Over the past several years of the recession, Florida's economy could be described as dismal. Jobs were scarce, banks did not want to lend money, and businesses were not inclined to take risks on leasing new office space. Few companies were expanding and instead were staying put or even downsizing. For these reasons, some experts advised against investing in Florida commercial real estate.
In an encouraging sign of an improving economy, the office real estate market has picked up dramatically. Recently, three large tenants have signed new leases for over 10,000 square feet respectively, in Miami and South Florida. One, a bank, will be enjoying around 62,000 square feet of new office space spread over three floors, plus a 2,000 square foot area in the building's lobby. Other business, such as a Latin American jewelry company and several attorney offices, are looking to begin contract negotiations to lease large amounts of space. Experts recommend that any company needing to lease over 5,000 square feet in Miami begin its search at least a year prior to the prospective move-in date.
With any luck, the trend toward leasing space will continue to gain momentum which would benefit all parties participating in real estate transactions, including owners, lenders, developers, investors, and property managers. Parties who are interested in getting into the market now may wish to discuss plans with experienced legal counsel who can assist with every detail of a commercial real estate transaction, such as sales and purchase, real estate closings, and property management agreements.
Source: Miami Today, "Big tenants out hunting office space," Laura Stace, April 11, 2013