Edward W. Easton is the founder, chairman, and CEO of The Easton Group, a Miami-based, family-owned commercial real estate firm with three generations actively involved in the business. Established in 1974, the firm is a vertically integrated platform providing investment, development, brokerage, and property management services with a primary focus on the office and industrial sectors. Today, Easton oversees a portfolio of approximately five million square feet across Miami-Dade County.

How is the industrial real sector performing at the moment?

Demand for space has cooled from recent years, but the market is still performing reasonably well. Deals are getting done, though they’re taking longer to close. There remains a healthy demand for income-producing properties, especially those with strong tenants and stable cash flow. However, a price disconnect between buyers and sellers continues to impact the market. Many sellers have not adjusted their expectations to reflect current conditions, which has led to a decline in overall transaction volume.

How is that shift in demand impacting leasing and sales prices?

Rents remain generally stable, but I expect a modest correction—potentially a decline of around 8% over the next year. We are also seeing a slight dip in occupancy rates, from about 98% to roughly 95%. So, while the pace of deals has slowed, we are not seeing a collapse in pricing. It is simply a more balanced market now, with capital being more cautious and decision-making taking longer.

Are you seeing any major changes in construction or development activity?

Yes, we’re seeing a significant slowdown in new construction. The market already has a good amount of space available, and with current interest rates and high land costs, the economics don’t work right now. For example, it now costs about $350 per square foot to develop—including land costs—and rents are averaging $15 per square foot. That equals a projected return of about 4.28% which is not high enough to justify new construction at present.

Most developers—including us—are taking a wait-and-see approach. Projects that are already in the pipeline will move forward, but anything new is likely to be paused until the math improves. That could only happen if costs come down or rents go up. Until then, we expect new construction to slow down.

What kind of investments is The Easton Group currently pursuing?

The Easton Group is actively pursuing strategic investments in core markets like metro Miami—areas we know well and have long-term confidence in.

Right now, we’re focused on acquiring existing buildings rather than pursuing new development. Our strategy is to buy stabilized or near-stabilized properties, particularly those with in-place leases with below-market rents.

Do you see opportunities in the distressed market?

While CMBS is showing some stress, banks overall aren’t facing significant loan-loss issues, and both debt and equity capital markets remain relatively healthy. We may see isolated pockets of distress in certain asset classes, but given the liquidity in the market today, I don’t anticipate widespread problems ahead.

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