Walter Duke, President & CEO, Walter Duke + Partners

May 2026 — Invest: spoke with Walter Duke, president and CEO of commercial real estate appraisal firm Walter Duke + Partners, about South Florida’s commercial real estate outlook, affordability pressures, and the policy and market forces shaping the region’s development pipeline. “Even with the headwinds, there is still strong interest in the region, and that continues to support growth,” Duke said.

How would you describe the commercial real estate environment in South Florida over the last 12 to 18 months?

A lot of positive signs are emerging, and the market wants to break out. We are still experiencing drag from high insurance premiums, construction costs, inflation, and some policy-related pressures affecting service industries, such as hotels and restaurants. By and large, though, South Florida, and Florida more broadly, continue to outperform the broader economy.

We feel fortunate because of that. Even with the headwinds, there is still strong interest in the region, and that continues to support growth. Housing affordability remains a top issue, however. The big question is where people are going to live because prices keep rising. So it is a mixed bag, but overall, this is still a region that is outperforming and attracting attention.

Which asset classes are seeing the strongest demand right now, and why?

Retail continues to shine. In the post-pandemic economy, it remains a highly desired asset type, particularly grocery-anchored centers. Experiential uses are doing well, along with doctors, veterinarians, pet-related tenants, fitness concepts, and other service-oriented users. We have very low vacancies, rents continue to increase, and even value-oriented retail centers are performing well, which is not something you see nationally.

Office is still a story that continues to unfold. Class-A product in places such as Brickell, downtown Fort Lauderdale, and downtown West Palm Beach is doing very well. Class-B and -C office is much more of a mixed bag. Many office assets purchased or refinanced in 2021 or 2022 are likely upside down right now. Class-C buildings, in many cases, are simply waiting to be demolished because land values are so high and the demand for vertical multifamily, workforce, and affordable housing is so strong.

Industrial also continues to perform well. South Florida is land-constrained, and that supports industrial land values and demand. There has been some moderation, but only in relative terms. It went from unbelievable to just great. Industrial outdoor storage is also doing well across all classes.

Multifamily is more mixed. Class-A is doing well, but the market has been absorbing the overhang from the wave of development that came through 2021 and 2022. There have not been many rent increases over the last couple of years because the market has been catching up and leasing up what was built. We expect conditions to improve as that inventory gets absorbed.

We are also seeing signs that some suburban multifamily deals are starting to pencil again, especially lower-density projects and some wraparound parking configurations. What is still not feasible, particularly in Broward, is anything requiring pedestal parking. The rents do not support the cost structure yet, so many of those projects are still sitting and waiting for market conditions to improve.

How do you see the affordable housing situation evolving in Broward County?

There is still tremendous demand for workforce and affordable housing. Broward County is one of the least affordable counties in the nation relative to wages, and that makes this one of the most pressing issues in the market. A large share of the service workforce falls at or below 60% of area median income, so the need for truly affordable housing is significant.

That said, progress is being made. Over the last five years, Broward County has invested substantial funding into gap financing for affordable housing, which has supported thousands of units through completed, under-construction, and pending projects. On top of that, the county’s affordable housing master plan has created a longer-term framework for funding and delivery, and cities have also begun stepping up with direct investment into affordable housing communities.

We are trying to take meaningful bites out of the problem, but it is going to take time because we started from such a deep deficit. Still, a lot of progress has been made, and more stakeholders are leaning in the right direction.

What are the main priorities now in terms of improving affordable housing delivery?

The master plan focused on three components: funding, land use policy recommendations, and city engagement. Funding is continuing, and it should grow over time. City engagement is improving, and one important step is the development of a dashboard that shows how each city is performing on affordable and workforce housing.

Land use policy remains an ongoing effort. Right now, a major focus is on permitting timelines, permitting costs, and ways to reduce development barriers. The overarching goal is to create a more robust pipeline of quality affordable housing by bringing down costs, reducing headwinds, and shortening the time it takes to get projects approved and built.

How is your firm using AI today, and how do you view its impact?

We use AI every day. We are a boutique commercial real estate consulting company, and AI is already part of how we modify and automate systems, handle client correspondence, prepare proposals, and improve workflows across the business. It touches almost every part of our operation.

I see AI as a very positive development. There is concern about job losses and displacement, and some of that may be real, but I believe the net effect will be more positive job gains, more opportunities, and improvements that make life easier and work more efficiently.

What investments matter most to ensure South Florida and Greater Fort Lauderdale continue attracting investors while maintaining a healthy development pipeline?

Investors like predictability and reliability. They want a climate where the private sector and government can engage productively, and Florida does that better than many places. The business community and the real estate community collaborate well with government, and there is a strong culture of public-private partnership around transportation, infrastructure, and development.

That gives South Florida a competitive edge. Local governments here tend to be business-friendly and willing to sit down, listen, and work through solutions. Across the jurisdictions where I spend the most time, officials are engaged and interested in addressing key issues, especially housing affordability.

That issue is not just a social issue. It is a business issue. Employers understand that if housing is not addressed, labor costs and workforce constraints become even more severe. Government has done a good job stepping up and becoming part of that solution.

Looking ahead, what are your expectations for the market over the next three to five years?

Florida is well positioned for the next three to five years. We have a low-tax environment, a business-friendly climate, and continued efforts to improve schools and expand housing tools. Live Local continues to evolve and provide mechanisms for the development community to deliver good-quality affordable housing.

I am very bullish on the market over the medium term. Assuming broader geopolitical disruptions calm down, I believe the market will regain momentum. Some of the pressures that held the market back in recent years, such as insurance, construction volatility, and capital market constraints, are beginning to stabilize.

I think the second half of 2027 and the years that follow could be tremendous for commercial real estate, particularly in Florida, and especially in South Florida.

Is there anything else that should be on the business community’s radar?

One issue that deserves attention is the series of property tax exemption bills expected to be on the November ballot. Those measures are likely to pass in some form, and then the legislature will determine how to implement them. The exact path is still uncertain, and implementation could take several years.

The concern is that local governments are already anticipating possible revenue shortfalls. That creates uncertainty for municipalities and counties, and it could have downstream effects on the business community and on commercial real estate if local governments respond by looking for other ways to make up lost revenue.

Having served in local government myself, I know that the first reaction is not always how to operate more efficiently. Often, the first reaction is where to find replacement revenue. That is why this is something the business community is watching closely. How local governments respond will matter, and that issue is likely to shape the conversation going forward.