South Florida has maintained relatively steady market fundamentals over the first quarter of 2013. The vacancy rate of office spaces fell slightly, and Broward County experienced the lowest levels at 16.1 %. Market insiders say that local demand has finally managed to outpace supply as most of the properties were either sold or rented to tenants who already had their place in the market. Relocations, renewals, and expansions accounted for most deals in South Florida during the first quarter this year.
New developments throughout the state have been in check, and the market has improved considerably over the past twelve months. As a result, rents for industrial as well as office spaces are expected to rise during the next few quarters. Landlords will soon begin dominating the market as they will no longer be obligated to offer leasing concessions in the future. According to Stewart Holley Director of Sales and Marketing for Forseti Real Estate Services, “market fundamentals have improved significantly over the past year, particularly retail sales, job growth, and the residential real estate market. These factors are a good indication for the entire commercial property market in the U.S. However, the South Florida market is expected to reap larger benefits from the turnaround in its residential sector”.
Real estate analysts forecast that Florida will attract plenty of interest in its commercial as well as residential real estate market. While the commercial market will allow for expansion of existing companies and offer prospects for new ones, the residential market is expected to lure in individuals who are looking for retirement and second homes in the country.
One of the largest commercial property brokerage agencies in New Jersey, The Goldstein Group reports that improvement in leasing of retail space will continue in 2013. Chuck Lanyard, the company’s president said that the retail property market in Central and Northern New Jersey is consistently improving, but continues to remain a ‘tenants’ market’. Opportunistic retailers continue to make the most of market conditions, and secure locations and lease their properties at profitable rates.
Several companies in the state are on the lookout for leases on areas bigger than 5,000 sq. ft. However, the Goldstein Group says that interest will be the highest for areas that are 1000- 5000 sq. ft. in size. Companies like Advance Auto, Children’s Place, Big Lots, Dollar General, Ulta, Dollar Tree, Carters, etc. are very active in Central and Northern New Jersey. Restaurant chains that continue to grow in popularity, such as Chipotle, Joe’s Crab Shack, Corner Bakery, etc. are also expanding. All of these companies are expected to take advantage of low pricing and engage in active real estate transaction over the year.
Lanyard said that spaces that were initially established for shopping centers are now being used by dental and medical practices. He added this trend will continue in 2013. Landlords were not confident about leasing their spaces to medical institutions before the recession, but things are no longer the same and landlords find it critical to create extra traffic and have their spaces leased.