Sa Look At The Commercial Real Estate South Florida Market

Although each location offers some unique topographical and infrastructure characteristics, commercial real estate in South Florida still follows and is informed by some of the trends around the country. The sunny side of the state can expect to sustain the bright outlook, according to experts, if certain things are put into perspective.

Net absorption, in general, has been leaning toward the positive since last year and the only time absorption rate drops is when the reality of fewer supplies set in. Given that net absorption measurements aid in knowing more about the relationship between supply and demand in real estate, it is important for tenants and developers to evaluate these things for them to have a finger on the pulse of market movements.

Image source: terragroup.com

Before the end of last year, there was a sudden demand for offices, industrial, and retail spaces that provided the necessary boost for the following year’s momentum. The supply shortage resulted in higher rents, and a lot of developers expressed construction plans that should eventually fill in the gap.

New commercial real estate dynamics stem from disruptive commercial space configurations that are continually changing how companies operate businesses and how people navigate the metropolis. Demands for warehouses and distribution hubs for e-commerce suppliers have also gained ground in South Florida. Tenants for “big box” spaces will continue to be a major challenge for most developers because of the growing preference for small alternative and shared office spaces.

Image source: terragroup.com

The tri-county region of South Florida is also considered to be ideal for distribution given its strategic geography that encourages efficient and flexible shipment of goods and materials whether domestically or internationally.

Pedro Martin is the Chairman, Chief Executive Officer, and Co-Founder of Terra Group. Before establishing Terra Group, he practiced real estate law as a partner at Greenberg Traurig for 25 years. Through the years, he has been an influential figure in South Florida’s real estate industry. To learn more about him, visit this page.