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s we near the end of January 2025, it's clear that South Florida is still feeling the lingering effects of 2024. To gauge the commercial market's expectations for this year, we spoke with brokers and developers. While there are some concerns, not all news is bad.

    The industrial market is experiencing a slowdown in momentum, partly due to Blackstone's Link Logistics selling 35 warehouses across Miami-Dade, Broward, and Palm Beach counties for $697 million. This could allow the company to redeploy capital into newer, larger warehouses that attract bigger tenants. Industrial rents are also coming down, with some brokers noting that the rapid rent increases seen in previous years are no longer happening.

    In the office market, South Florida's fortunes may be tested this year as billion-dollar hedge funds and other large companies continue to lease space. However, some brokers believe a repeat of recent years' leasing frenzy is unlikely due to the lack of available trophy space. Others argue that pent-up demand for top offices remains, particularly in areas like Bay Harbor Islands.

    A counterintuitive dynamic is expected to play out this year: rents will continue to climb, driven by new Class A-plus buildings, while vacancies inch up. On financing and investment sales, South Florida's office market faces elevated interest rates, skyrocketing insurance and construction costs, and higher cap rates. Medical offices are a bright spot, commanding high rents and longer leases.

    The multifamily market is expected to see record apartment completions this year, but with fewer deliveries projected in 2026. Developers remain optimistic about demand, driven by tenants priced out of the homebuying market and those fleeing wildfires in Los Angeles. Short-term, floating-rate lending is expected to pick up if interest rates continue to drop.

    In other news, billionaire Jamie Salter sold his recently completed estate on North Bay Road for $40 million, while AEW Capital Management acquired a 424-unit senior living rental complex in Wellington for over $100 million.