Florida’s commercial real estate sector experienced a notable upswing in 2025, driven by declining interest rates and a selective return of capital. Investment activity, particularly in key markets like Palm Beach, saw significant strengthening. This renewed investor confidence is reflected in substantial transactions across various property types, signaling a robust recovery and continued growth potential for the state’s commercial property landscape.
Key Takeaways
- Commercial real estate investment in Florida strengthened in 2025, influenced by decreasing interest rates.
- Capital selectively re-entered the market, focusing on various property types.
- Significant retail portfolio sales and individual property acquisitions highlight investor interest.
- The SBA committed substantial funds to real estate, indicating government support for the sector.
Palm Beach Market Activity
In Palm Beach, commercial real estate investment activity saw a significant climb throughout 2025. CoStar data indicates that as interest rates began to decline in the latter half of the year, buyers became more active. This selective re-engagement of capital led to a rotation back into several key property types, boosting overall transaction volumes in the region.
Major Retail Transactions
The retail sector was particularly active. JLL Capital Markets announced the $395.5 million sale of a 10-property open-air retail portfolio spanning Florida and South Carolina, totaling approximately 1.04 million square feet. This portfolio, acquired by 11North Partners and Bain Capital, boasted a 91.6% occupancy rate and featured properties in affluent trade areas with strong demographic profiles. Notable Florida locations included Plantation Promenade, Sawgrass Square I & II, Garden Shops at Boca, Rolling Oaks, New Tampa Center, Miramar Commons, The Promenade, Solivita Marketplace, and Lake Worth 441.
Another significant retail transaction involved the sale and financing of Jacaranda Plaza in Plantation, Florida. This Publix-anchored neighborhood shopping center, totaling 175,084 square feet, was acquired by Core Investment Management. The center is 97.9% leased and features a strong mix of national and regional retailers, including Ross Dress for Less, Five Below, Planet Fitness, and Dollar Tree. Its prime location and established tenancy made it a compelling investment opportunity.
SBA Investment in Real Estate
Supporting the broader real estate market, the Florida Small Business Administration (SBA) committed a substantial $1.57 billion to real estate during the second quarter of 2025. This significant commitment underscores a strong governmental focus on facilitating real estate development and investment within the state.
Investor Demand and Market Outlook
The robust activity, including large portfolio sales and individual asset acquisitions, demonstrates a strong investor appetite for well-located, high-quality commercial properties in Florida. The combination of favorable demographic trends, strategic locations, and stable occupancy rates continues to attract significant capital, positioning Florida’s commercial real estate market for sustained success.
Sources
- Palm Beach, Florida, commercial property sales climbed as
capital selectively returned in 2025, CoStar. - Core Investment Management acquires Jacaranda Plaza from Epic Real Estate Partners, JLL.
- Florida SBA commits $1.57bn to real estate in Q2, Private Equity Real Estate | PERE.
- 10-Property open-air retail portfolio trades hands for $395.5M in Florida and South Carolina, JLL.