The commercial real estate market for Southern Florida is definitely on the up and rising list. If you compare southern Florida to some of the nearby real estate markets you will noticed the discrepancies are in Florida’s favor. Even though southern Florida is still feeling the same recession the rest of the country is facing, they seem to be turning their luck around.
In reference to a survey that was taken recently, there are two cities that are really starting to rise; Fort Lauderdale and Miami. Even though there is still plenty of unattended real estate in these locations, they are still looking to take part in expansion. This is a bold move to take in a suffering economy.
Evidently it is the office real estate that is just now hitting the recovery phase. In the past, most investors and advisors were interested in making an investment in condos, apartments, and houses, however these days the money may be into office buildings and warehouses. People are looking into warehouses that are directly near the shore. The main reason for this is to be able to capitalize on being near ports for importing and exporting goods into the state.
Even though investors seemingly are interested in the rising potential of office buildings condo financing seems to be rising. According to a report done on the first quarter of 2012, the Miami Herald stated that “closings on construction financing, including a major development on Brickell Key ($140 million line of credit), has been increasing.” The potential funding of new development hasn’t been talked about since the recession hit.
The aspiring market rise is not going to come overnight. It’s important to note southern Florida got into this real estate downfall due to an overpopulation of condos and residential homes. The foreclosures allowed for investors to rush in, and deplete the market value of southern Florida homes. Perhaps the key for this to succeed is to focus less on residential, and more on commercial.
No comments:
Post a Comment