According to the new 1Q 2018 The Quarterly Report - South Florida Commercial Real Estate released this week by data firm Vizzda and the MIAMI Association of Realtors, South Florida's multifamily real estate transactions jumped 8.5 percent year-over-year in 1Q 2018 and per-unit multifamily prices increased in Miami-Dade, Broward and Palm Beach counties.
"Increasing population, job growth and rising single-family home prices are increasing demand for South Florida multifamily properties," said 2018 MIAMI Commercial President Brian Sharpe. "South Florida's new transit options such as the new Brightline Miami-to-West Palm train service is fueling more multifamily growth."
Palm Beach County Posts a Banner Quarter for Multifamily Sales
Palm Beach County posted a record 34 multifamily transactions in 1Q 2018, totaling nearly 2,200 units for $151,600 per unit. The West Palm/Riviera Beach and Green Acres/Palm Springs sub-markets had the most transactions with 12.
The South Florida tri-county region finished with 140 multifamily transactions in 1Q 2018, an 8.5 percent increase over the same period last year.
Miami-Dade County had the highest number of transactions at 65, which was in line with the third and first quarters of 2007 but lower than the strong showing in 4Q 2017. Broward, meanwhile, saw an increase in multifamily transactions because of a rise in transactions in Fort Lauderdale.
Miami-Dade County Enjoys Retail Growth in 1Q 2018
Miami-Dade County retail enjoyed strong year-over-year growth in transactions, square footage and dollar volume transacted. Nearly half of the sub-markets in Miami-Dade County had price appreciation on a per square foot basis quarter over quarter.
South Florida average per square foot valuation for retail property increased by 11.1 percent to $304 market wide in the 1Q of 2018.
Broward had year-over-year declines in retail transactions, square footage and dollar volume. Fort Lauderdale was Broward's only submarket with quarterly and annual growth in square footage transacted.
Palm Beach square footage transacted went down slightly but both transactions and dollar volume transacted increased on a quarterly basis.
Broward County Office Surges in Several Metrics in 1Q 2018
The Broward County office sector showed robust year-over-year growth in square footage and dollar volume. The sector posted 15 percent more office transactions than this time last year. The increase in sales volume led to a decline in per square foot valuations on an annual basis.
The Miami-Dade office market saw declines in transactions, square footage and dollar volume on an annual basis.
Palm Beach office also saw declines in all four metrics tracked by Vizzda. The Boynton Beach/Delray Beach is the submarket with highest per square foot valuation at $634 per square foot.
South Florida Posts More than 200 Industrial Transactions for the Fifth Consecutive Quarter
South Florida registered 213 industrial transactions in 1Q 2018, showing the continued strength of the market. South Florida is a top-tier U.S. industrial real estate market. New warehouses and distribution centers continue popping up throughout South Florida, adding jobs and boosting the economy.
The Miami-Dade industrial market saw the same number of transactions as the 4Q 2017 but saw declines in square footage and dollar volume transacted on an annual basis.
"While volume of industrial square footage declined in Miami-Dade, values did not," Vizzda CEO Kris Thompson said. "This is indicative of an increased demand for a scarce supply. In layman's terms, industrial properties in Miami-Dade are white hot."
Broward saw a decline in industrial square footage transacted, number of transactions and dollar volume. Broward office's first quarter of 2018 was the first quarter in which fewer than 1 million square feet of industrial property was transacted in more than a year.
The Palm Beach industrial market also saw declines on every metric other than transaction volume on an annual basis. The Green Acres/Palm Springs submarket grew its industrial transactions by double digits over the same period last year.
According to the newly released 2018 Profile of International Home Buyers Report by the Miami Association of Realtors and the National Association of Realtors, foreign buyer activity in South Florida had a significant 23 percent spike in 2018.
According to the U.S. Department of Housing and Urban Development and the U.S. Census Bureau, sales of newly built, single-family homes rose to a seasonally adjusted annual rate of 667,00 units in February 2019 after an upwardly revised January 2019 report.
According to the Miami Association of Realtors, Miami mid-market home sales and median prices for all properties increased in February 2019, reflecting demand for local properties, particularly in certain price points.
According to the U.S. Housing and Urban Development and Commerce Department, total U.S. housing starts rose 18.6 percent in January 2019 to a seasonally adjusted annual rate of 1.23 million units from a downwardly revised reading in December 2018.