By Gay Cororaton, MIAMI REALTORS Chief Economist
In 2024, total commercial sales volume rose 36% to $12.5 billion on a combined basis in the counties of Miami-Dade, Broward, and Palm Beach, a strong rebound following a 2-year decline. Sales volume rose in all counties: Miami-Dade (+24%), Broward (+54%), and Palm Beach (+44%).
Sales rose across the core commercial asset types: multifamily (+15%), office (+56%), industrial (+44%), and retail (+50%).
The city of Miami had the largest sales volume ($2.8 billion) followed by West Palm Beach ($795 million) and Fort Lauderdale ($763 million). Asking rents rose across all property types in all the counties.
Vacancy rates across the property types and across all counties were below the national rate, indicating the robust demand for commercial real estate in Southeast Florida as the area continues to see solid job growth and sustained migration from out-of-state and abroad.
Miami-Dade County: Commercial Sales Rose 24%
In 2024, total commercial sales volume rose 24% to $6.2 billion in Miami-Dade County, a strong recovery following a 2-year decline. The office sector outperformed other markets (61%), followed by retail (+48%) and industrial (+30%) while multifamily sales fell (-7.3%). The city of Miami had the largest sales volume ($2.9 billion). Miami-Dade’s vacancy rates are lower than the nation across property types. Asking rents are also rising faster than nationally except in industrial, with double-digit rent growth in the office market. Significant construction is underway at a pace that is also outperforming the nation, particularly in multifamily construction that will expand existing inventory by 18%, which should lead to modest rent growth in the next two years.
Broward County: Commercial Sales Rose 54%
In 2024, total commercial sales volume rose 54% to $3.8 billion in Broward following a 2-year decline. This is the strongest pace of recovery when compared to Miami-Dade (24%) and Palm Beach (+44%) as sales rose across all sectors, led by retail (+119%) followed by industrial (+54%), office (+36%), and multifamily (+33%). The city of Fort Lauderdale saw the largest sales volume ($763 million) driven by multifamily sales. Pompano Beach had the second highest commercial sales volume ($508 million) driven by industrial sales. Asking rents rose faster than nationally for office and industrial space. Multifamily asking rents rose at modest pace compared nationally and against Miami-Dade and Palm Beach County. Existing construction will add 7% to the existing stock which should keep rent growth modest but still positive as renter households seek more affordable rents in Broward County.
Palm Beach County: Commercial Sales Rose 44%
In 2024, total commercial sales volume rose 44% to $2.6 billion in Palm Beach County, a reverse from a 2-year decline. Sales rose at a robust pace in nearly all asset classes: industrial (+89%), office (+61%), multifamily (+53%), and retail (-5%). The city of West Palm Beach topped all cities ($795 million) driven by multifamily sales. Boca Raton had the second largest commercial sales volume ($547 million) driven by office sales. Asking rents rose faster than nationally across all property types with double-digit rent growth for office space. Vacancy rates are also trending lower than nationally except in the multifamily space. Units under construction will add 4% to the existing inventory, which will tend to keep rent growth modest which will help improve affordability. Palm Beach County has the highest asking rent ($2,559) when compared to Miami-Dade County ($2,508) and Broward County ($2,406).
Download the 2024 Q4 Southeast Florida Commercial Real Estate Report HERE.
