Tampa Bay, Recessionary Pressures in Tampa Leave Renters Sitting Pretty
multihousingnews.com
JUNE 17, 2003 -- Clearwater, Fla.--An economic survey of rental apartment rates throughout the Tampa Bay region by Colliers Arnold Commercial Real Estate Services shows that recessionary pressures have left renters paying less--and getting a lot more--than they were this time last year.
"Region-wide, average rents continued their slide from $831 per month in March 2002 to $787 per month this year," said John W. Stone, a senior investment sales associate at Colliers Arnold, who specializes in rental apartment communities as investment properties.
To attract new residents, apartment communities have been offering a wide range of incentives and concessions. "On a year-to-year basis, concessions have grown by almost 50 percent," Stone said. In March 2003, concessions averaged $836 per lease agreement, the survey showed. "That's an increase of 47 percent from $567 in March 2002." That means that for the first time ever in the Tampa area, per-lease rent concessions have topped the average monthly rent.
"Rent concessions equate to an average economic vacancy of 8.85 percent throughout the region," Stone said. "That's not included in traditional occupancy reports, but it's a critical economic factor. Combined with the reported vacancy rate of 5.47 percent, that implies a region-wide economic vacancy in rental apartment properties that totals 14.59 percent."
The apartment survey was based on rental and vacancy information from the "Bay Area Apartment Market Survey" prepared by Triad Research & Consulting Inc.
But on the other side of Florida, conditions are such that developers are eager to add to the existing supply. Essex Construction of Central Florida L.L.C., a Winter
Park, Fla.-based general contracting company that specializes in multi-housing projects, is about to begin work on a 64-unit project located on U.S. 1 south of St. Augustine.
Essex officials said The Greens II is part of St. Augustine Shores, a master planned community by Swan Development Co., a St. Augustine firm. Residences at The Greens II will be priced from the mid-$100s. The construction contract calls for five two-story buildings. Estimated cost of construction is $5 million. |
