Tampa Poised for Higher Apartment Sales Numbers, Study Says

ORLANDO-Investors like the Tampa Bay apartment market so much they may be willing to pay a premium for some assets despite vacancies that have hit the 20% level at some class A properties, according to a new area study by Encino, CA-based Marcus & Millichap Real estate Investment Brokerage Co.

Vacancies are expected to be at the 7.5% mark by year end, an improvement over the 8% level in late 2001, the report states. Property prices could rise by 3.5% over the next 12 months. Last year’s median price per unit hit $40,000.

“Prices have been off slightly through the first half of 2002 and velocity has been relatively sluggish, but the second half of the year is poised for increased activity as investors become more comfortable with the current economic climate and debt remains affordable,” Steven M. Ekovich, M&M’s first vice president/regional manager overseeing the Tampa and Orlando markets, says in the report.