The Real Deal Miami

Reports: Hotel industry surpasses 5 million rooms…and more

The week in real estate market reports

August 14, 2015 12:45PM
By Katherine Kallergis

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Ocean Drive in Miami Beach

Ocean Drive in Miami Beach

Hotel rooms in the United States surpass 5M rooms: STR

The number of hotel rooms in the U.S. reached a new record when it passed 5 million in June. The room count plateaued at 4.5 million rooms in February 2008, according to STR. The 5,001,163 rooms are in 53,554 properties nationwide.

“The hotel industry is a sector of real estate that continues to attract investors,” Amanda Hite, STR’s president and COO, said in a press release. “The rate of growth in the industry reflects the continued interest in the sector and its ability to generate return. RevPAR (revenue per available room) in the U.S. has grown year-over-year for 64 consecutive months. With more of the same in the forecast, we expect growth in the industry to continue.”

Class B rents rise as demand for office space increases: JLL

Class B office rents in Miami’s Central Business District are up by more than $4 per square foot, according to JLL’s Q2 Miami office market report. That’s a 16 percent difference from 2010 to 2015. The office tower at 800 Brickell Avenue, a Class B property, set a record in the CBD of nearly $534 per square foot when it sold earlier this year.

South Florida home values up year-over-year:

Home values in South Florida are up 6.12 percent from May 2014 to May 2015, reinforcing the upward trend from the market’s lowest index of 131.48 in November 2011. The market peaked in December 2006 at 261.7, according to a home value tracking index. South Florida has rebounded by 76 percent as of May of this year.

Week in review

Earlier this week, South Florida ranked among the nation’s highest for residential loans recorded during the second quarter of this year; Miami also saw an overall increases in office rental rates and absorption of office space; and the volume of $1 million-plus loans on Palm Beach County properties rose significantly in July, as pricey deals in the area continue to climb.