Florida Multifamily Commercial Real Estate Activity 2024
Tampa’s multifamily real estate market is grappling with historically high vacancy rates, currently sitting at 9.6%. Despite a surge in demand, fueled by the absorption of over 1,200 units in the first quarter of 2024, the supply of new constructions has far outpaced this demand. With nearly 4,000 units completed in Q1 alone, the market is flooded, pushing vacancy rates above 9% for the first time since 2010. Over the past year, while 4,200 units were absorbed, a staggering 9,600 were delivered, causing vacancies to climb by 200 basis points. Particularly, upscale properties have seen a sharp rise in vacancies, up 250 basis points to 12.0% year over year.
This trend, while echoing the national narrative, is exacerbated in Tampa, where vacancy increases are double the national average. Despite a slowdown in construction starts, with only 2,200 units breaking ground year to date compared to 3,100 units over the same period in 2023, completion rates are expected to hit record highs in 2024, with nearly 9,000 units anticipated by year-end. Consequently, asking rents have plummeted for four consecutive quarters, down by -1.5% from last year, particularly impacting high-end properties with a -2.1% decline.
Looking ahead, the market is poised to witness a continued mismatch between supply and demand, keeping vacancy rates elevated. This imbalance, coupled with intensified competition from further construction completions, is projected to constrain landlords’ ability to raise asking rents through the remainder of the year.
You can view our commercial properties in Tampa and elsewhere in the Florida market to see what’s available for lease and for sale at the moment.
Tampa Multifamily Real Estate Construction Highlights Q1 2024
Unites Delivered Last 12 Months: 9,351
Units Currently Under Construction: 14,609
% of Inventory: 6.4%
Average # of Units / Property: 248
* Data is courtesy of CoStar Group Inc.
Tampa Multifamily Real Estate Under Construction in Q1 2024
1. Brandon Town Center – 507 S Lakewood Dr
Rating: 4*
Units: 660
Stories: 3
Start Date: March 2022
Completion Date: August 2024
Developer: Rotunda Land & Development LLC
Owner: Brandon Town Center Development
2. Vista Walk / St. Joe II
Rating: 3*
Units: 500
Stories: 1
Start Date: January 2024
Completion Date: December 2027
Developer: New Strategy Holdings, LLC
Owner: Not Listed
3. MAA Breakwater – 5440 W Tyson Ave
Rating: 4*
Units: 495
Stories: 5
Start Date: May 2023
Completion Date: Jan 2025
Developer: Mid-American Apartment Communities
Owner: Mid-American Apartment Communities
4. Arya – 375 St
Rating: 4*
Units: 415
Stories: 5
Start Date: April 2022
Completion Date: December 2025
Developer: Stock Development
Owner: Stock Development
5. Marlowe Gateway – 1200 N Gandy Blvd
Rating: 4*
Units: 412
Stories: 5
Start Date: September 2023
Completion Date: May 2024
Developer: Greystar Real Estate Partners
Owner: Greystar Real Estate Partners
6. Cobalt Apartments – 4338 Cobalt Brook Blvd
Rating: 3*
Units: 401
Stories: 4
Start Date: August 2022
Completion Date: August 2024
Developer: Flournoy Companies
Owner: Flournoy Companies
7. Marina Club – 4311 34th St S
Rating: 3*
Units: 400
Stories: 8
Start Date: October 2022
Completion Date: December 2024
Developer: Skanska USA Building, Inc
Owner: Marina Walk, LLC
8. Linz Bayview – 2975 Gulf To Bay Blvd
Rating: 4*
Units: 398
Stories: 5
Start Date: April 2022
Completion Date: April 2024
Developer: Davis Development
Owner: Davis Development
9. Modera St Petersburg – 201 17th St S
Rating: 4*
Units: 383
Stories: 20
Start Date: February 2022
Completion Date: November 2023
Developer: Mill Creek Residential Trust LLC
Owner: Mill Creek Residential Trust LLC
10. Siena Cove – 6243 Old Pasco Rd
Rating: 3*
Units: 375
Stories: 2
Start Date: June 2022
Completion Date: December 2024
Developer: –
Owner: AMH
Tampa Multifamily Sales Activity in Q1 2024
Tampa’s multifamily market has seen significant fluctuations in transaction volume over the past year. While it led in trading activity with a total sales volume of approximately $1.7 billion, the start of 2024 marked a stark contrast with the lowest transaction volume in over ten years, barely surpassing $150 million year to date. This downturn sharply contrasts with the over $850 million recorded in the third quarter of 2023. Investor activity has waned as market conditions have weakened, compounded by uncertainties regarding potential interest rate adjustments.
Private equity has emerged as the predominant buyer type this year, representing the majority of transactions. Notably, Axonic Properties acquired 246 units in Palmera Pointe Condos for $37.5 million, bringing its total ownership in the community to 286 units. Motivated by the dissolution of their partnership, the sellers enlisted Capstone Group as a receiver to oversee the property’s dissolution and asset disposition.
The multifamily market’s challenges, including declining rents and increasing vacancies, have led to a gradual erosion of property values over recent years. The average price per unit has plummeted to $200,000, marking a 5.5% decrease from the previous year and a significant drop of over 15% from the peak of $240,000/unit in 2022 Q2. These prevailing market dynamics are expected to persist in the foreseeable future, keeping sales volume stagnant at historic lows and preventing any significant rebound in pricing throughout the remainder of the year.
You can view our commercial properties, including multifamily assets in Tampa and elsewhere in Central Florida to see what’s available for lease and for sale at the moment.
Key Tampa Multifamily Real Estate Sales Statistics Q1 2024
Sales Comparables: 108 Assets
Average Price / Unit: $197,000
Average Price / Sale: $18,300,000
Average Vacancy During Sale: 9.2%
Significant Multifamily Sales in Tampa Q1 2024
1) Bell Lansbrook Village – 3751 Pine Ridge Blvd
Rating: 4*
Year Built: 2004
Units: 774
Vacancy: 10.0%
Sale Date: 7/10/23
Price: $201,000,000
Price/Unit: $259,689
Price/SF: $259
2) Rowan Pointe – 7950 Park Blvd
Rating: 4*
Year Built: 2022
Units: 349
Vacancy: 14.0%
Sale Date: 9/12/23
Price: $108,600,000
Price/Unit: $311,174
Price/SF: $350
3) Azora at Cypress Ranch – 17583 Bellavista Loop
Rating: 4*
Year Built: 2022
Units: 331
Vacancy: 7.9%
Sale Date: 8/30/23
Price: $96,000,000
Price/Unit: $290,030
Price/SF: $154
4) Avasa Grove West Apartments – 27791 Dream Falls Dr
Rating: 4*
Year Built: 2022
Units: 330
Vacancy: 14.9%
Sale Date: 9/22/23
Price: $95,000,000
Price/Unit: $287,878
Price/SF: $272
5) Seven Lakes at Carrollwood – 3303 – 3401 N Lakeview Dr
Rating: 3*
Year Built: 1983
Units: 640
Vacancy: 10.9%
Sale Date: 10/10/2023
Price: $94,364,000
Price/Unit: $147,443
Price/SF: $208
6) Boot Ranch Apartments – 1350 Seagate Dr
Rating: 4*
Year Built: 1996
Units: 432
Vacancy: 1.9%
Sale Date: 10/19/2023
Price: $89,619,000
Price/Unit: $207,451
Price/SF: $214
7) Azalea Apartments – 2633 Azalea Garden Pl
Rating: 4*
Year Built: 2022
Units: 292
Vacancy: 10.6%
Sale Date: 8/14/2023
Price: $85,750,000
Price/Unit: $295,000
Price/SF: $260
8) Tessa Springs – 11810 Uptown Walker Pl
Rating: 4*
Year Built: 2022
Units: 292
Vacancy: 10.6%
Sale Date: 8/14/2023
Price: $83,750,000
Price/Unit: $286,815
Price/SF: $217
9) Pearce at Pavilion
Rating: 4*
Year Built: 2016
Units: 250
Vacancy: 10.0%
Sale Date: 12/28/2023
Price: $66,000,000
Price/Unit: $264,000
Price/SF: $184
10) Sole at Citrus Park – 6201 Gunn Hwy
Rating: 4*
Year Built: 1999
Units: 264
Vacancy: 7.6%
Sale Date: 10/27/2023
Price: $58,000,000
Price/Unit: $219,696
Price/SF: $184
Take a look at our featured Tampa multifamily properties for sale, as well as a variety of other Tampa commercial real estate properties that are currently available. You can also contact the Bounat team to start your own Central Florida property search.
* Data is courtesy of CoStar Group Inc.