Miami's Commercial Real Estate Sector Continues To Attract Investments

The general definition of commercial real estateto rebound in 2009. The report also includes the
commonly involves referring to a vast array offirm's annual National Office Index, which analyzes
office buildings, licensed brokers, available listings,and ranks 43 office markets based on a series of
company agents, sale prices, high rise leases, loans12-month, forward-looking supply and demand
agencies, developer conditions, offices, spacesindicators. Miami moves down six places this year
with views, for sale listings, special sales on officeto No. 23.
rooms, lending agents, appraisal companies, leasingAccording to the regional manager of Marcus &
terms, public parks and auction prices for land.Millichap, properties in infill areas in North
The Miami commercial real estate scene, and theMiami-Dade County, Hialeah and Kendall will
whole of South Florida as well, continues to becontinue to be attractive defensive investments,
buoyant despite the wrath brought about by thebecause of the area's record of steady tenant
mortgage crisis. While the residential marketdemand and difficulty adding new supply. The
continues to get a beating, the commercialreports highlights include: builders are expected to
property markets, although also feeling the brunt,complete 600,000 sf of for-lease space; vacancy
continue to attract buyers, and does not succumbis forecast to stay at 9.7% by year-end; asking
to the pinch caused by rising mortgage rates,rents are projected to increase by 4.6% to
foreclosures and falling median home values,$30.32 psf; and effective rents will rise 4.1% to
owing to the fact that commercial real estate$26.01 psf.
investors tend to be larger firms or investmentThe South Florida Region Continues To Rank High
trusts, and not individual home buyers.Among Commercial Real Estate Investment
Miami-Dade Office Markets Continue To BeAccording to Real Capital Analytics' recently
Attractivereleased report on global property market
The softer demand seen today in the officetransactions, the South Florida region ranks 15th
space market will, according to analysts, result inglobally for commercial real estate deals. The
a higher vacancy rate and a more moderate pacereport is the first to exhaustively track
of rental growth in Miami-Dade County this year,transactions in major metropolitan areas globally,
although overall conditions will remain relativelyand has tracked $1.04 trillion in office, industrial,
healthy, based on the 2008 National Office Reporthotel, retail, land and apartment sales worldwide in
by Marcus & Millichap.2007. In all, 114 metropolitan areas tallied more
Vacancies will increase this 2008, however thethan $1 billion in transactions.
long-term outlook is positive, as demand is seen