McClatchy 2009: Disaster brewing in Miami’s commercial real estate market
The article begins as follows:
It’s a great time to be a commercial tenant in downtown Miami or the Brickell Avenue financial district, thanks to a glut of new office space that will begin flooding the market next year. But for everyone else in the downtown commercial real estate game — lenders, brokers, bankers, construction workers — there’s a disaster brewing, the likes of which hasn’t been seen since the 1980s…
Considering how hot Miami’s commercial real estate market is today, this seems like a great example of the old wall street adage buy the rumor, sell the news, or in this case, buy the news, given the “news” of an impending implosion. However, as the chart above shows, vacancy rates did in fact skyrocket, and even recently, for office space, remain higher than they had been in the years prior to this article.
Chart courtesy of Costar.