Berger Commercial Realty Corp. brokers are busy with new sales and leases, leading us to identify what’s hot in the market today. Two key areas that continue to shine are the industrial and multifamily sectors.
The local market has seen an increase in the leasing and sales of industrial space, running the gamut from warehouses to Class-A distribution facilities. Industrial space offers investors a variety of long-term benefits including reliable cash flow and short-term benefits from new high leasing activity and demand for space.
In Broward in particular, quality industrial space is in high demand with low vacancy rates. Because of the investment potential in South Florida’s local industrial market, international and institutional investors are buying buildings, helping to drive up real estate values.
In 2011, Berger Commercial Realty Corp. brokers handled more than 20 deals in the industrial sector. Two deals of note include the negotiated lease of 17,040 square-feet of industrial space located in Fort Lauderdale brokered by Keith Graves and St. George Guardabassi and the lease of a 59,912 square-foot free standing warehouse in Fort Lauderdale brokered by Keith Graves.
The multifamily sector continues to be robust. Because of the instability of the economy, many people who would have formerly chosen to buy have begun to rent. As homeownership continues to decline, this sector becomes increasingly more valuable and desirable to investors, who are particularly attracted to distressed properties.
Occupancy in multifamily properties remains high and rates continue to increase throughout the Southeast. In Fort Myers, Berger Commercial Realty Corp. has seen a strong interest from buyers and has handled the sale of several distressed apartment buildings, such as Palm Vista in Fort Myers, for which Berger Special Assets, a division of Berger Commercial Realty Corp., served as receiver.
The property, a 136-unit apartment complex located at 3726 Central Ave, was sold for $2.5 million by Berger Commercial Realty Corp. broker Judy Dolan and Steve Hyatt for Coral Gulf IV, LLC, to RFH Advisors Palm Vista, LLC.
Consisting of 12 two-story buildings and features one-bedroom/one-bath and two-bedroom/two-bath apartment units, this multifamily property offers amenities such as a clubhouse, playground, pool and fitness center. By resolving the challenges facing the property in a cost-efficient manner, Berger Special Assets was able to restore the asset’s value, making it an attractive opportunity for investors. Investors are predicting excellent rent growth throughout South Florida.
While industrial and multifamily sectors are strong, office and land sectors still show room for improvement. Check back soon to learn why trouble looms on the horizon in a variety of commercial real estate markets.