Ben Eisenberg, Executive Managing Director, Transwestern

Invest: spoke with Ben Eisenberg, executive managing director of Transwestern, about the strength of South Florida’s commercial real estate market, evolving tenant priorities, and the cost pressures shaping development and investment decisions. “Miami is at the top of everyone’s list. It’s one of the premier markets to be in,” Eisenberg said.

How would you describe the state of the commercial real estate market in South Florida, and what trends are shaping demand?

The trend in South Florida is positive across all asset classes. Retail, office, industrial, and hospitality are all moving in the same direction, and we are getting strong global attention as new companies continue to enter the market and existing ones expand.

From an industrial perspective, the growth has been remarkable. Over the past 10 to 12 years, the market has nearly doubled. That growth is being fueled by population increases, business relocations, and Miami’s rising profile as an international gateway. It is a reflection of both local demand and global capital flowing into the region.

How are tenant needs evolving, and what are companies prioritizing when selecting space today?

As Miami has grown and become more expensive, tenants are increasingly focused on efficiency. While many still prefer top-tier class-A buildings, whether office or industrial, cost considerations are driving decisions.

In the industrial sector, we have seen a shift from 24-foot clear ceiling heights to 36 feet. Companies are moving into newer, more efficient facilities that allow them to maximize space utilization. That vertical efficiency has become essential as rents increase and companies look to control occupancy costs while maintaining operational capacity.

How are landlords and investors adjusting their strategies in response to changing market conditions?

Landlords are placing greater emphasis on tenant credit and lease terms. There is also a strong focus on capital deployment, particularly tenant improvement costs, and whether those investments can be repurposed for future tenants.

This more disciplined approach reflects both higher construction costs and a desire to maintain long-term asset flexibility. Owners are thinking more strategically about how each deal impacts the long-term value and adaptability of their assets.

How are infrastructure, transportation, and port activity impacting real estate demand and site selection?

Infrastructure plays a major role, especially given South Florida’s traffic challenges. Many service-based professionals adjust their schedules around congestion, but logistics and distribution companies do not have that flexibility.

For those users, proximity to the port, airport, and major highways is critical. We often conduct time-based analyses to determine optimal locations, ensuring companies can meet strict delivery timelines. That level of precision has become increasingly important as supply chains demand reliability and speed.

On the office side, there has been a noticeable shift away from the downtown and Brickell submarkets (with certain service-oriented companies) toward Coral Gables, Coconut Grove, and Doral, where access and proximity to employees are more favorable.

How are companies balancing proximity to urban centers with the need for larger, more efficient industrial facilities?

Industrial development in urban areas is challenging. The eastern portion of the market, particularly along the I-95 corridor, presents limited opportunities for redevelopment that are economically viable.

While some projects are being completed in those areas and achieving strong rents, most industrial growth is occurring elsewhere. Developers are targeting locations where land costs and development economics are more favorable, often through off-market opportunities. It requires a more creative and selective approach to sourcing sites.

What challenges are clients facing today when securing space, and how are they addressing them?

Low vacancy rates, particularly in the office sector, have made space more difficult to secure and significantly more expensive. This has pushed companies to reconsider location strategies, often moving closer to where their workforce is based.

In industrial real estate, companies are prioritizing access to major roadways to avoid logistical inefficiencies. The western portion of Miami-Dade County has seen substantial growth as a result, with significant new development along the Turnpike corridor. That shift reflects both cost pressures and operational needs.

What opportunities do you see for development or redevelopment across South Florida?

New development remains challenging due to high costs, lengthy timelines, and permitting hurdles. While municipalities are working to improve processes, development timelines are still extended.

Most opportunities are concentrated in the western suburbs, where land availability supports industrial expansion. On the eastern side, development is largely focused on multifamily, hospitality, and retail, with limited new office construction over the past decade. The opportunity set is there, but it requires careful planning and patience.

How are investment strategies evolving as capital returns to the market?

Miami is at the top of everyone’s list. It’s one of the premier markets to be in. Both domestic and international investors continue to prioritize South Florida because of its long-term growth fundamentals.

The market has experienced consistent rent growth over the past two decades, which differentiates it from many other regions. Investors see strong value appreciation potential, supported by population growth, business migration and continued demand across sectors. The ability to increase rents more frequently than in other markets also enhances its appeal.

What role does South Florida’s position as a global gateway play in driving industrial growth?

South Florida’s location, combined with its port and airport infrastructure, makes it a critical hub for trade. Major logistics providers want to be here because their clients are here.

The region serves as a gateway not only to Latin America but also to Europe, creating a diverse flow of goods. That connectivity continues to drive demand for industrial space and reinforces Miami’s role as a global distribution point.

Looking ahead, what trends will shape the commercial real estate market in the coming years?

Rents for high-quality class-A properties will continue to rise, driven by increasing land, construction, and financing costs. Development has become more expensive and time-consuming, which will limit supply and support continued rent growth.

Companies are also placing greater emphasis on flexibility. They want the ability to grow within a building or park, and that consideration is becoming more important in site selection. Planning for future expansion is now part of the decision-making process from the start.

Another emerging trend is the increase in user-owners. As rents have risen significantly, many business owners are choosing to acquire or build their own facilities to stabilize occupancy costs. Industrial rents have increased by roughly 50% to 70% over the past five years, and that shift is driving more ownership strategies.

Are there any additional themes that are important to highlight?

One area worth noting is healthcare real estate. The growth in healthcare across South Florida has been substantial, driven by population increases and demographic shifts.

Healthcare touches multiple asset classes, including office, industrial, and specialized facilities, making it an important and interconnected segment of the broader real estate market. It is an area that will continue to expand as the region grows.