Although the housing market begins to show signs of recovery, is south Florida commercial real estate is still in crisis. bludgeoned by the empty display cases, to the decline in rents and difficulty finding a loan, a significant number of owners of the South Florida commercial properties facing default on their bank loans. Many fear this could trigger a new round of bank failures and to further impede the economic recovery of the region.

Over the years, community banks have invested in South Florida in commercial real estate such as hotels, shopping centers and offices. According to an analysis conducted for The Miami Herald financial institutions in Florida twice as many commercial loans in their portfolios of state banks.

A recent example of the commercial real estate crisis is entering Corus Bank of Chicago by federal authorities. Corus is a major player in the South Florida market for commercial real estate and was canceled by heavy in construction loans and commercial real estate.

From Fort Lauderdale to Boca Raton, there are more and more “for hire” and “For Rent” signs on commercial properties. Many highly desired commercial locations are now free sports. local development projects are also in trouble and face either the cancellation or foreclosure as the former Grand Bay Hotel in Coconut Grove.

The health of the commercial property market is often a good overview of a viable local economy. With employers in South Florida continue to lay off workers, more office space unused. This causes fewer people with a lower purchasing power, fight the leading retailer, only to hang around, not to mention the opening of new stores.

The negative impact of this crisis on the global economy in South Florida is huge. Real estate development, commercial and private is a major industry in Florida. This multi-billion dollar also supported many companies waste, including construction, property management, interior design, furniture sales and real estate appraisers.

Add to this dilemma is the fact that the funding dried up and some banks are in South Florida ready to refinance loans. In the past, the Wall Street to provide a substantial portion of the money for commercial real estate by consolidating these loans into securities. Because of past problems in our financial institutions, it is no longer a viable option. A glimmer of hope in this crisis is that the Ministry of Finance, the market for mortgage-packaging by encouraging investors to buy new titles by encouraging attractive new loans will.

Only time will tell if this strategy can begin struggling South Florida commercial real estate market.


Office space in Fort Lauderdale