Where is the Cammerical Real Estate Market Headed in 2023?

The commercial real estate market has shown amazing resiliency in South Florida in the face of the steady drumbeat of rising interest rates, however that resiliency is now being tested. Two of the largest pending sales in South Florida have been cancelled by their respected buyers; the Miami Herald Building's bayfront ten acre parcel's $1.2Billion dollar sale, and the Muelo family's cancelling of a collapsed condominium project purchase fronting several hundred of prime Miami Beach oceanfront real estate. Both buyers cited rising interest rates, and increased cost of construction as their reasons to pull out. What this portends for smaller projects and owners of more modest multifamily holdings is unclear. However, if these cancellations are the "canaries in the coalmine", those sellers wishing to capitalize on the still strong values that have been created over the last ten years, now may be their best chance to sell for top dollar.