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Miami’s Commercial Market Attracting Investors in All Sectors

by | Jun 20, 2015
The ongoing strength of Miami’s commercial real estate market is leading to more local jobs, a higher tax base, renovated buildings, more shopping opportunities, and ultimately more tax money for infrastructure improvements

Barbara Tria
2015 Commercial President
MIAMI Association of Realtors®

Print Version: English | Spanish

The ongoing strength of Miami’s commercial real estate market is leading to more local jobs, a higher tax base, renovated buildings, more shopping opportunities, and ultimately more tax money for infrastructure improvements. On June 3, five of South Florida’s top real estate professionals discussed the stateof South Florida’s commercial real estate market at the third annual REALTORS® Commercial Alliance of MIAMI Midyear Commercial Update.

Beth Azor of Davie-based Azor Advisory Services analyzed Miami’s booming retail market. Miami has the 15th lowest retail vacancy rate among U.S. major cities, according to a recent National Association of Realtors (NAR) and Reis, Inc. report. The local market’s 6.3 percent retail vacancy rate is lower than the national average (9.6).

Gerard Yetming, CBRE’s senior vice president of investment properties and multi-housing, discussed South Florida’s growing population: more than 360,000 new residents moved here from 2010-14. Miami is now the sixth-fastest growing metro in the nation. Miami had a 3.4 percent vacancy rate in apartments with a year-over-year rental rate increase of 5.9 percent in the Q1 2015.

Manny de Zárraga, the executive managing director for Holliday Fenoglio Fowler, spoke about capital markets and how high demand for quality assets combined with low-interest rates continues to compress cap rates. South Florida is seeing additional demand for assets from global markets. Several sovereign wealth funds have mandates to invest in real estate.

Christopher Sutton, Flagler’s vice president of business development, discussed escalating demand in the local industrial market. Miami’s industrial vacancy rate of 5.3 percent in May 2015 is the third-lowest in the nation among major cities, according to NAR and Reis. Only Orange County (Calif.) and Los Angeles performed better, registering rates of 3.4 and 3.6 percent, respectively.

Diana Parker, CBRE’s senior vice president of brokerage and office properties, showed how local office vacancy rates have dropped to 13.5 percent in the first quarter 2015. Rental rates have increased 3.5 percent in the first six months of 2015. The office sector is seeing new demand from tech businesses

Print Version: English | Spanish

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