orlando - multifamily properties – multifamily...

ORLANDOMULTIFAMILY

RENTAL TRENDSSUPPLY/DEMANDEMPLOYMENT ANALYTICS

OCTOBER 2018

SUPPLY

RENTAL TRENDS

DEMAND

Employment Sector Current Share YOY Change

Leisure and Hospitality 19.6% 19,400 6.9%

Professional and Business Services 17.1% 17,000 7.0%

Mining, Logging and Construction 6.6% 14,200 16.5%

Education and Health Services 12.9% 10,700 5.7%

Trade, Transportation, and Utilities 18.0% 9,300 3.5%

Manufacturing 4.8% 5,600 8.2%

Financial Activities 5.6% 3,800 4.6%

Other Services 3.6% 3,200 6.2%

Information 1.7% 100 0.4%

Government 10.1% -200 -0.1%

National RankingOut of 98 Markets 5Rent

Growth [-3] 2 EmploymentGrowth [+1] 16 Completions

[+2]

Inventory by Property Status# of Properties

854Completed

208,777 Units

42Under Construction

11,351 Units

53Planned

15,870 Units

103Prospective

24,426 Units

ORLANDO MULTIFAMILY OCTOBER 2018

1

HIGHEST OVERALL PERFORMING SUBMARKETS LOWEST OVERALL PERFORMING SUBMARKETS

Submarket Rent Occupancy YOY Change

Winter Garden $1,126 98.1% 11.9%

Florida Center North $1,256 96.9% 11.5%

Oak Ridge - east $1,165 94.9% 10.7%

West Kissimmee $1,308 98.5% 10.1%

Apopka/Piedmont $1,355 95% 10.1%


Lake Nona $1,510 94.9% 2.2%

Mt Dora $909 97.2% 1.7%

Lake Mary $1,367 95.6% 1.2%

Holden Heights $1,058 - 1.1%

Downtown Orlando $1,688 94% 0.9%

HIGHEST PERFORMING SUBMARKET - WINTER GARDEN

SUBMARKETS YEAR-OVER-YEAR RENT GROWTH

Properties 4

Units 477

Average Rent/Unit $1,126

Effective YOY Chg 11.9%

RENTAL RATE CHANGE BY SUBMARKET OCTOBER 2018

2

LIFESTYLE APARTMENTS - YEAR-OVER-YEAR RENT GROWTH RENTERS-BY-NECESSITY APARTMENTS - YEAR-OVER-YEAR RENT GROWTH

HIGHEST PERFORMING SUBMARKETS - LIFESTYLE HIGHEST PERFORMING SUBMARKETS - RBN


Rosemont $1,109 96.5% 12.7%

West Kissimmee $1,370 98.5% 12.7%

Aloma $1,348 94.5% 12.3%

Florida Center North $1,526 95.3% 12.2%

Lake Catherine $1,376 93% 12.1%


Lockhart $1,089 97.1% 12.7%

Pine Hills $848 98% 12.2%

Kirkman $1,246 94.8% 11.8%

Winter Garden $927 98.6% 11.6%

Oak Ridge - east $1,158 94.1% 11.5%

LOWEST PERFORMING SUBMARKETS - LIFESTYLE LOWEST PERFORMING SUBMARKETS - RBN


Celebration $1,513 93.4% 2.9%

Lake Nona $1,510 94.9% 2.2%

Weathersfield $1,309 93.2% 1.8%

Downtown Orlando $1,806 93.6% 0.8%

Lake Mary $1,408 96.5% 0.8%


Lake Mary $1,234 93.7% 2.7%

Gotha/Orlovista $1,055 97.2% 2.0%

Vista Park $1,167 96.5% 1.5%

Downtown Orlando $993 95.4% 0.7%

Oviedo $1,632 98.6% 0.7%

ROSEMONT LOCKHART

Lifestyle RBN Overall

Properties 3 15 18

Units 704 3,222 3,926

Avg Rent/Unit $1,109 $966 $992

Effective YOY Chg 12.7% 7.3% 8.4%

RBN Lifestyle Overall

Properties 4 6 10

Units 625 2,158 2,783

Avg Rent/Unit $1,089 $1,450 $1,369

Effective YOY Chg 12.7% 4.9% 6.3%

RENTAL RATE CHANGE BY SUBMARKET AND ASSET QUALITY OCTOBER 2018

3

OVERALL DEVELOPMENT ACTIVITY

PROJECTED COMPLETIONS AS % OF PRIOR INVENTORY - 12 MONTHS ENDING SEPTEMBER 2019Submarket Growth # Units

Winter Park/Maitland 53.2% 1,424

Pine Hills 24.1% 588

West Kissimmee 20.0% 946

Downtown Orlando 19.3% 1,089

Florida Center 16.2% 344

Longwood 10.9% 281

Colonial Town 8.7% 356

Lake Monroe 8.6% 280

Goldenrod 7.8% 332

East Kissimmee 7.3% 352

Holden Heights 6.5% 120

+ 11 More Submarkets 2,786

Market Overall 4.0%8,898 Units

National RankingOut of 98 Markets

11,351 Units

16Lifestyle [-2]

10,765 Units

43Renters-by-Necessity [+2]

586 Units

16Overall

SUPPLY OCTOBER 2018

TOP DEVELOPERS BY UNITS UNDER CONSTRUCTIONLARGEST COMMUNITIES UNDER CONSTRUCTIONDeveloper # Units # Props

Pollack Shores 723 3

Brel Capital 703 2

Real Estate Inverlad 630 1

Bainbridge Companies 622 2

LeCesse Development 612 2

Crescent Communities 375 1

Camden Property Trust 364 1

Cornerstone Group 356 1

Eastwind Development 352 1

Mill Creek Residential Trust 350 1

Project Address # Units Developer

Yard at Ivanhoe, The 1605 Alden Road Orlando, FL 32803

630 Real Estate Inverlad

M2 at Millenia 4206 Eastgate Drive Orlando, FL 32839

403 Brel Capital

Novel Lucerne 733 Main Lane Orlando, FL 32801 375 Crescent Communities

520 East 555 Mariposa Street Orlando, FL 32801

364 Camden Property Trust

Urbon 3710 Maguire Blvd Orlando, FL 32803

356 Cornerstone Group

4

LIFESTYLE DEVELOPMENT ACTIVITY RENTERS-BY-NECESSITY DEVELOPMENT ACTIVITY

PROJECTED RBN COMPLETIONS AS % OF INVENTORYPROJECTED LIFESTYLE COMPLETIONS AS % OF INVENTORY

Submarket Growth # Units

Winter Park/Maitland 135.0% 1,424


Goldenrod 39.2% 332

Longwood 34.6% 281

East Kissimmee 26.1% 352

Downtown Orlando 25.8% 1,089

Florida Center 23.7% 344

Lake Monroe 12.3% 280

Vista Park 10.7% 312

Colonial Town 10.0% 356

Oak Ridge - west 9.5% 403

+ 10 More Submarkets 2,659

Market Overall 8.1%8,478 Units

Submarket Growth # Units


Holden Heights 7.6% 120

Market Overall 0.4%420 Units

SUPPLY OCTOBER 2018

5

EMPLOYMENT COMPOSITION BY INDUSTRY SECTOR

EMPLOYMENT GROWTH TREND FOR TOTAL NON-FARM AND TWO LARGEST INDUSTRY SECTORS

EARNINGS GROWTH TREND VS NATIONAL

Employment National YOY Change 5-Year ChangeEmployment Sector Jobs % Share Rank Jobs Pct. Jobs Pct.

Leisure and Hospitality 299K 19.6% 14 19.4K 6.9% 58.0K 24.0%

Trade, Transportation, and Utilities 275K 18.0% 29 9.3K 3.5% 35.5K 14.9%

Professional and Business Services 261K 17.1% 25 17.0K 7.0% 57.3K 28.2%

Education and Health Services 197K 12.9% 34 10.7K 5.7% 32.5K 19.8%

Government 154K 10.1% 42 -0.2K -0.1% 6.9K 4.7%

Mining, Logging and Construction 100K 6.6% 22 14.2K 16.5% 38.0K 61.0%

Financial Activities 86K 5.6% 31 3.8K 4.6% 8.7K 11.2%

Manufacturing 74K 4.8% 46 5.6K 8.2% 15.4K 26.4%

Other Services 55K 3.6% 27 3.2K 6.2% 11.3K 25.9%

Information 27K 1.7% 29 0.1K 0.4% 0.8K 3.1%

Total Non-Farm 1526K 100.0% 26 83.1K 5.8% 264.4K 21.0%

EMPLOYMENT AND EARNINGS OCTOBER 2018

6

Prior 12 Months

35Sale Price [+2]

$142,137Average Price/Unit

6Sale Velocity [+1]

83Properties Sold

9Sale Volume

$3,304MMTotal Sales

National RankingOut of 98 Markets

MOST ACTIVE SUBMARKETS BY TRANSACTION VOLUME

SALE TRENDS

MOST ACTIVE BUYERS BY # PROPERTIES PURCHASED MOST ACTIVE SELLERS BY # PROPERTIES SOLD

Lifestyle RBN

# Properties 38 45

Total $MM $2,277 $1,027

Avg $/Unit $183,528 $94,750

Company # Units $MM

Starwood Capital Group 15 4,129 $396.5

S2 Residential 3 1,662 $124.5

TruAmerica Multifamily 3 1,326 $181.5

TH Real Estate 3 980 $194.3

Harbor Group International 3 966 $200.5

Robbins Property Associates 3 932 $144.3

Abacus Capital Group 3 594 $57.5

Amzak Capital Management 3 570 $36.9

Company # Units $MM

Banyan Realty Management 15 4,129 $396.5

NRInvestments 3 1,662 $124.5

CFH Group 3 594 $57.5

Lohman, Ty G. 3 570 $36.9

Starwood Capital Group 2 954 $124.6

GoldOller Real Estate Investments 2 876 $112.0

Inland Real Estate Group 2 397 $109.5

Cross Florida Group 2 308 $23.9

Submarket # Units $MM

Weathersfield 12 3,718 $545.2

Lake Bryan 8 2,256 $473.9

Downtown Orlando 6 1,880 $472.5

Altamonte Springs 6 1,802 $328.0

University Park 6 1,306 $320.9

Colonial Town 4 1,322 $276.0

Hancock Lake 4 1,536 $274.5

Stoneybrook 6 1,872 $244.8

Vista Park 4 1,260 $242.8

Oak Ridge - west 4 1,326 $239.2

+ 30 More Submarkets 106 28,214 $3,190.3

Total 166 46,492 $6,608.2

$91,800,000716 UnitsBuyer: Related Companies

Sale Date: 08/13/2018

Timberlake

HIGHEST PRICED PREV. 3 MONTHS

TRANSACTION ACTIVITY OCTOBER 2018

7

COVERAGE

Yardi® Matrix reports on multi-family properties of 50+ units in size.

This report for the Orlando metro area covers Counties: Brevard, Lake, Orange, Osceola and Seminole

Rental rate coverage is for Market Rate properties only. Fully Affordable properties are not included in our rental surveys and are not reported in rental rate averages.

GENERAL DEFINITIONS

Asset Class – refers to a generalized category of properties grouped by their Yardi® Matrix improvements rating

Lifestyle Asset Class – a grouping of all of the highest rated market rate properties A+, A, A- and B+

Renters-by-Necessity (RBN) Asset Class – a grouping of all of the lowest rated properties B, B-, C+, C, C- and D

Year-over-Year Change – percentage growth from last year, for several months or quarters in a time-series. This analysis will highlight an overall direction of movement for a metro.

An upward slope means an accelerating growth. A downward slope means a slowing growth. Above the line (zero) for increases, below the line for loss.

Rankings – this metro is ranked nationally among other Yardi Matrix reported metros based on a single measure. For details on any specific ranking, see section descriptions below

COMMONLY USED CALCULATIONS

DATA SOURCES

Rental Rates – are collected by Yardi® Matrix phone surveyors three times annually for 95%+ of property and unit configurations. Additionally, a representative sample of the market (between 10% and 20%) are surveyed monthly.

Occupancy Rates – are derived from U.S. Postal Service data and Yardi® Matrix phone surveys

Development Activity – information is tracked by Yardi® Matrix researchers. Construction projects are discovered through various publications and local government sources. Projects are tracked on a monthly basis. Completion dates and lease-up information are confirmed by phone calls to properties under construction.

Employment – data is sourced from the U.S. Bureau of Labor Statistics. Reported employment is generally two months behind the current date for this report.

Transaction Activity – information is tracked by Yardi® Matrix researchers. Sales are discovered through various publications and local government sources, and updates are made continuously.

Rent Growth Ranking – based on rent growth over the past year, current month.

Employment Growth Ranking – based on employment growth over the past year, latest employment month.

Completions Ranking – based on inventory growth over the past year, current month.

MARKET OVERVIEW

Calculations – total employment size (jobs) is expressed as a sum of employment in areas overlapping the reported market: Orlando-Kissimmee-Sanford, FL | Palm Bay-Melbourne-Titusville, FL

EMPLOYMENT AND EARNINGS

Industry Sectors – are defined by the NAICS Supersector designations. For more information visit: http://www.bls.gov/sae/saesuper.htm

Sector National Ranking – is based on the absolute size of the industry sector within this metro, when compared to the same industry in other metro areas nationally.

Earnings weekly vs hourly – differentiates hourly wage workers, from weekly salaried workers.

DEVELOPMENT ACTIVITY

Prospective Properties – announced construction projects, with no specific documents or government filings

Planned Properties – are in the planning stages of construction, with documents having been filed with the county or city

Under Construction Properties – have received permits for construction and broken ground.

Rankings – are based on the number of units currently under construction: Overall, Lifestyle and Renters-by-Necessity Asset Classifications

Projected Completions – Projected completions reported by Yardi® Matrix are limited to a year out and are based on properties currently under construction and their expected completion date.

Projected Completions as a % of Prior Inventory – This forward-looking metric uses projected unit completions to calculate a relative growth over the next year for a particular area. Submarkets with a total share of market inventory below 1% are assigned an N/A value, to avoid over-stating their significance in rankings and color-coded map displays.

Construction and Completion Counts – are reported based on property status as of the start of the month.

TRANSACTION ACTIVITY

Price – is expressed as Price/Unit as a standard measure. This is also used for national ranking

Velocity – is measured by the number of properties sold per year. This is also used for national ranking

Volume – measures the total amount of money spent in multi-family sale transactions in the prior year, expressed as millions of U.S. Dollars ($MM). This is also used for national ranking

METHODS AND DEFINITIONS OCTOBER 2018

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