South Florida Commercial Property Sales Are On A Rising Trend.
Downtown Miami and Fort Lauderdale commercial real estate sales are going up in volume and numbers. With a steady U.S economy growth and sustained strength from real estate capital markets aided in the improvement of commercial real estate sales as well as the housing sector.
According to some of the industry’s leading economists and analysts, commercial real estate property transaction volume will reach a 10-year high by 2016. The transaction volume will likely reach $430 billion by 2016 according to the Urban Land Institute.
Turning for the better since 2007, retail rental rates are expected to make a turnaround. Hotel occupancy rates are looking to improve and vacancy rates are going to decrease for offices, retail and industrial properties. According to the Consensus Forecast, hotel occupancy rates will continue to get stronger rising to 63.6 percent in 2015. Revenue improvements of hotel rooms will continue with a growth of 4.7 percent by next year. Office vacancy rates declined 14.9 percent in 2013 and are expected to continue at the same pace dropping to 14.3 percent in 2014. Office rental rates are expected to increase 3.9 percent in 2015 as well. Rental rates for retail are expected to increase as well to 2.5 percent. With all this new commercial development, employment rates should increase by over 7.5 million jobs within the next 3 years. Another positive increase are prices and total returns for commercial real estate investments. Institutional real estate assets are predicted a 9.4 percent in total return for this year and moving up to 8.5 percent by 2016.
The national commercial real estate market will pick up and improvements will be made. Things are only looking up for South Florida, its overall economy and job growth.