One of the world's leading advisory firms for commercial real estate has explained to clients how steady market fundamentals across South Florida have had positive effects on commercial real estate during the first quarter of 2013.
At Newmark Grubb Knight Frank's 2013 State of the Market event, keynote speaker Robert Bach explained how a combination of market fundamentals - specifically job growth, retail sales and the housing market - is encouraging growth in commercial real estate across America.
Office vacancy rates, specifically in South Florida, reportedly fell slightly across the board; Broward County produced the lowest vacancy level at 16.1%. The industrial sector also produced promising figures, with vacancy levels having decreased in both Broward County and Palm Beach. Vacancy in Miami was relatively flat overall, but did record an encouraging amount of activity.
Jon Bourbeau, vice-chairman at NGKF's Miami office, said: "Across South Florida, over 1.1 million square feet of office leasing activity was tracked in the first quarter." He continued: "The majority of deals came from tenants already in the market in the form of expansions, renewals, relocations and, in some cases, contractions, but the pendulum appears to have swung with demand outpacing supply."
With evidence of an improved market and the amount of new development across the state being kept at a reasonable level, the increased demand is expected to affect rental costs for office and industrial spaces throughout the upcoming year, with moderate rises predicted.
Bach also said: "The spike in demand for residential real estate is a harbinger of stronger growth on the commercial side," adding: "This is especially true for retail, as homeowners look to remodel existing properties or homebuilders deliver new projects."
