The Investment potential of Commercial Real Estate in Miami

Commercial Real Estate in Miami – A new Investors paradise

Prices will increase as absorption of Commercial Space increases and new construction slows down

Commercial real estate in Miami is becoming the next best thing for international investors looking into our city for investment purposes. A recent study concluded that the inventory of Miami’s offices is decreasing rapidly while the construction of new workplaces is slowing down. This together with a rising demand for commercial real estate because of an ever growing population and interest in Miami as a business hub for Latin America can only mean one thing ⇒ An Increase in prices.

The Brain Gain of Miami – No1 Happy Place to work

According to above mentioned study group the prime office rental rates could rise with as much as 15% to 25% during the next two years.

One Flagler Boutique offices – Read all the details here

Investors have discovered Miami Again – This time not just for residential real estate

 

With a continuously growing and diversified economy, Florida’s economy remains strong and seems to continue going strong with Investments from Europe, NY and Latin America. South Florida, with its booming tourism, as well as increasingly world-class restaurant, hotel and retail offerings, is growing in popularity, said Gregory Rumpel, managing director of JLL’s Hotels and Hospitality Group. “People have discovered it again,” he said.

“Four years of no supply and already a tight market. The sky is going to be the limit for rental rates
Jeff Morris, managing director of Capital Markets for JLL

Three of the nation’s top 10 retail destinations now under construction are all in Miami: the Design District, Miami World center and Brickell City Centre, said Nitin Motwani, principal and managing director of Miami Worldcenter Group. The demand for space remains strong among national and international retailers that are lured to Miami’s tourist base, he said, citing Brazilians who arrive with empty suitcases to fill with purchases. Motwani, who was involved in creating Venture Hive, an entrepreneurial shared workplace near downtown Miami, said he has had overtures from developers interested in creating similar sites. “The challenge is financing, because it is not the norm, but it will be in 10 years, ” he said.  With only a handful of new commercial projects, a growing economy and an increasing demand in commercial space, the rising popularity of shared office space will change the face of work sites, as millennial entrepreneurs flock to the urban core, including Wynwood, the Design District and Miami Beach.

 

Forecasts on Miami’s Commercial Real Estate

Reis, the nation’s most trusted provider of commercial real estate market data, research and analytics, made a forecast for Miami’s Commercial Real Estate Sector

Retail Sector

With the bulk of the action taking place in large core are a mixed-use developments, the community-neighborhood center market should remain on the sidelines. Additional declines in its already-low vacancy rate are expected along with rent growth at about 3.0% this year and next. “The outlook for South Florida’s retail market continues to be strong, as investors fight to get a piece of the pie no matter the cost,” states Cushman & Wakefield.

Office Sector

Reis expects a large excess of demand over new supply in 2014. Vacancy should end the year at about 16.0% while rent growth, doubling last year’s increases, runs at about 2.2% on average. The small volume of new space expected for 2015 is not expected to interrupt the progress in occupancy and rents now under way.

 

Interested in Commercial Real Estate in Miami

For Investment advise or other inquiries contact our Commercial Real Estate Specialist 

David Siddons | david@siddonsgroup.com | +1.305.508.0899

WHY WORK WITH DAVID? THINGS YOU SHOULD KNOW...

For all our analytics we are agents driving some very unique and advanced tech. We Provide a granular and custom experience that empower our clients with the insight and tools to understand the most complex behaviors of any local markets.

  • Analytical

    Over 100 reports produced to date

  • Knowledgeable

    Over 1800 published articles and counting

  • Experienced

    Over $2 billion in real estate sales

    Reviews
David Siddons
blog
Akbota YerseitAkbota Yerseit
13:29 03 Jun 22
Excellent leaders!
Cathryne HaladnerCathryne Haladner
12:12 18 Sep 21
We have only superlatives to describe how wonderful Cris Buzolin was throughout the process of selling our townhouse in Coral Gables. We were away in the UK while the transaction was taking place and Cris handled everything-from clearing out our house, selling contents when she could, arranging the moving and storage and dealing with some very difficult problems which arose. Always patient and very willing to help in every way, Cris is a consummate professional who really cares about her clients and worked extremely hard to get the price we had asked for and make things for us as easy as she could. Nothing was too much for her to handle.Cris and Marianela (who provided additional very helpful assistance to us during the transaction) are part of the team that David Siddons has assembled.When we decided to sell our property, we contacted David and he established the framework for the transaction and ensured that everything proceeded smoothly and in accordance with our wishes. In sum, David Siddons and his team are extremely competent and professional and we are totally satisfied with the service they provided. To repeat, Cris Buzolin in particular, went way beyond what one would expect from a real estate agent. The David Siddons Group has our highest recommendation!
Jose Eduardo FilhoJose Eduardo Filho
17:17 13 Jul 21
I thank the whole team and especially Cris Buzolin who, in a very professional and competent way, helped me to sell my property safely and in the best market condition.
Idan Singh (Idan)Idan Singh (Idan)
19:53 07 Jun 21
Great Service for British Expats looking to move to the States.
Simone GarrettSimone Garrett
17:20 26 Feb 21
Fantastic group of people to work with!! David and Adriana were responsive and professional throughout the entire process. We weren't familiar with South Florida so David took us under his wing and did a fabulous job giving us a tour of select neighborhoods in South Florida and shared a great deal of information about each. We fell in love with the Botaniko community in Weston and closed the deal with Adriana. If you are buying/selling this is the team you want to work with!! Thank you guys for helping us find our dream home.
js_loader