2017 didn’t issue any new condo loans

2017 was a year when the commercial real estate market in Miami has seen a big shift, amidst business interruption by Hurricane Irma, tightened lending environment and growing buyer clout.But as far as 2018 is concerned, the Miami commercial real estate market is likely to be very positive with the industrial and office space lending remaining strong although one can expect commercial real estate projects development slowing down with the banks tightening their lending criteria.The office space market in Miami is expected to have steady momentum, creating a positive outlook for 2018. Strong job growth, population increase in the area – the office space market in Miami will be seen at an inflection point in 2018. This increased activity in the office space is a typical example of supply and demand. As the jobs in the Miami market are increasing and there’re more new-to-market companies, and subsequently, the office space market will continue to rise and the vacancies will go down.Another factor which will contribute positively to Miami’s office space market is the fact that many new companies are expanding their presence in Florida. For instance, the US division of the Latin American banking giant, Banco de Brasil Americas signed a new lease for 17,000 sq. ft. of office space in Brickell in 2017.Class A office space absorption will rise in Miami-Dade and Broward counties. The office spaces in Coral Gables will see a good share of leasing activity while the office spaces in Miami Beach, Brickell will be comparatively slower. (This is just an example, get the right areas from William). The Office Market Report 2017 by the Commercial Industrial Association of South Florida tracked the activity during the first quarter and mentioned in its report that the overall office space vacancy rate dipped to 9.7% throughout Miami-Dade while the absorption rate also tripled over the same period in 2016.The real estate development projects might see some slowdown as the banks have tightened their lending policies. In 2017, Wells Fargo didn’t issue any new condo loans and are very cautious about lending and want to work with a handful of developers having proven record. As the construction costs, and the land value going up, making the overall project cost quite high, 2018 might not be the right time to launch a new project. Heavy leasing activity focused mainly in class A space in the CBD with significant leases signed also in the larger suburban submarkets of Airport West and Coral Gables.One notable deal was KPMG’s full floor lease in the newly built Brickell City Centre. Tenants like the areas due to the major new retail centers as well as its connections to public transportation.The unemployment rate fell to 4.2%, down 80 basis points (BPS) year-over-year on a 1.7% increase, or 19,300 new jobs created.Mention the names of the areas which will see good leasing activity in 2018.

x

Hi!
I'm Ethel!

Would you like to get a custom essay? How about receiving a customized one?

Check it out