Job and population growth are fueling the strongest multifamily leasing and sales market. Occupancy is at 96.4%, up from 95.7% in third quarter 2004. Average monthly rents are $790, up from $774. "Average rents have risen for five consecutive quarters now," says Robert W. Miller, senior vice president, CBRE Central Florida Multi-Housing Group.
North/East Seminole County and Southwest Orange County posted the largest percentage occupancy increases over the last five years at 9.1% and 9.7% respectively. East Orange County showed the smallest percentage of rental growth but had the highest average monthly rent at $1,027.
Sales, too, are taking off, hitting $1.36 billion with average price per units reaching $74,671. The previous year's sales volume was $921 million. Private groups, not institutional buyers, are the most active players. They bought 31% of the 54 for-sale properties for condo conversions. REITs and public companies were less active but "showed a renewed interest in the strengthening Orlando market," the broker says.
"Investor demand was incredibly strong [in 2004], and condo converters began to pursue local opportunities more aggressively," Miller says. "Improving market fundamentals, the robust local economy and Orlando's sustained and forecasted population growth should lead to another robust sales year in 2005."
CBRE research shows Orlando had the fastest growing population in the nation from 1999 to 2004 and is projected to retain that spot over the next five years. In 2004, Florida outpaced the nation in employment growth as well, with Orlando and the Tampa/St. Petersburg areas leading the surge. Orlando added 22,200 non-agricultural jobs in 2004 and saw the biggest gains in the professional/business sector, Miller says.
Peering into his crystal ball, the broker says "although there is tremendous demand for new apartment development, we anticipate a minimal amount of new apartment properties being built due to a lack of available land and competition from condo developers."
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