Like the San Francisco Bay Area, markets in South Florida and select secondary markets throughout the nation appear to represent locales where yield-chasing developers can justify late 2015 project starts that would deliver sometime in 2017.

Outside of Miami, the submarkets of West Palm Beach, Fort Lauderdale, Naples and Cape Coral present numbers that would suggest future deliveries will be absorbed. In Central Florida, Orlando and its submarket Deltona also seemed primed for future development.

West Palm Beach currently sports a 4.5 percent vacancy rate and witnessed 10.2 rent growth spanning April 2014 to April 2015. Fort Lauderdale has a similar vacancy rate, 4.2 percent, and saw 6.3 percent rent growth during the same period.

Naples and Cape Coral have some of the best vacancy rates in the nation, at 2.3 percent and 2.7 percent, respectively. Both also experienced recent double-digit, year-to-year rent growth – Naples, 11.1 percent, and Cape Coral, 10.2 percent.

To the north, Orlando remains a strong market with occupancy of 95.6 percent and 6.7 percent year-to-year rent growth. Its submarket, Deltona, sports a vacancy rate of 3.5 percent with a 9 percent escalation in rents.

Developers with upcoming or proposed starts lined up in these Florida markets include ZOM, American Land Ventures, Allen Morris Residential, Crescent Communities, Altman Companies and Jefferson Apartment Group.

Louisville (Kentucky), Raleigh-Durham (North Carolina) and Las Vegas comprise a trio of secondary markets that should peak developers’ interest moving forward.

Raleigh-Durham recently ranked as the No. 3 market in the nation for job growth and No. 5 in terms of return on investment (ROI). If the nearly 10,000 units that have been delivered during the last 12 months are absorbed, developers will push forward with new deals.

Developers that recently started or plan to start projects in Raleigh-Durham this year include NRP, Kane Realty, Crescent Communities, Proffitt Dixon Partners and Woodfield Investments. Most of these firms are merchant builders.

Louisville and Las Vegas recently ranked as the seventh and 10th best markets in the nation when it comes to providing a high ROI to investors. Both these markets have a minimal volume of 2015 deliveries. Some developers, like Calida Group and Fore Property Group, are lining up multiple deals in Las Vegas.

Email Erik Pisor.

Show Comments Hide Comments

Comments

Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
Success!
Thank you for subscribing to Morning Headlines.
Back to top
Inman Connect Las Vegas is back and there are only a few presale tickets left! Register today before they're gone.REGISTER×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription