Is this the bottom of the Commercial Real Estate Market in Central Florida? | August Newsletter
Is this the bottom of the Commercial Real Estate Market in Central Florida???
The following was just issued by a National Association of Realtors economist. They are supposed to have a better crystal ball than I have.
Your tax trim notices should get your attention this month. If you think the tax assessment is too high on your commercial properties, call me. I will only handle those that I feel are excessive. If I can’t reduce your county assessments, there is no charge!
FLA COMMERCIAL MARKETS TURNING AROUND
ORLANDO, Fla. – Aug. 12, 2011
The “2011 Florida Commercial Market Watch”, released by
Florida Realtors, finds tempered optimism in the six cities
tracked by NAR researchers, with job creation leading most
markets.”Job growth creates demand for commercial space,
and the (national) economy should be adding between 1.5
million and 2 million jobs annually both this year and in 2012,
with the unemployment rate falling to 8.0 percent by the end
of next year,” says Lawrence Yun, NAR chief economist.“Given the minimal new supply in recent years, the rising
demand means vacancy rates will be trending down in the
commercial real estate sectors. Individual markets are now
stabilizing and in some cases rising.”In Florida, NAR
forecasts employment growth in each of the major cities
through 2012. Orlando tops the prediction with 62,000
new jobs expected in 2011 and 2012. Miami follows it with
43,000, Fort Lauderdale with 29,000, and Jacksonville with
24,000. Tampa and West Palm Beach tied at 23,000. The
Society of Industrial and Office Realtors, in its SIOR
Commercial Real Estate Index, an attitudinal survey of more
than 360 market experts, shows a firming up of market
fundamentals. Although the SIOR index remains lower than
a level of 100 that represents a balanced marketplace, it has
had six consecutive quarterly improvements after almost
three years of decline. The last time the index was at 100
was in the third quarter of 2007.NAR, working with Real
Capital Analytics, projects an increased amount of
commercial investment in all Florida cities studied in 2011
when compared to 2010.Jacksonville – 100% increase.
Investor volume in 2011 is projected to hit $0.8 billion –
double the $0.4 billion invested in 2010.Miami – 75%
increase. Investor volume in 2011 should total $2.8 billion
compared to $1.6 billion in 2010.Orlando – 29% increase
The $1.8 billion NAR projects investors will put into
commercial real estate in 2011 surpasses the $1.4 billion
invested in 2010.West Palm Beach – 17%Volume from
investors in 2011 will be $1.4 billion, according to NAR,
compared to $1.2 billion in 2010.Fort Lauderdale – 10%.
2011 investor volume should hit $2.1 billion, says NAR;
in 2010, it was $1.9 billion Tampa – 7%. The $1.5 billion
in investment expected for 2011 surpasses the $1.4 billion
spent in 2010.
Charlie Brenner
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