2023 Commercial Real Estate Projections In South Florida
South Florida Commercial Real Estate: What You Need To Know
The commercial real estate market in South Florida is expected to grow steadily in 2023 continuing to rebound after the pandemic. The market has been fluctuating but the market is looking good with increased investment and construction activity. This includes the popular Foundry which broke ground in Coral Springs Industrial Park this month as well as Lincoln grabbing a construction loan for $103M for their Doral apartment project.
- Office space vacancy rates are projected to fall from 12% in 2020 to 10% in 2023. Rents are expected to rise 2-3% per year over the same period. Industrial space vacancy rates are projected to fall from 9% in 2020 to 7% in 2023. Rents are expected to rise 3-4% per year over the same period.
- The retail sector is projected to continue its recovery, with vacancy rates falling from 10% in 2020 to 8% in 2023. Rents are expected to rise 2-3% per year over the same period.
- The hotel sector is also projected to continue its recovery, with occupancy rates rising from 60% in 2020 to 65% in 2023. Average room rates are expected to rise 3-4% per year over the same period.
- Investment activity is expected to increase in all sectors, as investors seek to capitalize on the market rebound. Sales volume is projected to reach $10 billion in 2023, up from $8 billion in 2020.
Construction In South Florida
Construction activity is expected to increase, as developers begin to build new projects and expand existing ones. Office construction is projected to increase 30% in 2023, while industrial construction is projected to increase 20%. Retail and hotel construction are also expected to increase, although at a slower pace.
Looking to break ground on commercial real estate or launch retail?
The South Florida commercial real estate market is expected to continue to thrive in 2023, with increased investment, construction activity, and sales volume. Leah Mayersohn is a South Florida real estate attorney who can help you navigate the market and guide your investment in the right direction. Contact Leah Mayersohn today.
