Magazine article Mortgage Banking

Focus on Florida CRE

Magazine article Mortgage Banking

Focus on Florida CRE

Article excerpt

Several Florida markets are beginning to see effective rents increase after prolonged static market conditions; according to CBRE Florida Research, Tampa, Florida.

Increasing trade, stability in some housing markets and some new construction activity have increased the demand for industrial space in Florida markets, according to the firm's Florida Rent Cycle Report.

Miami, which has seen increasing industrial rents for some time, is starting to see effective rents "increase at a faster pace." And with limited quality industrial space available in Miami, "users are beginning to look in southern Broward [County]," said the report.

Palm Beach, Jacksonville and Tampa Bay all reported "consistent" levels of net effective industrial rates at the end of the fourth quarter. With these markets reporting stability, CBRE anticipates no further declines in effective rents.

With Floridians' consumer confidence largely unchanged, most Florida retail markets remain at the bottom of the effective rent cycle with rent growth not yet accelerating.

In Broward County, Palm Beach, Tampa Bay and Jack sonville, "effective rents are anticipated to remain stagnant until surplus retail space is absorbed," said the report. It anticipates no further rent declines and predicted that growth may return to these markets within the next six months but cautions it "will likely be slow, beginning with class-A centers in prime locations."

The Orlando and Miami markets, benefiting greatly from their strong tourism bases, are already experiencing effective rate increases.

Effective rents in Florida's office markets continue to lag the industrial and retail markets. "The Tampa Bay, Orlando and Miami office markets are experiencing small increases in demand from tenants as well as improving local economies, but effective rents have not increased marketwide, " said the report. …

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