Construction cranes are all over the downtown Tampa area, nearly all working to add thousands of residential apartment units to an area that once was a ghost town after-hours.
This past week, Pollack Shores Real Estate Group closed on land just west of the University of Tampa to build a 274-unit, $45 million apartment complex. The Richman Group of Florida has two downtown-area projects underway, which alone will add more than 650 units through a $123 million investment.
The latest multifamily report from Marcus & Millichap anticipates 5,000 new apartments will be built in the region this year, far ahead of the 4,100 added last year. Yet the market is not
quite overheated, the real estate company says. More than 37,000 jobs have been added to the region, and vacancy rates are shrinking to less than 5%.
Multifamily growth in the Tampa Bay region has become so hot, the price of concrete block construction has exploded, land broker Bill Eshenbaugh says. That's forced developers to switch to wood-frame buildings — not exactly the preferred material for luxury developments.