$4.7 Billion Commercial Sales Volume in Miami-Dade County in Q1-Q3 2023 with a Rebound Expected in 2024
The Miami Association of REALTORS® (MIAMI) examined county property records from the Office of the Property Appraiser and found that the volume of commercial real estate transactions in Miami-Dade County during the first three quarters of 2023 amounted to $4.7 billion.
Commercial sales volume decreased 52.2% from the same time last year due to high borrowing costs and a reduction in commercial real estate lending, which made it difficult for investors to obtain financing. From a range of 0% to 0.25% in March 2022, the Federal Reserve Board kept raising the federal funds rate in 2023, bringing it to the current range of 5.25% to 5.5%. Credit conditions became even more stringent in March 2023 after two regional banks failed. Additionally, the Fed started cutting back on its Treasury holdings in an effort to lower the amount of liquidity.
Investor interest in vacant residential land, industrial, and multifamily properties peaked during the first three quarters of 2023. Sales of vacant residential land in 2023 Q1–Q3 totaled $877 million, or 19% of total sales volume. Industrial properties, with $836 million in sales volume, or 18% of total sales volume, were the second most preferred asset. $710 million, or 15% of the total sales volume, was made up of multifamily sales. The amount of money sold for retail ($490 M), office ($430 M), and hospitality ($310 M) properties combined was less than $500 million.