X

Thank you for sharing!

Your article was successfully shared with the contacts you provided.

ORLANDO-Though the Q4 multifamily news out of the area isn’t gee-whiz-gangbusters, neither is it doom and gloom. Despite a 10.3% vacancy area-wide–up 150 basis points from the year before–and a 1.5% fall in rents indicated in Marcus & Millichap’s Q3 Apartment Research Market Update, Orlando has seen the worst on the multifamily side.

“We’re beginning to see recovery. Some house sales are stabilizing, we’ve seen values stop dropping and more transitions on the single family side,” comments Stephen St. Clair, vice president, investments, with Marcus & Millichap Real Estate Investment Services’ Orlando office. Construction has also all but stopped – in 2009, a grand total of 840 units are being delivered to market, down from the 3,100 units that went online last year.

But right now, there is still the jobless recovery to be reckoned with. St. Clair acknowledges the unemployment numbers are alarming; the state lost 45,000 jobs during 2009, with much of that construction-related. “I don’t know where the light is with unemployment,” St. Clair confesses. “We’re not seeing a manufacturing plant come to town, or GM putting a plant here.” The only way to depress vacancy, he tells GlobeSt.com is when the tourism industry gets back on track.

“The major tourists attractions here will re-hire, and the vast majority of the jobs don’t offer pay that would be conducive to buying a house,” St. Clair explains. “These will be apartment renters.”

In the meantime, St. Clair says vacancies will likely stay pretty steady, though concessions are likely to be reduced. “In the properties I’m trying to sell, the concessions aren’t nearly as aggressive as they were a year ago,” he comments. He says in mid-2010, property owners could nudge rents up slightly.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

GlobeSt. APARTMENTS SPRING 2021Event

Join 1000+ of the industry's top owners, investors, developers, brokers & financiers at THE MULTIFAMILY EVENT OF THE YEAR!

Get More Information
 

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2021 ALM Media Properties, LLC. All Rights Reserved.