Commercial Real Estate in Third Quarter 2012: How is South Florida Doing Compared to the Rest of the US?
If you review the latest report from the National Association of Realtors on how commercial real estate markets are faring in the country over the third quarter of 2012, you will find the following overall:
- commercial real estate markets "showed continued stabilization"
- Sales volume rose 6% over the same three month period in 2011
- However, prices were lower than the same three month period in 2011 by 4%
- Leases were about the same, down 1% while rents were cheaper by 3%
- Average commercial real estate transaction went down from Q2 to Q3 in 2011: the third quarter average was $985K while the prior quarter saw $1.1 million as its average
How Does South Florida Compares to the Nation?
As part of its survey, the NAR asked commerical realtors to comment on their neck of the woods and what they were experiencing. Here are a few of the comments from Florida's commercial realtors, specific to the region:
- "strong interest from investors for multi-family and hotes in South Florida"
- "lack of population growth and the highest unemployment in Florida"
- "Miami Dade County is large. Therefore, vacancy rates depend on the sub-market. Coral Gables is much lower than Homestead."
However, many of the comments provided by commercial realtors around the United States voiced concerns over financing and the lack of financing options available to real estate investors.
Another ribbon running through the realtor commentary: fears of the future after the presidential election insofar as what will happen tax-wise, and with regulations, as well as a lack of confidence in the commercial real estate market bouncing back in the next few years. Several comments with a depressed attitude came from realtors with literally decades in the business, giving descriptions of their experiences right now as being the worst that they've seen in their careers.
Read the Report on Third Quarter 2012 U.S. Commercial Real Estate
From the National Association of Realtors, their Commercial Real Estate Market Survey for the third quarter of 2012: