COMMERCIAL REAL ESTATE
About the South Florida Commercial Real Estate Market
The commercial real estate market in South Florida (Palm Beach, Broward and Miami-Dade counties) continues to perform well across all sectors as compared to their out-of-state counterparts. However, the market appears poised to slow due to rising interest rates and a slowdown in the broad economy.
Significant transactions across the tri-county area during the fourth quarter 2022 include:
- The Boulevard (Multifamily) – $175,000,000
- Bell Parkland (Multifamily) – $155,000,000
- Miami 27 Business Park (Industrial) – $127,358,710
- Countyline Corporate Park (Industrial) – $119,414,030
- CORE (Multifamily) – $127,000,000
- Walgreens Distribution (Industrial) – $78,000,000
- CUBE Wynwd (Office) – $62,000,000
- South City Plaza (Office) – $51,000,000
- Gateway Center 1926 (Industrial) – $50,875,084
Major projects under construction as of the year end 2022:
- 3310 NW 23 Street (Industrial) – 999,145 square feet
- 830 Brickell (Office) – 664,300 square feet
- Miami Courthouse (Office) – 640,000 square feet
- 17th Street Tower (Office) – 353,161 square feet
- Royal Caribbean HQ (Office) – 350,000 square feet
- One Flagler (Office) – 277,000 square feet
- One West Palm (Office) – 210,000 square feet
- Mana Wynwood (Multifamily) – 3,487 units
- The River District Apartments (Multifamily) – 1,600 units
- EPIC Residences (Multifamily) – 648 units
If you have specific questions about the commercial real estate market or how we can help with your commercial real estate needs, contact Chris Losquadro at 561.584.8555.
NAR Commercial Real Estate Metro Market Reports
South Florida Area – Third Quarter 2022
National Market Updates and Insights
Commercial Market Insights is provided by the National Association of REALTORS® Research Group.
“Commercial real estate started the new year on a slow note with lower demand, smaller rent price gains, and higher vacancy rates. Office and multifamily are the two sectors that face additional headwinds this year. In these two sectors, vacancy rates are more than 0.8 percentage points higher than a year ago. Net absorption – another indicator of demand – was significantly lower in January compared to a year ago in all four main sectors of Commercial Real Estate. In fact, office space net absorption went back to negative territory. This means that more office space was vacated/available in the market than what was leased or absorbed by commercial tenants.”
“The year is still young. Inflation, interest rates, supply chain, and geopolitical events are the main factors that will determine how commercial real estate will perform in the following months.“
CLICK HERE TO READ THE ENTIRE REPORT
Commercial Market Insights is provided by the National Association of REALTORS® Research Group.
“After the strong rebound for the US economy in 2021, growth in 2022 has slowed in the face of rising inflation, the household incomes squeeze, and geopolitical events. While the economy continues to deal with elevated inflation, there is a slowdown in the growth of Commercial Real Estate.”
“Multifamily and industrial properties were the leading sectors in 2022. With healthy balance sheets, consumer demand boosted retail, multifamily, and industrial asset classes. While the industrial boom continues to show no signs of stopping, multifamily absorption and rent growth are decelerating.”
“Inflation, interest rates, supply chain, and geopolitical events are the main factors that will determine how Commercial Real Estate will perform in the following months.”
CLICK HERE TO READ THE ENTIRE REPORT
Commercial Market Insights is provided by the National Association of REALTORS® Research Group.
“Higher interest rates and inflation are having a mixed impact on the demand for commercial real estate. The pace of absorption has slowed in the industrial and retail markets as consumers cut back on spending amid high inflation. Meanwhile higher mortgage rates and continuing return of workers to the office have increased the pace of absorption of multifamily units and office space…..
…On the whole, the commercial real estate market is still poised to do well despite higher interest rates and inflation. Mortgage rates are boosting rental demand while e-commerce continues to boost the demand for logistics space. Retail rent growth is still below the rate of inflation which means positive gross margins for retail tenants. The continuing return of workers to the office, even If some return on a hybrid model, is lifting demand for office space.”
CLICK HERE TO READ THE ENTIRE REPORT
If you have any questions about the commercial real estate market or a specific property, contact Chris Losquadro at 561.584.8555.
Disclaimer: The data for this commercial real estate market update was obtained from sources deemed to be reliable, is not guaranteed. No warranty or representation, expressed or implied, is made as to the accuracy contained herein and submitted subject to errors, omissions and other conditions.