October 2017 E-Newsletter
What's New in the FAA
The 2017-2018 Executive Committee slate of officers was presented at FAA's annual meeting on October 11, 2017, and was approved by the board of directors. The officers were sworn in by NAA's chief executive officer, Robert Pinnegar, CAE, at the Closing Celebration Dinner of the 2017 FAA Annual Conference & Trade Show on October 13. Their terms began on that date.
The officers are:
Lori Trainer, Pinnacle, President
Bonnie Smetzer, JMG Realty Inc., Vice President
Katie Wrenn, Finlay Management, Treasurer
Kimberly Maggard, Royal American Management, Secretary
Shawn Wingate, Richman Property Services, Immediate Past President
Diana Gaus, The Liberty Group, Associates' Vice President
Chip Tatum, Apartment Association of Greater Orlando, Association Executives Council Chairman
By Dan Tracy
Florida’s multifamily rental market has outpaced much of the nation in occupancy and new construction during recent years, but some tough times may be in the offing.
"It’s not going to be the fairy tale of build it and they will come," Theron Patrick, data analyst at ALN Apartment Data, said during a panel discussion earlier this month at the Florida Apartment Association Annual Conference & Trade Show at Disney’s Contemporary Resort.
The potential problem, as Patrick sees it, is that new apartment construction is continuing apace at a time when the absorption rate — people renting new places — is starting to slow. He also expects new home sales to rise, in part because of continued low interest rates and purchases by the millennial generation as they mature.
"It’s a zero sum game. If somebody buys, they don’t rent," Patrick said.
Also speaking were Brian Alford, market economist at CoStar Group, and Cameron McIntosh, real estate research analyst of Real Page.
Statistics gathered and discussed by the trio indicate the Florida rental market has been strong in recent years because of the state’s steady job growth, which has been accompanied by some wage increases, too.
The result has been lots of new apartment communities.
Orlando, for example, has added about 25,000 new units during the past five years, while Tampa and Miami each have brought on roughly 20,000. Orlando and Tampa have filled almost all of those places, while Miami has fallen about 5,000 units short.
Statewide,there are nearly 1.4 million multifamily units. For their analysis, the panelists focused on the 750,000 units owned or managed by large management companies. About 92 percent of them are rented. The average rent for a two-bedroom, two-bath apartment is more than $1,200. That’s up nearly 5 percent from 2016, but the prior year’s rise was 8 percent.
Patrick predicted coming months could see an even slower rise in rents, along with an increase in concessions, such as a week’s free rent or gratis upgrades in the apartment amenities.
But McIntosh was a bit more bullish, saying a slowdown might not occur until 2019 because some of the new construction will not be ready until then. Orlando, in particular, he said, should not experience much of a slowdown in rent appreciation.
"Demand is robust enough in most of these markets," said McIntosh, referring to Orlando, Tampa, Miami, West Palm Beach and Fort Lauderdale.
Much of the new construction, the analysts said, is in the Class A, or luxury level, of apartments. Alford said that sector, which charges the highest rents, may have the softest demand going forward, particularly during the latter parts of 2018, when some high-end communities open their doors to renters in various parts of the state.
Right now, leasing agents need up to 30 days to rent a unit, statistics show.
Josh Gold, executive vice president of the FAA, said the industry has been in a strong growth mode for several years, but likely will experience a slowdown, much like the stock market or any other business periodically faces.
"Obviously, you can’t keep the momentum forever," he said.
Editor's note: More information from the conference session Numbers Talk, but What Are They Saying, will appear in a future issue of Multifamily Florida magazine.
Management members of the Florida Apartment Association are eligible for a discounted registration fee of $700 to the 2018 NAA Apartmentalize, formerly the NAA Education Conference & Exposition.
Learn more about the event here.
Download the registration form here.
FAA management members who are interested in becoming FAA leaders can ask their local affiliate executive to nominate them for the 2018 FAA Leadership Lyceum program. All supplier slots have been filled.
The FAA Leadership Lyceum works to identify and develop a well-informed and highly motivated group of emerging multifamily housing leaders: people with a broad-based vision and strong commitment to the mission and strategic objectives of the Florida Apartment Association and its local associations.
Lyceum candidates are required to complete three classroom modules that are each five hours. They must attend one FAA Board of Directors meeting, one FAA Legislative Committee meeting, the FAA Legislative Conference, and the FAA Annual Education Conference. If you're interested in more information or want to enroll, please contact your local association.
Legislation impacting the multifamily industry is filed each year and it is vitally important that you make sure the apartment industry is represented at this annual grassroots event. The legislative conference is two days packed with essential information and visits to your legislators' offices. These visits are extremely important as they help establish a rapport with elected officials and promote the legislative priorities of Florida's multifamily industry.
Read more or register now.
Tell FAA what your think about Multifamily Florida and other FAA communications by taking a brief survey. Respondents who provide contact information will be entered into a drawing for a $100 Visa gift card.
If you missed the summer issue of Multifamily Florida, you can read a report on the 2017 Florida Legislative Session and other select articles online now. You may also view the entire digital version here.
If you did not receive a print magazine and would like to in the future, please view your profile on our website and update your mailing address if needed. Read more about how to create a log-in and update your profile.
FAA's website has a brand new look and updated technology in an effort to better serve all of our members.
In order to get the most out of your member experience, you will need to create a new login. With your login, you will be able to:
Register for events and classes.
Update your profile information to include a photo, bio, and other marketing details.
Track event attendance.
View and pay company invoices (for company management users).
In order to create your new login, please complete the steps below.
If your company is already a member of a local affiliate:
Click "Join" in the top right corner of the home page.
Choose "Create An Account."
Agree to the terms and conditions.
Enter your email and select a password.
Note: You also have the option to log in via your Facebook or Google Account. This does not allow us to log in to your social networks!
If your company is ready to join a local affiliate:
We are excited to have you as a new member! If you are an employee of an apartment community, management company, or supplier company that is NOT currently a member, we invite you to join one of our 11 local affiliates across the state of Florida. Joining a local affiliate automatically includes membership in FAA and in the National Apartment Association (NAA). To get started:
Click "Join" in the top right corner.
Choose "Become a Member."
On the map, click on your local affiliate to join.
We hope you enjoy all that our new website has to offer! If you have questions or concerns, please call 407-960-2910 or email email@example.com.
What's New Nationally
Next year’s FAA Annual Conference and Trade Show will be here before you know it! To that end, we’re providing you with the information you need to make your exhibiting/sponsorship decision earlier than ever before.
- May 9, 2018, 1-4:30 p.m., Hard Rock Daytona Beach
- October 3, 2018, 9-10 a.m., Boca Raton Resort & Club
A more robust and comprehensive supplier directory has replaced the old PSC Buyer's Guide, which in many cases only included one company under a specific category. In the new digital directory, every supplier member will be offered a basic listing with contact information and will have the opportunity to purchase an enhanced listing for $250. The enhanced listing will include premium placement, a company description, contact information, a link to your website, and social media feeds.
The supplier directory is just one of the many new features on the recently launched FAA website. To get the most out of the website, you will need to create an account (see related article in this issue).
Check out the new FAA Supplier Directory, a valuable resource for apartment communities and management companies seeking products and services.
To stand out with an enhanced business listing in FAA's supplier directory, purchase yours today.