ORLANDOMULTIFAMILY

RENTAL TRENDSSUPPLY/DEMANDEMPLOYMENT ANALYTICS

JULY 2018

SUPPLY

RENTAL TRENDS

DEMAND

Employment Sector Current Share YOY Change

Leisure and Hospitality 19.9% 11,200 3.9%

Education and Health Services 12.9% 8,500 4.6%

Professional and Business Services 17.3% 7,600 3.0%

Mining, Logging and Construction 6.3% 6,100 6.9%

Manufacturing 4.9% 4,300 6.3%

Financial Activities 5.8% 3,700 4.5%

Other Services 3.6% 2,100 4.0%

Trade, Transportation, and Utilities 18.1% 2,100 0.8%

Government 9.5% 600 0.4%

Information 1.8% -300 -1.1%

National RankingOut of 98 Markets 1RentGrowth 8 EmploymentGrowth 18 Completions [+1]

Inventory by Property Status# of Properties

843Completed

205,378 Units

47Under Construction

12,345 Units

39Planned

12,070 Units

97Prospective

19,952 Units

ORLANDO MULTIFAMILY JULY 2018

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HIGHEST OVERALL PERFORMING SUBMARKETS LOWEST OVERALL PERFORMING SUBMARKETS

Submarket Rent Occupancy YOY Change

Conway $1,288 96.7% 13.9%

Pine Hills $870 99.1% 12.7%

Oak Ridge - west $1,380 94.4% 11.7%

Lake Catherine $1,049 93.9% 10.9%

Lake Richmond $1,202 96% 10.8%

Submarket Rent Occupancy YOY Change

Clermont $1,336 94.5% 2.0%

Lake Mary $1,391 95.5% 0.6%

Elder Springs $1,050 97.7% 0.4%

Holden Heights $1,065 - -0.1%

Downtown Orlando $1,657 93.7% -0.6%

HIGHEST PERFORMING SUBMARKET - CONWAY

SUBMARKETS YEAR-OVER-YEAR RENT GROWTH

Properties 6

Units 1,608

Average Rent/Unit $1,288

Effective YOY Chg 13.9%

RENTAL RATE CHANGE BY SUBMARKET JULY 2018

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

HIGHEST PERFORMING SUBMARKETS - LIFESTYLE HIGHEST PERFORMING SUBMARKETS - RBN

Submarket Rent Occupancy YOY Change

Conway $1,258 95.4% 15.3%

Florida Center North $1,466 98.2% 13.8%

Oak Ridge - west $1,519 93.2% 13.1%

Lake Catherine $1,443 94.1% 12.1%

Gotha/Orlovista $1,417 96% 12.0%

Submarket Rent Occupancy YOY Change

Pine Hills $855 99.1% 13.7%

Conway $1,324 98.2% 12.3%

Titusville $791 95.8% 12.0%

East Kissimmee $1,184 96.8% 11.7%

Kirkman $1,236 94% 11.5%

LOWEST PERFORMING SUBMARKETS - LIFESTYLE LOWEST PERFORMING SUBMARKETS - RBN

Submarket Rent Occupancy YOY Change

East Kissimmee $1,398 96.6% 3.9%

Weathersfield $1,337 94.5% 2.1%

Lake Mary $1,428 95.9% 1.6%

Clermont $1,374 94.2% 1.6%

Downtown Orlando $1,784 93.5% -0.8%

Submarket Rent Occupancy YOY Change

Lockhart $984 96.2% 2.0%

Elder Springs $859 98.1% 1.5%

Downtown Orlando $973 94.4% 0.3%

Lake Mary $1,271 94.6% -3.1%

Oviedo $1,594 98% -4.3%

CONWAY PINE HILLS

Lifestyle RBN Overall

Properties 3 3 6

Units 870 738 1,608

Avg Rent/Unit $1,258 $1,324 $1,288

Effective YOY Chg 15.3% 12.3% 13.9%

RBN Lifestyle Overall

Properties 6 1 7

Units 1,313 64 1,377

Avg Rent/Unit $855 $1,175 $870

Effective YOY Chg 13.7% 1.1% 12.7%

RENTAL RATE CHANGE BY SUBMARKET AND ASSET QUALITY JULY 2018

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OVERALL DEVELOPMENT ACTIVITY

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

Winter Park/Maitland 72.2% 1,741

West Kissimmee 39.5% 1,616

Longwood 28.9% 641

Florida Center 16.2% 344

Downtown Orlando 12.8% 725

Holden Heights 12.1% 200

Lake Buena Vista 10.5% 632

Colonial Town 8.7% 356

Pine Hills 8.4% 205

Goldenrod 7.8% 332

Hunter's Creek 6.6% 444

+ 13 More Submarkets 2,862

Market Overall 4.6%10,098 Units

National RankingOut of 98 Markets

12,345 Units

12Lifestyle [+2]

11,471 Units

30Renters-by-Necessity [+25]

874 Units

15Overall

SUPPLY JULY 2018

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

Pollack Shores 723 3

Brel Capital 703 2

ContraVest 660 2

Integra Land Company 660 2

Real Estate Inverlad 630 1

LeCesse Development 612 2

Related Group 399 1

Altman Companies 382 1

Crescent Communities 375 1

Cornerstone Group 356 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

Town Trelago 1070 Maitland Blvd Maitland, FL 32751

399 Related Group

Altis Shingle Creek 4350 Osceola Trail Road Kissimmee, FL 34746

382 Altman Companies

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

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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 221.2% 1,741

West Kissimmee 144.9% 1,316

Longwood 141.8% 641

Goldenrod 39.2% 332

Florida Center 23.7% 344

Downtown Orlando 17.2% 725

Lake Buena Vista 13.3% 632

Vista Park 10.7% 312

Colonial Town 10.0% 356

Hunter's Creek 9.6% 444

Oak Ridge - west 9.5% 403

+ 11 More Submarkets 2,264

Market Overall 9.3%9,510 Units

Submarket Growth # Units

Holden Heights 14.5% 200

West Kissimmee 9.4% 300

Fish Lake 4.2% 88

Market Overall 0.5%588 Units

SUPPLY JULY 2018

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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 298K 19.9% 14 11.2K 3.9% 53.5K 21.9%

Trade, Transportation, and Utilities 271K 18.1% 29 2.1K 0.8% 33.9K 14.3%

Professional and Business Services 259K 17.3% 25 7.6K 3.0% 55.9K 27.5%

Education and Health Services 194K 12.9% 34 8.5K 4.6% 30.6K 18.8%

Government 143K 9.5% 43 0.6K 0.4% 7.4K 5.5%

Mining, Logging and Construction 94K 6.3% 23 6.1K 6.9% 34.0K 56.4%

Financial Activities 86K 5.8% 30 3.7K 4.5% 8.9K 11.5%

Manufacturing 73K 4.9% 47 4.3K 6.3% 14.4K 24.7%

Other Services 55K 3.6% 27 2.1K 4.0% 10.8K 24.7%

Information 27K 1.8% 30 -0.3K -1.1% 0.8K 3.1%

Total Non-Farm 1499K 100.0% 26 45.9K 3.2% 250.2K 20.0%

EMPLOYMENT AND EARNINGS JULY 2018

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Prior 12 Months

35Sale Price

$143,187Average Price/Unit

9Sale Velocity [-2]

83Properties Sold

10Sale Volume

$3,105MMTotal 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 40 43

Total $MM $2,232 $874

Avg $/Unit $177,866 $95,586

Company # Units $MM

Starwood Capital Group 14 3,817 $363.1

Bluerock Real Estate 6 2,198 $409.1

TruAmerica Multifamily 3 1,030 $150.2

Robbins Property Associates 3 932 $144.3

Abacus Capital Group 3 594 $57.5

Amzak Capital Management 3 570 $36.9

Electra America 2 954 $141.1

Harbor Group International 2 763 $161.5

Company # Units $MM

Banyan Realty Management 14 3,817 $363.1

Carroll Organization 3 1,342 $231.2

CFH Group 3 594 $57.5

Lohman, Ty G. 3 570 $36.9

Cross Florida Group 3 428 $27.3

Starwood Capital Group 2 954 $124.6

Royal American Development 2 496 $31.5

Inland Real Estate Group 2 397 $109.5

Submarket # Units $MM

Lake Bryan 5 1,274 $253.5

East Kissimmee 4 1,038 $178.2

Stoneybrook 4 1,152 $165.7

University Park 3 653 $160.5

Hunter's Creek 2 772 $147.7

Clermont 3 840 $140.1

Colonial Town 2 661 $138.0

Hancock Lake 2 768 $137.3

Altamonte Springs 2 698 $125.0

Vista Park 2 630 $121.4

+ 29 More Submarkets 53 13,202 $1,525.2

Total 82 21,688 $3,092.5

$81,721,250221 Units

Buyer:Preferred Apartment Communities

Sale Date: 06/05/2018

Retreat at Orlando, The

HIGHEST PRICED PREV. 3 MONTHS

TRANSACTION ACTIVITY JULY 2018

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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 JULY 2018

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