Florida CRE Market Heading Toward Recovery?
As of mid-year 2011, the Florida commercial real estate market reveals a marked turning point that began late 2010, according to the Florida Market Perspective Mid-Year 2011, a comprehensive assessment and outlook on commercial real estate throughout the state, released by CB Richard Ellis (CBRE).
“Our outlook for Florida is a slow and steady recovery over the next five years,” says Mary Jo Eaton, Senior Managing Director for CBRE in Florida. “During the remainder of 2011 we anticipate seeing more leasing and sales activity—largely in prime submarkets.”
Key Findings:
- Select industries are beginning to re-establish their confidence in the market through expansions and long-term lease commitments.
- Multihousing properties are highly targeted by investors in Florida. In core markets, international investors continue to show strong interest in commercial real estate assets.
- Distressed assets continue to be a concern, but Florida’s lengthy foreclosure process slows the delivery of distressed assets available for acquisition.
Comparatively, Miami is leading the state in new activity. While lease renewals dominate markets outside the core regions, such as Jacksonville and Southwest Florida, market indicators including rental rates and occupancy are showing signs of stabilization. North and Central Florida markets have yet to experience a surge in activity, but CBRE Florida leadership agree that stabilized market indicators and strengthened fundamentals put Florida in a good position for recovery.
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CBRE’s Florida Market Perspective reports on seven major markets in Florida, covering office, industrial, retail, and multifamily properties. For the complete look at commercial real estate in Florida, go to www.cbre.com/fmp.
