Last year was a tough year for many industries, and Florida’s commercial real estate was no exception. With many businesses closed, many employees working from home or out of work, it wasn’t a great time for investors, developers, owners or just about anyone else whose livelihood depends on retail space, office space and other commercial real estate.
Still, there were signs of life in Florida’s commercial real estate market, particularly at the high end. A list of the top 10 Florida commercial real estate deals in 2020 shows some eye-popping sales prices.
High-end hot spots
Topping the list was a large complex in Duval County currently rented and used by Amazon as a fulfillment center. The site sold last August for nearly $108,000,000.
In fact, Duval County dominated the list, taking nine of the spots on the Top 10. St. John’s County was the only other county represented. The sale of a large apartment complex outside of Jacksonville brought in $79,500,000 last April.
Risk and reward
It appears that business is still pretty strong for buyers and sellers in the highest reaches of Florida’s commercial real estate market. For everyone else, things are riskier now than ever. When tourism, hospitality and other industries return to pre-2020 levels, there will be a pent-up demand for commercial real estate. Unfortunately, no one is sure when that day will arrive.
Commercial real estate has always been a business of high risk and high reward. Luck plays a big part in anyone’s quest for success in commercial real estate, but it’s far too expensive to depend on luck. Instead, successful developers, investors and others in the business rely on attorneys with experience in commercial real estate law, risk management and careful business planning.