This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

South Florida Commercial Real Estate Market Shows Slow But Steady Improvement

MIAMI, April 5, 2013 /PRNewswire/ --  Newmark Grubb Knight Frank (NGKF), one of the world's leading commercial real estate advisory firms, shared its view on the South Florida commercial real estate market at the company's 2013 State of the Market event on April 4, 2013. The outlook was presented to clients at a reception featuring keynote speaker Robert Bach, national director, Market Analytics, as well as a number of NGKF market specialists.

(Logo: http://photos.prnewswire.com/prnh/20120821/MM60819LOGO )

Based on the company's proprietary research, market fundamentals have remained relatively steady over the past quarter across South Florida. The office vacancy rate fell slightly across the board, with Broward County ending the quarter with the lowest level in the region at 16.1%. The industrial sector also performed well, with vacancy inching downward in both Broward County and Palm Beach. Miami recorded quite a bit of activity; however, vacancy remained relatively flat due to the delivery of the 335,000-square-foot Miami International Distribution Center.

"Across South Florida, over 1.1 million square feet of office leasing activity was tracked in the first quarter," said Jon Bourbeau, vice chairman in NGKF's Miami office. "The majority of deals came from tenants already in the market in the form of expansions, renewals, relocations and, in some cases, contractions, but the pendulum appears to have swung with demand outpacing supply."

As a result of this market improvement, and the fact that new development across South Florida has been kept in check, asking rents for both office and industrial product are expected to increase moderately over the next several quarters, and landlords will feel less compelled to offer leasing concessions as the year progresses. Still, stronger signals of widespread economic recovery are needed before robust growth takes hold.

Mr. Bach explained that improving market fundamentals, especially job growth, retail sales and the housing market, bode well for commercial real estate on a national basis, and said that South Florida in particular is benefiting from a rebound in the residential sector.

"The spike in demand for residential real estate is a harbinger of stronger growth on the commercial side," Mr. Bach said. "This is especially true for retail, as homeowners look to remodel existing properties or homebuilders deliver new projects."

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG

Markets

DOW 17,730.11 -27.80 -0.16%
S&P 500 2,076.78 -0.64 -0.03%
NASDAQ 5,009.2140 -3.9090 -0.08%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs