Power Tools for Commercial-Investment Practitioners

South Florida's rental rates are edging toward those of major metropolitan markets in the United States. In both Palm Beach and Broward Counties, for example, the average rental rates for luxury downtown office space at year-end 2006 were $40.60 and $31.08 a square foot, respectively. According to a Cushman & Wakefield report, "Palm Beach county's office vacancy rate dropped to 11.3 percent at year-end 2006 from 13.7 percent at year-end 2005... while Broward's rate dipped to 11.7 percent from 12.9 percent."

Why so expensive? The high cost of construction which limits the number of new office buildings, coupled with record building sales, is driving up operating expenses for landlords.

Posted on January 29 at 10:45 AM | Permanent Link | Add a Comment (0)

The Chicago Board of Trade (CBOT) intends to introduce a new stock index futures contract based on the Dow Jones U.S. Real Estate Index." This electronically traded futures contract, which will be available in the first quarter, will assist market participants in managing commercial real estate exposure and capitalizing on changes in the industry.

Posted on January 9 at 11:36 AM | Permanent Link | Add a Comment (0)

Construction of Island Gardens, a mixed-use luxury property on Watson Island off the coast of Miami, is slated to begin this year. The $575 million project which is surrounded by Biscayne Bay, will include both public and private uses. Some of the development offerings include a 150-room Shangri La Hotel with a 14,500 square-foot spa, a 350-room Westin Hotel, as well as marina slips for the docking of super-yachts. According to developer Flagstone Property Group, "the site will be North America's only marina capable of accommodating yachts exceeding 80 feet.

Posted on January 3 at 10:52 AM | Permanent Link | Add a Comment (0)