June 09, 2016
The Japanese Conglomerate Sumitomo Corp., which was an arm of U.S. and Japanese trade four years ago, has boldly re-entered the market with the new Miami Tower office building purchase.
Thus far in 2016, this has been one of the most proving deals, both in value and market optimism. With Sumitomo showing a powerful move towards the coming age, this leaves some investors at ease with Miami’s ever-growing commercial real estate market.
As Sumitomo Corp. and many other companies, step into the diverse South Florida market we can see that there are many opportunities. Apart from the traditional office buildings, there is a developing trend in massive multi-use projects like Brickell City Center, and a declining availability of land in the Downtown and Midtown areas.
The amount of new product circulating through the pipeline is a little over 400,000 and a dramatic decline from the last market cycle, and with rising land prices and developers eating up the lots to build condo associations show that the trend may continue.