Is the Real Estate Market Recovering?

Since the onset of the COVID-19 pandemic the commercial and residential real estate markets in Miami-Dade, Broward and Palm Beach counties have experienced significant volatility.  In the past 30 to 60 days as businesses reopened and residents went back to work, the number of real estate transactions experienced considerable improvement from their recent lows in April and May but still are far behind prior year levels. 

With the resurgence in the number of positive cases which is causing a delay in reopening, not only the real estate market but also the economy is on unstable footing.

South Florida Commercial Real Estate – 2Q 2020

With the exception of net absorption levels and a slow down in sale transactions, the commercial real estate market in South Florida has yet to feel the full impact of COVID-19.  Vacancy levels and lease rates have remained consistent with pre-COVID levels and developers continue to move forward with existing projects.

Palm Beach County Office Market

The 56 million square foot Palm Beach County commercial office market reports a vacancy rate of 10.0% (and an availability rate of 13.2%) with more than 1.28 million square feet of space under construction. The average rental rate across all classes of office properties was reported to be just shy of $34.38 per square foot.  Net absorption during the quarter was negative 348,000 square feet. 

Within the past 12 months there have been 239 commercial office buildings that have sold in Palm Beach County. The average sale price was reported to be $251 per square foot with an average capitalization rate of 6.6%. 

Broward County Office Market

The 71 million square foot Broward County commercial office market reports a vacancy rate of 9.3% (and an availability rate of 14.3%) with more than 1.89 million square feet of space under construction. The average rental rate across all classes of office properties was reported to be just shy of $30.00 per square foot.  Net absorption during the quarter was negative 128,686 square feet. 

Within the past 12 months there have been 286 commercial office building sales in Broward County. The average sale price was reported to be $234 per square foot with an average capitalization rate of 7.0%. 

Miami-Dade County Office Market

The 109 million square foot Miami-Dade County commercial office market reports a vacancy rate of 9.1% (and an availability rate of 13.7%) with more than 3.6 million square feet of space under construction.  The average rental rate across all classes of office properties was reported to be $38.85 per square foot.  Net absorption during the quarter was negative 180,506 square feet. 

Within the past 12 months there have been 493 commercial office building sales in Miami-Dade County.  The median sale price was reported to be $235 per square foot with an average capitalization rate of 6.6%. 

Click here to learn more about the retail, industrial and multifamily markets in South Florida for the second quarter 2020.

South Florida Housing – June 2020

Palm Beach, Broward and Miami-Dade counties continue to experience declines in the number of single-family home sale transactions.  For the month of June closed sales were down by more than 11% year-over-year with inventory levels also  lagging by 26.4%.  

However, the trend of improvement in single-family median and average sale price continues.  The median sale price increased by 5.5% while the average sale price was up by 18.5%.  The average sale price increase was partly due to the increase in transactions over $1 million that were completed during the month (309 transactions in June vs 200 transactions in May).

Most of our featured local area communities continue to experience year-over-year declines in single-family closed sale transactions as of June 2020:

  • Boca Raton: down by 18.5%
  • Coral Springs: down by 28.2%
  • Fort Lauderdale: down by 25.2%
  • Jupiter: down by 33.3%
  • North Palm Beach: up by 90%
  • Palm Beach: up by 166.7%
  • Palm Beach Gardens: down by 31.2%
  • Palm City: down by 12.8%
  • Plantation: down by 25%
  • Stuart: down by 19.7%
  • Wellington: down by 6.7%
  • West Palm Beach: down by 8.3%

The lone bright spots were Palm Beach and North Palm Beach, both of which were up significant as compared with prior year sales levels.

About Quantum Realty Advisors, Inc.

Quantum Realty Advisors, Inc. is a family-owned, independent real estate brokerage and advisory firm that provides premium quality real estate services not only to traditional home buyers and sellers, but to business enterprises, trust and estate managers, asset management firms and several of the world’s best know financial institutions. 

We committed to changing your expectations of a real estate professional and have one simple principle: TO DO WHAT’S RIGHT BY OUR CLIENTS AND STRATEGIC PARTNERS.  With this principle in mind, we are creating a better client experience, providing the kind of service you may have thought did not exist in the real estate industry.

Contact us at 561.584.8555 or via email at info@quantumcos.com.

Luxury & Residential Home Sales

Inherited Property and Probate Real Estate

Corporate and Business Real Estate

Commercial Valuation & Advisory Services