Where is the South Florida Commercial Real Estate Market?

June 22, 2016

Commercial Real Estate Market To say that there is some uncertainly in the market right now would be an understatement to say the least. Let’s take a good look at what is going on from a micro and macro perspective. From the micro perspective, things are beginning to slow. This is happening in all commercial sectors and with residential real estate as well. However, it is important to note that things are slowing not crashing and there is a big difference. In addition, many development projects of all kinds have already been financed which means they will be built. That gives us at least another 24 months of activity. Certain markets are outperforming others as usual but what is important is that the secondary markets are finally experiencing development. Places like Lake Worth, Riviera Beach, Pompano Beach, Plantation, Homestead, Overtown, and Jupiter to name a few, are seeing unprecedented growth. Mass transportation is finally catching up to the population with the improvements to Tri-Rail and the soon to debut All Aboard Florida rail. Once it is up and running it should significantly help the economy by allowing people to move across the region more quickly and without cars which is another bonus. On a macro level, it is a very similar situation. I was in New York last week and my friends in the real estate industry there said the same thing is happening with their market. Activity has slowed but not stopped and prices are starting to come down. They have to eventually, which is what some people don’t understand. It is natural and the economy goes in cycles. The U.S. economy has been the only one in the world that has held strong to this point and even with this slowdown we are still in an enviable position. What is different now is that technology is always changing how business gets done and it is happening more quickly than ever. Sometimes it is hard to tell if we are in a recession or not. We have to take the good times with the bad. When things slow enjoy the extra time to spend time with family, enjoy hobbies, etc. I can’t think of a better place to be when things slow down! You can always go to the beach right? As always thanks for reading and have a great day.