Top 5 Florida Markets for Construction Activity
- May 28, 2021
Construction activity hasn’t lost momentum in Florida, with the multifamily sector powering through despite nationwide and local hurdles. More than 11,300 units were delivered in the first quarter of the year, according to Yardi Matrix data. As of May, the state had more than 100,000 units underway.
Development activity was concentrated in the larger metro areas, where demand for new supply was high even before the onset of the pandemic. The total number of apartments underway in the five metros on this list accounts for 79 percent of Florida’s pipeline. The table below utilizes Yardi Matrix data to highlight the state’s top markets for development in terms of units under construction.
|Rank||Market||Units Underway||Percentage of Stock|
|3||Tampa – St Petersburg – Clearwater||17,287||7.7%|
|5||Southwest Florida Coast||7,991||11.1%|
Source: Yardi Matrix
5. Southwest Florida Coast
The metro’s multifamily market has been rapidly expanding in recent years. As of May, developers were working on close to 8,000 units, accounting for 11.1 percent of the market’s existing inventory. The largest share—more than 2,600 units—is taking shape in Fort Myers.
More than 1,400 units were underway in the Fort Myers–South submarket as of May. The largest project in the submarket—and in the metro—is The Carlton of Fort Myers, a 442-unit asset developed by Mahaffey Apartment Group. The age-restricted community, situated on 42 acres at 6170 Mahaffey Road, is scheduled for completion in the first quarter of 2022.
4. Fort Lauderdale
Thanks to an influx of young professionals from across the state and the nation, the metro benefits from an above-average rate of highly educated residents, according to the Bureau of Labor Statistics. Driven by demand, more than 11,800 units were underway in Fort Lauderdale as of May—an 11.3 percent of the market’s total stock.
The bulk was concentrated in the Fort Lauderdale-West submarket, where 3,900 units were under construction. In May 2018, Stiles Development broke ground on Alluvion Las Olas, a 380-unit community located at 215 N. New River Drive East. Expected to be fully completed in the second quarter of 2021, the 43-story luxury high-rise features dedicated workspaces, a highly sought-after amenity.
3. Tampa-St Petersburg-Clearwater
Despite the pandemic, construction forged ahead in the metro, where more than 17,200 units were underway as of May. The figure places Tampa-St Petersburg-Clearwater third among Florida’s metros, with the total number of units underway accounting for 7.7 percent of the total stock.
The largest project underway is Rithm at Uptown, a 1,627-unit community rising in Tampa’s University Square submarket. RD Management started work on the property this spring, with completion scheduled for the end of 2023. The three-story project is within the former University Mall, was purchased by RD Management in 2014 and is currently being transformed into a mixed-use development encompassing more than 7 million square feet of space.
The Central Florida metro has been gaining attention due to major demographic expansion during the pandemic, surpassing other fast-growing metro areas such as Atlanta, Austin, Texas and Tampa. Developers were working on a little over 21,000 units as of May, representing 9.2 percent of the metro’s inventory. More than 13,700 of these are expected to come online by year-end.
Activity was concentrated in downtown Orlando, where more than 1,800 units were underway. In May 2020, Mill Creek Residential Trust broke ground on the 292-unit Modera Creative Village, an eight-story community located at 505 Chatham Ave. Also last year, PMG and Raven Capital started work on Society Orlando, a 464-unit community, encompassing two towers, which is the largest residential project to date in the submarket.
First on our list is Miami, which has been benefiting from waves of residents and investors heading south from the East Coast. Despite the health crisis, construction activity ramped up, with developers working on projects totaling more than 21,100 units as of May. The number accounts for 15.3 percent of the total stock.
The largest project under construction was Melo Group’s Downtown 5th, a 1,045-unit property in downtown Miami scheduled for completion this summer. The twin towers will also incorporate 12,500 square feet of retail space. The developer’s greater downtown Miami portfolio encompasses more than 6,000 condo and rental units, including the Miami Plaza, a 425-unit tower completed last year.
Yardi Matrix covers all multifamily properties of 50-plus units across 133 markets in the United States. This ranking reflects transactions for properties within that sample group.