Why Do Some Commercial Properties Trade Multiple Times in a Short Period? A Look at South Florida’s Industrial Market

Source: Vizzda

When a property changes hands multiple times in a short period, it can raise eyebrows. Sometimes, it signals trouble—maybe the asset didn’t perform as expected, or unforeseen circumstances forced the owner’s hand. Other times, it’s simply how the business goes, driven by strategic repositioning, market shifts, or even pure chance. Regardless of the reason, it’s essential to look at the context behind these trades to understand what’s truly happening beneath the surface.

We’ll dive into a few recent transactions in South Florida’s industrial market that caught our attention for their unique characteristics. These deals help illustrate why some properties experienced significant appreciation in value and what these fluctuations mean for the market and submarkets as a whole.

The Case of 1819 7th Ave N, Lake Worth, FL

This 24,570 SF industrial flex space sold for $4,944,461.16 in 2024, a notable increase from its $4,180,000 purchase price in November 2023. The property’s value grew by over $760,000 in less than a year—a 18.3% increase.

Was this a case of skillful repositioning, or just a rising market tide lifting all boats? It’s likely a combination of both. The new owner might have made strategic improvements or secured better leasing terms, making the property more attractive to buyers. Alternatively, the submarket itself may have seen increased demand, pushing up prices. Either way, the transaction is a testament to how timing and positioning can lead to quick returns—even in a market where risks are always present.

This kind of appreciation within a short timeframe can make investors cautious. Holding periods matter, and flipping a property too quickly doesn’t always guarantee profitability. But in this case, it worked out, suggesting that the Lake Worth submarket is showing resilience and investor confidence.

1200 Clare Ave, West Palm Beach, FL: A Premium for Location

1200 Clare Ave traded for $1,975,000—an impressive $488.86 per square foot. Just three years ago, the property was purchased for $1,300,000. This 52% increase in value speaks volumes about the demand for industrial flex properties in West Palm Beach.

What makes this deal particularly interesting is the high price per square foot for a relatively small property (4,040 SF). This indicates that location, scarcity, and end-user motivations can drive up prices significantly. When you’re looking at industrial spaces, sometimes it’s not about size but strategic placement. A property like this, likely in a prime corridor, could have been highly sought after by an end-user looking for immediate operational space.

When users buy instead of lease, they often pay a premium because they see the value in having control over their space and avoiding rent hikes. This transaction tells us that, in specific submarkets, buyers are willing to pay more to secure a location that perfectly fits their business needs.

9990 NW 14th St, Miami, FL: The Power of Flex Space

The sale of 9990 NW 14th St for $2,325,000, or $414.14 per square foot, further illustrates how the industrial flex market in Miami is evolving. Flex spaces—properties that can accommodate both office and industrial uses—are increasingly popular because of their versatility. The strong demand from logistics and distribution companies, particularly in a market like Miami, pushes prices higher.

The buyer, a logistics company, likely saw this unit as a strategic acquisition, allowing them to control a portion of their supply chain or distribution network. When properties like this are acquired by end-users, it changes the equation—price becomes less about traditional valuation metrics and more about how the asset fits into the buyer’s long-term strategy.

Understanding the Market Dynamics

So what do these transactions tell us about the state of the market? For one, they show that demand for well-located industrial and flex space in South Florida remains robust, even as some sectors experience slowdowns. They also highlight how different types of buyers—whether investors looking for a quick flip or end-users seeking long-term control—can influence pricing in ways that aren’t always aligned with typical market expectations.

The fluctuation in price between each sale, particularly when properties trade multiple times in a short period, is a signal worth watching. It’s not always a red flag, but it does warrant closer scrutiny. Are these assets being repositioned successfully, or is something else at play? Understanding these dynamics can help investors make more informed decisions.

Closing Thoughts

The recent transactions in Lake Worth, West Palm Beach, and Miami demonstrate that even in a challenging environment, the right property in the right location can yield impressive returns. While it’s essential to be aware of the risks associated with short-term holds and multiple trades, it’s equally important to recognize the opportunities that can emerge when the fundamentals are strong.

For those looking to explore similar opportunities, understanding the submarket dynamics and having a clear vision of what the property could become is crucial. It’s not just about buying low and selling high; it’s about seeing potential where others might see risk.

Be Great

Olivier