Florida’s real estate market is experiencing robust activity, driven by strong job creation, buyer incentives, and significant investment in retail and office properties. Central Florida, in particular, is seeing growth fueled by low unemployment and attractive housing affordability, while major transactions in South Florida highlight continued investor confidence in the state’s commercial sector.
Central Florida’s Real Estate Boom
Central Florida’s real estate market is thriving despite economic headwinds, largely due to consistent job creation and appealing buyer incentives. Abdul Aitboukil, a seasoned real estate broker, notes that the region boasts one of the nation’s lowest unemployment rates, bolstered by developments like the expansion of Universal Orlando, which brings thousands of new jobs.
- Affordability and Appreciation: Cities like Palm Bay are recognized as top destinations for first-time homebuyers, offering affordability and strong home appreciation values. The median home price in Palm Bay is around $325,000, with ample inventory.
- Buyer Incentives: Builders are offering incentives such as interest rate buy-downs, allowing buyers to secure lower monthly payments. For instance, rates can be reduced from 6.5% to 4.99%.
- Down Payment Assistance: State and county programs provide significant support for first-time homebuyers, including down payment assistance up to $15,000 in Brevard County and $7,000 to $10,000 from the state for down payments or closing costs.
Major Retail Portfolio Transaction
A significant open-air retail portfolio, comprising 10 properties across Florida and South Carolina, has been sold for $395.5 million. The portfolio, totaling approximately 1.04 million square feet, was acquired by 11North Partners and Bain Capital from PGIM Real Estate.
- High Occupancy: The portfolio boasts an impressive 91.6% overall occupancy.
- Prime Locations: Properties are situated in affluent areas with strong demographics, featuring an average household income of $101,152 within a three-mile radius.
- Key Florida Properties: The Florida assets include Plantation Promenade, Sawgrass Square I & II, Garden Shops at Boca, Rolling Oaks (Orlando), New Tampa Center, Miramar Commons, The Promenade (Poinciana), Solivita Marketplace (Poinciana), and Lake Worth 441.
Boca Raton Office Market Activity
Boca Raton’s office market has seen notable activity, including the sale of 1200 Corporate Place for $31.4 million. This 137,021-square-foot, Class A office property underwent recent renovations.
- Property Features: The building includes a modernized lobby, upgraded water features, resurfaced parking, new landscaping, a four-story central atrium, a two-story parking garage, and a full-service café.
- Lease Status: At the time of sale, the building was 84% leased.
- Transaction Facilitation: Institutional Property Advisors (IPA), a division of Marcus & Millichap, facilitated the sale, with Douglas Mandel, Zach Levine, and Cody Hershey representing the seller, Keystone Property Group.
Sources
- Job creation and buyer incentives fuel growth in Central Florida real estate, WFTV.
- 10-Property Open-Air Retail Portfolio Trades Hands for $395.5M in Florida and South Carolina, citybiz.
- IPA Facilitates $31.4M Sale of Office Property in Boca Raton, Florida, REBusinessOnline.