Florida commercial real estate market slated to grow in 2015

Florida commercial real estate market slated to grow in 2015

Industry researchers indicate that 2015 will likely be a promising year for South Florida's real estate market. The commercial real estate market, in particular, is slated to grow. Florida's gross domestic product was at a high at the end of 2014, revealing that the state's economy is relatively healthy compared with those of other states.

Retail sales in Florida are currently higher than the United States' average. In addition, tourism set records in 2014. The retail and multifamily sectors of Florida's real estate market are expected to perform strongly throughout the rest of this year as well.

Industrial rents are also anticipated to climb this year. This is because not much development of industrial space is expected to happen, while the demand for such space will likely remain steady. Urban and suburban office rates will also probably rise, with there being little or no vacancies in the year 2015. More construction lenders may additionally enter the market, with financing markets slated to stay active in the new year.

With Florida's commercial real estate market showing signs of growth, investors and developers may benefit from aggressively exploring deals in 2015. However, if a deal is not approached in the right way and both sides cannot find common ground at the negotiating table, the deal may fall through. This can be costly in terms of money, energy and time. An applied knowledge of laws related to real estate may help people to structure real estate transactions that will lead to maximized business opportunities as well as minimized risk.

Source: globest.com, "Three Predictions for South Florida CRE in '15", Jennifer LeClaire, Jan. 6, 2015