When the initial residential housing market crisis took effect, there was a gap before its neighbors in the commercial market felt the repercussions. It was inevitable, however, and eventually the same situations began to present themselves: lenders stopped lending, new developments were halted, and the market became gridlocked.
CoStar.com reported that Blackstone Group, DRA Advisors and AEW Capital all closed on industrial real estate that has been valued at approximately $1.5 billion, or “more than one-third of the entire dollar volume of industrial sales done year-to-date.”
Perhaps one of the most significant points in the Blackstone Group deal is that the properties are coming primarily from the central and southeastern portions of the United States. Of the nine states listed in the article, Florida had the 3rd most property sold, coming in at 1,894,000 square feet.
CoStar went on to state that AEW Capital purchased the Flagler Station industrial portfolio, which consists of 4.2 million square feet and 33 industrial assets. Flagler, the former owner of Flagler Station, will stay on to manage the South Florida properties.
This news is a positive sign that the market is continuing to improve. The banks are showing signs that they are willing to take on new investments as they prepare for the eventual resurgence. Here in Orlando, we already have a head start, what with projects such as the “Eye of Orlando” on International Drive continuing forward with their development. We look forward to watching the rest of Florida catch up from our perch on the world’s largest Ferris wheel.