Tampa Multifamily Report – Fall 2019
Multifamily demand continues strong in the metro, boosted by above-trend population and employment gains.
Tampa rent evolution, click to enlarge
Multifamily demand continues strong in Tampa, boosted by above-trend population and employment gains. Drawn by the region’s favorable tax environment, companies continue to relocate and expand in the metro, which is bolstering economic growth.
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Professional and business services led job gains in the 12 months ending in September (8,700 jobs). This trend will likely continue, as 20,000 of the metro’s 60,000 openings that same month were for high-skill, high-wage STEM positions. Hiring velocity is also strong in the construction sector, which gained 5,300 jobs. This sector was sustained by large developments, including Jeff Vinik and Bill Gates’ $3 billion Water Street by Tampa Bay district. Bromley Cos.’ $550 million Midtown Tampa mixed-use project is also rising near West Shore, while BTI Partners is building the $500 million Westshore Marina District, set to include Tampa’s largest deep-water marina, along with office, retail and 2,400 residences.
Tampa sales volume and number of properties sold, click to enlarge
A combination of below-average rents and steady economic growth has lured investors to Tampa, where multifamily sales reached $2.9 billion in the first 10 months of 2019, surpassing last year’s cycle peak of $2.6 billion. Developers have also been active, delivering 5,000 units, while another 7,900 units were under construction.
