A general definition of commercial real estate typically includes large office buildings, licensed brokers, listings, company agents, sales prices, senior leases, loan agencies, developer situations, offices, viewing areas, listings for sale. Special sales on office units, mortgage agents, appraisal companies, leases, public parks and land auctions.
The commercial real estate scene in Miami, and all of South Florida, continues to be buoyant despite the foreclosure crisis. While the residential market continues to take a beating, the commercial property markets continue to attract buyers, despite being under pressure, and due to the fact that mortgage rates are rising and average house prices are falling, they are not succumbing to the upcoming peak. Commercial real estate investors are large corporations or investment trusts, not individual home buyers.
Miami-Dade office markets continue to be attractive.
Soft demand in today’s office space market, according to analysts, will result in higher vacancy and moderate rent growth in Miami-Dade County this year, although overall conditions remain relatively healthy based on 2008, according to a national office report by Marcus & Millichap. .
Vacancies in It will increase in 2008, but the long-term outlook is positive, because demand is improving again in 2009. The report also includes the company’s annual National Office Index, which evaluates 43 office markets over a consecutive 12-month period. , forward-looking indicators of supply and demand. Miami dropped six spots to No. 23 this year.
Properties in north Miami-Dade County, Hialeah and Kendall continue to be attractive defensive investments because of stable tenant demand in the area and difficulty adding new supply, according to Markus & Millichap’s regional manager. Highlights of the reports include: Builders expected to complete 600,000 sf of leasable space. Vacancy is forecast to remain at 9.7% at the end of the year; Asking rent up 4.6% to $30.32 pf; And the effective rent rises 4.1% to $26.01 psf.
The South Florida region continues to rank high among commercial real estate investments.
The South Florida region ranks 15th globally for commercial real estate deals, according to Real Capital Analytics’ recently released Global Real Estate Transaction Report. The report is the first to effectively track transactions in major cities worldwide, tracking $1.04 trillion in office, industrial, hotel, retail, land and apartment sales in 2007. .
South Florida ranks as the 15th-largest metro area in the world for commercial real estate investment, and is also one of the most sought-after markets, with a large number of conglomerates looking to invest there. South Florida’s popularity as an international travel, trade and business destination creates familiarity with foreign investors, the report added. The region’s commercial rental, sales and consumer markets are not entirely dependent on US economic conditions and demand, helping to reduce the perception of investment risk.
South Florida’s emergence on the global investment sales scene has paralleled its growth as an international business hub. The Real Capital Analytics report continues that the bottom line is that South Florida’s strategic location has made it attractive to international business and the world at large.