What Florida multifamily owners said about May rent, values, forbearance, recovery time, and more

A survey of 150 central/north Florida multifamily owners from all over the world complete Beau Beery's May COVID market survey. In this video Beau goes over the results of the survey. Below are some highlights.

YouTube Video May Survey Results

1.     Distribution of respondents was 78% conventional apartments, 10% student and 12% affordable.

2.     In May, nearly 52% of investors collected the same amount of rent or better then pre-COVID months. In April, it was only 30% of investors.

3.     Those investors who were down more than 10% in rent collections went from 32% of investors in April to only 9% in May and those who were down more than 20% in rent collections went from 11% in April to only 2% in May.

4.     The number of investors who are willing and able buyers went from 79% in April to 87% in May.

5.     The number of investors who may need to sell in the next 1-6 months stayed about the same, which was 13.5% in April down to 11.5% in May. The number of investors who won’t need to sell at all increased slightly from 78% in April to 81% in May.

6.     Investors in May are less optimistic that values will return to pre-COVID levels between now and the first half of 2022 and even less optimistic it will happen before the first half of 2021.

7.     Investors are exceedingly more optimistic about the following month of rent; 70% of investors believe June rent collections will be the same or better then May vs in April only 33% of investors felt like May would be the same or better than April.

8.     57% of investors applied for the PPP loan and nearly 9.5% of investors applied for mortgage forbearance.

9.     Only 11% of investors would pay the same price today as pre-COVID. The largest group of investors, about 1/3, said they expect a 6-10% discount on pricing however another 37% of investors would be seeking some level of discount above 10% (see "Survey Retults" tab for detail).

10. Investors said the vast majority of their non-rent payers (or reduced rent payers) were in hotel, restaurant, retail, hair stylists, airline, dental, child care, and casino.

11. Roughly 57% of investors said universities will have some live classes and the rest online and 30% said classes will be in full session with live and/or recorded options

12. The largest percent of investors (25%) felt like 86-90% of students will be back in class in the fall if universities are fully open. However, 42% of investors said some amount less than 85% of students will be back on campus.

13. The biggest group of student housing investors (39%) said they were down between 11-20% in pre-leasing this year vs last year but another 32% are down 21% or more.

To access the May market survey results click on "may covid-19 market survey" in the Survey Results Link.

Beau Beery is a multifamily real estate broker/adviser with a passion for sharing any wisdom along the way that could help each of you as current or future investors in apartment assets. Beau is consistently a Platinum Distinction producer for Coldwell Banker Commercial (CBC), which is among the Top 20 producers in the world out of thousands of agents and hundreds of offices. He was the #1 multifamily producer in the State of Florida for CBC in 2016, 2017, 2018, and 2019 and was the #1 producer and #3 producer in the nation for 2018 and 2019 respectively.

If you're seeking the most accurate, up to date, and transparent information on the central and northern Florida multifamily markets we cover, for free, visit https://www.beaubeery.com/.