The South Florida market remains strong, as the area is a magnate for South American firms desiring a presence in the U.S. However, with the drop in worldwide economies, the South Florida commercial real estate markets have taken a hit this year. Figures show the total dollar volume for transactions in the area is down 36.7 percent from the same period last year. The volume is below the boom years of 1998 and 1998, but officials predict the markets, and in particular the Miami area, will remain strong.
According to the Reis Report, vacancy rates are low in the Miami-Dade area with rental lease rates between $22.11 and $22.24 per sq. ft. Miami area commercial construction has increased. Insignia/ ESG announced in late June it will move its Florida headquarters offices to a new site on Brickell Avenue. The Gap announced last summer a new $5 million apparel headquarters office to be built in Miami. Company officials expect to employ 375 workers. Volkswagen is building a $2 million Latin Amer-ican headquarters office and will employ 30 workers.
Hollywood and Fort Lauderdale are the sites for two new hotels or casinos. The Seminole Tribe is building a $300 casino/hotel facility in Hollywood. Wyndham Hotels announced in April it will build an $81 million facility in Fort Lauderdale. Rooms to Go will employ 500 workers at its new headquarters/distribution warehouse site in Coral Springs.
-- Ginny Deal
