The Miami Commercial Real Estate Market Is Filled With Optimism Towards The Upcoming Months
As opposed to previous years, 2011 definitely marks the beginning of a new chapter for the region that was once heavily troubled by the effects of the recent market crash and that is something which many property buyers and investors seem to have a firm belief in as optimism is definitely noticeable across Miami.
Although the cap rates are not where they used to be prior to the market crash, there happens to be a lot of reason for the optimism as rental rates have significantly been reduced and that could bring on a lot of activity which would definitely provide the Miami commercial real estate market with better figures in the future.
The rental sector has had the lowest vacancy rate across Florida and while there are not very many new additions to the inventory at the moment, people remain certain that these figures are not going to fluctuate dramatically in 2012.
The same dynamics which apply for the rental sector also apply for that of the office, retail and even the industrial sectors which currently have a way to go as far as local absorption is concerned. However, the more Miami commercial real estate spaces become acquired by property buyers and investors, people can expect rates on these commercial properties to go up little by little until they achieve full stabilization.
In fact, the market for office spaces within Miami now proves to be in favor of the tenants now that the vacancy remains to be in the double-digit figures. Given these statistics, there is definitely a lot of room for tenant improvement in the upcoming months as rates are sure to draw more tenants in which would essentially boost the current rates up to higher percentages.
Among the first of the expected activities of absorption will involve the industrial spaces which are considerably large since there proves to be a demand for these types of Miami commercial real estate options within the region. So far we have already seen the acquisition of many large commercial real estate properties which are to be used for massive development projects which will also be adding more options to the current inventory.
Joan Vonnegut
Miami Commercial Real Estate
