SVN Florida Volume Up More Than 20% in 2015— Steady Growth Predicted for 2016
Building from significant volume and transaction increases in 2015, SVN Florida Advisors experiencing positive momentum to start the year
Boynton Beach, Florida (February 17, 2016)—Based on this year’s strong start in January and the high number of deals in the pipeline reported by its advisors, SVN Florida anticipates continued growth for the commercial real estate market for 2016.
In a year defined by positive gains in the U.S. economy and a strong commercial real estate market, SVN Florida advisors successfully closed more than 800 transactions in 2015. Totaling more than $825MM in volume, the transactions represented an increase of more than 20% from the prior year.
“In 2015, we witnessed intelligent, savvy investors becoming more active in commercial real estate—moving money out of other investments and into commercial real estate,” said Jerry Anderson, CCIM, Executive Managing Director of SVN Florida. “It was surprising how many transactions were ‘all cash’ considering the low interest rates.”
Although he expressed his confidence for continued steady growth for 2016, Anderson also cautioned that mid 2017 may be the time the market starts to slow down a bit.
“Our economy is moving along nicely at the moment, but certainly is not setting any growth records,” said Anderson. “Even though the economic wheels seem to be on the track, we are experiencing the weakest recovery in modern times, the lowest labor force participation in half a century, and the lowest yields on savings ever. In addition, we’re seeing an election year nomination process that thus far has been anything but normal.”
As a result, Anderson explained that SVN Florida advisors are continuing to provide guidance to clients that focuses on the importance of making decisions based on sound fundamentals and market intelligence.
“The key to success in commercial real estate during the next several years is to make sound decisions based on your strategic vision and market analytics, not emotion or blindly following the latest trend,” Anderson said.
SVN Florida “Sweet Spot”
Although the company closed a number of deals in the $10 million to $25 million range, the majority of SVN Florida's 2015 transactions were within $500 thousand to $10 million. SVN Florida’s “sweet spot” continues to be private investors/buyers who buy for their own use. The majority of these deals are within the $1 million to $10 million range.
Florida Market---2015 Recap
As reported by SVN Florida advisors, Medical Office Building assets were popular with investors the entire year, especially in Central Florida. Although users of Industrial space continued to purchase buildings, they struggled to find many choices. The biggest challenge for this sector continues to be the lack of available product, especially in the 5,000-20,000 square-foot range. With the current slow pace of new construction, prices are likely to remain high.
Leasing activity was down in 2015, largely due to fewer companies expanding their space. Technology and more efficient “open” and “collaborative” office space solutions has meant that less space is needed for companies—even if they are growing.
Southwest Florida witnessed a surge in homebuilders competing for and buying large tracts, as that area of the state continued to be a bright spot for development and growth. South Florida and Orlando were also very strong markets in 2015. Northwest Florida—Tallahassee to Pensacola—also showed signs of market velocity and strength.
SVN Florida provides services in more locations than any other Florida commercial real estate firm and advisors in Jacksonville, St. Augustine, Tallahassee, Panama City, Pensacola, Ocala, New Smyrna Beach, Orlando, Lake Mary, Winter Park, Tampa, St. Petersburg, Sarasota, Bradenton, Naples, Fort Myers, Jupiter, West Palm Beach, Stuart, Fort Lauderdale, Hialeah and Miami. The SVN Florida team represents clients in office, multifamily, retail, industrial, self-storage, hospitality, marina, mobile home park and land transactions
About SVN® Florida Commercial Real Estate Advisors
SVN®, a commercial real estate brokerage franchisor headquartered in Boston, MA, is one of the industry's most recognized brands based on the annual Lipsey Top Brand Survey. With more than 190 locations in 500 markets, SVN Commercial Real Estate Advisors provide sales, leasing, and property management services to more than 5,550 clients worldwide. The Florida team consists of more than 90 Advisors serving locations throughout the state. SVN Advisors represent clients in office, multifamily, retail, industrial, self-storage, hospitality, marina, mobile home park and land transactions. All SVN offices are independently owned and operated. For more information on SVN Florida, visit www.svnflorida.com. For the latest news, trends and issues related to the commercial real estate market, visit SVN Florida's blog http://svnflorida.com/real-estate-blog.
Ken Zeszutko, Zeszutko Corp.-PR on behalf of SVN Florida / 321-213-1818 / firstname.lastname@example.org