With the recent passing of Hurricane Irma over Florida, the State's commercial property sector managed to escape significant damage given the scale and strength of the storm.
According to Spencer Levy, CBRE's Head of Research said, "Florida significantly strengthened its defenses after hits from past major hurricanes, and those improvements were instrumental in helping the state weather this potentially devastating storm," Mr. Levy said. "As a result, damage to Florida commercial real estate is relatively minor outside of the Keys. Demand for apartments and industrial space are expected to increase as the recovery effort progresses. Hotels in all but the hardest-hit areas have reopened, and the remainder aim to return to service before year-end.
"Florida's recovery effort will take time, and short-term disruptions are to be expected. But, overall, Florida's resilient economy and globally renowned tourism industry will help the state recover strongly."
CBRE reports the following Hurricane Irma key takeaways:
Florida's prime office and industrial markets reported minimal impact from Hurricane Irma--mainly temporary power outages, downed trees and minor leakage.
Except for the Florida Keys and certain parts of Jacksonville, flood and wind damage to Florida retail properties was also minimal. Certain retail segments, such as building supplies, food and fuel, should see a significant uptick in sales in the coming months.
Single-family residential properties bore the brunt of Hurricane Irma's destruction, particularly in the south, central and northeast regions of the state. As a result, demand for multifamily properties is expected to increase in the short term.
Hotel properties in the state's major markets have reopened for business, except for many in the Florida Keys. Demand may increase by an average 15% for the next four months as displaced residents, aid workers and construction workers seek accommodations. Longer term, the stigma of the hurricane could affect the state's tourism industry.
It's good to be a vacation rental home landlord in Florida it seems. Based upon a new report by the University of Central Florida's Rosen College of Hospitality Management, the annual economic impact of Florida's vacation home rental industry now exceeds $27 billion.
International property consultant CBRE is reporting this week that global commercial real estate investment volume in Q4 of 2019, including entity-level deals, was nearly level (-0.5%) with Q4 2018, while full-year volume fell by 2% from 2018.
According to a new U.S. housing report from Redfin, just 9% of offers written by Redfin agents on behalf of their homebuying customers faced a bidding war nationwide in December 2019, down from 12% a year earlier and setting another new 10-year low.
According to CoreLogic's latest Single-Family Rent Index (SFRI), which analyzes single-family rent price changes nationally and among 20 metropolitan areas, data collected for October 2019 shows a national rent increase of 3.1% year over year, compared to 2.9% in October 2018.
Join 34,000+ real estate professionals worldwide who receive our free weekly newsletter