Retail spaces in Florida suffered during the recession, when there were lots of people who shut down their businesses. But it looks like retail space rentals have been improving in recent months. According to recent reports, the rate of retail space rentals in Florida increased 0.2 percent.
According to local commercial real estate brokers, business owners in the Volusia-Flagler area have been renting more retail properties than they were a year ago. Claude Gardner, a broker in Daytona Beach, said that Port Orange and Ormond Beach have seen fewer vacancies.
Brokers said that Flagler County has a slower rental rate than Volusia County. They said that they have been getting inquiries from retail developers. This was seen as a good sign because developers had no interest in heavily blighted areas of Flagler County.
Retail rents in Flagler County are below the state average of $17.95 per square foot. Some spaces on Palm Coast Parkway have rents as low as $12 to $13 per square foot. Commercial retail space rentals in Florida are growing in a slow pace. The state has a vacancy rate of 7.9 percent, which is a drop from the 8.1 percent from the same period last year.
The growth was attributed to the increased tourism, higher consumer confidence, and lower jobless rate. The consumer confidence is said to be the highest since before the recession. Rent has been increasing because of the gains in the demand for retail spaces.
There is a lot more competition in the marketplace. There is a rust to get the best rental rates while the demand for retail spaces continues to go up. Florida’s demand for commercial rental spaces has outpaced supply. While the growth is still slow coming from a real estate perspective, there are signs of stability in the market as people are willing to sign up for 3 year lease for a space.