SOUTHEAST SNAPSHOT, SEPTEMBER 2004

Tampa Multifamily Market

Williams

“Investors continually rank Tampa Bay, Florida, among their top multifamily acquisition markets in the country,” according to Sean Williams, vice president of Apartment Realty Advisors (ARA). Occupancy rates have improved in the second quarter and concessions are beginning to burn off. While vacancy varies among submarkets, occupancy averages in the low- to mid-90 percent range. The market is well positioned for growth as supply absorption continues, driven by positive employment growth.

Additionally, the condominium conversions throughout the area will continue to compress the supply of apartment units and have a positive impact on economic occupancy. “In the past year, ARA has sold or has under contract seven communities representing approximately 2,700 units to condominium converters in the Tampa Bay area,” Williams notes. “For example, ARA recently sold Park Crest II at Innisbrook to a condo converter for $104,000 per unit.”

The Westshore area in south Tampa could undergo the most dynamic changes throughout all of Tampa Bay, according to Williams. WCI’s Westinghouse Electric development and Grady Pridgen’s Imperial Yacht Basin development are excellent examples of re-used land. These developments could potentially add approximately 1,000 single-family homes, townhomes and condos. Developments such as these will re-gentrify the south Westshore area on both sides of Gandy Boulevard.

Pinellas County is experiencing the most noticeable increase in vertical construction as the majority of the county’s multifamily land is already developed. Hillsborough County continues to see modest increases in supply with certain infill locations such as south Tampa seeing mid- and high-rise developments. Examples of these developments include Camden Ybor in Ybor City and Summer Walk near the International Plaza mall.

“Multifamily development will continue along the Interstate 75 corridor from Pasco County south through Sarasota where garden multifamily land is available and where large employers continue to relocate their corporate campuses,” says Williams. The leasing of Highwoods Preserve office park, the former WorldCom space, should fuel apartment demand in New Tampa, where several garden multifamily communities recently have been developed.

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