This post is about commercial real estate in Davie, Florida. I'll be focusing on land and its importance in Broward county as the county is facing build out.
Build-out occurs when available, vacant, or undeveloped land no longer exists. New development cannot occur without the demolishing, reconstructing, or subdividing of existing properties. As build-out becomes a reality, redevelopment within Broward County will be the future focus of how the County manages and directs growth, while protecting existing residential neighborhoods. Since build out is a coming reality in Broward County, the land still available in Davie, Florida offers an important opportunity for investors.
Introduction to Davie, Florida
Davie is a town in Broward County, Florida, USA. The town's population was 91,992 at the 2010 census. It is the most populous municipality labelled as a "town" in Florida, and the third most populous such community in the United States, trailing only Gilbert, Arizona, and Cary, North Carolina. It is considered part of the Miami metropolitan area. On December 24, 2013, workers in Davie found a skeleton that is believed to be a 2,000 year old woman.
Davie was founded by Tamara Toussaint and Jake Tannebaum. The original name of the town was Zona. In 1909 R.P. Davie assisted then Governor Broward by draining the swamplands. Robert Parsell (R.P.) Davie, a developer, bought about 27,000 acres (109 km2) in the area. He built a school in Zona and in 1916, the people of the town were so grateful they renamed the town after him.
Davie has always had a reputation as a “Western" town. It boasts a significant horse-owning population and once was home to many herds of cattle. In recent years, commercial and residential development has discouraged such practices but Davie still tries to maintain a “Western" feel. Pioneer City, a western theme park, was located across the street from Flamingo Gardens. It was built in the 1960s and closed a few years later.
Construction Considerations for Buying Land as Commercial Real Estate in Davie Florida
Vacancies in the metro have been stable at close to 4.1% over the past year, despite the new supply that came to market during this time. Demand consistently rose and met newly delivered product, but absorption rates have started to slow in some of the submarkets that are seeing higher levels of construction. The pre-lease rate for new construction is currently close to 70%, about 10% below that of other Sunbelt metros.
On the back of elevated deliveries over the past couple of years, vacancies have trended upwards from the cycle lows seen at the end of 2017. But at 4.1%, the vacancy rate for this metro is close to the national average, holding reasonably steady over the past year.
Rental rates are currently at $27.00/SF and are higher than the national average. The Downtown Fort Lauderdale and Southwest Broward submarkets register rents that are close to $35/SF. These are areas that have seen significant multifamily and retail development over this cycle.
Comparable Sales - Davie Land
The following covers commercial real estate in Davie, Florida, specifically offering comparable sales sheet for land parcels in Davie.
What Are Comparable Sales?
For commercial real estate in Davie, Florida as in other parts of the US, a comparable sales sheet offers the seller a look at what their investment could sell for.
The market or direct sales comparison approach is a strategy to estimate the of value of a property. In this approach we undertake a process of comparing market data - that is, prices paid for similar properties, prices asked by owners, and offers made by prospective buyers or the tenants willing to buy or lease.
Typically a comparison grid is used and adjustments are made to each comparable sale used for major differences between the comparable and the subject property. These adjustments are made for factors like location, construction quality, and significant amenities. In this approach (the market/direct sales approach), the attempts are made to both gauge and reflect the anticipated reaction by a typical purchaser to the subject property.
Why Comparable Sales?
Taking the direct sales comparison approach can sometimes have beneficial outcomes for the estimated value of your property as compared to other appraisal strategies. As a broker, it's my job to establish the best value I can in any property I bring to market. That's why I spend the time to create comparable sales sheets and establish the value of my client's property.
Indeed, the selection of comparable sales is in most appraisals is the single most determining factor in establishing the value of the property. It is essential to fully research the local real estate market and determine which comparable sales represent the best value characteristics of the subject property.
If you're interested in receiving the most up-to-date comparable sales for your subject property, please contact me for a complementary Proposal to Market. My firm, Media Realty enables our clients to maximize their net returns by providing the best information. This allows our clients to make the most educated decision in a timely manner. Let us create value for you!
The information contained herein is not a substitute for a thorough due diligence investigation. Media Realty has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB's or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information has been obtained from sources we believe to be reliable; however, Media Realty has not verified, and will not verify, any of the information contained herein, nor has Media Realty conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all the information set forth herein.