ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%
ORLANDO INDUSTRIAL7.2%+0.4%
MIAMI MULTIFAMILY$3,420+1.2%
TAMPA RETAIL4.8%-0.2%
US-192 CORRIDOR$340/SF+4.1%
30Y FIXED MORTGAGE6.72%-0.08%
FED PROBABILITY (PAUSE)92%+2%

What is the merchant builder stabilization discount and how do I access it?

The merchant builder stabilization discount is the pricing concession that results when a multifamily developer with a maturing construction loan needs to sell before achieving the 95% stabilized occupancy that fully prices the asset. Construction loans in 2022–2023 were typically structured at 3-year initial terms with one to two 12-month extension options, meaning many projects that broke ground in 2022–2023 are hitting maturity in 2025–2027 with buildings at 85–92% occupancy, performing well but not yet stabilized. The going-in NOI at 87% occupancy is typically 8–10% below stabilized NOI, which at a 5.25% cap rate implies an 8–10% discount to stabilized value. On a $50M stabilized asset, that is a $4–$5M price reduction that materializes not because the asset is failing but because the merchant builder needs to close in 30 days. Contact JLL Capital Markets (John Huguenard, Julia Silva) for construction loan maturity intelligence.