Commercial property in South Florida sometimes takes a backseat to the residential real estate market, mostly due to the fact that residential property in the local area is recovering quite nicely from the bottoming-out that occurred a few years back. But, despite the lack of attention, commercial real estate in South Florida is slowly but surely making a comeback as well.
According to a recent report, Broward County in particular has seen decent gains in the retail sector, and, in what used to be a market heavily slanted in favor of businesses looking for space, landlords may be in a position to re-claim the upper hand. The report indicates that, when compared to the first quarter of last year, the vacancy rate for retail spaces in the first quarter of this year in Broward County decreased by 0.5 percent. And, as further evidence of a nascent resurgence, the rental rates for these spaces are rising as well.
From a commonsense prospective, it is only logical that the uptick in commercial real estate would follow behind a recovery in the residential market. After all, it is only after residents move into an area that the need for goods and services will increase. And, with condo and apartment towers popping up all over South Florida, there may be a possibility that as the residential real estate market begins to level out a new wave of real estate recovery will take hold in the commercial market.
However, for those would-be commercial property buyers and sellers amongst our readers, it is important to note that there are big differences in buying commercial real estate as opposed to residential real estate. Keeping that in mind, and getting the right information about how to go about making a purchase or leasing agreement, can be an important first step for a business look to set up shop in South Florida.
Source: South Florida Business Journal, "Broward retail real estate market grows stronger," Brian Bandell, June 2, 2014