Build it, and they
will come.
A new wave of luxury
rental apartments is in the pipeline for downtown Fort Lauderdale as developers
hope to cash in on growing demand from young professionals and millennials.
Nearly 3,400 rental
units are either
planned or currently under construction in
the city, according to a newly released spring report from CapasGroup Realty
Advisors. Another 3,059 units are in the proposal stage.
The number of units
now in the pipeline has blown past what’s been delivered in Fort Lauderdale
over the past 12 years. According to the report, a total of 2,723 units has
opened since 2004 among 10 completed projects.
With new development
comes new trends: while current unit sizes average between 1,000 and 1,100
square feet, apartments are becoming smaller as construction costs rise.
Studios and one-bedroom units between 500 and 700 square feet are particularly
popular because of their lower rents, according to the report.
Rental rates, which
hover around $2.25 per square foot for existing luxury apartments, are also
expected to rise.
Besides rental demands
from demographics like millennials, the report cites interest from
institutional investors as another explanation of why there are so many new
apartments in the pipeline.
As previously
reported by The Real Deal, more than $2.8
billion worth of multifamily projects traded between developers and investors
last year, making it one of the region’s hottest asset classes. — Sean
Stewart-Muniz
Check out a map of
Fort Lauderdale rental projects in the pipeline below:
Original Content The
Real Deal
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