Population, Job Growth Fuels South Florida’s Multifamily Sector
There were 140 multifamily transactions in South Florida in the first quarter of this year, an 8.5% increase as compared to a year earlier. Multifamily per-unit prices also rose in Miami-Dade, Broward and Palm Beach counties.
MIAMI—South Florida’s multifamily sector posted strong results once again with increased sales and per-unit multifamily pricing, according to a report released recently by the Miami Association of Realtors Commercial and data firm Vizzda.
There were 140 multifamily transactions in South Florida in the first quarter of this year, an 8.5% increase as compared to a year earlier. Multifamily per-unit prices also rose in Miami-Dade, Broward and Palm Beach counties, according to the 1Q 2018 The Quarterly Report – South Florida Commercial Real Estate.
“Increasing population, job growth and rising single-family home prices are increasing demand for South Florida multifamily properties,” says 2018 Miami Commercial president Brian Sharpe, a commercial Realtor with Sharpe Properties Group in Hialeah, FL. “South Florida’s new transit options, such as the new Brightline Miami-to-West Palm train service, is fueling more multifamily growth.”
Palm Beach County posted a record 34 multifamily transactions in the first quarter of this year totaling nearly 2,200 units at $151,600 per unit. The West Palm/Riviera Beach and Green Acres/Palm Springs sub-markets had the most transactions with 12. The Jupiter/North Palm Beach submarket had the highest concentration of units changing hands at 562 units in two sales that totaled nearly $100 million.
Total sales volume in the first quarter of 2018 in Palm Beach County was nearly $330.37 million, up sharply from the $197.56 million posted in the fourth quarter of 2017 and from the $39.4 million recorded in the first quarter of 2017.
Miami-Dade County had the highest number of first quarter multifamily transactions at 65, which was in line with the third and first quarters of 2007 but lower than the strong showing in the fourth quarter of last year.
The report states that Miami-Dade County continued its downward trajectory in units and dollar volume transacted on both an annual and quarterly basis. For the second consecutive quarter, the average unit count of properties that changed hands in the first quarter was 22. The $196 million in dollar volume in the first quarter was down by approximately 40% from both the fourth quarter and first quarter of 2017. Per-unit pricing ($135,439) also fell by nearly 30% from the fourth quarter of last year, despite what Miami Commercial Realtors say in the report are strong gains realized by the Islands and Far South sub-markets.
Total sales volume in Miami-Dade for the first quarter of this year was $196.1 million, down from the $323.9 million recorded in the fourth quarter of last year and the $327.8 million posted in the first quarter of 2017.
Broward County, meanwhile, saw an increase in multifamily transactions because of a rise in transactions in Fort Lauderdale, the report states. The Broward County region posted sales volume of approximately $212.55 million, down from $299.65 million in the fourth quarter of 2017, but up sharply from the $53.44 million registered in the first quarter of 2017.
“South Florida multifamily continues to draw investors from around the world as the region offers excellent job opportunities, first-class transportation and near-perfect weather to people looking to make South Florida home,” Sharpe says. “The already high optimism is growing for investors as the long-term prospects continue to rise as a result of strong population growth, which is key to sustaining the multifamily boom.”