Many Florida commercial real estate markets are thriving

When asked last year how they would expect the commercial real estate market to be doing last year, many brokers expressed concern that it would be experiencing a downturn. The opposite has happened for the land development, retail, industrial and office sectors in major markets in Central and West Florida, though. The Lakeland, Fort Myers, Sarasota and Tampa Bay commercial real estate markets are thriving.

Vacancy rates are currently the lowest that they’ve ever been and they are continuing to decline. Consumer confidence in the market remains high.

Commercial landlords don’t seem willing to offer reduced rates or contract terms just yet. They’ve instead continued to focus their attention on attracting solid tenants.

Many prospective lessees seem uncomfortable with the increasing lease rates though. Brokers have noticed how business owners have become more vigilant in crunching numbers to make sure that their build-out costs won’t be too costly and that they’ll be able to generate enough revenue to cover their lease costs. Commercial real estate brokers haven’t noticed many business tenants asking to renegotiate their leases though.

Commercial brokers note that many of the vacant big box stores have been scooped up by health care systems. If they aren’t able to use the entire space, then they sublease it out to others. They say they have noticed that the big box locations that go unfilled are often in less-than-optimal areas.

The lease of industrial properties has also heated recently across the state. This is due in large part to the increased interest in e-commerce.

Many positives are associated with operating in the commercial sector in Melbourne and other parts of Florida. If you’re planning to set up shop here in the state, then you’ll want to reach out to an experienced real estate attorney to guide you through the process.