Commercial Real Estate In South Florida
Investing In South Florida Commercial Real Estate
If you are in the market for commercial real estate investments or are considering investing in South Florida, you are in good company.
The “Where” In South Florida Commercial Real Estate
Investors’ are primarily concerned with, you guessed it, location, location, location. With that said, the most unlikely locales may provide the biggest return, even amidst pandemic closures. While many establishments have closed their doors, now is the time to settle in comfortably as some locations may be positioned for post-pandemic growth.
In recent news, areas from Little Havana to Coconut Grove may be ripe for investment. There are various factors that investors look at in order to determine where to invest funds. One important element is rental revenue. Due to the latter, many investors have had to cut their losses based on lower returns on some of their assets. Regardless of whether you are dealing with a retail store or a restaurant, investors are now deciding on how and where they will lease, refinance, or sell. So where are they investing? Single-family homes and multi-family units among the top investment avenues with a special emphasis in South Florida areas with densely populated or metropolitan cities and towns in areas.
Value-Based Properties
Investors must weigh their options on how to properly adjust investments and how and where to conserve or financially commit. So what are some of the check-points that identify investable properties or opportunities in commercial real estate:
- Properties with added value and income-producing potential
- Stable properties that have a long-term growth projection
- Is the property essential or not
- Can the property be re-purposed?
Best Commercial Investment Types
The downturn on some commercial real estate properties has centered around some specific property types. For example, those that are central to housing have done better. The housing market has remained close to or exceeded retailers in the state of Florida. That is not to say that commercial real estate whose purpose is allocated to commercial retail or restaurants are a bad investment, it speaks more to how the housing market continues to make larger strides.
Commercial Property that fit the bill for friendly investments are:
- Single-family homes in South Florida are investment-friendly
- Industrial properties
- Multi-Family homes and properties
- Healthcare-related properties
Repurposing Properties
Digging deeper, it is important to note that skilled and knowledgeable investors understand the need to repurpose properties. This means that those in possession of investments that seem to be losing value like entertainment or restaurants still have an upside ahead. It is critical that when necessary, an investor understands the opportunity ahead of them in terms of repurposing a property. The need for good commercial properties is high in South Florida so, if you find a venue or locale that is positioned in a good location for growth, don’t miss the opportunity to invest in that location and re-purpose if for your investment needs.
Now Is The Time To Invest
There are a vast number of opportunities in South Florida so, whether you plan on buying or selling, now is the time. Location and proximity to urban centers are on the rise and only expected to grow. Demand will continue to persists so it is a good idea to take advantage of the market and expect to grow post-pandemic. Locations positioned near rapidly growing areas like multifamily units and a hop, skip, and jump from affluent neighborhoods may be the best options ahead.
