South Florida Assets Performed Well In Q4
The other asset classes performed well too, according to a report by data firm Vizzda and the MIAMI Association of Realtors Commercial.
MIAMI–South Florida industrial real estate prices increased 11.4% year-over-year in the fourth quarter, with the Miami-Dade, Broward and Palm Beach tri-county region posting its second highest industrial transaction volume for the year, according to The Quarterly Report – South Florida Commercial Real Estate released by data firm Vizzda and the MIAMI Association of Realtors Commercial.
Miami-Dade County had 114 industrial sales in 4Q 2017 — an increase of 6.5% over the previous quarter and the second highest quarterly total since 1Q 2017. Broward County square footage transacted and total dollar volume jumped from the same period last year, while the number of transactions fell slightly to 68 in 4Q 2017. Palm Beach had 37 total industrial transactions, with the West Palm Beach/Riviera Beach submarket scoring the highest number of transactions and square footage transacted.
Multifamily
Despite an increase in new inventory, Miami-Dade multifamily transactions increased 44% year-over-year in the 4Q 2017. The average price per multifamily unit was up 49% in Broward County compared to the same quarter last year, according to the report. In Palm Beach, price per unit was 49% higher than the price per unit in 4Q 2016.
Retail
About $2.7 billion in retail property changed hands in South Florida in 2017. The total square footage transacted across all three counties increased 29% year-over-year in 3Q 2017. Miami-Dade County had 80 retail sales in 4Q 2017 – the second highest total for the year. Broward County posted an average value of $4 million per retail transaction, which equates to $268 million in dollar volume – a 37.9% quarterly increase. Palm Beach County retail saw a 28.7% increase in per square foot valuations compared to 4Q 2016.
Office
Nearly 40% of the 10.7 million square feet in office that transacted in 2017 was located in Miami-Dade County. Miami-Dade had the highest dollar volume for the year, capturing 47 cents of every dollar spent on office in 2017. In fact, Miami’s office market is outperforming Boston, Chicago, Atlanta, Houston, Washington, D.C. and other top-tier markets. Broward County had the highest per square foot office transaction average of the year at $246. In Palm Beach, the Boca Raton submarket claimed 47 cents of every dollar spent on office in Palm Beach during 4Q 2017.