Changes to South Florida’s Office Market
South Florida Office Real Estate Market Changes
2020 has been off to an interesting start, and the commercial real estate industry has certainly seen the impact. While the luxury housing market is doing surprisingly well, the office market has not been as lucky. There have been some interesting developments, but as a whole, the commercial real estate market has seen a steady decline since the start of the decade.
Distress in the Industry
So far in 2020, the commercial real estate industry for South Florida peaked in January and has seen a decline every month since. The total number of monthly sales has decreased considerably, with April taking a particularly hard blow. There’s not as big an issue with tenants paying their rents, but there aren’t many new properties being bought or leased at this time.
Stability In 2019 For Commercial Real Estate
Throughout late 2019, the commercial real estate industry remained relatively stable, and experts believed that the trend would continue throughout 2020. The market was receiving considerable boosts from increasing tourism, higher wages, greater employment numbers, and an increase in population. Unsurprisingly, the residential real estate market was also doing well.
A Surprising Increase
While the commercial real estate market is taking a hit right now, there may be a rising market for out-of-state buyers. Some property owners are seeing interest from those in cities like New York, Los Angeles, and Chicago. Business owners in these cities are looking to set up satellite offices in South Florida in an attempt to give their workers more flexibility and space. This is in line with the increase we’ve seen in business in the luxury real estate market.
A Bright Future?
Some are predicting that the South Florida commercial real estate market will see a boom later in the year. Though properties are remaining vacant now, future buyers may be able to grab these coveted offices at a fraction of the price. Many remain optimistic about the future of the industry, but it’s a matter of time before the market will prove itself.
If you’re looking to purchase commercial real estate now or at some point in the future, be sure to get a commercial real estate attorney. These professionals can help you navigate the complicated work of property purchasing. Mark Schecter is one of the top South Florida commercial real estate lawyers and can help you find and purchase your ideal business space. Contact Mark today to learn more.