Fort Myers, FL Multifamily Market Report

Market Overview

Fort Myers serves as the central economic hub of southwest Florida; its economic landscape is linked to the expansion of sectors such as agriculture, manufacturing, information technology, and life sciences. Tourism significantly influences the region, accounting for one in every six jobs, particularly within the tourism and hospitality sectors. During the last ten years, Fort Myers has witnessed remarkable population growth, welcoming approximately 160,000 new residents. This growth has unfolded alongside the recent developments in the Fort Myers multifamily market, where rising vacancy rates and flattened asking rents have become prominent trends.

Highlights

• Central Lee County and Cape Coral remain highly sought-after areas within Fort Myers.
• The current vacancy rate of 9.7% is the highest level seen in Fort Myers since mid-2021.
• The average sale price is $19.6M, and the average price per unit is $250K.
• The current construction pipeline of 7,240 units makes up around 24.1% of total inventory.

Rents | Vacancy | Construction

The vacancy rate in Fort Myers for Q3 2023 is 9.7%, increasing from a low of 6.0% in mid2022. Over the past 12 months, there have been over 1,280 units delivered, while only around 425 units were absorbed. The market is poised to see a record number of units in the coming years, with 7,240 units in the current construction pipeline. Rents have declined 0.8% in the last 12 months, currently standing at $1,870. Asking rents in Class A properties have seen a decline of 2.1% YOY, whereas asking rents for Class B properties have seen an increase of 2.1% YOY.

Approximately 40% of the new units under construction are concentrated in Cape Coral, a densely populated submarket.

Sales

There has been a preference for smaller to mid-size transactions in the market, with most multifamily transactions this year involving properties under $5 million in value.

Private buyers have been highly active in the Fort Myers multifamily market, representing over 55% of the buyer pool. In fact, the largest sale in the market this year was
to a private buyer that acquired the 260-unit Waterline Estero in June 2023 for $79 million, equivalent to $303,000 per unit, which exceeded the market’s average sale price of $250,000 per unit. In the past 12 months, there was a sales volume of approximately $255 million.

Fort Myers by the Numbers Last 12 Months

• Vacancy Rate: 9.7%
• Asking Rent Growth: -0.8%
• Average Price Per Unit:$250K
• Sales Volume: $255M
• Units Under Construction: 7,240
• Delivered Units: 1,281