Apartment Occupancies Slip but Rents Rise in Neighboring Counties

"For the first time in several years, there are several new communities being developed" in both counties, notes Robert W. Miller, senior vice president, multi-housing properties group at CB Richard Ellis Inc.

Although occupancies are down, investment sales are holding up with $80 million worth of product closed in 2000. Miller negotiated for the seller on $58 million of that total.

"A fairly active year," is how he categorizes the activity in both markets. Occupancy rates are still in the mid-90s, which are considered healthy, the broker tells GlobeSt.com. As a result, "we expect buyer interest to remain strong" this year, Miller says. He looks for occupancies to stay in the mid-90% range and rents to continue their upward direction.

In Volusia, home of the annual NASCAR event, occupancy is at 95.3%, down from 97.1% in 1999. In Brevard, headquarters of NASA, occupancy is at 94.2%, down from 94.8%. Average rents in Volusia are $586 per month, up 3.9% from $564. Brevard average rents are $585, up 3.5% from $565 in 1999.

Prices of apartment buildings mirrored the numbers in metro Orlando, Miller's study finds. Nine sales of a total 2,076 units generated an aggregate price of $80.19 million or $38,631 per unit.

Broken down by construction age, six buildings erected after 1980 in Volusia and Brevard counties, totaling 1,683 units, generated gross volume of $70.7 million or an average $42,042 per unit. Three apartment complexes comprising 393 units and constructed before 1980, however, brought in only $9.44 million or an average $24,020 per unit.

New construction in Brevard, where Melbourne is the dominant market, totals 856 units. The projects are Via Tuscany, 280 units, at Suntree; Harvard Apartments, 276 units, Palm Bay; and Grand Oaks at the Lake, 300 units, Melbourne.

In Volusia, new product totals 584 units. Activity is at Windy Pines, 208 units, Daytona Beach; Club at Sugarmill, 168 units; and Sunrise Point, 208 units, both at Port Orange. Daytona Beach remains the strongest market in Volusia with DeLand second.