The real estate market in Florida continues to remain hot at the start of the new year, but one area that is drawing special attention is the Miami-Dade region. The commercial real estate market in this area appears especially promising. The outlook regarding the region's market for office space, in particular, is positive, due in part to steady employment growth, as well as brand new office developments.
The average office vacancy in the area was actually expected to fall last year to just under 15 percent. However, this is still much higher than the average of a little over 10 percent cited before the recession that began in 2008. Commercial deals are possible today because Miami area is drawing a large amount of capital from investors who are well-informed about the market.
One major commercial real estate deal that recently took place in Miami involved the $140 million sale of an office tower spanning more than 280,000 square feet and reaching as high as 13 stories. This tower features an adjacent parking structure that is five stories tall. A total of 29 tenants currently occupy the property, which is over 90 percent leased.
Both developers and investors may be excited by the outlook for the Florida commercial real estate market this spring because of its strong outlook. However, deals that are not entered into properly may end up falling through or costing an investor more than he or she anticipated. An applied understanding of real estate law in Florida may help people to structure transactions that will benefit them in the long term.
Source: cpexecutive.com, "CBRE Closes Sizable Sale of Miami Office Tower", Scott Baltic, Feb. 16, 2015