Optimism among Florida real estate professionals at its highest since 2006
Optimism in the Florida real estate market remains strong among those in the business, according to the Survey of Emerging Market Conditions, conducted quarterly by the Kelley A. Bergstrom Center for Real Estate Studies at the University of Florida’s Warrington College of Business Administration.
UF’s Commercial Real Estate Sentiment Index, an outlook of respondents’ own businesses, improved to 7.45 out of 10, its highest level since the third quarter of 2006.
Timothy S. Becker, director of the Bergstrom Center, attributed the upbeat outlook to continued improvement in the job market and growth in the tourism industry.
“Both factors have been positive for consumer confidence,” Becker said.
The survey also found that practitioners expected occupancy and rents across property types to remain stable in the next quarter. Multifamily property occupancy continues to be positive, increasing at a rapid pace over the past few years. However, inventory increases from new construction, along with current capacity units, means this trend may level off soon.
While current capitalization rates have remained stable across most property types, uncertainty over interest rates remains on certain property types. However, for now, the low interest rates continue to drive capital to real estate.
Overall, respondents felt that despite uncertainties, Florida’s economy and therefore the real estate markets continue to improve, so this trend should hold true for the near future.
The survey included 97 participants representing 13 urban regions of the state and up to 15 property types. It is one of the most extensive surveys of Florida professional real estate analysts and investors conducted on an ongoing basis. The complete survey results can be found at realestate.ufl.edu.
The UF Bergstrom Center for Real Estate Studies supports the UF real estate courses and degree programs housed within the Warrington College of Business Administration.
Contact: Nikki Wagner, UF Bergstrom Center, firstname.lastname@example.org, 352-273-0312