Rental rates forecast to rise in 2012

Rental rates forecast to rise in 2012

SARASOTA, Fla. – June 1, 2012 – Throughout Florida, such factors as an improving job market, a lack of new apartments construction, and declining vacancy rates has Marcus & Millichap forecasting apartment rent hikes in most of the state’s major markets this year.

Bryn Merrey, vice president and regional manager in the firm’s Tampa office, remarks, “We’ve started hearing very frequently that people were able to raise their rents for the first time in a long time.”

However, there may be a bit of a lag in some areas, because such smaller markets as Bradenton and Sarasota have traditionally been slower to attract investment and have had somewhat higher vacancy rates than such cities as Miami.

Apartment rents have remained in check in and around Sarasota largely because of the number of foreclosed and bank-owned houses that are vying with the local stock of rental apartments.

Jayci Grana, rental division director at Michael Saunders & Co., notes that monthly rents began recovering this year and will likely go up between 3 percent and 5 percent in 2012 following a large decline that began in 2007. She adds that new apartment communities are finally being considered in many of Florida’s major markets and are poised to become a popular investment.

Source: 
Sarasota Herald-Tribune (FL) (05/28/12) Sword, Doug

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