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Good News in Three Key Miami CRE Sectors

MIAMI—“Growth is being fueled in part by new employers entering the market and by internal growth.”

By Jennifer LeClaire | jenniferleclaire | | Updated on May 23, 2016
Brian Belt Gunster attorney Brian Belt has his eyes on South Florida commercial real estate,
MIAMI— Gunster attorney Brian Belt has his eyes on South Florida commercial real estate and has identified eight key trends to watch . He’s also got some strong insight into the multifamily vs. condo question. In part three of our exclusive interview, Belt breaks down what he sees in the industrial , retail and office sectors in South Florida. Generally, the news is good for developers, landlords and investors. Industrial Segment: Belt tells GlobeSt.com there is still very low vacancy rates and a flight to quality in industrial. He anticipates, particularly in Miami-Dade County, that the very low vacancy rates will continue and that modest growth in rents will also continue.  “The flight to quality will persist as many users look to have access to buildings with higher ceiling heights,” Belt says. “Additionally, as vacant becomes even scarcer we are seeing industrials looking for building that will also allow them to park their trucks and trailers.” Retail : Retail continues to be the hottest market in South Florida, according to Belt. Vacancy rates are extremely low and should continue in this fashion, he notes, in part fueled by the extraordinary number of visitors. “Local stores and tenants are getting squeezed by higher rents at prime sites and there may be some opportunities for secondary shopping centers to thrive in this environment,” Belt says. “Rents are up and tenant concessions are down. Bargaining power is decidedly in the hands of landlords.” Office : On the office front, Belt stresses there has been very little new capacity built in the urban core areas over the last few years, in part due to high land prices and high construction costs. As a result, o ffice vacancy rates are generally in good shape and the lack of new product is tipping the balance of power in the favor of landlords. “Growth is being fueled in part by new employers entering the market and by internal growth,” Belt says. “However, the influence of internal growth of existing tenants is somewhat mitigated by more efficient uses of space and the need for less space as the result of the use of technology.  There is a flight to quality as tenants look for more efficient designs, energy savings and newer space.”

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