In its latest quarterly report, the National Association of Realtors (NAR) finds that Florida commercial real estate stands out in the country. In Q4 last year, Florida metros accounted for 9 of the 15 most robust markets in the US. Areas such as Fort Myers, Jacksonville and Miami had “the strongest overall commercial real estate market conditions”.
Solid markets
NAR’s most recent quarterly survey looks at 390 metros throughout the US, with a population of at least 250,000. The report commercial real estate looks at the market for multifamily, retail, office, industrial and hotel properties.
The Commercial Real Estate Metro Market Report Q4 2021 finds that Florida dominates the national rankings. Although Charleston in South Carolina and Durham in North Carolina take the top 2 positions, Florida metros feature in 9 of the top 15.
Metros with best Florida commercial real estate
Fort Myers has the strongest position for commercial real estate in Florida and stands in third place nationally. This metro area in Southwest Florida has a score of 76 out of a total 100 and ranks particularly well for its high job creation and low unemployment.
Jackson takes fourth place with a score of 72. Highlights for commercial real estate in this metro area include higher apartment rental rate rises than nationally and more affordable rents. Jacksonville also stands out for having a lower office vacancy rate.
Orlando sits in tenth place and shows strong parameters for multifamily real estate investment. The NAR report finds that Orlando has a higher absorption rate than the US (9% compared to 4.2%). Its market cap rates are also lower than the US average.
Tampa, no stranger to reports highlighting top real estate markets in the US, also features for its commercial real estate. It ranks as the 15th best in the country in Q4 2021. In the multifamily sector, Tampa has a lower vacancy rate than the national average and higher absorption.
Parameters for best real estate
Over the last year, Florida has consistently ranked at the top of reports on the hottest markets in the US. For example, at the end of 2021, Redfin declared Sarasota County in Southwest Florida as the best market for 2022. While in January this year, Zillow ranked Tampa and Jacksonville as its top picks for real estate in 2022.
Since the last financial crisis, the Sunshine State has consistently posted high rankings for the criteria behind demand for property. Florida has higher job creation and lower employment than the US generally. GDP growth has also outranked the national rate.
Florida is also one of the most popular states for relocation in terms of population growth. It’s, therefore, no surprise to discover that most metro areas have positive net domestic migration. And as a result, Florida commercial real estate ranks in the top positions across all sectors.
(Source: National Association of Realtors)
