Apartment Vacancies on the Rise

YOU FOR JOINING US. IF YOU ARE TO GET IN SOUTHWEST FLORIDA, REAL ESTATE EXPERTS SAY THIS MAY BE THE PERFECT TIME TO GET A GOOD DEAL. COMMERCIAL REAL ESTATE EXPERTS, IT'S A VACANCY IS APPROACHING ONE IN 5 APARTMENTS. BUT IN SOME BUILDINGS IS EVEN HIGHER CLOSER TO ONE IN 3, THE INDUSTRY CONSIDERS ANYTHING ABOVE ONE OUT OF 10 UNITS VACANT TO BE A MAJOR PROBLEM. SO WHAT DOES THIS MEAN FOR RENTERS WGCUS MIKE WALCHER HAS MORE ANSWERS IN THIS WEEK'S BUSINESS REPORT. >> 10 YEARS AGO, REAL ESTATE COMPANIES NOTICED THIS AREA WAS SHORT OF MULTIFAMILY HOUSING. A BOOM STARTED. AND NOW THERE ARE TOO MANY UNITS AND A HIGH VACANCY RATE. >> COSTAR IN THE LINUX IS GOING TO PUT IT RIGHT AROUND 20%. THE ISSUE WE HAVE IS A LOT OF THE APARTMENT COMMUNITIES ARE NOT REPORTING A LOT OF THE VACANCY THAT THEY HAVE BASED ON SOME OTHER DATA ANALYTICS THAT WE'VE LOOKED AT. I THINK WE'RE APPROACHING 30% VACANCY IN SOUTHWEST FLORIDA. >> AND THE FLORIDA APARTMENT ASSOCIATION SAYS IT'S MORE THAN JUST A REGIONAL PROBLEM. >> IT'S DEFINITELY SOMETHING THAT WE'RE SEEING ACROSS THE STATE. I WOULDN'T SAY IT SAYS IN A DRAMATIC AS IT IS. AND THE LEE COUNTY. BUT IT IS SOMETHING THAT WE'RE WE'RE SEEING A TREND THAT WAY. >> I THINK YOU CAN GET OUT THERE AND TRY TO NEGOTIATE A LITTLE BIT BECAUSE FROM WHAT I'M HEARING, THESE GUYS WILL OFFER, YOU KNOW, FREE RENT OR LOWER THE RATE FOR YOU. AND, YOU KNOW, THROW YOU SOME SOME PUBLIX GIFT CARDS. >> GARRETT, APARTMENTS IN FORT MYERS IS OFFERING UP TO 3 MONTHS FREE RENT ACCORDING TO A MANAGER WHO WOULD NOT SPEAK ON CAMERA, WE VERIFIED THE FREE RENT WITH A TENANT WHO MOVED IN RECENTLY. ONE MAN WHO RENTED IN A STERILE LAST FALL DESCRIBES THE INCENTIVES NOW AVAILABLE. >> THEY HAD TO. >> I WAS LIKE A STEAMER. ATV'S MIKE, ONE OF THOSE. >> ITS INCENTIVE FOR PEOPLE TO RENT STAKE. I WISH I HAD. AND WHAT ABOUT RENEWALS? NO, UNFORTUNATELY, NOT SO. AND WHAT ABOUT REDUCED RENT? REDUCED? I DON'T LET MY RENEWAL COMES UP IN 2 AND FIND OUT. HOPEFULLY IT'S CLOSE TO THE SAME. >> PEOPLE ARE COMMERCIAL REAL ESTATE SAY ANYTHING THAT CAN HELP CONSUMERS LIKE LOWER RENT ALSO HELPS THE LOCAL RETAIL ECONOMY. BUT AS WITH MANY THINGS, FINANCIAL, THERE CAN BE A DOWNSIDE. CHASE MAYHEW SAYS SOME BUILDING OWNERS COULD BE HURT. >> IF YOU CONCENTRATED IN AN AREA GEOGRAPHICALLY WHICH SOME INVESTORS HAVE IN SAY JUST FLORIDA AND YOU HAVE YOU HAVE A PORTFOLIO OF 10 6 OF YOUR APARTMENT COMPLEXES ARE STRUGGLING, THEN YOU'RE CERTAINLY GOING TO BE IN TROUBLE. AND YOU WILL SEE SOME ISSUES WITH WITH BANKS AND LENDING IN FORECLOSURES AND THINGS THAT NATURE MEAN BASED ON WE'RE SEEING I WOULD NOT BE SHOCKED THAT THAT START HAPPENING. PEOPLE LOOKING FOR AFFORDABLE RENTS TO FIND OF LEE COUNTY IS ABOUT 12 TO 1300 A MONTH. >> MAY BE DISAPPOINTED. >> THERE ALREADY IS A SHORTAGE FOR FOR AFFORDABLE WORKFORCE HOUSING YOU KNOW, UNFORTUNATELY, WOULD YOU CITE MEETING THE WHITE AND MOST PLACES SO THAT'S WHY WE'RE STILL BEAT THE DRUM ON SUPPORTING WORKFORCE HOUSING SUPPLY AND SUNNY FOR INDIVIDUALS OR INCOMES. >> MAYHEW PREDICTION WILL TAKE AT LEAST A YEAR AND A HALF FOR THE MARKET TO CORRECT ITSELF AND APARTMENT DEMAND RETURN TO SOMETHING CLOSER TO EVEN WITH APARTMENT SUPPLY. WITH VIDEOGRAPHY BY KEVIN SMITH. ON MY CULTURE.