Tampa's New Housing Wave

Tampa’s New Housing Wave Multifamily Fall Report 2015

Rent Growth Accelerates Tourism, Ports Lead Job Gains Investors Devour Properties TAMPA MULTIFAMILY

Market Analysis Population Growth Fuels Tampa Multifamily Fall 2015 The Tampa-St. Petersburg’s multifamily market is rebounding nicely, thanks Contacts to strong economic growth and a booming population. The metro’s housing- Paul Fiorilla sensitive economy was among the hardest hit in the nation by the housing- Associate Director of Research driven recession. The metro’s recovery — although uneven — is now moving in [email protected] earnest. As more and more residents ow into the region, the increased demand (800) 866-1124 x5764 stimulates investors’ interest and motivates developers to act quickly.

Dana Seeley Employment is growing at above-trend levels, attracting an in ux of residents. Senior Research Analyst Resultant bene ts include a boost in single-family and apartment construction; in- [email protected] creased consumer spending, which bene ts both retailers and the port; and record (800) 866-1124 x2035 tourism, which is driving the leisure and hospitality segment. What’s more, the region is working on a number of infrastructure projects, such as improving toll routes, Jack Kern the completion of a 2.5-mile section of controlled-access highway in Pinellas County Director of Research and Publications and Tampa Electric Co.’s construction of a 25-megawatt solar array in Apollo Beach. [email protected] (800) 866-1124 x2444 Investors are drawn to Tampa’s growth story, with the metro on pace to record $1.8 billion in transactions for the second straight year. Steady construction activity has kept rents in check. The average monthly payment is still below $1,000, which is helping to attract residents from higher-cost areas. Rents have already risen 6.9% this year, well above the 5% forecast by Yardi Matrix, and we expect continued steady growth.

Recent Tampa Transactions Mainsail South Carrollwood Station

City: Tampa, Fla. City: Tampa, Fla. Buyer: Avesta Communities Buyer: Providence Management Co. Purchase Price: $31 MM Purchase Price: $30 MM Price per Unit: $98,194 Price per Unit: $89,658

Swandy Lane Swan Lake

City: Largo, Fla. City: Tampa, Fla. Buyer: Hirsh, Douglass Buyer: Krupp Brothers Purchase Price: $13 MM Purchase Price: $20 MM Price per Unit: $56,596 Price per Unit: $83,755 2 On the cover: Photo by Deborah Maxemow/iStockphoto.com Rent Trends

The average rent in the Tampa-St. Petersburg metro increased by 7.9% year-over-year through September, well above the national average growth rate of 6.6%, according to Yardi Matrix’s survey. The average rent is $897, well shy of the $1,167 U.S. average. Rents in the metro have fluctuated between buoyant and mediocre in recent years.

Demand for multifamily is robust, driven by the rapidly growing population and relatively strong job creation. The upward pressure on rents has already produced a 6.9% increase year-to-date through September, surpassing Yardi Matrix’s 5% rent growth forecast for 2015.

Rents had been growing faster in working-class Rent By Necessity assets from late 2013 until recently. However, rent growth for higher-end Lifestyle properties has accelerated in recent months, rising to 8.3% in September after being basically flat through 2013 and early 2014. The increase in Lifestyle rents signals an elevated demand for luxury apartments among higher-wage workers. Rents average $1,184 in Lifestyle and $844 in Rent By Necessity properties.

CloseRent: to two-thirds YoY vs Nationalof the Tampa-St. Petersburg metro’s 64 submarkets experienced rent growth of 6% or more year- Supply: Percentage of Stock Employment Growth: YoY 6mo-avg over-year in the May/June period. The highest growth was registered in Tampa Heights (24.6%), Dunedin (13.8%), Ruskin (13.1%), Dade City (12.9%) and Brooksville (11.4%). Rent: YoY vs National Supply: Percentage of Stock Employment Growth: YoY 6mo-avg 4.5% Tampa10.0% vs. National Rent Growth (Sequential 3 Month, Year-Over-Year) 4.0% 4.0% 8.0% 2.0% 4.5%3.5% 10.0%6.0% 4.0%0.0% 4.0%3.0% 2.0% 8.0%4.0% -2.0% 3.5%2.5% -4.0%0.0% 6.0%2.0% 3.0%2.0% -2.0%-6.0% 4.0%0.0% 2.5%1.5% -4.0% 2.0% -8.0% 2.0%1.0% Jul-14 Jul-15 Jan-15

Jun-14 Jun-15 -6.0% Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 0.0% May-14 May-15

0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15

1.5% Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 -8.0% Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 National Tampa - St Petersburg 1.0%0.0% Jul-14 Jul-15 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 National Tampa - St Petersburg Mar-14 Mar-15 May-14 May-15 2008 2009 2010 2011 2012 2013 2014 2015

0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 National Tampa - St Petersburg 0.0% National Tampa - St Petersburg National Tampa - St Petersburg Source: YardiMatrix 2008 2009 2010 2011 2012 2013 2014 2015 Rent: Lifestyle vs RBN Supply: Completions Transactions: Price Per Unit Tampa Rent Growth by Asset Class (Sequential 3 Month, Year-Over-Year) National Tampa - St Petersburg

Rent: Lifestyle vs RBN Supply: Completions Transactions: Price Per Unit 10.0% 6,000 $140,000 8.0% $120,000 10.0%6.0% 6,0005,000 $140,000$100,000 8.0%4.0% $120,000 $80,000 5,0004,000 6.0%2.0% $100,000 $60,000 4.0%0.0% $80,000$40,000 4,0003,000 2.0% $60,000$20,000 Jul-15 Jul-14 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-15 Aug-14 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 0.0% May-14 May-15 $40,000 3,0002,000 Lifestyle Rent-by-Necessity $20,000 National Tampa - St Petersburg Jul-14 Jul-15 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 Source: YardiMatrix May-14 May-15 2,0001,000 Lifestyle Rent-by-Necessity National Tampa - St Petersburg 1,0000 Tampa Multifamily | Fall 2015 3 2008 2009 2010 2011 2012 2013 2014 2015 0 Supply: 2008Development2009 2010 Pipeline2011 2012 2013 2014 2015as of 9/1/2015 Transactions: Total Volume

Supply: Development Pipeline as of 9/1/2015 Transactions: Total Volume $2,000 100 $1,800 90 $1,600 80 7,212 Units $2,000 100 6,552 Units $1,800$1,400 9070 $1,600$1,200 8060 7,212 Units $1,000 50 6,552 Units $1,400 70 $1,200 $800 6040 $1,000 $600 5030 10,372… $800$400 4020 $600$200 3010 $- 0 10,372… $400 2008 2009 2010 2011 2012 2013 2014 2015 20 Volume $200 ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 10 $- 0 #Properties Planned Prospective Under Construction 200839 200936 201053 201184 201280 201369 201492 201564 l Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 #Properties Planned Prospective Under Construction 39 36 53 84 80 69 92 64 l Economic Snapshot

Since the first wave of positive job growth during the recovery, Tampa has consistently created new positions at a rate that has been in line with, or at times above, the U.S. average. The metro added 39,200 new jobs year-over-year through July, a 3% increase, compared to the 2.5% national average. Unemployment in the metro has also fallen — to 5.2%, its lowest point on both levels since late 2007.

Growth was led by the leisure and hospitality segment, which added 15,300 jobs. Tourism hit record levels in the Sunshine State in 2014, and that trend should continue, given lower gasoline prices that make travel less expensive. The education and health services segment, which caters to the area’s large senior population, added 8.900 jobs.

The trade, transportation and utilities sector added 7,800 jobs, boosted by the strength of Port Tampa Bay as well as the significant industrial activity in the Lakeland area, which is home to the Publix corporate headquarters and an Amazon distribution center.

Tampa’s housing segment, which collapsed during the recession, is again picking up steam once again, leading to the addition of 1,700 construction jobs.

Employment growth was virtually flat in the government and financial activities sectors and negative in the information sector, despite the high concentration of finance and insurance companies in the region.

Three Fortune 500 firms are based in the metro: IT products distributor and service provider Tech Data Corp., electronics Rent: YoY vs National Supply: Percentage of Stock manufacturerEmployment Jabil Growth: Circuit YoY and 6mo-avg healthcare company WellCare Health Plans. Tampa vs. National Employment Growth (Year-Over-Year)

4.5% 10.0% 4.0% 4.0% 8.0% 2.0% 3.5% 6.0% 0.0% 3.0% 4.0% -2.0% 2.5% -4.0% 2.0% 2.0% -6.0% 0.0% 1.5% -8.0% 1.0% Jul-14 Jul-15 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 May-14 May-15 Jun-15 0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Oct-10 Oct-11 Oct-08 Oct-09 Oct-12 Oct-13 Oct-14 Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 National Tampa - St Petersburg 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 National Tampa - St Petersburg Sources: YardiMatrix, BLS (not seasonally adjusted) National Tampa - St Petersburg Tampa Employment Growth by Sector (Year-Over-Year) Rent: Lifestyle vs RBN Supply: Completions Transactions: Price Per Unit Current Year Change Code Employment Sector (000) % Share Employment % Percentage 70 Leisure and Hospitality 174 12.2% 15,300 9.6% 10.0% 6,000 $140,000 65 Education and Health Services 225 15.7% 8,900 4.1% 8.0% $120,000 40 Trade, Transportation, and Utilities 286 20.0% 7,800 2.8% 6.0% 5,000 $100,000 60 Professional and Business Services 233 16.3% 2,600 1.1% 4.0% $80,000 4,000 15 Mining, Logging, and Construction 75 5.2% 1,700 2.3% 2.0% $60,000 80 Other Services 51 3.5% 1,300 2.6% 0.0% $40,000 3,000 30 Manufacturing 79 5.5% 1,100 1.4% $20,000 Jul-14 Jul-15 Jan-15 Jun-14 Jun-15

Oct-14 90 Government 168 11.7% 600 0.4% Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 May-14 May-15 2,000 55 Financial Activities 115 8.0% 200 0.2% Lifestyle Rent-by-Necessity National Tampa - St Petersburg 1,000 50 Information 27 1.9% -300 -1.1% Sources: YardiMatrix, BLS 0 2008 2009 2010 2011 2012 2013 2014 2015 Tampa Multifamily | Fall 2015 4

Supply: Development Pipeline as of 9/1/2015 Transactions: Total Volume

$2,000 100 $1,800 90 $1,600 80 7,212 Units 6,552 Units $1,400 70 $1,200 60 $1,000 50 $800 40 $600 30 10,372… $400 20 $200 10 $- 0 2008 2009 2010 2011 2012 2013 2014 2015 Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 #Properties Planned Prospective Under Construction 39 36 53 84 80 69 92 64 l Demographics Affordability

Renting in the Tampa-St. Petersburg metro takes up a larger share of the median wage compared to owning. However, the gap has narrowed significantly since 2012, when home prices bottomed at about $115,000. Since early 2012, the median home price has steadily increased; it passed the $200,000 threshold at the advent of 2015.

Meanwhile, the affordability of apartment living has not changed much in spite of the escalating rents. Even though rents are below the $1,167 national average, affordability remains an issue for low-income tenants, as monthly payments eat up 28.6% of the average salary.

Tampa Rent vs. Own Affordability as a Percentage of Income

40.0%

35.0%

30.0% 40.0%

25.0% 35.0%

20.0% 30.0%

15.0% 25.0%

10.0% 20.0% 2008 2009 2010 2011 2012 2013 2014 Rent/Income Mortgage/Income 15.0%

Sources:10.0% YardiMatrix, National Association of Realtors, U.S. Dept. of Housing & Urban Development, U.S. Dept. of the Treasury $250,000 2008 2009 2010 2011 2012 2013 2014 Tampa$230,000 Median Home Price Rent/Income Mortgage/Income $210,000 $190,000 $250,000$170,000 $230,000$150,000 $210,000$130,000 $190,000$110,000 $170,000$90,000 $150,000$70,000 $130,000$50,000 $110,000 2008 2009 2010 2011 2012 2013 2014 $90,000 $70,000 $50,000 2008 2009 2010 2011 2012 2013 2014

Source: National Association of Realtors

Population Tampa vs. National Population

With a one-year gain of more than 2011 2012 2013 2014 41,000, Tampa is among the fastest- growing regions in the U.S. Its population National 311,721,632 314,112,078 316,497,531 318,857,056 expanded by 1.4% in 2014, almost twice the national average of 0.75%. Tampa 2,829,104 2,848,003 2,874,154 2,915,582 The region added more than 125,000 residents since 2010, a 4.5% increase. Source: U.S. Census

Tampa Multifamily | Fall 2015 5 Rent: YoY vs National Supply: Percentage of Stock Employment Growth: YoY 6mo-avg Supply

Multifamily supply in the Tampa metro is expected to grow by 2.5% this year, with just under 5,000 units on track to 4.5% 10.0% be delivered. Although below the national 4% average, this is by far the fastest growth rate the area has seen in the 4.0% 4.0% 8.0% current cycle. 2.0% 3.5% 6.0% 0.0% 3.0% With more than 24,000 units in some stage of development, almost 12% of the current stock, development is not -2.0% 4.0% likely to tail off in upcoming years. Roughly 6,500 of the planned units are under construction, with about 17,500 2.5% -4.0% 2.0% planned (30%) or prospective (43%). 2.0% -6.0% 0.0% 1.5% Development is concentrated around urban Tampa, with the most action taking place in the core. However, -8.0% 1.0% Jul-14 Jul-15 Jan-15 downtown St. Petersburg and the surrounding area is hot on Tampa’s heels. Carver City is the most active Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 May-14 May-15

0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 submarket, with 936 units underway in three communities. Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 National Tampa - St Petersburg 0.0% 2008 There is 2009a surge of new2010 development2011 in the State2012 Road 54/56 corridor2013 in Land2014 O’Lakes, where2015 Mercedes-Benz National Tampa - St Petersburg opened a new dealership and the Tampa Premium Outlets mall’s grand opening was set for Oct. 29. The city’s population has more than doubledNational since 2000,Tampa and - St household Petersburg incomes in the area are significantly higher than the metro average. Rent: Lifestyle vs RBN Supply: Completions Transactions: Price Per Unit Rent: YoY vs National Supply: Percentage of Stock Employment Growth: YoY 6mo-avg Tampa vs. National Completions as a Percentage of Total Stock (as of June 2015)

10.0% Rent: YoY vs National 6,000 Supply: Percentage of Stock $140,000 Employment Growth: YoY 6mo-avg 4.5% 8.0% 10.0% 4.0% $120,000 4.0% 6.0% 8.0% 5,000 2.0% $100,000 3.5% 4.5% 0.0% 6.0% 10.0% 4.0% 4.0% 3.0% $80,000 4.0% 4,000 4.0% -2.0% 2.0% 2.0% 8.0% 2.5% $60,000 3.5% -4.0% 2.0% 6.0% 0.0% 0.0% 2.0% $40,000 3,000 3.0% -6.0% 0.0% 4.0% -2.0% 1.5% -8.0% 2.5% $20,000 -4.0%

Jul-14 Jul-15 2.0% 1.0% Jan-15 Jun-14 Jun-15 Jul-14 Jul-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Jan-15 Jun-14 Jun-15 Mar-14 Mar-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15

Feb-15 2008 2009 2010 2011 2012 2013 2014 2015 May-14 May-15 Dec-14 Aug-14 Aug-15

Nov-14 2.0% Mar-14 Mar-15 May-14 May-15 2,000 -6.0%

0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14

0.0% Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 1.5% Lifestyle Rent-by-Necessity National Tampa - St Petersburg 0.0% National Tampa - St Petersburg -8.0% 1.0% National Tampa - St Petersburg Jul-14 Jul-15 2008 2009 2010 2011 2012 2013 2014 2015 Jan-15 Jun-14 Jun-15 Oct-14

Apr-14 1,000 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 May-14 May-15

0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 National Tampa - St Petersburg Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 National Tampa - St Petersburg 0.0% 0 2008 2009 2010 2011 2012 2013 2014 2015 National Tampa - St Petersburg Rent: Lifestyle vs RBN 2008 2009Source:2010Supply: YardiMatrix2011 Completions2012 2013 2014 2015 Transactions: Price Per Unit National Tampa - St Petersburg Supply: DevelopmentDevelopment Pipeline Pipeline (as of Juneas of 2015) 9/1/2015Tampa Completions (as of June 2015) Transactions: Total Volume 10.0% Rent: Lifestyle vs RBN 6,000 Supply: Completions $140,000 Transactions: Price Per Unit 8.0% $120,000 6.0% 5,000 $100,000 10.0% $2,000 $140,000 100 4.0% 6,000 $80,000 8.0% 4,000 $1,800 90 2.0% $60,000 $120,000 5,000 $1,600 80 0.0% 6.0% $40,000 $100,000 3,000 7,212 Units 6,552 Units $1,400 70 4.0% $20,000 $80,000

Jul-14 Jul-15 4,000 $1,200 60 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 May-14 2.0% May-15 2,000 $60,000 $1,000 50 0.0% $40,000 Lifestyle Rent-by-Necessity 3,000 $800 National Tampa - St Petersburg 40 1,000 $20,000

Jul-14 Jul-15 $600 30 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 May-14 May-15 10,372… 2,000 0 $400 20 Lifestyle Rent-by-Necessity 2008 2009 2010 2011 2012 2013 2014 2015 $200 National Tampa - St Petersburg 10 1,000 $- 0 2008 2009 2010 2011 2012 2013 2014 2015 Supply: Development Pipeline as of 9/1/2015 Transactions: Total Volume 0 Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 2008 2009 2010 2011 2012 2013 2014 2015 #Properties Planned Prospective Under Construction 39 36 53 84 80 69 92 64 l $2,000 100 Source: YardiMatrix Source:Supply: YardiMatrix Development Pipeline as of 9/1/2015 $1,800 Transactions: Total Volume 90 $1,600 80 7,212 Units 6,552 Units $1,400 70 $2,000 100 Tampa Multifamily | Fall 2015 6 $1,200 60 $1,000 $1,800 50 90 $800 $1,600 40 80 7,212 Units 6,552 Units $600 $1,400 30 70 10,372… $400 $1,200 20 60 $200 $1,000 10 50 $- 0 2008 2009 2010 2011 2012 $8002013 2014 2015 40 $600 30 Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 10,372… $400 20 #Properties 39 36 53 84 80 69 92 64 Planned Prospective Under Construction $200 10 l $- 0 2008 2009 2010 2011 2012 2013 2014 2015 Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 #Properties Planned Prospective Under Construction 39 36 53 84 80 69 92 64 l Rent: YoY vs National Supply: Percentage of Stock Employment Growth: YoY 6mo-avg

National Tampa - St Petersburg

Rent: Lifestyle vs RBN Supply: Completions Transactions: Price Per Unit

10.0% 6,000 Transactions $140,000 8.0% $120,000 6.0% 5,000 Demand $100,000 for assets in secondary markets is helping to propel transaction activity. Through the third quarter, some 4.0% $1.4 $80,000 billion in properties changed hands, putting the market on pace to catch up to last year’s volume of $1.8 billion. 4,000 2.0% $60,000 Downtown St. Petersburg ($165 million) and Hyde Park/Davis Island ($144 million) in Tampa’s core have 0.0% $40,000 3,000 produced the most sales activity over the last 12 months, followed by Riverview/Valrico ($116 million) and two $20,000

Jul-14 Jul-15 neighborhoods on the western shore of Old Tampa Bay, Mainlands and Safety Harbor (both with $110 million). Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 May-14 May-15 2,000 Lifestyle Rent-by-Necessity The 367-unit CrescentNational BayshoreTampa in -the St Petersburg popular Hyde Park/Davis Island submarket traded in October 2014 for 1,000 $112 million, $303,000 per unit, by far the most expensive property to have changed hands in the past 12 months. The recent sale of Beacon 430 in Downtown St. Petersburg in September came the closest to that with 0 an $85 million price tag, representing $259,000 per unit. 2008 2009 2010 2011 2012 2013 2014 2015

Supply: Development Pipeline as of 9/1/2015 TampaTransactions: Sales Total Volume Volume and Number of Properties Sold (as of June 2015)

Rent: YoY vs National Supply: Percentage of Stock Employment Growth: YoY 6mo-avg $2,000 100 $1,800 90 $1,600 80 7,212 Units 4.5% $1,400 70 10.0% 6,552 Units 4.0% $1,200 60 4.0% 2.0% 8.0% $1,000 50 3.5% 0.0% 6.0% $800 40 3.0% 4.0% $600 -2.0% 30 10,372… 2.5% -4.0% 2.0% $400 20 2.0% $200 -6.0% 10 0.0% 1.5% $- 0 2008 2009 2010 2011-8.0% 2012 2013 2014 2015 1.0% Jul-14 Jul-15 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 May-14 May-15

0.5% Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Jun-13 Jun-14 Jun-15 Oct-08 Oct-09 Oct-10 Oct-11 Oct-12 Oct-13 Oct-14 #Properties Feb-08 Feb-09 Feb-10 Feb-11 Feb-12 Feb-13 Feb-14 Feb-15 Planned Prospective Under Construction 39 36 53 84 80 69 92 64 l National Tampa - St Petersburg 0.0% National Tampa - St Petersburg 2008 2009 2010 2011 2012 2013 Source:2014 YardiMatrix 2015

National Tampa - St Petersburg

1 Rent: Lifestyle vs RBN Supply: Completions Top Submarkets for Transaction Volume TampaTransactions: vs. National Price Per UnitSales Price per Unit Submarket Volume ($MM) 10.0% 6,000 Downtown St Petersburg 165 $140,000 8.0% $120,000 Hyde Park/Davis Island 144 6.0% 5,000 $100,000 4.0% Riverview/Valrico 116 $80,000 4,000 2.0% Mainlands 110 $60,000 0.0% $40,000 3,000 Safety Harbor 110 $20,000 Jul-14 Jul-15 Jan-15 Jun-14 Jun-15 Oct-14 Apr-14 Apr-15 Sep-14 Sep-15 Feb-15 Dec-14 Aug-14 Aug-15 Nov-14 Mar-14 Mar-15 2008 2009 2010 2011 2012 2013 2014 2015 May-14 May-15 2,000 Source: YardiMatrix 1 Lifestyle Rent-by-Necessity From August 2014 to July 2015 National Tampa - St Petersburg 1,000

Source: YardiMatrix 0 2008 2009 2010 2011 2012 2013 2014 2015

Supply: Development Pipeline as of 9/1/2015 Transactions: Total Volume

$2,000 100 $1,800 90 $1,600 80 7,212 Units 6,552 Units $1,400 70 $1,200 60 $1,000 Tampa Multifamily | Fall 2015 7 50 $800 40 $600 30 10,372… $400 20 $200 10 $- 0 2008 2009 2010 2011 2012 2013 2014 2015 Volume ($MM) $420 $345 $612 $852 $1,081 $1,160 $1,784 $1,394 #Properties Planned Prospective Under Construction 39 36 53 84 80 69 92 64 l Read All About It!

Grand Central Avenue Gets High-End Mixed-Use

Hyde Park Apartments Fetch High PPU

Global Firm Lands Contract for Airport-Area Portfolio

National Company Moves HQ to Tampa Commons

Get the latest Tampa real estate news at Tampa Submarket Map

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 Thontosassa 55 Palm Harbor/Tarpon Springs 14 Lakeland Highlands 35 Brandon/Se ner 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/Pasdena 65 Spring Hill 23 Westchase 44 Seminole/Indian Shores 66 Brooksville

Tampa Multifamily | Fall 2015 9 De nitions

Lifestyle households (renters by choice) have wealth sucient to own, but have chosen to rent. Discretionary households, most typically a retired couple or single professional, have chosen the exibility 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 who 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 di erences can weigh heavily in determining a property’s ability to attract specic renter market segments. The ve-star resort serves a very di erent market than the down-and-outer motel. Apartments are distinguished similarly, but distinctions are often not clearly denitive without investigation. The Yardi® 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 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 eciently, with more accurate end results.

The Yardi® Matrix Context rating is not intended as a nal 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.

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