SoFla’s office, multifamily sales fall in Q2, year-over-year: report

Yet in Palm Beach County, multifamily sales skyrocketed 257% and the tri-county area's retail and industrial markets remain solid

Miami /
Sep.September 04, 2018 02:35 PM

Sabadell Financial Center

Some of South Florida’s best performing real estate sectors now appear to be showing signs of a cool down — with the exception of Palm Beach County’s multifamily market and the tri-county region’s retail and industrial asset sales.

A new report from the data firm Vizzda and the Miami Association of Realtors shows that the volume of office and multifamily sales fell in South Florida in the second quarter of 2018 on a year-over-year basis.

The data could suggest that South Florida is nearing the end of a cycle and after years of high demand, prices are starting to come down.

South Florida’s once booming office market declined 8.7 percent in total sales volume on a yearly basis to $799.4 million in the second quarter. Sales volume declined despite the Sabadell Financial Center selling for $249 million in June, marking one of Miami’s largest office sales.

Of the three counties, Palm Beach County reported the biggest decline in sales volume, falling 14.4 percent to $132.6 million.

The volume of multifamily sales also fell, overall, in the tri-county area. Total sales volume declined 22 percent in South Florida to $999.7 million in the second quarter of 2018 as compared to the second quarter of 2017.

Multifamily was until recently one of South Florida’s best performing asset classes due to a housing shortage in the area and a lack of affordable homes.

Broward County and Miami-Dade County saw multifamily sales dip, but Palm Beach County’s multifamily market skyrocketed by 257 percent to $617 million, especially in Delray Beach and Boynton Beach. There, more than 1,000 units traded hands through six transactions totaling more than $207.8 million in sales. Palm Beach County also registered the highest per unit valuation of the last five quarters.

The report’s numbers suggest that retail has continued to remain strong in South Florida, despite struggling nationally. Sales volume for retail increased 3 percent to $748.7 million in total sales volume in the second quarter of 2018. 

The industrial market also continues to remain a strong performer South Florida. In Broward County, industrial sales nearly doubled in the second quarter from the previous year to $240.3 million.


Related Articles

arrow_forward_ios
Mitchell Cohen with 9881 East Bay Harbor Drive and at 291 East Bay Harbor Drive (Toronto Real Estate Family Office Meetings, Google Maps, Getty)
Canadian investors drop $22.5M on Bay Harbor Islands apartments
Canadian investors drop $22.5M on Bay Harbor Islands apartments
From left: Crow Holdings' Michael Levy and NAI Miami's Robert Eckstein  with Southwest 88th and 91st streets, and between Southwest 162nd and 158th (Google Maps, Crow Holdings, NAI Miami)
Trammell Crow, Baptist scoop up Kendall Town Center dev sites
Trammell Crow, Baptist scoop up Kendall Town Center dev sites
Miami-Dade Mayor Daniella Levine Cava and an aerial of the Government Center redevelopment (Getty, Google Maps)
Miami-Dade seeks partners for Government Center redevelopment
Miami-Dade seeks partners for Government Center redevelopment
501 East Las Olas Boulevard in Fort Lauderdale, FL with CP Group’s Partner Chris Eachus and Managing Partner Angelo Bianco and Macquarie’s CEO Shemara Wikramanayake (Google Maps, CP Group, Macquarie, Getty)
Related Fund Management, CP flip portion of Las Olas Square
Related Fund Management, CP flip portion of Las Olas Square
Turnberry Associates' Jackie Soffer and LeFrak's Richard LeFrak with Rendering of the Villa Laguna (Turnberry Associates, Getty Images, SoLe Mia Rentals)
LeFrak, Soffer kick off leasing at SoLé Mia rental
LeFrak, Soffer kick off leasing at SoLé Mia rental
Tricera Capita's Ben Mandell with rendering of The Press project (Tricera Capital)
Lease roundup: Tricera scores tenants in West Palm, Boca
Lease roundup: Tricera scores tenants in West Palm, Boca
Rendering of 830 Brickell office tower; Cushman & Wakefield's Brian Gale, JLL's Manny De Zárraga, Avison Young's Donna Abood, Dwntwn Realty Advisors' Tony Arellano and Stephen Rutchik. (Credit: OKO Group and Cain International, JLL, CW, Dwntwn Realty Advisors, Cushman & Wakefield, Avison Young, Getty, 830 Brickell)
Meet the commercial brokers making bank in Miami
Meet the commercial brokers making bank in Miami
Brick & Timber's Jesse Feldman and Glenn Gilmore, Tricera Capital's Ben Mandell, and Lndmrk Development's Alex Karakhanian with Cube Wynwd (Brick & Timber, LinkedIn, Tricera, Lndmrk Development, Getty Images)
Brick & Timber to buy Cube Wynwd office building for $60M
Brick & Timber to buy Cube Wynwd office building for $60M
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...