Although the commercial real estate market looks promising in Florida, some aspects of the market are faring better than others. For instance, commercial real estate such as traditional offices is not gaining the momentum one would expect. Meanwhile, the industrial real estate field has made dramatic gains.
Historically, a recovery in the housing market positively affected the traditional office sector. However, this year, those gains have yet to be seen. Still, industrial-sector growth has actually motivated a development company in Manatee County to move forward with plans for building a distribution center/trade port spanning a million square feet, even without any commitments from future tenants.
The industrial sector’s gains have improved Southwest Florida’s economic outlook. Regarding the still-struggling office market, such markets usually lag after getting hit, and they typically are the last ones to recover. As a result, there is still hope that the region’s office market will turn around for the better; there fortunately have been some improvements since the recession of 2008.
In today's market, commercial real estate may be a wise investment in Florida, and developing real estate can help a business to expand. However, a deal can end up being rocky if the details are not handled correctly or if both sides can’t see eye-to-eye. These problems can be costly in terms of both money and time. Before proceeding with a commercial real estate transaction, it is often advantageous to obtain an accurate knowledge of related laws, thus increasing one’s chances of succeeding in the deal and realizing one’s personal goals long-term.
Source: Herald Tribune, "Commercial real estate remains a tale of two markets", Josh Salman, June 6, 2014