Housing Cools, Nonresidential Hot

HOLLYWOOD, FL-The commercial real estate industry in South Florida is experiencing a “good news, bad news” scenario. While the residential sector has cooled down considerably from its red-hot pace over the past few years, the nonresidential sector is showing signs of remarkable strength.

This was among conclusions at the first RealShare South Florida held Wednesday at the Hollywood Hard Rock Hotel. About 150 people attended the event, which opened with a “State of the Market Town Hall Meeting” in which panelists discussed prospects for the 2007 commercial real estate markets. “South Florida is still growing,” said Marcus & Millichap senior vice president/managing director Gene Berman. “It’s not going into recession by any means.”

The population is continuing to grow and companies are still interested in moving to the region, in part because rental rates are cheap to other regions of the country, such as New York City. “We think the future is bright in South Florida,” said Wachovia senior vice president/market manager, real estate financial services David Warne. “On the income property side, office, industrial and apartments are all doing well.”