Downtown Fort Lauderdale’s rental evolution: report

Nearly 3,400 units are either planned or currently under construction in the city

May.May 23, 2016 03:00 PM

Build it, and they will come.

A new wave of luxury rental apartments is in the pipeline for downtown Fort Lauderdale as developers hope to cash in on growing demand from young professionals and millennials.

Nearly 3,400 rental units are either planned or currently under construction in the city, according to a newly released spring report from CapasGroup Realty Advisors. Another 3,059 units are in the proposal stage.

The number of units now in the pipeline has blown past what’s been delivered in Fort Lauderdale over the past 12 years. According to the report, a total of 2,723 units has opened since 2004 among 10 completed projects.

With new development comes new trends: while current unit sizes average between 1,000 and 1,100 square feet, apartments are becoming smaller as construction costs rise. Studios and one-bedroom units between 500 and 700 square feet are particularly popular because of their lower rents, according to the report.

Rental rates, which hover around $2.25 per square foot for existing luxury apartments, are also expected to rise.

Besides rental demands from demographics like millennials, the report cites interest from institutional investors as another explanation of why there are so many new apartments in the pipeline.

As previously reported by The Real Deal, more than $2.8 billion worth of multifamily projects traded between developers and investors last year, making it one of the region’s hottest asset classes. — Sean Stewart-Muniz

Check out a map of Fort Lauderdale rental projects in the pipeline below:


Related Articles

Arthur Porosoff, Stefano Garofoli, Costantino Cicchelli and Frank Rodriguez Melo with the Omni property

Investment group buys multifamily buildings in Little Havana, Omni

Atria Willow Wood

SoFla senior housing developers brace for coronavirus impact

Mayor Dean Trantalis (Credit: Larry Marano/Getty Images)

Restaurants, bars and gyms to shut down immediately in Fort Lauderdale

Gov’t Meetings Canceled or Moved Online Due To Coronavirus (Credit: iStock)

Miami, Miami Beach and Fort Lauderdale cancel city meetings

Coronavirus closures hit South Florida restaurants and stores

Coronavirus closures hit South Florida restaurants and stores

Howard Wurzak’s development firm is suing over delays and defects at the double branded Dalmar and Element hotel

Fort Lauderdale hotel developer sues Tutor Perini, seeking nearly $12M for alleged delays, defects

Joseph P. Thomas, Adam Duncan and Tyler Carbonelli with the Fort Lauderdale properties

California investors buy multifamily portfolio in Fort Lauderdale

Scott Antoniak, Chief Executive Officer of Slate Office REIT, 5900 North Andrews Avenue (Credit: Google Maps)

Toronto REIT to buy Cypress Creek office building for $46M