In miami beach real estate, for instance, one of the hottest markets in Florida, there has been a lot of new home construction. Prices escalated dramatically in 2015, and sellers were able to turn high-demand properties around in a few weeks. But experts think there's plenty of demand to absorb that kind of growth. Vacancy rates remained low across the board for commercial: 3.7 percent total with 2.8 percent for retail, 6.4 percent for office and 4 percent for industrial and flex space. So if there is a marginal decline in residential construction in previously sizzling hot areas of Miami, we can expect commercial construction to take up the slack.
Commercial real estate development typically lags behind residential. That's because permits have to be issued, environmental studies done, and extensive financing arrangements made. For instance real estate experts in the Miami area expect a regional mall to be built, but it will probably take as many as 7 years to complete. That can be a good thing for commercial real estate developers, because when residential growth slows down, commercial development is likely to play catch up. The influx of new residents that came with new home construction requires a build-up of retail and office space to service the new population.