The glut of vacant commercial real estate during the nation’s recent economic downturn was arguably just as troubling as residential foreclosures. Development deals stalled, and office buildings sat vacant with no tenants. But now it appears that South Florida may be ready to lead the nation on the path to recovery in both residential and commercial markets.
Florida residents with an eye on property in Broward County are likely to take notice of a recent report noting a sharp increase in commercial real estate deals in nearby West Palm Beach. Cash deals have been reported on office buildings and apartment buildings, as well as on new retail leases signed by companies looking to open more locations.
Some of the commercial property that is now selling was on the market for a couple of years, and realtors are reporting multiple bids on certain properties.
Developers are also looking to return to the area, according to the report. This comes even as some property in the region continues to move into foreclosure, as is the case with a twin-tower condo complex off of Boynton Beach Boulevard. Office space may be of particular interest to developers who are interested in buying assembled blocks.
Previous posts have mentioned how the residential real estate market in South Florida is heating up, but the reports of improvements in the commercial real estate market are also exciting. With the increase in residential and commercial property deals, local residents may begin to notice the associated benefits of a revived real estate sector. Realtors have indicated that there has definitely been a sudden change in a once moribund market.
Source: The Palm Beach Post, “Realtors report increase in commercial deals,” Alexandra Clough, April 16, 2012