Vacancy Rising In Tampa And So Are Rents

Residential occupancy in Tampa, St. Petersburg and Clearwater fell nearly 3 percent in the third quarter to 92.5 percent, while average rents rose 2 percent to $868 in the most recent report from RealFacts. Vacancy also was on the rise in Sarasota and Bradenton, going from 2.7 percent to 10.6 percent overall. Rents dropped in that market by 1.4 percent, however, averaging at $923.

Asking rents in the northern part of the Tampa Bay region have steadily rose since the third quarter of 2005 with the biggest year-over-year increase coming in studio apartments, which jumped 6.1 percent from $575 in 2006 to $610 this past quarter. Junior one-bedroom units dropped 3.1 percent, however, from $658 in 2006 to $638 last quarter.

Average rent per square foot has risen 11 cents since 2004 to 96 cents per square foot. Class A is averaging above $1 per square foot for the first time, but is separated from Class C units by just 8 cents.

Rent in Brandon and Palm Harbor has stayed steady at $910 and $928 respectively, while occupancy has dropped between 1.8 and 2.9 percent. Rents have risen in Tampa and Clearwater between 2.5 and 2.8 percent despite occupancy dropping nearly 4 percent.

The most expensive state to rent an apartment remains California, among the metropolitan statistical areas covered by RealFacts, where rents range from $961 in Sacramento to $1,630 in Los Angeles and Long Beach.

Sales of multifamily communities in Tampa, St. Petersburg and Clearwater are down so far this year with just 15 complexes changing hands for a total of $346.9 million. By this time last year, 31 complexes had sold at $763.4 million while in 2005, 43 complexes welcomed new owners to the tune of $1.2 billion. The average sales price of $23.1 million is the lowest since 2004, while the $85.82 per square foot is well below the $98.28 and $92.69 charged in 2006 and 2005 respectively.

Price per unit, however, is holding steady with 2005 numbers at $84,722.