REPORT: South Florida Undergoing A Historic Boom. Again.

It feels like just yesterday we were cautioning the potential problems associated with oversupply, lack of demand and unavailability of financing. In the span of roughly two years the market’s outlook has come 180 degrees from one of caution and pessimism to one of enthusiasm and optimism.
Industrial landlords are in the driver’s seat enjoying +6% year-over-year rent growth across virtually every submarket in South Florida. This is in addition to public investments that will surely spark demand over the long-term. Cap rates continue to decline, signaling confidence in the local market. Land prices remain one of the most heady of headlines with “new” all-time highs being recorded every few months. Multifamily has fallen into second place as the former flavor of the month, now behind industrial product, due in part to the lack of supply of sizable deals in core submarkets. Retail remains in vogue, especially for institutional investors with the long-term vision and comparative advantage to say places like Lincoln Road are inexpensive by global standards. Restaurants seem to be leading the retail recovery. Office product is now the diamond in the rough. The market as a whole has stabilized but remains moderate in comparison to other product types that are benefiting from external drivers like international investment or municipal stimulus.
All said we see the rest of the year keeping pace, making 2014 one of the best on record. Investment sales activity will accelerate in spite of sluggish releases of legacy bank assets and CMBS maturities. Leasing activity is already on a tear and will quicken as we close out the year. What remains to be seen is how developers react to the last 18 months of performance. The current pipeline pales in comparison to the last boom, a sign that both lenders and developers are more guarded without the assurances that selective pre-sales and pre-leasing provide.
Our platform is firing on all cylinders. “Accelerating Success” is more than just our mantra; it’s our goal for everyone associated with our company. As we continue to fine tune we look forward to serving as navigators of the local market and helping our clients share in what is becoming one of the most far-reaching recoveries in South Florida’s history.
In this edition of the South Florida Commercial Real Estate Research Report, you will find valuable market overviews for office, industrial and retail product in Miami-Dade, Broward and Palm Beach Counties. We trust you will find our research report to be an informative resource tool.
Please click here to access the Colliers International South Florida’s full Q2 South Florida Commercial Real Estate Research Report. 
 
Source:  Colliers International South Florida