Learn what the pandemic means for Central Florida’s tourism-dependent market
The COVID-19 outbreak has wreaked unprecedented havoc for people and businesses all around the world—and the Central Florida region is no exception.
With a local economy that’s so heavily dependent on tourism, what does the pandemic mean for the Orlando area’s multifamily market?
Join us as we explore the latest multifamily data from CoStar, a world leader in commercial real estate information, to find out.
How is COVID-19 affecting Orlando and Central Florida?
Nearly one-third of all jobs in Orlando are in the retail trade or leisure and hospitality sectors, according to recent data from CoStar. In particular, the theme parks and their surrounding hospitality and retail vendors are key drivers in the local economy.
The forced closure of “non-essential” businesses means that many companies are having to cut jobs or furlough workers. This includes Disney, the largest employer in Florida, who recently took the step to furlough 43,000 workers.
How is COVID-19 affecting rents in Orlando and Central Florida?
With the wide-scale loss of wages, many renters will almost certainly struggle to meet rent commitments in the short term.
Since the coronavirus outbreak was declared a pandemic by the World Health Organization on March 11, the daily asking rent in Orlando has fallen by 1.9% through April 8. That’s more than three times the 0.6% drop in daily asking rates seen across the nation. Annual growth has now fallen flat.
CoStar projects that Orlando rents will continue to fall throughout the duration of the crisis, and perhaps for some time after it as well. The pandemic is also expected to negatively impact commercial real estate transaction volume across the region.
Despite this, the first quarter of 2020 is still one of the highest volume quarters in Orlando’s history, thanks to large multifamily sales—including the fully occupied, 456-unit Indigo West near MetroWest which sold for $90.5 million, or roughly $198,464 per unit.
You can learn more in the in-depth video and analysis from CoStar here.
Over the past few weeks, the team here at 100Units.com has been talking to a lot of owners across Central Florida.
“For April, what we’re seeing is collections for professional tenants in the 85–90% range,” explains multifamily investment advisor Joe LaFleur. “For Class C properties, however, we’re seeing collections in the 50% range. With one third of local jobs related to retail, restaurants, leisure and travel, I think Orlando’s unfortunately outpacing the national average in regard to job losses.”
How we can help multifamily owners
Do you own a multifamily property in Central Florida with vacant units? In today’s climate, it’s essential to rent them out as soon as possible. However, physical showings are not practical right now.
We are here to help! Right now, we’re offering our state-of-the-art 3D virtual tour service for FREE to anyone who has multifamily units they’re trying to let.
Contact us to learn more at Nikky@100Units.com.