In 2022, Florida's retail property sales saw a record $3.0B in sales, but in 2023 the transaction volume in the major metropolitan areas dropped to only $1.0B across 28 sales.
In addition, the price levels in 2023 fell by 12% as compared to 2022. The average capitalization rate paid in 2023 was 6.75% for asset sales over $15M. Woolbright, like many investors, expects that retail property values and volumes to improve significantly in 2024 as the Federal Reserve cuts interest rates.