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2008 Industry Outlook
Commercial Real Estate 2008
Softer side: Experts expect a stable year ahead overall.
Industrial: ‘Rock Solid’
Most analysts expect Florida’s industrial market to outperform the office sector in 2008. “Almost every metric — occupancy, rental rates, trends, absorption and leasing activity — is rock solid across the state,” says Cushman & Wakefield’s Larry Richey. “The future for warehouse and distribution space in Florida is brighter than ever because of the outlook for changes in the global supply chain that will bring more international goods directly to our seaports.”
Chicago-based Higgins Development Partners remains bullish. The company has purchased distribution properties in Orlando and Hialeah. “With its population growth and demand for goods, Florida is consistently one of the best-performing states,” says Gene Preston, senior vice president. “While the demand for industrial space will still be recovering from the residential market shock, we think Florida will keep growing and outperform the U.S. economy.”
Retail: ‘Healthy’
The Trends
 Healthy industrial market Stable demand for office space Limited supply of new space?Declining land prices Moderating labor and materials costs High levels of office sublet space Conversion of residential high-rises to office uses Slowdown in new retail development Slowdown in financing for new projects |
John Crossman president of Crossman & Co. in Orlando, says downtown growth will continue across the state, and “even if the new condo buildings are not full, the additional people will encourage and support more downtown retail. Mixed-use town centers will still be in demand in the suburban markets as well. Overall, we look for 2008 to be another healthy year for the retail market.”
Going Green
Look for more demand for LEED certification of new commercial projects.
