The Real Deal Miami

Broward apartments still weak

September 09, 2009 10:57AM

The Broward County apartment sector will stay weak for the rest of the year, according to Marcus & Millichap, one of the nation’s largest real estate investment services firms. A recent report said a drop in renter demand has contributed to a 110 basis point rise in the vacancy rate while pushing down asking and effective rents 1.8 percent and 2.1 percent, respectively. Asking rents are projected to fall 4.3 percent in 2009 to $1,067 per month. Effective rents are forecast to end the year at $993 per month, a 5.4 percent drop. In 2008, asking rents inched up 0.3 percent, and effective rents slipped 0.6 percent. Sales of apartment buildings have picked up, though, said Gregory Matus, regional manager of the brokerage’s Fort Lauderdale office. In most of these re-sales, properties were sold at discounts ranging from 5 percent to more than 60 percent off the original purchase price, he said. TRD