Tampa Apartment Developers Pull Back

That scenario is expected to help, not hurt the area's overall multifamily leasing market, according to a new analysis by Marcus & Millichap Real Estate Investment Brokerage Co. About 3,400 units came on line in 2004.

"The favorable tax structure and low cost of living in Tampa blend perfectly with the moderate climate, proving the opportunity for both young professionals and retirees to achieve a high-quality lifestyle," says Steven Ekovich, first vice president and regional manager of the Tampa office. "Sales activity will continue at a solid pace in 2005 as the comparative affordability of Tampa apartment properties continues to lure buyers from other locales."

Along with the reduced construction of new product will come an anticipated increase in rents, Ekovich notes. "Regionwide, asking rents will rise 1.8%, to $750 per month."

Tampa employment is expected to rise by more than 44,000 positions in 2005, or 3.5% up from about 28,000 new jobs in 2004. "Continued growth in the area's financial services sector will lead the economy this year," Ekovich says.

More good news will arrive in the apartment vacancy column. "After remaining relatively flat since 2001, vacancy will decline in 2005, as a result of restrained development, increased job growth and rising home prices," the broker says. The regionwide vacancy rate should improve by 60 basis points in 2005, to 7.7%, he says.

Tampa Bay's strong multifamily market is also noted on Marcus & Millichap's National Apartment Index where Tampa climbed three places this year to No. 19. The firm's snapshot analysis of 42 apartment markets is based on a series of 12-month, forward-looking supply and demand indicators.

On the investment sales side, the Tampa office of Marcus & Millichap has won an exclusive leasing from owner Wynnton Group of Columbus, GA to market a portfolio of four local properties. Wynnton is asking $47.2 million, or $55,792 per unit and $55 per sf, for the assets which consist of 846 units and 857,112 sf of rentable space. The for-sale properties are the Plantation Apartments, 126 units; PalmView Apartments, 304 units; Grand View Apartments, 304 units; and Granada Apartments, 112 units. The buildings were constructed in the 1960s and 1970s and carry no debt load.