3. NATIONAL TRENDS
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Jobs
• As of year-end 2014, US recovered 88% of jobs lost in the
recession
The Renter
• Millenials
• Stagnant wages
• Pressure to repay over $1 trillion in student loans
The Investor
• Increased pension, endowment and life co. capital
• Family office/private wealth
• Increased asset sale prices and demand for new projects
Sources: Wall Street Journal, PWC Emerging Trends in Real Estate 2015, Marcus & Millichap National Apartment Report
• Expanding mature renter
• The “golf course retirement” model losing its luster
• Current rent-by-choice lifestyle offers more than in the past
5. REGIONAL JOB GROWTH
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FLORIDA
*
SOUTHEAST
US
Source: US Bureau of Labor Statistics
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
- 500 1,000 1,500 2,000 2,500 3,000 3,500
0.00%
1.00%
2.00%
3.00%
4.00%
5.00%
6.00%
- 500 1,000 1,500 2,000 2,500 3,000 3,500
YOYGrowth
YOYGrowth
Jobs (1,000s) Jobs (1,000s)
Orlando
Miami
Jacksonville
Tallahassee
Palm Bay
Naples
Tampa (5.3%
Unemployment)
Dallas Atlanta
Charlotte Raleigh
Austin
Houston
Memphis
Nashville
Columbia
Greenville
Tampa
*But, biggest recent job creation was in Leisure & Hospitality,
and Trade, Transportation & Utilities (includes Retail).
CONSUMER CONFIDENCE-DRIVEN GROWTH
6. THE SUPPLY SIDE OF RENTAL HOUSING
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Source: ARA Florida Multifamily Snapshot Q1 2015
SUPPLY HIGHLIGHTS
Total Inventory: 157,687 units
Peak Inventory: 159,296 units (2004)
Class A Occupancy: 95.4%
'14 Production: 5,000 units (approx.)
'15-'16 Production: 3,000-3,500 units (projected)
0
1000
2000
3000
4000
5000
6000
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
Annual Average ‘00-’14
Annual Average ‘00-’05
TAMPA APARTMENT DELIVERIES
7. THE SUPPLY SIDE OF RENTAL HOUSING
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WESTSHORE’S SUPPLY PIPELINE
4310 Spruce 262 units
Crescent
Westshore
374 units
Grady Square 557 units
Varela 350 units
3
2
6
1
4
5
4
2
1
6
7
3
Rocky Point
Redstone/Austin7
5
MetWest 254 units
8. THE DEMAND SIDE OF RENTAL HOUSING
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TAMPA HOUSING ALTERNATIVES: Buying @ $1,500/mo.
$200,000 FHA MORTGAGE @ 5.049%
Median Price per SF: $106
Median Size @ $200k: 1,887 SF
CASH REQUIRED AT CLOSING
Down Payment: $7,000
Origination Fee: $1,005
Transfer Taxes: $1,100
Insurance: $1,476
Deposits & Misc. Fees: $5,269
TOTAL: $15,850
MONTHLY HOUSING EXPENSES
Mortgage Pmt: $938
Taxes: $287
Insurance: $246
TOTAL: $1,471
Source: Zillow.com and Zillow Real Estate Research
9. THE DEMAND SIDE OF RENTAL HOUSING
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METRO AREA
TYPICAL
RENT/SF
UNIT SIZE @
$1,500/MO.
Westshore $1.60 938 SF
Downtown Tampa $1.95 769 SF
Channelside $2.10 714 SF
SoHo/Bayshore $2.20 682 SF
TYPICAL AMENITIES
- On-site Gym - On-site Spa
- Pool - Demonstration Kitchens
- Balconies/Terraces - Gaming Areas
- Clubhouses - Pet Spas, Dog Parks
TAMPA HOUSING ALTERNATIVES: Renting @ $1,500/mo.
10. TAMPA’S AFFORDABILITY CHALLENGE
Source: Zillow Real Estate Research
Atlanta
Dallas
Nashville
Jacksonville
Sacramento
Tampa = 32% of mo. income on
rentPhoenix
Chicago
Philadelphia
Boston
Seattle
Portland
11. WESTSHORE’S WALKABILITY CHALLENGE
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Westshore delivers on accessibility but should become more
pedestrian-friendly
12. ACTIVE PROJECTS AT FRAMEWORK
GROUPVARELA
• Lois Ave & Spruce St
• 350 Units
• 5-story w/ structured
parking
• Completion 2015
4310 SPRUCE
• 262 Units
• 5-story w/ structured
parking
• Completion 2016
HARBOUR
ISLAND
• Knights Run &
Harbour Post
• 235 Units
• 21-story high rise
• Completion 2016
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14. CONCLUSION
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• Investment in the multi-family sector is still robust;
• Rent growth is steady;
• Supply appears to be in check in terms of total
numbers, but mostly at the high-end;
• Regional job growth is steady, but mostly at the
low-end;
• Need more new high-quality jobs;
• Wages are still stagnant, creating future
affordability concerns;
• Need to maintain continued focus on Westshore’s
urban plan, transportation and walkability
solutions to maintain competitive edge for
attracting new businesses.