Real Estate Land

Statistics reveal that the North Florida real estate is not showing healthy signs of immediate recovery and practically the same slump is experienced nationwide. The boom years of 2004-2005 have not been sustained and hundreds of units are now in inventory. Moreover, new construction won't commence until all properties in inventory have been absorbed. This is a bleak outlook for North Florida real estate. Nevertheless it appears that market conditions are improving as records in the 2nd quarter of 2007 reveal a steady decline in property inventories.

The industrial side of the North Florida real estate reveals sustained and significant development pace with the construction of new industrial parks and facilities. Analysts are optimistic that further growth can be expected with industries expanding muscle in areas around Southeast Asia. Renewed economic activity is evident as site clearing for new industrial complexes are now under way in different locations. Also an additional facility covering 500,000 square feet is on the drawing board and expected to be implemented before the end of 2008.

The North Florida real estate that involves office spaces is likewise suffering from a severe sale and revenue downturn. Returns from the downtown office market have significantly declined since the first quarter of 2006, and recent figures show a relative vacancy drop from 13.1% to 12.8% affecting the 1st and 2nd quarter of 2007. The declining trend in terms of office occupancy is expected sustained throughout the year. Despite a bleak forecast, investors continue financing an office-building construction involving four towers that will increase available office spaces to approximately 413,000 square feet.

Even if housing forecasts are not promising, the construction industry is moving towards renewed activity before the end of 2008, as inventories will most likely even out. The unemployment rate is way below the national average of 4.3% and Florida is showing strong employment prospects for business services, healthcare and leisure/hospitality sectors. Due to the anticipated expansion of the economy, Florida should continue to outperform the national employment growth rate.

There are great reasons why Florida real estate should take a rebound next year as sales are expected to rise. The State's tourism industry attracts both foreign and local tourists, while Florida has become a magnet for retirees. This alone would reinvigorate the real estate industry. Coupled with a vibrant economy the sale of housing units could push to over 2,000 units monthly in view of the new workforce entering the market.

Real Estate Land |