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Multifamily Market Continues To Thrive

The multifamily sector includes a wide variety of property types. From Class A Apartments, which rival quality condominium properties, to Class B and C apartments and mobile home parks.

The Tampa Region’s multifamily market has once again seen strong demand in 2019, surprising some after the market saw increasing vacancies. The rising vacancy trend stemmed from supply which has started to lessen.

The housing market represents a comparative bargain when looking at median income levels and home prices against similarly-sized metros across the nation. However, single-family housing deliveries and permitting remain very low compared to historical build levels. While homeownership will continue to be a threat due to its relative affordability; low inventory levels continue to keep prices inflated and limit options for current residential tenants.

Investment activity is very strong in the multifamily sector. Investment was a record $2.8 billion in 2018 and 2019 is on pace to shatter that record with the largest first half sales volume in the Tampa Region’s history. Market cap rates continue to be near 2018 rates.

Mobile Home Parks

Mobile Home Parks are very diverse and include five star parks which compete with good quality villas and residential subdivisions, to older parks which are an answer to affordable housing.

Let’s examine the impact of the Mobile Home industry. As with all sectors of the Florida real estate market so far this year, the Mobile Home sector continues to thrive. Real Capital Analytics– which tends to focus on investment grade product- indicates that 28 mobile home parks sold from January to June, 2019 in Florida. Prices for the individual parks ranged from $2,200,000 to $58,382,553. The price paid per space ranged from $17,937 to $100,387, with an average of $48,638 per space. The parks were built from 1947 to 1993 and cap rates ranged from 5.8% to 10.0%.

Mobile Home Park Sales

Source: CoStar.com 2019/Public Records

The market for mobile home parks tends to be more diverse than almost any other real estate investment.  When looking for a triple net lease investment, you might see a variance of 200 basis points in the cap rate.  With mobile home parks, that variance increases four or five times.


The reasons are obvious. If you purchase a Walgreens, there isn’t much variance from one property to the next; with mobile home parks, the variance is very wide.  In addition, the best properties are seldom listed publicly so there is less market knowledge to base your decisions.

With limited market knowledge and wide variability from property to property, this creates an opportunity for  market participants with a detailed understanding of the market to profit. The mobile home market includes properties that sell from 5% cap rates to over 13% cap rates in Florida. The property type is aging compared to other competing investments and we see parks changing in use from mobile home parks to commercial and upscale residential uses. The supply is declining, which has a positive impact on prices. The net result is that pricing is critically important even in the strong market of 2019.  Market knowledge, combined with strategic marketing and some minor property improvements can change increase the value of the property substantially.



Jim Boyd, MAI has decades of experience in appraisal, brokerage and development. Jim specializes in mobile parks.  Having received the MAI designation in 1980, his licenses include the State Certified General Appraiser, Real Estate Broker, and a State Certified General Appraiser Instructor. If you are looking to purchase, sell or need an appraisal or market analysis, call Jim at 941-320-6260.



(941) 320-6260