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 extraordinarily well across all sectors.  As of March 31, 2022, Miami was among the top 20 multifamily markets by net absorption while both Palm Beach and Miami ranked within the top 20 office markets by net absorption.

Significant transactions across the tri-county area during the second quarter 2022 include:

  • 1221 Brickell (Office) – $286,500,000
  • Mosaic at Miramar Town Center (Multifamily) – $200,000,000
  • Mary Brickell Village (Retail) – $185,730,976
  • Miami Tower (Office) – $162,500,000
  • The Allure at Abacoa (Multifamily) – $161,100,000
  • VIVA (Multifamily) – $150,000,000
  • Courtland West Palm (Multifamily) – $112,000,000
  • Amazon Palm Drive (Industrial) – $68,653,862

Major projects under construction at this time include:

  • 3310 NW 23 Street (Industrial) – 999,145 square feet
  • 830 Brickell (Office) – 664,300 square feet
  • Royal Caribbean HQ (Office) – 350,000 square feet
  • The Optima Onyx Tower (Office) – 334,227 square feet
  • One West Palm (Office) – 210,000 square feet
  • Davie Business Center (Industrial) – 225,580 square feet
  • Icon Marina Village (Multifamily) 399 units
  • The Riverstone Palm Beach (Multifamily) – 374 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.

Contact Chris Losquadro

 

 

NAR Commercial Real Estate Metro Market Reports

South Florida Area – First Quarter 2022

(click the image to download the full version of the report)

 

 

 

National Market Updates and Insights

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 

 

Commercial Market Insights is provided by the National Association of REALTORS Research Group.  

“The commercial real estate market continued to see rising occupancy, rents, and investor acquisitions in February 2022, with the impact of the Russia-Ukraine war and upswing in interest rates still likely to manifest in the coming months in some commercial segments…..

With more workers heading back to the office and amid sustained job growth, 22.1 million square feet (MSF) of office space absorbed since 2021 Q3. However, occupancy is still down by 115 MSF compared to the pre-pandemic level, pushing up the vacancy rate to 12.3%. Asking rents are up on average by 0.7% year-over-year, with rents up in nearly all 390 metro areas except in  markets like New York, San Francisco, and Washington DC.

 Rising mortgage rates will tend to shift the demand toward multifamily rentals. The relatively short-term leases in the apartment market create a natural hedge to inflation that makes multifamily properties a good investment in a rising interest rate environment.”

CLICK HERE TO READ THE ENTIRE REPORT 

 

Commercial Market Insights is provided by the National Association of REALTORS Research Group.  

“The recovery in the commercial real estate market that started in the second half of 2021 is continuing into the first quarter of 2022. All core commercial sectors ―multifamily, office, industrial, and retail ―experienced net positive absorption during the last three months through February. As such, rents and property valuations continue to increase across the four core property markets.
Barring severe economic fallout arising from the Russia-Ukraine crisis, the outlook for the commercial real estate market remains positive even amid rising interest rates. Rising mortgage rates increase rental demand that will sustain the ongoing rent growth. Worker re-entry, even if on a hybrid mode, will increase office absorption. Slower inflation that will head towards 5% by the end of the year will encourage consumer spending. Markets with rising population and migration such as the Sunbelt and Mountain states are better poised to see sustained rent growth and rising commercial valuations. Market trends could take on a different course depending on the economic impact of the Russia-Ukraine crisis and the ensuing monetary response”.

CLICK HERE TO READ THE ENTIRE REPORT 

 

Commercial Market Insights is provided by the National Association of REALTORS Research Group.  

“The recovery in the commercial real estate market that started in the second half of 2021 is continuing into the first month of 2022. All core commercial sectors ― multifamily, office, industrial, and retail ― experienced net positive absorption during last quarter of 2021 through January. As such, rents continue to rise and vacancy rates continue to trending downwards except in the office market.

In the multifamily market, the asking rents rose at an average year-over-year rate of 11.3% in the past 12 months as of January. Asking rents for industrial properties also continued to rise steeply at 8.9%. Asking rents for retail properties were also up over the past 12 months by 3.5% on average. In the office property market, asking rents are up on average by 1% year-over-year in the past 12 months, weighed down by declining rents in a few markets in major metro areas of New York, Washington DC, and San Francisco. However, office rents are rising in nearly all markets”.

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.

Contact Chris Losquadro

 

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.