The recession has had a major impact on many different parts of the economy, and the Miami real estate market has definitely felt this. However, in the recent weeks, the commercial real estate market in Miami has managed to get above the recession and start making an upward swing that is most definitely good news. Not only is commercial real estate value improving, but it is actually improving in all areas. This is news that is certainly worth noticing, and the National Association of Realtors has indicated that there is more to note. The commercial real estate market has recovered in almost all ways. Additionally, some markets are not just recovering, but they are also growing. One such market is the apartment rental area of commercial real estate. A recent survey that is completed by the National Association of Realtors on a quarterly basis showed that these findings for the commercial market are definitely true.
The National Association of Realtors chief economist, Lawrence Yun has indicated more about the Miami commercial real estate market and its growth. Yun stated that because more jobs are being created in the American economy, this has lead to a growth in the commercial real estate market. As consumers have better jobs and spend more money, commercial businesses will continue to grow. If the federal budget stays on the track that it is, there will be millions of new jobs created in the United States in just two years. This will allow the commercial market to continue to grow as well.
The only area in which there seems to be struggles would be in the smaller commercial properties. These properties that are priced lower than just a couple of million are still not selling as well as could be hoped according to the National Association of Realtors. This would be because smaller companies still have more restrictive budgets while larger companies are feeling more of a business boom.
The Miami office real estate market
is definitely seeing some improvements. At the beginning of this year, the office property vacancies were more than sixteen percent. Since that time, the vacancies in major areas of the country have dropped dramatically. For example, in New York City, the vacancies are down to just ten percent.
In the industrial real estate market, vacancies in properties are expected to continue declining as well. At the beginning of the year, the vacancies for industrial properties were at about eleven percent. In some metro areas, the percentages have dramatically dropped. In fact, in Miami, the industrial property vacancies are down to just over seven percent.
These drops in vacancies are being seen in retail and multifamily Miami real estate markets as well. In the retail market, they have dropped from an average of eleven percent to as low as three percent in some areas. The multifamily market has dropped from around four and a half percent to just above for percent.
As the economy continues to improve, the commercial real estate in Miami will continue to improve as well, which is most definitely good news for the United States overall.