According to a CBRE report on southwest Florida, multifamily assets are proving to be a bigger attraction to investors than retail, office or industrial properties. In all, investors place $425 million in multifamily assets during the first half of the year, while retail investment managed just $391 million in total sales volume. From a development standpoint, CBRE noted activity on over 615,000 sqf of retail space under construction as of the end of June, while net absorption came in at more than 1.2 million sqf over the last 12 months. Capital flows across office, industrial, and retail product in the first half of 2017 have been dominated by REIT investment (80 percent) with the remaining coming from private funds.
“Strong economic fundamentals in areas like Cape Coral and Naples has continued to fuel growth amongst these sectors. The region remains an appealing investment, especially for those squeezed out of the increasingly tightening Southeast Florida markets,” said Jeffrey Gage, senior vice president, CBRE. “A continued scarcity of developable land coupled with attractive pricing may attract investors and developers to look to the west coast in search of yield.”
