FLORIDA COMMERCIAL MARKETS

The credit crunch is creating challenges in South Florida's commercial real estate markets for 2008. Higher costs to borrow money and tougher requirements impossed by the lending institutions,the contraction of some financing vehicles and the possibility of a recession threatens to compress rents,raise capitalization rates and slow sales of office,retail and warehouse properties. These conditions are creating an environment where cash is king and less experienced ,higher leverage buyers and operators are less able to maneuver. Like the residential market --commercial is vastly becoming a buyers market especially if cash is the dominate vehicle of purchase and the LTV is low. Therefore if you are searching for commercial property to buy in Palm Beach County or Broward County and you are in a strong cash position you will be able to negotiate the price to your favor.