Seems the tide may finally be turning. When on inspections speaking with property owners and real estate professionals, I often ask what they think of the market and the recent responses are favorable. That certainly isn’t a study, but a small sample of observations. The University of Florida’s Kelley A. Bergstrom Center for Real Estate Studies have been conducting a quarterly survey of Florida’s markets since 2006. The most recent results for the Bergstrom Survey, 1st Quarter 2012 indicate positive reactions.
According to the Emerging Market Conditions Survey published by Bergstrom Center for Real Estate Studies (website), highlights include:
- The UF Commercial Real Estate Sentiment Index increased to its highest level in almost five years.
- The outlook for occupancy and rents increased across all property types.
- Cap rates remained stable across most property types. Expectations are for continued stabilization at current levels over the next year.
- Yields decreased slightly across most property types with expectations that they will remain stable over the next year.
- The outlook for investment increased across most property types.
- Respondents’ outlook for capital availability improved this quarter to survey highs as respondents continue to believe that the availability of capital will increase.
The unemployment rate dropped nearly 1% from December 2011 (9.9%) to March 2012 (9.0%). This occurred despite losing 21,000 jobs due to gaining 66,000 jobs.
What do you think? Is the worse behind us? Are we seeing the long awaited return of the Florida real estate market?
Florida real estate appraiser with commercial appraisal services including retail, office, restaurants, industrial, convenience stores, vacant land, other uses and eminent domain appraisal.