Q2 Market Update

Q2 2025 Market Update: Commercial Real Estate in Indian River & St. Lucie Counties

As we move into the second quarter of 2025, commercial real estate in Indian River and St. Lucie Counties continues to show resilient demand and strategic opportunity—especially for investors and business owners with a long-term vision.

🏙️ Steady Growth Amid Shifting Market Conditions

While national CRE headlines often focus on tightening capital markets and office space challenges, the Treasure Coast tells a more nuanced story. Our region remains attractive thanks to population growth, pro-business policies, and infrastructure investment—key fundamentals that continue to support retail, industrial, and select office segments.

📍 Indian River County: Strategic Infill & Retail Demand

Vero Beach and surrounding communities are experiencing ongoing demand for well-located retail, medical office, and mixed-use assets.

• Retail vacancy remains tight, particularly in high-traffic corridors like US-1 and SR 60. National tenants and franchisees continue to expand, targeting infill locations with strong traffic counts and residential growth nearby.

• Medical and professional office space is in demand, especially near hospital zones and senior living developments.

• Land values remain strong, especially for well-positioned parcels under 5 acres that are development-ready.

🔍 Notable Trend: Build-to-suit and adaptive reuse projects are gaining traction as inventory remains limited.

🏗️ St. Lucie County: Industrial Expansion & Corridor Development

Port St. Lucie and Fort Pierce continue to evolve as business-friendly hubs with industrial, logistics, and multifamily development leading the charge.

• Industrial vacancy is under 4%, driven by last-mile logistics, light manufacturing, and trade services. New construction is active but not speculative—demand is leading the pace.

• Western expansion along I-95 corridors continues, with strong interest from regional developers and distribution users.

• The office market is stabilizing, with a shift toward smaller, flexible spaces as hybrid work reshapes tenant needs.

🔍 Notable Trend: Investors are watching infrastructure improvements tied to Brightline and port enhancements, which are expected to unlock new growth nodes over the next 12–24 months.

📈 Investor Outlook: Capital Is Cautious, But Active

• 1031 Exchange activity remains strong, particularly among downstate investors repositioning into income-producing assets on the Treasure Coast.

• Cap rates are holding, especially for Class A assets with national tenants or strong service-based uses (medical, auto, QSR).

• Lenders are selective, favoring well-located, stabilized properties or development with clear tenancy and ROI.

🧭 Our Take: Where the Smart Money Is Going

From where I stand, the momentum is clear: Commercial opportunities are strongest where residential growth meets service demand. If you're holding raw land, now may be the time to explore entitlements or joint ventures. If you're seeking investment, look for assets where you can add value through leasing, redevelopment, or repositioning.

I’m keeping a close eye on:

• Palm Bay Rd. corridor (Build-to-suit and retail)

• SR 60 and US-1 infill parcels (Medical, QSR, mixed-use)

• I-95 and Turnpike adjacents in St. Lucie for industrial

📩 Thinking about buying, selling, or repositioning a commercial asset? Let’s have a conversation. I’m here to provide expert guidance, strategic analysis, and a clear path forward—backed by data, experience, and a passion for results.