A number of new real estate projects scheduled to break ground could soon change the face of the commercial real estate market in Miami, a report indicates.
According to a recent report from Jones Lang LaSalle, a return to industry fundamentals in the wake of the real estate bust has seen builders developing new, empty buildings throughout the city.
As a result, the Miami commercial vacancy rate has been robust despite employment and economic hardship in the area during recent years. But with the years 2014 and 2015 just around the corner, the report indicated that there could soon be another major wave of lease expiration resulting is significant property turnovers. Leading up to this wave, real estate data shows that leasing activity is the latter-half of 2010 was nearly record-setting.
"The playing field has been leveled somewhat for the best positioned buildings and strongest credit users," Jones Lang LaSalle managing director Steve Medwin told World Property Channel. "It appears that we have reached the bottom of the market in terms of pricing and concessions for this subset of properties and tenants."
In addition, Medwin noted that Class A buildings in Miami were responsible for most of the city's absorption, as the CBD towers in the downtown area held the city's highest year-to-date occupancy rate.
The current events that have occurred in the Miami commercial real estate market have local industry experts expecting a change in the landscape, as a number of new proposed developments have budded from the recent success in the sector.
"Downtown Miami's Brickell neighborhood is coming alive as new residents and businesses flood the area, and international buyers launch new projects in the district," said Miami Downtown Development Authority executive director Alyce Robertson. "Brickell CitiCentre is just one example of the activity taking place today that will further propel downtown Miami onto the international stage as a major center for commerce and retail."
The Brichell CitiCentre is due break ground by the middle of 2012 and will cost an estimated $1 billion, creating 4.6 million square feel of new commercial property in the downtown area. In addition, another project that is anticipated to be roughly double the size of the Brichell CitiCentre will be the nation's largest casino, hotel and resort complex just north of Miami.