Part of the appeal of investing in real estate, both residential and commercial, is the patience that is involved. Real estate, unlike the stock market or other investments, doesn't usually fluctuate as quickly - or as wildly. And, if an investor has a good eye for when and how a particular area may develop or change in the future, getting in on the "ground floor" can pay big dividends in the long run.
Most companies start out by leasing commercial property for their business operations. But, if profits go up and the company is starting to look like a success, some businesses may begin to think about purchasing commercial real estate instead. It's the old "rent vs. buy" situation, and many companies often come to the conclusion that it is simply a better investment, or more cost effective, to own the property where they conduct business.
Some of our South Florida readers may know that major metropolitan areas across the country are vying day and night to host conventions and symposiums held by trade associations, advocacy groups or sports organizations. These events bring much-need revenue to cities throughout America. But sometimes an organization will select a certain city to highlight that area's contribution to their overall goal. It appears that was a major factor for a recent event in Miami, the annual conference of the Global Diversity Summit.
With all the talk about the red-hot South Florida residential real estate market our readers would probably expect to see commercial property, like office buildings and retail centers, filling up with tenants. A recent report noted that Palm Beach County alone has nearly 29.6 million square feet in commercial real estate, but anyone who thinks that this type of property may be too hot to handle may want to think again.
As the residential real estate market in South Florida continues an unbroken streak of good months, most of our readers would probably expect to see more office buildings and retail locations filling up with tenants. After all, it goes without saying that where there's paying customers to be found a company will usually try to get a foothold in that area. So, is commercial real estate in South Florida beginning to reflect some of the positive news coming out of the residential side of things? A recent report suggests that just might be the case.
Although there has been a tremendous change in the South Florida real estate market over the last couple of years, many of our readers may not realize that commercial real estate has been playing catch-up to the residential market. For years office buildings, warehouses and retail space have been fairly cheap to come by, with many areas simply sitting empty for long stretches of time. However, according to a recent report, the commercial property market appears to be bouncing back.
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.