Two hotspots in Florida will become the top cities for office investment in 2023, according to a new Crexi analysis.
Miami tops the list for its “strong economy, business-oriented government, excellent quality of life and ideal geographic location,” with Crexi analysts predicting a 3.2% rise in employment and a 3.2% increase in office demand. It points out that it is “stable and stable.” The city has just under 40 million square feet of inventory and an overall asking rent of $47.65 per year. Plus, year-to-date he signed a new lease for 3 million square feet. At Crexi, the average asking price for Miami offices has jumped 10.7% so far this year, and the average occupancy rate has risen almost 10% compared to his 2021 absorption rate.
West Palm Beach continues with 1.5 million square feet of new leases signed this year and a vacancy rate of less than 12%. Asking rent is $42.84 psf and only 613,000 square feet of space is currently under construction. At Crexi, his median selling price per square foot in 2021 was $249, compared to $275 for his West Palm Beach office this year to date. was.
Laurie Durham ranked third. In Crexi, the median closing price this year was $311 per square foot, up from $224 last year, according to city reports.
Followed by Salt Lake City, Tampa/St. Petersburg, Fort Lauderdale, Austin, Nashville, San Diego, San Antonio.
More than half of executives polled in a recent Ernst & Young survey said they plan to invest in commercial real estate. Despite the current economic environment, two-thirds say they are leasing or planning to lease suburban office space.However, investment the numbers are still lukewarmQ3: Office investment activity fell 6% quarter-on-quarter in the third quarter, according to Newmark. Q3 office loan originations were down about 23% year-to-date compared to 2021 figures.
“Debt costs are expected to continue to rise. Fixed finance costs are up 2.4% year-on-year, and office cap rates are revised upwards in the private market in line with sustained increases in debt costs. Likely,” said Newmark’s report. “The combination of the highest debt costs in years, office write-downs and a large amount of debt maturing in 2023 and he said 2024 could lead to an increase in distress, albeit from today’s lows. high”