Latin American merchants looking for commercial properties in Florida

Florida has become a key destination for Latin investors, particularly Argentines, Brazilians and Colombians, who are showing increasing interest in the state's commercial properties. This increase in demand spans sectors such as multifamily, industrial and retail, with prices reflecting this trend. In this article, we explore current prices and trends in Florida's commercial real estate market.

1. Investment in Multifamily Properties

The multifamily sector in Florida has been one of the most dynamic in recent years, attracting numerous Latin investors. Sales volume in this sector reached $1.2 billion in the past twelve months, a figure that, while significant, shows a moderation compared to the record levels of 2021 and 2022, when sales totaled $4 billion annually. Strong price growth in those years has highlighted investor appetite, although factors such as higher interest rates, lower rent increases and rising costs, especially insurance, are holding back price growth and activity.

Seven transactions have exceeded $200 million in recent years, with the majority occurring in key areas such as downtown Miami, Wynwood, Miami Beach, Coral Gables, South Miami and Doral. These assets, due to their prime location and age, have traded at an average price of over US$550,000 per unit, well above the average of US$400,000 per unit for 4- and 5-star assets over the past four quarters.

2. Industrial Properties in Florida

The industrial property market has also seen considerable activity. Over the past 12 months, sales volume reached The retail sector in Florida is also attracting the attention of Latino investors, with strategically located properties offering long-term growth opportunities. Although this sector faces challenges, it remains an attractive option for those looking to diversify their investments in the commercial real estate market.