Friday, December 6, 2013

WHERE IS THIS SOUTH FLORIDA REAL ESTATE MARKET???

South Florida Commercial Real Estate



The Commercial Real Estate Market leasing market. Numbers here have been pretty strong, like the residential sales. Vacancy rates for all asset types (office, retail and industrial) have decreased and properties are enjoying healthy occupancy rates. Sounds good right? Well here is the info you don’t hear much of but I see often. The rents that are being realized are much lower than they had been. More concessions have been made to make the deals than Landlords have had to make in years. For office tenants with excellent credit, the resulting deal they can extract from a Landlord is often so lean that the Landlord doesn’t make money on it for years. The South Florida industrial market has been so hot that businesses are considering other options in the central and northern parts of the state because the rates have become so high and there is little supply. Everything Miami is on fire right now, which means office retail and industrial leasing, residential and commercial sales. The best news here may be that more companies from around the country and the globe are taking advantage of Florida’s business tax friendly real estate market which should continue (Office Depot) as the economy continues to slide. But with the bioscience industry still in its fledgling state and tourism being the number one revenue source for South Florida, where will the growth and jobs come from that are needed to sustain a healthy economy?

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