Miami is a great city with a vibrant economy which provides plenty of opportunities for investing in commercial real estate.
From apartment buildings and office buildings in Coconut Grove to warehouses in Hialeah, from oceanfront condos on Miami Beach to commercial properties as far south as Homestead, Miami is at the center of it all.
International Investors are acquiring apartment buildings, office buildings and retail centers at a 50% higher rate than in 2008. As a result, commercial properties in Miami are appreciating significantly faster than the rest of South Florida.
While the news from many quarters concerning the current state of the commercial real estate market was unsettling in 2009, in 2012 the opportunity for savvy investors of commercial property has never been better. Discounted property pricing of 15 to 30% is not uncommon for distressed properties.
For investors with capital to invest, community banks are prepared to lend under the traditional lending guidelines that existed before the latest price run up on commercial properties. Patience will be rewarded for the commercial real estate investor who takes advantage of this unique market opportunity to make their investment.
If you are asking what and where are the best commercial real estate opportunities in Miami, the answer depends on whether you are looking for short or long term growth, strong capital appreciation, or steady cash flow.
Short term growth opportunities include the areas of the Design District, Wynwood, the Biscayne Boulevard corridor, and some sections of Miami Beach.
For long term growth investors seeking steady appreciation and cash flow, "A" quality locations such as Coral Gables, Pinecrest, South Miami and Doral will offer the best returns.
Steady Cash flow will be derived primarily from Triple Net leases, income from multi-family apartment buildings and some retail strip centers.
Clearly many investors have confidence in the growth potential in South Florida. Projects currently underway include the doubling in size of Dadeland Mall in Kendall, from a single story mall to a two story complex, complete with a ten story parking lot.
Another major project under construction is City Center in Brickell, a 3.5 million square foot office complex, and a new big box retail center in Coral Gables, by Berkowitz Development. In addition, more than a dozen new condominium and apartment building projects are slated to be built over the next twenty four months.
Miami and South Florida continues to show the dynamic health and vibrancy the area has been famous for since the 1920s.