Of South Florida’s three counties, the Miami apartments for sale are expected to do better with vacancies in 2010 than the counties to the north.
According to Marcus & Millichap, the nation’s largest real estate investment services firm, Miami-Dade’s 6.8 % vacancy rate placed it nearly at the middle of 44 apartment sectors ranked by their projected vacancy. Using variables, such as projected vacancies and employment, the company ranked apartment sectors nationwide, to determine where each city fit in the big picture.
Miami real estate properties vacancy rate ranked it 25th.
Peter Zalewski, of Condo Vultures Realty, says that the number of Miami apartments for sale downtown that are still in the hands of developers has shrunk since 2008 to more than 7,000 from about 10,000.
Many buyers have introduced their new purchases into the Miami real estate rental market and developers who can’t sell their condos also are adding their inventory to the rental market. Thus increasing the vacancies and lowering the rent.
Jack McCabe, of McCabe Research & Consulting, said because there is so much new product out there at a discount the downward pressure on rents is hurting older apartment buildings.
In Broward on the other hand the County was expected to register a 9.3% vacancy rate making it one of the highest in the country. Broward’s projected vacancy rate in 2010 actually pushed its ranking down five spots, to 39th from 44th last year.
The Broward market is expected to stabilize in the coming year.
Palm Beach County was at No. 41, recorded the worst ranking in South Florida because it was expected to have a vacancy rate of 9.6% by the end of this year.
Among all Florida cities, Jacksonville fared the worst with an expected vacancy rate of 14.5%.
Miami-Dade and Broward counties are predicted to have a job decline of less than half a percent. In 2010, Miami-Dade is expected to see 3,000 jobs cut, an improvement from the 27,000 workers that were let go last year. Broward is projected to have 2,200 slots eliminated, compared with the 19,000 that exited last year. Palm Beach County is expected to have the least losses of all, with 2,000 jobs lost in 2010, compared with 15,000 shed last year.
Contributed by MLR Realty
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