By Gay Cororaton, MIAMI REALTORS Chief Economist
Commercial real estate investors closed $4.8 billion in commercial real estate sales deals in Miami-Dade County in the first three quarters of 2024. Amid a still challenging investing landscape of high borrowing costs and tight underwriting, investors honed in on office and retail assets to find profitable investments, according to Miami Association of Realtors ®(MIAMI) analysis of county records.
The dollar sales volume of retail properties in the first three quarters rose 44% to $686 million, with the median sales price up 8%. The dollar sales volume of office properties rose 10% to $617 million, with the median sales price up 1%.
In contrast, the dollar sales volume of multifamily buildings with at least five units fell 30% to $683 million as the median sales price fell 1%. The dollar sales volume of industrial properties fell 27% to $687 million but the median sales prices rose a robust 16%.
In the land market, the sales volume of vacant commercial, industrial, and residential land fell 19%. However, the median vacant land sales price rose 14%.
Sales volume of non-core commercial real estate — educational, senior living, and medical — also rose although these sales make up less than 1% of the total sales volume: educational (+68%), senior living (+271%), and medical (+25%).
Overall, commercial real estate sales volume in Miami-Dade County fell 13% in the first three quarters of 2024 to $4.8 billion. The dollar sales volume of the four core property types —multifamily, office, retail, and industrial —fell 10% from one year ago in the first three quarters of 2024 to $2.7 billion,
35% of Miami-Dade County’s municipalities saw an increase in sales in the first three quarters of 2024
Of the municipalities and the combined unincorporated areas of Miami-Dade, 35% of 34 markets had higher dollar sales volume in the first three quarters of 2024 compared to one year ago.
Dollar sales volume rose in areas like Doral, Miami Springs, Miami Gardens, Miami Lakes, North Miami, Sunny Isles, Aventura, Pinecrest, Palmetto Bay, and Homestead. In Doral, sales volume rose due to an increase in sales of multifamily, industrial, and retail buildings. In Miami Gardens, multifamily acquisitions drove the sales volume increase. In Miami Lakes and Palmetto Bay, office sales were the source of growth. In Homestead, land sales bolstered sales.
While sales declined in Miami, Miami Beach, and Hialeah, there were pockets of growth. In Miami, office and retail sales increased. In Miami Beach, office sales also increased. In Hialeah, industrial sales rose.
Sales rebound projected in 2025 as interest rates decline
Despite the sales decline, Miami-Dade County’s strong economic fundamentals set the stage for a strong rebound in sales in 2025 with interest rates projected to come down in 2025 as the Federal Reserve continues to lower the federal funds rate with inflation abating to 2%[1]. Miami-Dade’s solid job growth[2], the inflow of wealth from out-of-state people moving to the area[3], and continuing recovery in net international migration[4] and tourism underpin the area’s economic fundamentals.
Download the 2024 Q3 Commercial Real Estate Sales in Miami-Dade County Report below.
