Florida’s commercial property market will continue to recover at a slow and steady pace, with Miami-Dade County currently leading the way in new activity, according to a new report by CB Richard Ellis.
The turning point for commercial properties came in late 2010, the mid-year report shows, and positive trends in leasing and sales activity for both commercial and residential buildings has been sustained over the past six months.
“Our outlook for Florida is a slow and steady recovery over the next five years,” said Mary Jo Eaton, senior managing director for CBRE in Florida. “During the remainder of 2011 we anticipate seeing more leasing and sales activity — largely in prime submarkets.”
In Miami Dade, office vacancy rates are still in the double-digit range — around 20 percent — and new office construction is scheduled for delivery later this year. Industrial leasing activity continues to demonstrate strong demand with over three million square feet of space leased during the first half of the year and positive net absorption for the fifth consecutive quarter.
The retail leasing market in Miami Dade County has the lowest vacancy rate in Florida. Very few spaces over 20,000 square feet remain, the report says. Retail sales transactions in the first half of the year were worth a total of $422 million. — Katherine Clarke