MIAMI—Ken Krasnow, managing director for CBRE in South Florida, is offering plenty of predictions for the region's commercial real estate market in 2015. He shared those predictions—which include more growth and an active financing market—in part one of this exclusive interview.
Krasnow also shared with us two trends that are less mainstream, but could have a big impact on the region. He says suburban and "pocket" urban office markets will heat up and transit-oriented development (TOD) will be commercial real estate's MVP.
“In Miami, rising office rents downtown and 'commuter fatigue' will make suburban office space increasingly appealing for tenants,” Krasnow says. “Office properties in Coral Gables, South Miami, and Doral, which are closer to residential areas and offer more parking, will be the primary beneficiaries, along with some suburban office properties in Broward County.”
At the same time, Krasnow predicts, small pockets of office space are likely to crop up in Miami's trendiest neighborhoods. Those, he says, include Midtown and Wynwood, as well as in mixed-use developments like Miami Worldcenter and Brickell City Centre.
Krasnow also predicts TOD will be a regular mantra in real estate circles. He says, “All Aboard Florida's high-speed rail line will create an unprecedented opportunity for new mixed-use development on vacant land surrounding future rail stations in Miami, Fort Lauderdale and West Palm Beach, creating the denser, vibrant, 'live-work-play' environment that everyone, from Millennials to Baby Boomers, is craving.”
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