Even though the South Florida residential real estate has been popping in recent months, there appears to be a bit of a downside when it comes to the region’s property market. According to a recent report, the commercial real estate market is not coming along quite as quickly as the residential market.
The most recent data suggests that while there are some positive aspects to take note of in regards to commercial property, there are some worrying trends that might be developing. For instance, even though the number of vacant office buildings decreased in the third quarter of this year, the rate is still a bit high. One expert has mentioned that a robust showing for vacancies would be in the 8 to 10 percent range, but the rate of vacancies in Broward County for the third quarter was 14.3 percent, and the rate in Palm Beach County was 18.7 percent.
The retail market also has a bit of good and a bit of bad as well, with reports indicating that some of the larger businesses are indeed attempting to expand operations in South Florida. Smaller businesses, however, are not yet in a position to expand.
Most of our readers have probably seen many of the previous posts here which have detailed the red-hot residential real estate market that both buyers and seller have been enjoying in South Florida. The problem though, is that business and industry don’t seem to be keeping pace.
Although the intricacies of expanding a business or investing in office and retail space can seem daunting, there are options for those companies and businesses which may have an interest in doing so. For those particular companies, it is important to get all of the best information available about how and when to invest in commercial real estate.
Source: SunSentinel.com, “Commercial real estate market recovering slowly,” Paul Owers, Nov. 14, 2012