All over Florida, commercial real estate companies are experiencing a major upswing in transactions in 2013, after a relatively tepid 2012. Known for its checkered real estate past, Florida is showing once again that it is the land of opportunity for, well, land, and the buildings adorning that land. No matter what part of the state you look at, commercial real estate is experiencing strong sales through the first half of the year, and most experts and industry insiders expect that trend to continue.
South Florida market heating up
Always one of the most active commercial real estate markets in the country, South Florida is seeing a rash of sales in the commercial market this year. Specifically, Class B office space is in high demand, with a Boca Raton office building recently changing hands after a capital improvement that made it a more attractive sales target.
For those looking to get involved in South Florida’s always oceanfront property market, which has been a desirable location since mobsters started making it their chosen vacation locale in the 1920s, there are usually few options. And while that continues to be the case, a 1.3 acre oceanfront development recently went up for sale north of Golden Beach.
Central Florida experiencing sales growth
Recently, the Orlando Business Journal hosted 13 executives of Central Florida commercial real estate companies to an invitation-only Industry Outlook gathering. Over the course of 90 minutes, the executives discussed problems facing the Central Florida market and their possible solutions.
With factors like the return of financing, better market fundamentals and stronger activity nationwide, the leaders all seemed to agree that things have gotten much better in the area in 2013. That positive outlook by industry leaders, coupled with a 12 percent rise in total dollar sales of industrial and real estate buildings compared to the same period in 2010, makes for a sunny picture for Central Florida commercial real estate.
North Florida experiencing similar trend
The numbers in Jacksonville reflect a similar rebound in commercial real estate sales that the rest of the Florida is seeing. In the first half of 2013, sales of office properties totaled $184 million after just $61 million was sold in all of 2012.
On top of that, office, retail and industrial vacancies throughout the region have been declining. For industrial properties, the vacancy rate dropped to 10.3 percent from 12 percent in 2012, and retail vacancies declined to about 11 percent after being at nearly 14 percent last year.
