Commercial Property Market in South Florida Recovering Slowly but Steadily
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.
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