Office building owners have it tough nationwide, but in South Florida the migration of companies to the Sunshine State coupled with limited trophy office supply should send rents higher. Limited land for new beachfront projects in Miami-Dade County will propel developers north to Fort Lauderdale and vicinity. And the countries of origin acquiring South Florida real estate will continue diversifying beyond South America.
These are among many predictions from South Florida-based real estate experts this month as they consider the impact of the pandemic-era boom in the South Florida real estate market and what it may signal for the post-pandemic years.
Vacancy rates on trophy office properties in South Florida will drop beneath 5%, predicts Tere Blanca, founder, chairman and CEO of Blanca Commercial Real Estate, Inc. That should trigger local rent growth to continue outpacing national rent growth.
“The demand from companies migrating to South Florida coupled with limited trophy office supply in the near future will push trophy office rents to levels seen only in select buildings across the United States,” Blanca asserts. But she adds the positive news must be leavened by the realization South Florida needs many units of affordable and workforce housing to establish a base for future growth across the region.
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