Doomsday or Boomsday for Commercial Real Estate in Florida
It goes, it goes and it goes. Like a home run in Major League Baseball, Florida’s Commercial Real Estate has taken a hit and rolls off the field. In the hottest areas like Miami, Orlando, Sarasota and Fort Lauderdale are experiencing what experts call a decline in their market. Some people ask why? Well, there are many explanations and some of them are in a web-like process. Before, commercial real estate in Florida has been the most popular market because mainly commercial real estate is based on commercial areas and properties, condominiums and high-rises that helped its economy in its early years, but now it has become a kind of responsibility.
The list goes on and on and there is no valid explanation as to why Florida, the Sunshine State, is experiencing the lower end of the market forecast. Negative comments get in your way and all the Florida market can do is sit back, relax and watch your market go from boom to bust. One expert even said that the value of the Florida real estate market is nearing the end of the world. I can’t blame him, he has proof in numbers. Well the problem mostly in the hot counties is their decision making, while the state is suffering from a nationwide bankruptcy, investors are still putting up condos in Florida hot spots like Miami and Orlando, thus the Condo construction is booming while residential is on a bust, leaving most experts scratching their heads in disbelief.
Maybe investors know something the experts don’t, which is why they’re interested in building skyscrapers and just adding 20,000 more units to the 20,000+ still vacant. Maybe they like Nostradamus and predict a housing boom next year or at the end of this year, which is highly unlikely based on the numbers I’m reading in the papers. One source said, “It’s truly mind-boggling and often puzzling why investors are choosing to build condominiums despite the obvious dangers of the housing crash. They are either building a foundation for the future or simply ignoring the forecast for the future.” real-estate market”. Another expert added: “It’s just silly.” With comments like that, you really start to wonder why?
Year after year, investors rely heavily on the market forecast and never fail to base their moves on that, but this time it seems they’re not on the forecast as I’ve been seeing more and more commercial condo real estate. to commercial properties being built and at a faster pace, raising eyebrows for some residents. “I can’t blame them, they have money.” One Miami resident said of investors pulling the strings to build properties in the area: “It seems to me they have money and don’t know how to spend it,” adds the resident, I’m really confused what to believe. now, “a condo building boom in a residential bust,” isn’t that something? Well, commercial real estate here in the state can’t be stopped, so let’s wait and see what the end of the year outcome will be. Doomsday or Boomsday for it, whichever way you choose.
Jron C. Magcale
Florida Commercial Real Estate