Florida Multifamily Commercial Real Estate Activity 2024
The imbalance between supply and demand is keeping Tampa’s multifamily rate around record levels. The Tampa market’s vacancy rate has surpassed 10% for the first time since 2009 and has increased by over 200 basis points year over year. The consistent influx of new supply has been more than the market can handle despite the market recording positive absorption for seven consecutive quarters.
Renter demand accelerated over the first six months of 2024, with roughly 3,700 units of absorption. Current levels are nearly a 25% increase from absorption recorded over the first half of 2023 and a 200% improvement over the latter half of that same year. At the same time, completions reached an all-time high, with 7,400 units delivered over the first six months of this year. The first quarter of 2024 was a record in terms of construction completions, with nearly 4,700 units. Pasco County, which has seen the lion’s share of new construction, has the highest vacancy rate in the region at roughly 20%. The submarket has absorbed approximately 1,900 units over the past year, while 4,600 units were delivered. In comparison, Northwest Tampa has the lowest vacancy rate at just 5%, in large part due to the lack of new construction over the past five years.
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 Q2 2024
Unites Delivered Last 12 Months:11,373
Units Currently Under Construction:12,214
% of Inventory: 5.3%
Average # of Units / Property: 260
* Data is courtesy of CoStar Group Inc.
Tampa Multifamily Real Estate Under Construction in Q2 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. Cobalt Apartments – 4434 Cobalt Brook Blvd
Rating: 5*
Units: 401
Stories: 4
Start Date: August 2022
Completion Date: September 2024
Developer: Flournoy Companies
Owner: Flournoy Companies
6.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
7. 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
8. La Union – 1720 Nick Nuccio Pky
Rating: 4*
Units: 390
Stories: 7
Start Date: April 2024
Completion Date: September 2024
Developer: Kettler
Owner: Kettler
9.Siena Cove – 6243 Old Pasco Rd
Rating: 3*
Units: 375
Stories: 2
Start Date: June 2022
Completion Date: December 2024
Developer: –
Owner: AMH
10. 2302 E Hillsborough Ave
Rating: 3*
Units: 354
Stories: 3
Start Date: June 2024
Completion Date: December 2024
Developer: –
Owner: The Richman Group of Florida, Inc.
Tampa Multifamily Sales Activity in Q2 2024
Roughly 12,000 units are under construction, down from 17,000 units this time last year. As multifamily fundamentals have soured, coupled with increased difficulty in securing funding, fewer new developments have broken ground through the first half of the year. Roughly 3,500 units started construction, down from nearly 5,000 over the same period in 2023.
Tampa has now recorded asking rent decline for four consecutive quarters. Asking rents are down -1.3% from this time last year as landlords have contended with increased competition for renters as thousands of units have come online. Pasco County has one of the largest supply and demand gaps in Tampa and, in turn, has recorded one of the steepest declines in rents, down 3% from this time last year.
Tampa’s multifamily market is facing significant supply headwinds that will have a cascading impact on rents and vacancies. 2024 is on pace to be a record year for construction completions, with roughly 11,000 units. Tampa’s vacancy rate is expected to remain well above the five-year vacancy rate average of 6.9% over the next several years. A prolonged period of elevated vacancy will likely make it difficult for landlords to push rates, even at pre-pandemic levels. Rent growth should return to positive territory by 2025 but to half the ten-
year average annual growth rate of 5.0%.
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.