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
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
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
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 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
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 JULY 2018
8
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