Most of our readers probably know by now that the South Florida real estate market has been hot for months. Residential real estate values continue to climb, and there really isn’t an end sight. Although some have expressed concern about the uptick in residential real estate development and the potential that it may flood the market all over again, times are good right now. But what about commercial real estate?
It can be easy to overlook those retail and office buildings sitting empty with a “for sale” sign in the window, especially with the surging rebound in residential real estate. However, new residents, especially new residents in new condos and new homes, means that the local area will need additional businesses of all types. And, according to a recent report, one investment group has taken advantage of the still somewhat depressed values in commercial property.
According to the report, the investment group bought the Palm Lakes Plaza retail center located in Margate. The reported selling price was $15.1 million, which was a 38 percent decrease from the last selling price in 2006, when it sold for $24.4 million.
The health of the housing market in South Florida makes a move by investors to branch out into commercial property a big potential for profit. As the population recovers from the housing crash, and probably increases, there will be plenty of opportunities for entrepreneurs who are looking for retail or office space. It could be a good time to jump in, but interested parties – whether looking to buy, sell or lease – should be sure to have all agreements reviewed carefully to ensure the best results at closing.
Source: South Florida Business Journal, “Margate retail centers sells at 38 percent discount,” Oscar Pedro Musibay, Feb. 6, 2013