The current depreciation of the currency in the emerging economies against the dollar has produced a strong demand for the market of offices and commercial premises in South Florida, as it is considered a safe asset and refuge in a currency that increasingly takes value. Currently, according to the Association of Real Estate Agents of Miami, Latin Americans continue to position themselves as the main international buyers of real estate in South Florida with more than 50% of acquisitions. Colombia ranks third with 10% of total transactions with an average purchase price of $516,000. According to the Miami Association of Realtors, Colombians are the foreigners most interested in buying properties in Miami. The report of this organization issued indicated that the majority of searches on its website come from Colombia.
In recent years, the commercial real estate market in Miami has expanded rapidly and accelerated. According to the latest report from CBRE, the leading investment and commercial real estate administration company in the United States, total investment in offices in Miami in the fourth quarter of 2016 amounted to 700 million dollars, more than double the sales volume of the company. According to Camilo López, managing partner of the TSG real estate and investment firm, “factors such as uncertainty in the global economy and the search for a safe haven in solid legal and fiscal economies will tend to make Latin Americans more cautious when deciding what to invest,” says Camilo López.
The markets of office buildings will be characterized by high demand rates due to the scarce construction of new properties of this type; according to CBRE, the projects currently under construction will only increase the current inventory by less than 2% in 2017. Similarly, it is expected that the long-term lease structures that operate for this type of property, between 5 and 10 years, allow to attract even more the interest of investors thanks to their greater resistance to economic changes.
“During the fourth quarter of 2016 the availability of space for rental was reduced to 11.6%, and for 2017 it is expected to fall at the lowest rate since 2009. This year there will be greater demand than supply in the commercial and office sector in South Florida, so tenants must pay higher rents for spaces. This undoubtedly represents greater income for the owners “, added López.
This US region will once again be one of the best investment destinations for Class A products, with higher returns than New York and other markets with high profitability. In addition, to its recognized tourist attributes will be added to the development of business infrastructure, attracting companies with a desire to open new offices and with the need to acquire office spaces.
Among the main types of commercial spaces that are identified as the most interesting by investors, stand out industrial buildings, retail spaces and Class A offices in large business centers; the latter with specific characteristics that include aspects of location, comfort, design and technological advances.