Pinellas County Multifamily Market Report

Pinellas County By the Numbers

Located on the west coast of Florida, Pinellas County attracts both residents and visitors to its various beaches and cultural opportunities. The current population is around 961,400 residents, which makes it the seventh largest county in Florida. The submarkets included in the following report are Central Pinellas, Northwest Tampa, South Pinellas, North Pinellas, and Downtown St. Petersburg.

Highlights

• 33,000 Units: Central Pinellas has over 33,000 units, making it one of Tampa’s top multifamily submarkets.

• Positive Renter Demand: Fundamentals have weakened in South Pinellas, but a forecast for positive renter demand will aid the metro.

• Redevelop the Metro: The redevelopment project for Tropicana Field will add offices, retail space, and apartment units to the metro.

• Lowest Vacancy Rate: Northwest Tampa boasts the lowest vacancy rate out of all the submarkets in Pinellas County.

• Positive Absorption Rates: North Pinellas notched positive absorption rates for seven straight quarters.

Central Pinellas By the Numbers

Vacancy Rate: 8.0%

Asking Rent Growth: -0.7%

Delivered Units: 588

Sales Volume: $54.3M

Central Pinellas

The vacancy rate here is at a near decade-high of 8.0%, likely due to a slowdown in renter demand. Central Pinellas has only seen the absorption of 330 units throughout the past 12 months. Yet, around 210 units were absorbed during the first half of this year, which aided in bringing vacancy down. Rental rates here have softened due to the decrease in demand. The current monthly average asking rent of $1,770 places Central Pinellas in the middle of other markets in the county.

In just the second quarter, 588 units were delivered here, and the metro will continue seeing more deliveries as the year ends. Three more properties will be delivered this year, adding 766 more units to Central Pinellas. Sales volume in Central Pinellas totaled $54.3 million over the past 12-month period. The majority of sales occurred in the first quarter, which added up to $35 million.

Northwest Tampa By the Numbers

Vacancy Rate: 5.5%

Asking Rent Growth: -2.3%

Delivered Units: 0

Sales Volume: $202M

Northwest Tampa

Northwest Tampa attracts residents in search of a smaller community as it houses 17,300 units. The metro has noted a slight vacancy decrease from the third quarter of 2023, dropping to 5.5%. Rent here has been on the decline since 2022, and the largest rent decreases have been noted in higher-tier properties. This tier has noted a decline of -2.6% on a year-over-year basis.

The metro has not noted any deliveries during the past 12 months. However, a mid-tier property is under construction in the Forest Hills submarket that will deliver 17 units upon completion next year. The only sale so far this year has also been a mid-tier property. St. James Crossing sold for $49.3 million, at a sale price of $186,723 per unit.

South Pinellas By the Numbers

Vacancy Rate: 9.4%

Asking Rent Growth: -0.4%

Delivered Units: 330

Sales Volume: $271M

South Pinellas

Notching the highest vacancy rate out of the other markets in Pinellas County, this submarket has noted a decrease in fundamentals. Specifically, vacancy here is so high because of more residents leaving the market. The submarket has also noted negative absorption trends, and the addition of new supply here has not aided in bringing vacancy down. Apartments in the Class B sector are notching the highest vacancy rate at 12.5%. However, South Pinellas has one of the lowest average asking rents at $1,650, which may attract residents here.

Looking forward, renter demand is expected to return to the norm by year-end. This positive forecast will aid vacancy, as there are 920 units that remain under construction here. Sales volume has mostly been focused on properties in the middle-tier. The recent sale of the Drake at St. Pete, a Class B property, sold for $61.6 million.

North Pinellas By the Numbers

Vacancy Rate: 5.9%

Asking Rent Growth: -0.5%

Delivered Units: 6

Sales Volume: $161M

North Pinellas

Like Northwest Tampa, this submarket has notched improvements in its vacancy rate. The current vacancy rate of 5.9% is a decrease from this time last year, as it has dropped by about 200 basis points. Absorption here remains positive as 251 units have been absorbed throughout the past 12 months. North Pinellas also has one of the most affordable asking rents of $1,650, a factor that has aided in its low vacancy rate.

No project has been delivered in North Pinellas since last year. There are currently 264 units under construction in North Pinellas. These units make up Sora Vista apartments, which is a Class A property that won’t be delivered until late next year. Sales have also slowed here, with around $7 million trading so far in 2024. All of the trades this year have been for Class C properties.

Downtown St. Petersburg By The Numbers

Vacancy Rate: 7.5%

Asking Rent Growth: -1.5%

Delivered Units: 383

Sales Volume: $12.6M

Downtown St. Petersburg

The Downtown St. Petersburg submarket has also notched positive metrics in its absorption levels. Around 400 units have been absorbed over the trailing 12-month span, which aided in bringing vacancy down to one of the lowest levels in Tampa at 7.5%. This has marked a decline of over 50 basis points in the vacancy rate since this time last year.

There are 950 units under construction here, and 90% of these are Class A units. Looking forward to next year, Phase One of the Tropicana Field redevelopment is expected to begin. This mixed-use project is expected to bring 1,500 units to the area. Six sales have occurred here throughout this year. All of these trades have been for lower-tier properties, totaling around $9 million in sales.