Tag Archives: Commercial

Doomsday or Boomsday for Florida Commercial Real Estate

It’s going, going and it’s gone. Like a homerun ball on a Major League Baseball Florida’s Commercial Real Estate has taken a hit and it goes off the field. In the hottest areas like Miami, Orlando, Sarasota and Fort Lauderdale they are experience what experts call a decline to its market. Some people are asking why? Well, there are many explanations to it and some of it is in a spider web like process. Before the commercial real estate of Florida has been the hottest market because mainly commercial real estate is based on commercial areas and properties, condos and high-riser which helped its economy in its early years but now has become some sort of liability.

It’s going, going and it’s gone. Like a homerun ball on a Major League Baseball Florida’s Commercial Real Estate has taken a hit and it goes off the field. In the hottest areas like Miami, Orlando, Sarasota and Fort Lauderdale they are experience what experts call a decline to its market. Some people are asking why? Well, there are many explanations to it and some of it is in a spider web like process. Before the commercial real estate of Florida has been the hottest market because mainly commercial real estate is based on commercial areas and properties, condos and high-riser which helped its economy in its early years but now has become some sort of liability.

The list goes on and on and there isn’t a valid explanation on why Florida, the Sunshine state is experiencing the bottom end of the market’s forecast. There are negative comments that are thrown on its way and the only thing that the Florida market can do is sit back relax and watch as their market goes from boom to bust. One expert even said that the value of Florida real estate market is nearing its doomsday. Can’t blame him he has proof in numbers. Well the problem mainly on hot counties is their decision making, while the state is suffering from a nationwide bust, investors are still putting up condos on Florida’s hot spots, like Miami and Orlando therefore the condo-building is on a boom while the residential is on a bust, which leaves most experts scratching their heads in disbelief.

Maybe investors know something that experts don’t, that is why they are keen on building high-risers and just adding 20,000 more units to the 20,000+ that are still unoccupied. Maybe they Nostradamus like and predict a housing boom next year or late this year, which is highly unlikely based on the numbers that I am reading in the papers. One source said that “It is really mind-boggling and often puzzling why investors opt on building condos despite the obvious hazards of housing bust. It’s either they are building foundation on the future or they are all just ignoring the real estate market forecast.” Another expert added “It’s just plain dumb.” With comments like that It is really startling to even ask why?

Year in and year out, investors rely heavily on market forecast and it never fails that they base their moves on that, but this time it seems like they are missing on the forecast, as I have been seeing more and more commercial real estate from condos to commercial properties that are being built and at a higher faster rate which makes some of the residents lift their eyebrows on it. “Can’t blame them, they have money.” A resident of Miami said about the investors who are pulling up strings on building properties on the area, “Seems to me that they have money and don’t know how to spend it” the resident adds, I am really confuse on what to believe now, “a condo building boom on a residential bust”, isn’t that something? Well Commercial Real Estate here in the state can not be stopped so let’s wait and see what will be the outcome in the end of the year. Doomsday or Boomsday for it, either way you choose.

Jron Magcale
http://miamirealestateinc.org