Now that Tampa teams have won, or been in most major sports championships in the last year, everyone has taken notice of just how incredibly interesting the city of Tampa really is.
So, what are the latest Tampa multifamily real estate trends? Well, the answer depends on what class of assets you are talking about. In this discussion, I will break it down into asset classes –“A” class assets and “B/C” class assets.
The Latest Trends In “A” Class Tampa Multifamily Assets
If you are looking for top notch, well amenitized multifamily real estate with gorgeous views of the Tampa Bay or even the Gulf of Mexico, then a Tampa real estate investment is for you. Developers in the Tampa region are sparing no expense to ensure residents have resort quality amenities and those decisions are paying off in a big way.
However if you are not a developer, but instead looking to invest in leased up, stabilized Tampa multifamily deals, then you are no doubt expecting the demand and supply equation to continue to be in your favor for quite some time, and I would not disagree with you. These extremely well amenitized “A” class assets make their residents feel just like they are living at a resort with every amenity you could think of, including dog walking services, package delivery services, and a full concierge desk.
If you are considering a Tampa multifamily real estate investment in this asset class, then you should be prepared for a long-term hold with annual cash flow increases and a successful long-term investment. The key here is long term. The investment will likely do very well over the longer term as long as you are a patient investor.
The Latest Trends In “B/C” Class Tampa Multifamily Assets
Alternatively, if you are a value-add sort of multifamily real estate investor with the expectation of excellent returns over a shorter time frame than Class “A” deals, then Tampa still has exactly what you are looking for.
The basic theme with a Tampa multifamily value-add investment is simple – provide the residents with a solid amenity package, good service and nicely appointed apartments and you will likely enjoy many years of significantly increasing cash flows and fairly low vacancy.
Multifamily real estate investors in this space don’t need to try to compete with the Class “A” assets, but instead “draft” off of them. The amenity package doesn’t need to be as nice as the Class “A” assets nor do the units, but the closer you can get to providing a way for residents to really enjoy being at home, you will be rewarded with outstanding pricing power and as a result, excellent returns on your investment.
Consider the famous line – “Build it and they will come.” Believe me, they will come. We see it every single day with our own investments and our client’s investments.
There are a lot of great locations where the multifamily real estate markets are thriving, and I strongly encourage every investor to try to get some level of exposure to Tampa multifamily real estate in their portfolio. Please reach out to me below if you are interested or have any further questions.