A Record $2.4 Billion in South Florida Multifamily Sales was Recorded in the First Nine Months of 2016

Cushman & Wakefieldannounced today that it has released its3Q 2016 South Florida Multifamily Market Update.

The in-depth report, authored by Executive Managing Director  Calum Weaver of Cushman & Wakefield’sSouth Florida Institutional Multifamily Team, details the state of the multifamily market in the three counties comprising South Florida — Miami-Dade, Broward and Palm Beach.

The report finds an incredibly active multifamily sales market in South Florida with heightened investor activity driven by strong market fundamentals. Important highlights of the report can be found below:

• There have been 202 recorded transactions in South Florida valued at more than $2.4 billion through the first nine months of 2016. The annual record of $3.3 billion in sales was established in 2015.
• Demand for multifamily housing in South Florida continues to increase due to population growth and rising single-family home costs.
• The supply of multifamily housing in South Florida has found a healthy equilibrium, with new supply slightly lagging consistent population growth.
• Overall rent growth is slowing but continues, driven by exceptional Class AAA gains. Weaver believes there is room for further growth at Class B and C properties through value-add strategies aimed at repositioning assets for underserved Class A tenants.
• Occupancies are at record levels in most submarkets with absorption outpacing construction, indicating a need for additional product.
• Weaver expects cap rates to remain steady for the next year with any potential interest rate hikes offset by the availability of significant credit spreads. Debt options available to investors remain plentiful.

“Multifamily in South Florida has enjoyed a five-year run of improving performance and pricing,” said Weaver. “The market is more expensive but still provides strong returns and a sound investment strategy.”

“While the rate of growth shows signs of slowing, growth itself remains — and is projected to remain — strongly positive, where investors are able to project strong and secure long-term returns, albeit at a higher cost basis than in previous years,” added Weaver.

About the South Florida Institutional Multifamily Team

Cushman & Wakefield Multifamily in South Florida focuses exclusively on meeting the needs of institutional and private owners of multifamily properties and land development throughout South Florida including Miami, Fort Lauderdale, Palm Beach, Naples, Fort Meyers, Treasure Coast and the Keys. Our team is comprised of seasoned professionals with over 100 years of combined Real Estate and Investment Sales experience with over $20 billion in multifamily transactions. We are consistently ranked as the No. 1 Multifamily Team in South Florida. Our proven marketing process involves a highly structured, controlled and competitive offering, specifically tailored to the needs of multifamily owners and the local market. We have consistently produced maximum pricing by attracting and engaging the most aggressive investors for our property listings.

About Cushman & Wakefield

Cushman & Wakefield is a leading global real estate services firm that helps clients transform the way people work, shop, and live. Our 43,000 employees in more than 60 countries help investors and occupiers optimize the value of their real estate by combining our global perspective and deep local knowledge with an impressive platform of real estate solutions. Cushman & Wakefield is among the largest commercial real estate services firms with revenue of $5 billion across core services of agency leasing, asset services, capital markets, facility services (C&W Services), global occupier services, investment & asset management (DTZ Investors), project & development services, tenant representation, and valuation & advisory. To learn more, visit www.cushmanwakefield.comor follow@CushWakeon Twitter.