B+ Low Mid-Range B / B- Workforce C+ / C / C- / D
The value in application of the Yardi® Matrix Context rating is that standardized data provides consistency; information is more meaningful because there is less uncertainty. The user can move faster and more efficiently, with more accurate end results.
The Yardi® Matrix Context rating is not intended as a final word concerning a property’s status—either improvements or location. Rather, the result provides reasonable consistency for comparing one property with another through reference to a consistently applied standard.
To learn more about Yardi® Matrix and subscribing, please visit www.yardimatrix.com or call Ron Brock, Jr., at 480-663-1149 x2404.
Tampa Multifamily | Fall 2018 10 Market Data & Analysis Fogelman drives deals with Yardi® Matrix
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Mark Fogelman President Fogelman Properties
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Tampa Multifamily | Fall 2018 12