The Miami-Fort Lauderdale-West Palm Beach commercial real estate market feels heat …

The National Association of Realtors in its Commercial Real Estate Metro Market Report for Q4 2020 determined that the Miami-Fort Lauderdale West Palm Beach, Florida commercial real estate market is weak. The apartment sector is experiencing faster rent growth than nationally. There is a loss in office occupancy and office rent growth is weaker than nationally. There is a loss in office occupancy and office rent growth is weaker than nationally. In the industrial sector, the industrial vacancy rate is higher than nationally and more construction is underway than nationally. Its retail trade jobs are not growing as fast than nationally. In the hotel/lodging sector, leisure and hospitality jobs are shrinking. There is a lower share of of businesses openings than nationally. In 2019, the area experienced net out-migration.

Commercial transactions are likely to pick up in the second half of 2021 and in 2022 as more people get vaccinated and more businesses open. Higher fiscal spending and monetary accommodation will boost growth nationally and in the area.

Selected statistics

Currency PairsRates as of 4:11pm 1 April 2021
Selected Rates 
Fed Funds.07
Bank prime rate3.25
Discount window.25
2-yr Treasury.16
10-yr Treasury1.67
Economic IndicatorQ4 2020Q3 2020Q4 2019
Apartment rent$1,515$1,489$1,521
Office asking rent per square foot$38.7$37.7$37.0
Multifamily rental vacancy rate5.8%4.7%7.3%
Industrial asking rent per square foot$9.3$9.3$8.7
Source: Bloomberg, Reuters, Federal Reserve

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