A CRE Submarket to Watch in the Second Half of 2017
As a broker focusing on investment properties, my clients often want to know where to find good deals. With prices in Miami-Dade reaching new heights, CRE investors seeking value-add opportunities are looking north. I am increasingly receiving inquiries about the West Hollywood office submarket in Broward County, where many deals are flying under the radar. The vacancy rate for Class C properties in Hollywood is 4.1 percent, fueling investors’ appetite for this type of asset. In contrast, the vacancy rate for Class A and Class B office properties are much higher: 13 percent and 8.4 percent respectively.
With Hollywood’s strategic location to access downtown Miami, downtown Fort Lauderdale, Port Everglades and Fort Lauderdale-Hollywood International Airport, it’s not surprising that demand for commercial properties in West Hollywood is gaining momentum. I recently listed a 10,538-square-foot office building on Hollywood Blvd. west of 441 at $1.8 million and expect to sell it quickly. I also recently sold the Bank of America Plaza and an adjacent lot at 901 South SR-7 for just under $5.5 million. The property sold for nearly the asking price after receiving multiple offers. Investment is pouring into the area ahead of the construction of Dania Pointe, a 102-acre mixed-use development site planned south of Griffin Road and east of I-95. The development, which delivers 1 million square feet of hotel, restaurant, Class A office space, luxury residential units and more to this submarket, promises to transform the Hollywood CRE market and other sectors as well.
As the re-urbanization of downtown Fort Lauderdale and Miami grab the headlines, Hollywood is quietly attracting new buyers – from investors to end-users – due to its central location and value-add opportunities. My conclusion: This is a submarket to watch in the second half of 2017.