According to a Dodge Data & Analytics report, Miami was ranked as one of the top metro areas for new commercial and multifamily construction in 2015, with a total dollar amount of $6.3 billion. At number two, Miami was ranked behind New York City, which took the number one spot, according to Dodge Data & Analytics.
For Miami, commercial building was up 51 percent from 2014 to 2015, with multifamily construction increasing 121 percent, according to Dodge Data & Analytics.
Large commercial buildings that broke ground in 2015 were the $130 million American Express regional office building and the $43 million Flagler Station III warehouse building. There were over 11 multifamily projects valued at $100 or more that broke ground in 2015, including the $357 million Aria on the Bay condominium building and the $230 million One Paraiso condominium building.
“At the national level, the construction expansion for commercial building and multi-family housing is proceeding,” said Robert A. Murray, Dodge Data & Analytics’ chief economist. “The upward movement by the commercial building sector has at times been hesitant, while multi-family housing has shown steadier growth.”
Commercial Building is Rising Steadily
Dodge Data & Analytics’ statistics show that commercial building has been rising steadily starting in 2011, with gains of 22 percent in 2013 and 2014. According to the Commercial Property Executive, support for the commercial sector has come from market fundamentals, including rising rents and occupancy rates.
“In addition, the search for yield has led some real estate investors to make the shift from property ownership to property development, where higher yields are possible, given the fact that property values in many markets have already risen sharply,” Murray said.
Dodge Data & Analytics is predicting that commercial building and multifamily housing combined will increase eight percent in dollar volume at the national level in 2016. Additionally, Dodge Data & Analytics is predicting that commercial building will increase 10 percent, and multifamily housing six percent.
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