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
BH Properties' Steve Gozini and Vornado's Steven Roth with 1100 Lincoln Road (BH Properties, Getty, Google Maps)
Steve Roth’s Vornado sells Lincoln Road building for $94M, nearly 30 percent less than it paid a decade ago
Steve Roth’s Vornado sells Lincoln Road building for $94M, nearly 30 percent less than it paid a decade ago
Renderings of Koosh Living (Kaller Architecture of Hollywood)
Dania Beach approves 231-unit multifamily development with mostly studio apartments
Dania Beach approves 231-unit multifamily development with mostly studio apartments
Aimco's Wes Powell with Edgewater (Aimco) Miami, High Rise
Aimco plans 60-story apartment tower on waterfront site in Miami’s Edgewater
Aimco plans 60-story apartment tower on waterfront site in Miami’s Edgewater
Shaul Rikman, Roni Soffer, Mati Rikman, and Moshe Wechsler with 21077 Powerline Road (Isram Realty Group, Emerald Empire, Google Maps)
Emerald Empire pays $25M for shopping center near Boca Raton
Emerald Empire pays $25M for shopping center near Boca Raton
From left: David Huke, Alex Karakhanian, and Abraham Hidary with 1601 North Miami Avenue (LoopNet, Hidrock Properties, LNDMRK Development)
Hidrock Properties partners with Alex Karakhanian on Miami A&E dev site
Hidrock Properties partners with Alex Karakhanian on Miami A&E dev site
Moderno Development managing partner Doron Broman and a rendering of Rivr Lofts (Cube 3, Moderno Development)
Moderno nabs $102M construction loan for Fort Lauderdale apartment tower
Moderno nabs $102M construction loan for Fort Lauderdale apartment tower
Brick + Timber principals Glenn Gilmore and Jesse Feldman and photo of the building at 2724 and 2734 Northwest First Avenue in Wynwood (LinkedIn, FutureVision Studios)
Brick & Timber Collective is piling up Wynwood properties, pays $9M for new office/retail building
Brick & Timber Collective is piling up Wynwood properties, pays $9M for new office/retail building
From left: Prestige Companies COO Alexander Ruiz, CEO Marty Caparros, and partner Dennis Rodriguez (Prestige Companies, Compass)
Prestige JV pays $15M for Salvation Army site in Hialeah, plans 112 rentals
Prestige JV pays $15M for Salvation Army site in Hialeah, plans 112 rentals
arrow_forward_ios

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

Loading...