Industrial Investment Market Continues As Florida’s Leader

Industrial continues to be the hottest asset type for investment in the major Florida markets, according to the latest “Commercial Real Estate Investment Review for North America and Europe” from Avison Young.

“Multifamily maintains its popularity among investors. While office investment has slowed, we’re starting to see a lot more of the suburban assets trading very well. The retail investment market has seen some shifts due to perceptions of the sector influencing buyers to be more cautious, however, it is still a very active market,” Michael T. Fay, Principal and Managing Director of Avison Young’s Miami Operations, tells GlobeSt.com.

There continues a heathy investor appetite overall for Florida assets, while foreign capital from Latin America and Canadian investors who already have assets in South Florida are starting to expand to the north into other Florida markets, particularly Orlando, Tampa and Jacksonville, he says.

The Florida section of the report had these one-sentence current investment overviews:

  • Miami: Industrial vacancy rates fall to record lows.
  • Fort Lauderdale: Investors seizing opportunity in suburban submarkets.
  • West Palm Beach: Multi-family investment triples due to positive in-migration.
  • Orlando: Multi-family transaction volume continues to exceed expectations.
  • Tampa: Strong economic fundamentals and steady demand fuel activity.

The overall national report cited a key trend of capital continuing to flow into global commercial real estate markets, inhibited only by the scarcity of available product for sale.

Another trend is that yields on commercial real estate are still attractive when compared with alternative investments. However, limited supply and cap-rate compression are leading some investors to seek opportunities outside their traditional parameters.

The report covers commercial real estate investment conditions in 59 markets in six countries on two continents.

 

Source: GlobeSt.

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