CoStar Editor Paul Owers reports that office investment sales and the cumulative value across South Florida plunged during the first quarter of 2018, but real estate observers say the numbers aren’t as ominous as they appear.
Palm Beach, Broward and Miami-Dade counties posted 123 sales from January through March for a total value of $442.7 million, according to CoStar Market Analytics. That’s down from 276 sales for $543 million in the same period in 2017. But the average price per square foot increased to $277 from $211 in Q1 2017, according to the April 5th article.
Of the three counties, Broward had the best showing, with 40 sales valued at $274.2 million – a 24 percent increase from a year earlier, and on 48 fewer transactions.
Also, Broward dominated the top 10 office sales in the first quarter with seven buildings on the list. South Florida’s highest sale price in the first quarter was $57.4 million for the 239,373-square-foot Sawgrass Lake Center at 13450 W. Sunrise Blvd. in Sunrise, FL. The deal was completed last week.
In Miami-Dade, just 39 buildings traded in the first quarter for $82.6 million – for a cumulative value less than that of the smaller Palm Beach County market, which rang in at $85.9 million. A year ago, Miami-Dade’s 116 first-quarter sales totaled a robust $200.6 million.
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