Even though our South Florida readers have seen time and time again ample evidence that the residential real estate sector has been performing admirably over the last year or so, it seems that the commercial real estate market is playing catch-up. The numbers concerning commercial property, such as retail sites, industrial property, warehouses and especially office buildings, pale in comparison to the red-hot residential sales and development figures. However, the gap may be closing.
According to a recent article, the South Florida commercial real estate sector will be among the hottest areas in the country this year, when compared to the rest of America. Miami in particular will be a focal point, with international investors pumping money into commercial interests in that area as well as residential properties.
In fact, only four other cities in the country – New York City, San Francisco, Houston and Dallas – are expected to see similar increases in commercial real estate purchases. While energy companies are driving the growth in Texas, Miami is seen as a jumping point to trade with South America.
Most experts expected that the commercial real estate market would slowly but surely come along behind the residential market. Financial difficulties during the economic downturn saw many companies throughout the country reconsider their fiscal direction and responsibilities, and as a result some had to turn to bankruptcy protection just to make the changes that the company required. Now, as businesses everywhere begin to see more profit and fewer economic hurdles on the horizon, it appears that the commercial real estate market in South Florida is set to take off just like the residential market has over the last year.
Source: Investors.com, “Sun Belt Shines In Commercial Real Estate,” Joe Gose, May 30, 2013