Study shines bright on Florida commercial real estate

The commercial real estate outlook for the Sunshine State is as bright as it's been in nearly five years, according to a University of Florida survey.

The survey, the Commercial Real Estate Sentiment Index, is based on data and polling from the first quarter. The Bergstrom Center for Real Estate Studies at UF's Warrington College of Business Administration produced the report.

In a general sense, the survey and the index, the highest it's been since the 2007 third quarter, isn't a stunner. “Overall the future is looking brighter for Florida real estate, however uncertainty remains,” the report states. “Expect a continued slow and sometimes sluggish recovery until after the presidential elections in November.”

That's a frequently reported refrain. Nonetheless, when a commercial real estate survey uses the word improvement with bank lending and property fundamentals, like this one does, it's news certainly worth noting.

To wit: the survey's lenders segment reached its highest level since the first quarter of 2007. Respondents also say occupancy and rents are improving in almost every asset class, according to the survey. “The largest increase in occupancy expectations is in the office market,” the survey states, “where respondents' expectations for Class A space increased to a survey high.”