The South Florida Commercial Real Estate Market According To 2012 First Quarter Survey Results
According to a survey that was recently conducted in order to find out about the real estate investor confidence being displayed within the United States, both Miami and Fort Lauderdale are among the top two locations when it comes to office spaces.
Oversupply remains to be an issue as the Miami-Dade County region now has a 19.2 percent vacancy rate, followed by Fort Lauderdale with its 17.3 percent vacancy rate while Palm Beach has an oversupply of 21.3 percent. However, there are signs which indicate that such issues will gradually diminish as more and more people turn to the South Florida commercial real estate market for their office space needs.
The capitalization rate, or the rate of return which all commercial real estate investors can expect in the future, is currently at the 9.25 percent mark which is slightly down compared to the 9.5 percent mark from the last quarter of 2011. Nevertheless, it still proves to be 7.8 percent higher than it used to be in 2008 which is why investors are looking forward to such rates to work in absolute favor of tenants.
Miami-Dade County, Palm Beach and Fort Lauderdale are considered to still be in a recessionary stage with regards to industrial prospects. However, people expect such conditions to shift across the South Florida commercial real estate market in the next year as numerous deals within the region tend to have been set into motion by a lack of raw land supply which goes alongside the hopes to actually increase international trade activity as soon as the Panama Canal expansion project is completed.
While Miami and Fort Lauderdale are considered to be in their recovery stages as far as the retail sector is concerned, the Palm Beach area is found to still be in recession with its recovery expected in around two years time.
Out of all three areas to dominate the South Florida commercial real estate market, it is the Miami area that is revealing the greatest of expansions which are primarily set in the multi-family sector. While Palm Beach is also expanding, Fort Lauderdale is still working its way into recovery and is most likely going to show better expansion indicators by next year.
It goes without saying that the industrial sector of the South Florida commercial real estate market is among the top options for investors since it offers great opportunities for people to take advantage of the rebounding sector which is expected to recover in due time.
Joan Vonnegut
Florida Commercial Real Estate
