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South Florida Real Estate
Miami Real Estate: Overall First Quarter Commercial Sales Decrease 54% From 2009 Levels
Over the last 12 months, the price per square foot has decreased across all commercial sectors.
- Office 38%
- Industrial 21%
- Multifamily 15%
- Retail 3%
Miami Commercial Real Estate: Several of the Top Distressed Properties in Miami-Dade County
According to Trepp, the commercial real estate loan tracking firm, some of the highest-priced distressed properties are in Miami.
Miami’s Commercial Real Estate Market – Third Quarter Update
Whereas Miami’s residential real estate market is seeing relatively steady increases in sales over last year, our commercial market’s third quarter sales plunged 70% compared to 2008. The price per square foot has decreased in the industrial sector the most, down 23%, followed by multifamily 14%, office 12% and retail 9%. It is interesting to note that the price per square foot decrease does not necessarily correlate with the number of distressed properties in each of these sectors, but rather with their actual use. It makes sense that if industries are closing that sector would have high vacancies (therefore lower pricing) and that the multifamily, in competing with the over supply of residential real estate, would also see a decrease in their pricing.
This huge decrease in commercial sales and pricing is not unexpected, as the commercial real estate sector typically lags behind the residential real estate market.
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