Categorized | Commercial

Commercial Real Estate Market in Southwest Florida Faces Immense Struggles

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While the current commercial real estate sector of Miami-Dade county flourishes, its neighboring counties to the west have been suffering unprecedented losses in their own respective commercial real estate markets. Commercial properties in the counties of Sarasota and Manatee have lost an unbelievable fifty billion dollars in value since the nationwide real estate crash began in 2007.

The overall value of every piece of commercial property within the two counties has fallen to eighty-three billion dollars, which is nearly a forty percent decline compared to the total value of properties in 2007. With the most recent decrease in overall value, the commercial property market now looks to be in worse shape than the struggling residential real estate market.

Although the news about overall value of the commercial real estate sector of the two counties in the latest reports definitely was not good, there is one bright spot that should be noted. The amount of vacant land within the county has significantly decreased by nearly twenty-five percent. The decrease in the amount of vacant land is likely due to depressed prices, and enticingly low loan rates.

There is no clear indication as to when the commercial real estate properties will once again see an increase in overall value in both counties. The drop is value looks to have affected nearly every form of commercial property in Sarasota and Manatee counties. Single-story offices dropped almost twenty percent in value in the most recent report, and Professional-services buildings saw an average decrease of ten percent.

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About Drew Wilson

Drew focuses on the Commercial and Mortgage/Finance categories.

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