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| Volume 24 No. 1 Winter 2024 |
| | | | | | | Keys-wide Comparison: January—December 2023 vs. 2022 | | | | | |
| | | | | | | The Commercial Market in the Keys in 2023 fared far worse than the residential market and the overall real estate market in the Keys which is comprised of all property types. Commercial transactions - both sales and leases - declined 37.1% year over year, significantly more than the overall real estate market, the transaction count of which fell 24.5% during the same period. The average value of a commercial transaction in 2023 was also down considerably at -34.2% while the overall market average sale price for all property types was up slightly. Commercial sellers had to wait 20% longer in 2023 (142 days) which was almost twice as long as the overall market at 79 days. Commercial sellers gave up over 12% from the original list price to the final sale price which was similar to the negotiation margin for all property types at 11%. The number of commercial sale and lease listings remained relatively stable year over year while the number of properties for sale and lease in the overall market grew 27.7% from 2022. A significant portion of these declines in the commercial market can be attributed to higher interest rates in 2023 which disproportionately affect the commercial real estate market. The Florida Keys economy is largely driven by tourism and the tourism market has cooled since the highs it reached in 2021 & 2022. The Star Reports for the Florida Keys and Key West, which is a good barometer of Keys Tourism, show smaller declines in hotel occupancy, but 12% declines in nightly rates which clearly chronicle and parallel the real estate markets in the Keys. Tourists were still coming in 2023 but spending less on lodging. We expect and forecast that commercial transactions in the Keys in 2024 will not rebound significantly until interest rates begin to recede in a meaningful way. The Fed has telegraphed that it might cut rates two or three times in 2024 which should continue to sustain the Keys commercial market at the very least with some possible gains coming in the 3rd and/or 4th quarter.
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| |  | | | | | | | | | | | KEYS-WIDE COMPARISON: LIST PRICE-TO-SALE PRICE | | | | | |
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| | | | | | | | Keys-wide, commercial transactions were down 37% in 2023. 62% of them were in Key West. The average sale price was down 34% Keys-wide with the Upper Keys the least affected with a 17% lower ASP. The Middle Keys was down 35%, Key West, 43% and the Lower Keys, 47%. The number of pending transactions at year-end also fell 37.5% from 12/31/22 at 10. | | | | | |
|  | | | | | | | Active listings at the end of 2023 were up 2% from 2022. While the number of Lower Keys listings (where there are comparatively few transactions) dropped 40%, the Upper Keys was up 15%, the Middle Keys gained 4% and Key West, 3%. The average list price rose 21% Keys-wide with the Upper Keys up 2%, Key West up 6%, the Middle Keys, 47% and the Lower Keys, 140%. | | | | | |
|  | | | | | | | The Months of Inventory (also known as the “absorption rate”) increased everywhere with a Keys-wide average of 17 months. The Upper Keys posted the largest gain (121%) followed by the Middle Keys (90%), Key West (55%), and the Middle Keys (28%). The number of days to sell increased everywhere averaging 142 Keys-wide. The Upper Keys rose 4%, the Middle Keys was up 15%, Key West gained 18%, and the Lower Keys jumped 102%.
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|  | | | | | | | Coldwell Banker Commercial Strengthens ITS Data-Driven Insights & CRE Resources with Placer.Ai Relationship | | | | | |
| | | | | | | Coldwell Banker Commercial® has announced a new vendor relationship with Placer.ai. In the world of commercial real estate, market analysis has become an incredibly important part of the brick-and-mortar retail strategy. The relationship with Placer.ai enhances Coldwell Banker Commercial’s evaluation process to determine the most profitable uses for land and to decipher real estate market trends to build better site selection and growth strategies.
"We are excited about the opportunities this relationship creates for our network of professionals,” said Dan Spiegel, senior vice president and managing director of Coldwell Banker Commercial. “Placer.Ai's foot traffic analytics and location intelligence will be a valuable resource for Coldwell Banker Commercial affiliated brokers and their clients by offering unique, quality real estate market analysis. We look forward to empowering our affiliated brokers with the critical information needed to assist their clients to make informed decisions about acquisitions, sales, and the general development of property.”
Placer.Ai's insights will provide Coldwell Banker Commercial professionals with an additional tool to better address market-wide factors such as location and accessibility, maintenance and improvement costs, tenancy and rental income, foot traffic patterns, and comparative benchmarking.
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| | | | | | Mobile Web Award Winner: CBCWORLDWIDE.COM | | | | | |
| | | | | | | We’re excited to share that CBCWORLDWIDE.COM has been named a winner by the 2023 MobileWebAwards for Best Real Estate Mobile Website! We are proud to be recognized for this achievement for our newly refreshed website that our network of professionals and consumers can utilize in their commercial real estate journey.
The refreshed website aims to be a best-in-class, lead-driving utility that reinforces the differentiating qualities of the brand. New features include:
Updated Design – The website is being transformed through a new look and feel, robust content, and a seamless experience across mobile devices, providing access in the palm of your hand.
Broker Empowerment – The new platform gives agents more control over their listings and provides useful insights for marketing efforts, such as how many views properties have received, enhanced editing abilities, tracked communications, and reporting.
Thought Leadership – Through news articles, podcasts, white papers, blog posts, guides, and more the website will help reinforce and highlight the differentiating qualities of the Coldwell Banker Commercial brand. | | | | | |
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| | | | | | COMMERCIAL TRANSACTIONS OF
2023’S second HALF | | | | | |
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| | | | | | There were 53 closed commercial transactions comprised of 22 sales for $39,735,500 and 31 leases with a dollar volume of $4,348,471 recorded in the Keys MLS for areas 1-27 plus offshore islands between July 1 and the end of December 2023. The following table lists the second half of 2023’s commercial For Sale transactions and For Lease transactions by closing date. They are grouped by submarket area and include the MLS#, alternate key number (to allow you to search the Property Appraiser’s website for more detail), the sold date, sold price, DOM, address, net leasable area, and a brief description. | | | | | |
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Coldwell Banker Schmitt Real Estate Co. |
| 11100 Overseas Highway, Marathon, FL 33050 |
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