Tuesday, December 31, 2013

November consumer spending posts biggest rise

Fuel  for South Florida Commercial Real Estate
This is one of the best economic indicators there is: consumer spending. Unlike the unemployment numbers, these are impossible to fudge given that it represents 70% of the total economic activity. If this can somehow continue we will really be heading in the right direction. While it is not a huge gain, it could be a sign of things to come. I don’t know anyone who is not optimistic about 2014 so let’s hope this will be a continuing trend. I think this is emblematic of the entire recovery in a nutshell: it will be a slow and steady climb up, not a rocket straight up.

November consumer spending posts biggest rise, 0.5%, in 5 months

Orin Rosenfeld
Rosenfeld Realty Advisors
9858 Glades Rd., Suite 209
Boca Raton, FL 33434
Phone: 561-756-1665
Fax: 561-470-0707

Monday, December 30, 2013

New York Soon to Trail Florida in Population

Florida Commercial Real Estate Advisors
We have known this one was coming for a long time but it is still exciting seeing it in print! This is all good news for Florida!! The scary number I saw here was the fact that 50,000 people move to Florida from New York per year! And I thought I was getting away from them back in 2001! Little did I know… I was also shocked to see that 25,000 Floridians move to NY per year. They must be young and naïve I am sure. But I am sure there are quite a few people like me. They finally realize that they can sell their place in the Northeast and move here and make $100,000’s on the deal alone. So they come down with
a bag of cash to invest in and start their new lives here. Smart move and way higher quality of life for them.

New York Soon to Trail Florida in Population

http://www.nytimes.com/2013/12/27/nyregion/new-york-soon-to-trail-florida-in-population.html?ref=florida&_r=0his

Saturday, December 28, 2013

He just wanted a (jail) roof over his head

What would a blog be without any social justice? This touches on the homeless themes when I mentioned that people could resort to crime or other means of law breaking in order to escape homelessness. Sadly, here is an actual case of exactly that. I pray that we can turn the tide on this somehow and that we won’t be hearing more stories like this. I know we are better than this as a nation and a society. This is truly heartbreaking.

Bank robber said he just wanted a (jail) roof over his head, feds say  

Friday, December 27, 2013

study on property insurance rates

OIR gets extension for study on property insurance rates


http://articles.sun-sentinel.com/2013-12-19/business/fl-oir-property-premiums-analysis-extension-20131219_1_reinsurance-property-insurance-insurance-companies

Back to insurance. They have asked for and received more time to complete a state wide study as to why we still have the highest rates in the nation despite the insurance companies costs being lowered. This is a huge problem here and it needs to be addressed. I will be following this one closely and so should every other Floridian.

Thursday, December 26, 2013

Broward County home prices stay steady for 3rd straight month

Broward County home prices stay steady for 3rd straight month


Back to insurance. They have asked for and received more time to complete a state wide study as to why we still have the highest rates in the nation despite the insurance companies costs being lowered. This is a huge problem here and it needs to be addressed. I will be following this one closely and so should every other Floridian.

South Florida homes to gain $83 billion in value

Zillow: South Florida homes to gain $83 billion in value


In more residential news, home prices have been holding steady but control is sliding back to the buyers. You might be thinking why all this residential news?? You are a commercial guy, why do you care? Remember, the commercial market is about 6 months behind the residential so it is future indicator of sorts And most people here have all their wealth tied to their homes, so when the market is good they are spending money and the economy is good. Another mixed message here, probably reflecting an economy that is also a true mixed bag.

Tuesday, December 24, 2013

Miami Real Estate HOT HOT CALIENTE

South Florida Real Estate is HOT HOT HOT


Miami Downtown is officially thriving as a 24-7 neighborhood~

Now for some interesting development news. The first condo project in Miami's CBD is rising for the first time since 2008! This is good news on many fronts. First, it confirms that anything Miami remains red hot. Second, this is a condo project, not a rental project. Finally, it is pretty reasonably priced, something this country needs much more of.


http://www.globest.com/news/12_760/miami/development/First-Condo-in-Miami-CBD-Since-2008-Rising-340993.html?ET=globest:e41475:4990a:&st=email&s=&cmp=gst:Florida_AM_20131222:editorial

For the Jobless Among Us

I read an amazing article this morning by Rex W. Huppke in the Sun Sentinel this morning. As I searched for the link for the article, I was very happy to see the article appeared in the Chicago Tribune and LA Times. Hopefully lots of other places too. Rex really covers all the bases, and it is one of the best, well thought out and well written articles I have read in a while. It actually inspired me to write him an email congratulating him on writing a great article on a really tough subject that no wants to take interest in since it does not affect them.



More on Office Depot staying and growing in Boca Raton

Here is a great article from one of my favorite writers at the Palm Beach Post, @Alexandra Clough. It is about the Office Depot deal and the effects it will have on the region. Good stuff:


My reader does not support good links, therefore we are including the article.  Full credit here is given to the Palm Beach Post.  This is just too important to the Boca Raton Real Estate Market not to share.




 ‍Office ‍Depot ‍HQ ‍choice ‍seen ‍as ‍boon ‍to ‍real ‍estate
  Alexandra Clough 
Business Watch

     Boca Raton is the winner in ‍Office ‍Depot‍’‍s decision on a headquarters location with the recently merged Office-Max, based in Naperville, Ill.

   But the city isn’t the only winner: Palm Beach County’s residential ‍real ‍estate market is a victor, too.
   ‍Real ‍estate agents hailed the move ‍as a boost ‍to the area’s housing market. The deal will mean growth at ‍Office ‍Depot‍’‍s Military Trail headquarters, which now employs 1,700. In Naperville, Office-Max employs 2,050.

   The decision ‍to choose Boca Raton “is phenomenal,” said Scott Agran, president of Lang Realty, based in Boca Raton. Lang has 400 agents in 11 ‍offices from Port St. Lucie ‍toBoca Raton.

   “One of the weaknesses of South Florida and Boca Ra-ton is getting big companies ‍to come into the area,” Agran said. “We’re so dependent on retirees, seasonal people   and tourists. So ‍to have this big company moving into the area is huge. It brings in employees who are making good money and buy houses.”

   Agran also noted: “It also signals ‍to other companies that Boca Raton is a very good place ‍to relocate.”

   It’s still unclear how many jobs the newly merged company will bring ‍to Boca Ra-ton. Leading ‍to the merger, the companies said the transition ‍to a combined workforce would take three years. ‍Office ‍Depot said last week it plans ‍to keep a presence in Naperville during the integration.

   “‍To build a world-class leadership team and organization, we are committed ‍to selecting the best talent available from both locations,” ‍Of‍‍fice ‍Depot spokesman Brian Levine said. “It is too early ‍to estimate how many employees will relocate from Illinois ‍to Boca Raton.”

   Nonetheless, growth will take place in ‍Office ‍De‍‍pot‍’‍s Boca Raton complex. In fact, the complex’s size, at 625,000 square feet, has plenty of room for expansion and was one of the reasons cited by ‍Office ‍Depot for bringing the combined company ‍to Boca Raton.

   (The size of the campus matches the size of ‍Office ‍Depot‍’‍s rival, Staples Inc., which has a 600,000-squarefoot headquarters in Framing-ham, Mass.)

   Agran’s optimism was echoed by Sarah Granato of     Realty Associates in Boca Raton, who said the move “would definitely” boost the area’s ‍re‍‍al ‍estate market. “People have ‍tolive somewhere,” added Dan Vento of Innovative Realty Professionals in Boca Raton.

   But what will ‍Office ‍De‍‍pot employees find when they get here?

   Alicia Vaitiekunas, a ‍real ‍estate agent with  RealEstateShowcase.  com   in Coral Springs, said there are more people looking in Boca Raton than there is inventory, especially for villas and townhomes — and especially for rental property.  

   In addition, investors are snapping up properties in the $200,000 ‍to $300,000 range, while some snowbirds want smaller properties, in the $‍90,000-to-$150,000 range, in Boca Raton, Vaitiekunas said.
   When it comes ‍to doing deals, sellers will prefer a cash deal ‍to one involving a mortgage, Vaitiekunas noted. Still, Vaitiekunas believes the influx of employees, especially those with higher wages, will boost the overall Boca Raton market.

   Of course, there’s no guarantee they will all be able ‍to find homes in Boca Raton.
   Inventory in the $350,000 ‍to $600,000 range is tight, Agran said.   So buyers may need ‍to look in neighboring cities, such ‍as Delray Beach or even west of Boynton Beach, which has many housing communities, including the Canyons developments.

   Agran also said that cash investors aren’t ‍as active in the higher price range, so homebuyers needing mortgages ‍to secure homes are likely ‍to do OK when trying ‍to close a deal.

   Inventory could loosen up due ‍to action on the part of sellers, too.

   Debora Bacarella of Elite Florida ‍Real ‍Es‍‍tate in Boca Raton said the influx of well-paid employees might just motivate sellers who have been on hold.

   “I think a lot of sellers have been waiting for the right time ‍to put their homes on the market, and now is a good time,” Bacarella said.

   Wherever the relocated Naperville employees   wind up, one thing is certain: They will be able ‍to walk outside this time of year without fear of frostbite.

   Monday night, Chicago set a record-low temperature when temperatures dipped below zero — the earliest it has been that cold in 18 years.

Monday, December 23, 2013

Office Depot to Stay& Grow in Boca Raton

And in some real estate news, it has become official, Office Depot has chosen to name Boca Raton its HQ, dealing a blow to Illinois. This is very good news for South Florida and could be the first of many going forward. Let’s hope so.



We tweeted about this last week, when word first broke, to follow-up media storm has been a fantastic expression of just how valuable Florida is to Commercial Real Estate and all we add to the local economy.  Well  Played Office Depot, thanks for staying!

http://www.bizjournals.com/southflorida/news/2013/12/10/office-depot-keeping-headquarters-in.html?ana=e_sflo_bn&page=all


Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434

Friday, December 20, 2013

Foreign Investment Bolsters South Florida Economy

Here is a great article from the South Florida Business Journal on the EB – 5 and EB 2 programs. These have been incredibly popular in Florida and have been used mainly for economic and real estate development and immigration. It is fascinating, a creative way to get money from these same countries with repressive governments into commercial developments here. Their money is safe (so they think, and in truth it is probably much safer here no matter what happens than where it was), they have a chance to make money and perhaps most important, they get a visa to come here. This program has fueled some interesting projects here including the Margaritaville Hotel project in Hollywood and the Harbourside project in Jupiter.




While this seems great, there are mixed messages here. Still, good news and let’s hope it continues!

Wednesday, December 18, 2013

Nationwide Rental Affordability Chrisis

Worst rental affordability crisis that this country has known

http://homes.yahoo.com/news/skyrocketing-rents-hit--crisis--levels-193605175.html

This is the root of a lot of the increase in homelessness.

How do we tackle this problem?

While many Americans are not in a position to buy homes due to the economy and other factors, international buyers have stepped in and created an artificially high and robust housing market. If it were truly robust the interest rates would be rising quickly and they are not. The renters cannot afford and or qualify to buy so they are forced to rent. This has created a booming rental market that speaks very badly for the economy and things in general.


The American dream of owning a home is becoming a distant memory and younger generations do not even aspire to do so. What are all these people who can’t afford to buy homes or rent them going to do? More than likely turn to crime, out of sheer necessity. If they get caught what is the downside? Sure loss of freedom but that may be well worth it for a bed, 3 meals per day and access to services they probably had a hard time getting before they went to prison. Do you know how much it costs the government to incarcerate people? A lot, and I am sure way more than the subsidies and food stamps they were giving out before. I often think the government just doesn’t think about what will happen if they push these people too far.

Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434


Phone: 561-756-1665

Florida Job Growth Attributed to Private Sector.

A great, quick, article in the Tampa Bay Business Journal validating what most of us intuit.

The Private Sector is the source of job growth in Florida.  The private sector is the main engine driving our recovery, & growing prosperity.

Florida recorded its largest private sector job gains last month adding 19,450 jobs to the economy.

This is the second most of any state for the same period, second only to Texas.

With jobs comes prosperity.

Rosenfeld Realty Advisors stands ready to help any of these growing businesses finding appropriate commercial real estate in South Florida.

Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434

Phone: 561-756-1665

Tuesday, December 17, 2013

Commercial Realestate Relocations in Florida

Sun, Wages, Low Taxes and Pristine Beaches

An interesting Op Ed came to us in Forbes.  the gist of the message is that large businesses are coming to Florida and feeding our economy.



The article starts with Hertz, a fortune 300 company, moving its corporate headquarters from NewJersey to Ostero  (for those that don't know, that's on the west coast of Florida, south of Sarasota).

What is interesting is how hard New Jersey lobbied to keep Hertz with tremendous financial incentives.

One of the more significant motivators to draw more and more businesses to Florida is the lack of state income tax.  Businesses in Florida enjoy the 12th lowest corporate income tax rate in the nation as well.

We applaud the efforts of all those who work so hard to keep Florida so competitive.  The more businesses move into town, the more tremendous employment opportunities, and the stronger our local economy.

Nice to be mentioned in Forbes as being so very business friendly!

For an assistance in finding commercial real estate, or if you have property that you need to find a business to occupy, don't hesitate to give your South Florida Real Estate Advisors a call at Rosenfeld Realty Advisors.


Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434

Rosenfeld Restaurant Review Time! The Meatball Room

I know, We are commercial real estate brokers, not restaurant reviewers.. but eating out is one of my passions.

The Meatball Room



This is a new place located at Yamato and Jog in Boca Raton. They initially lured us in under the faulty premise that they delivered. Once we discovered this fallacy, we still decided to check it out. I am glad we did, although we had some doubts at first. This restaurant location has changed over numerous times in the past few years. It just didn’t seem like anyone could make it work there. But these guys stick to a simple formula and do it well: pizza and pasta. We started out by sitting outside, which I love to do. There are plenty of tables and they are not on top of each other. They had 2 large screen TVs outside with college football on, my type of ambiance. My daughter and I liked the lighting too, which changed colors throughout the meal. The pizza was excellent. The tomato sauce is very authentic and there is a lot of it.

There was a comical moment during the meal when some of it actually sprayed out onto the table from the pizza. But a dirty table cloth is the sign of a good meal so no worries. From there I had no choice but to get meatballs. I don’t eat red meat, so I was very excited to try the turkey meatballs (like the delivery ruse, they also do not make chicken meatballs, as it said on the sample menu we were sent in the mail). They were excellent, like small balls of meatloaf. Coupled with the very good tomato sauce and just the right amount of pasta, I was very happy.

Wines by the glass were very mediocre, a weak point for sure, but easy to overlook with all the good food. Happy surprise with desert. They have their own pastry chef who makes cakes daily. They happen to have my favorite, carrot, along with a chocolate that my wife and daughter really enjoyed (which was further enjoyed by my other daughter when we brought the rest home). Strangely they had some very hard toasted coconut sprinkled on top of the carrot cake. It didn’t ruin it as I was able to scrape it off but I let them know that the cake really didn’t need it. All in all, I really liked this place and look forward to returning. Make sure you come hungry!


Orin Rosenfeld
President
Rosenfeld Realty Advisors
9858 Glades Rd. Suite 209
Boca Raton, FL 33434

Phone: 561-756-1665
Fax: 561-470-0707
Web: www.rosenfeldrealtyadvisors.com

Monday, December 16, 2013

Homelessness On The Rise


While those in the middle and upper middle class are seeing a reprieve, and a recovery from "The Great Recession"  The fact of the matter is that those that live in poverty last year, was 15%, down only .1% from Recession high of 15.1%.

Yes, Thankfully, the jobless rate is at its lowest in 5 years, and the stock market is setting new records, however, the bottom of the economic food chain seems to continue its struggle with little change.

This article in the Sun Sentinel points out some unsettling realites in the face of poverty, homelessness, and food stamp cutbacks.



For me, the most telling captions were

On an average night, more than 20,000 people sleep on Los Angeles' streets, and almost 2,000 of them are families or children living on their own, the city reported. Homelessness has increased 26% in Los Angeles since last year, and 16% of L.A.'s homeless were turned away for housing help.

Chicago reported an 11.4% increase in the number of homeless families since last year, with requests for emergency food assistance up 6%. City pantries had to reduce the amount of food they gave to the hungry. And homeless shelters were increasing the number of people allowed to sleep in a room to meet rising demand.
Rosenfeld Realty Advisors is involved in commercial real estate in South Florida.   As facilitators in the economy, by virtue of the fact that we focus on commercial real estate, we feel a l level of stewardship for those not yet participating in the recovery.

In whatever way you can, lend a hand, leave a comment, volunteer, better yet, give a job.   Lets continue to see this economy strengthen though our time and efforts and capital, and remember to pay particular attention to those in need to ensure that they see hope in their futures as well.

Comments welcome.

The Invisible Child... (Con't)

Homelessness and Poverty and our Children







This may seem like overkill to some of you but it is actually one long story that is broken up into 5 parts. While I know it is a lot to read, I think you will learn important things about a very neglected part of our society that is larger and growing faster than anyone knows. While we read about unemployment numbers being at record lows, and foreclosures are down this negativity barely even makes a blip in the way of national news but homelessness can no longer be ignored. The gap between rich and poor has never been so wide and again, it is growing wider very quickly with no end in sight. If this is not dealt with now think where it will be in just 5 years. It is truly heartbreaking that in a country where 50% of food is thrown away that there are so many people going hungry right here in the U.S. not some third world country.

Thursday, December 12, 2013

The Invisible Child, Get upset, then act. #1

We need to shed more light on these kinds of stories and situations. More must be done to help the neediest people in our own country that the government and others just want to sweep under the rug and pretend it is not happening. But we all know it is happening, and sadly things are getting worse for these people, not better. I always think about them when I read that we (the U.S.) are giving hundreds of millions in aid to this country or that country, for the cost of our elections, billions of dollars for this or that. More of our resources need to go to these people, struggling Americans, in order to break the cycle of poverty. It is not that I don’t think we should be helping others around the world, I just think our own people should be helped first. As always, I welcome your comments or ideas. Thanks for reading and for making a difference out there.



http://www.nytimes.com/projects/2013/invisible-child/#/?chapt=1


It is exciting to think that possibly hundreds of people might be able to read this article that otherwise wouldn’t. Maybe it can help in some way, if by increasing awareness of the issue if nothing else. It would be fun to go to one of these places like the Auburn House with a few thousand dollars and change their lives. With your help hopefully it can happen! If you have the time, read the article, which is very long and the first of a series. I promise I will be supplying the rest of them as well and will want to post them.

Wednesday, December 11, 2013

Palm Beach County Convention Center


  • More Jobs
  • More Money in the Economy
  • More good news for Palm Beach County Commercial Real Estate!



It's been almost 10 years of planning, but the new Hilton, all beautiful 400 rooms, is under construction at the Palm Beach County Convention Center.

Related Co's broke ground on the $100Million dollar project.   The $100M is a hopeful number, but the real impact will be 1,500 new jobs, and an estimated Billion Dollars in economic activity  over 10 years.


Is it wrong, that what I'm most interested in is the 225 seat restaurant?   Not to those that know me!

Never has there been a more exciting time for South Florida Commercial real estate, seeing a solid recovery and growth.



Orin Rosenfeld
Rosenfeld Realty Advisors
9858 Glades Rd., Suite 209
Boca Raton, FL 33434
Phone: 561-756-1665
Fax: 561-470-0707

Tuesday, December 10, 2013

The Madras Café – Pompano Beach - - Another Rosenfeld Restaurant Review!

Yes, we represent a restaurant for rent in the Village Tower Shoppes in Boca Raton, but we also LOVE going to restaurants, and sharing our reviews.

The Madras Café – Pompano Beach




Tucked away in a seedy unassuming strip center on Jog Rd. in Pompano Beach lies one of the hidden gems of South Florida restaurants – The Madras Café.

It is an Indian restaurant, and is even rated by Zagat. There aren't many of them in South Florida and what there is can be hard to find. This is no different but trust me when I tell you it is well worth the trip. First a little background in the location is humorous. I actually leased this center for a short time! Yes, along with probably 10 other brokers (maybe more?) over the years, we all mistakenly thought we would be the ones to fill the poor place up. Unfortunately due to many reasons, none of us were successful. So the center sits exactly as it was almost 6 years ago when I had the leasing about 25% occupied. Strange, but at least there is plenty of parking! The restaurant has been there at least that long and has expanded in the time they have been there. Must be close to 10 years or more, impressive for any restaurant.

I have never been to this restaurant at dinner, only lunch. It is excellent place to meet friends who work in Ft. Lauderdale since it is the halfway point between Boca and Ft. Lauderdale. They have a buffet style lunch, which I really love since I can overeat without feeling guilty. In this environment it is simply good value! Regardless, they have a bit of everything. The buffet line starts with some salads, and nacho looking dip stuff, cold vegetable concoctions and this last time even some watermelon. Then you get to the entree section, which starts with lentil soup. I really love lentil soup and this one if the spiciest I have ever had, truly excellent. But you need to be careful since there are long red chilies in there and if you are not careful and eat one, watch out! It goes great with the naan bread they bring, which is sort of like a pita bread. The entrees have everything from fish, to stuffed jalapeno peppers to lamb and chicken dishes. There are many vegetarian options, and everything they serve is prepared with tasty and sometimes spicy sauces. They have tandoori chicken on the bone, and chicken tikka masala which is in pieces. They even had lamb samosas which are like little knishes or empanadas shaped like triangles. If after all this you still have not had your fill, there are deserts, always at least 2 options. I can say that I have never had a glass of wine or beer here (since it is always at lunch) nor have I had room to try desert. That is a good thing since it means you really enjoyed the buffet. I would strongly encourage you to give this place a try! The food is worth the trip alone but the value is off charts! I think the lunch is $11. Enjoy and let me know what you think! I also love trying new places so I would also love to hear about any good restaurants you know of that I should try. Much appreciated and thanks for reading.

Orin Rosenfeld
Rosenfeld Realty Advisors
9858 Glades Rd., Suite 209
Boca Raton, FL 33434 Phone: 561-756-1665
Fax: 561-470-0707 Email: orin@rosenfeldrealtyadvisors.com

Monday, December 9, 2013

WHERE IS THIS SOUTH FLORIDA REAL ESTATE MARKET???

Wrap Up


We will find out very soon I think. The sales market has been on fire for A class properties of all asset types. Large institutions have compressed cap rates and off market deals are becoming increasingly rare. B and C class properties are starting to move now that capital has started moving again. But it is still restrictive, as is refinancing, and it is causing properties to change hands. The net leased sale market is beyond hot, with investors flocking to drugstore and home improvement stores, closely followed by the dollar stores. Clearly safe money is flowing to the higher yields these properties can provide as compared to bank investment options.

So what does it all mean? I am not exactly sure but I am advising caution to my clients, seeing slowdown in retail projections and inventories. This tells me that lots of people are preparing for slower times, especially with higher fuel prices suddenly upon us. Now more than ever it is critical to have up to date market information and advice to help you make decisions today. Mistakes can be costly and be problematic for years or even worse in certain situations. All of the above doesn’t take into account current global and national events, that can change everything very quickly (wars, problems with or in oil producing countries that raise the price of oil, gov’t shutdowns, etc.).

One must be on top of what is happening out there and how it can impact you and your business. We all have to be constantly looking for that one thing, whether it be a new idea, information, a new hire or other thing that can give us an edge to be successful. One of my favorite quotes is from Mahatma Gandhi which is “Live as if you were to die tomorrow. Learn as if you were to live forever.” which is just good advice for everything in life on a daily basis in my opinion. It applies equally to business as it does to life. So make that extra effort out there today, for yourself, your business or anything else that is important to you and make it a great day!

If you have any ideas on the market or anything else that interests you from this blog I would love to hear from you. Thank you for your interest.


Friday, December 6, 2013

WHERE IS THIS SOUTH FLORIDA REAL ESTATE MARKET???

South Florida Commercial Real Estate



The Commercial Real Estate Market leasing market. Numbers here have been pretty strong, like the residential sales. Vacancy rates for all asset types (office, retail and industrial) have decreased and properties are enjoying healthy occupancy rates. Sounds good right? Well here is the info you don’t hear much of but I see often. The rents that are being realized are much lower than they had been. More concessions have been made to make the deals than Landlords have had to make in years. For office tenants with excellent credit, the resulting deal they can extract from a Landlord is often so lean that the Landlord doesn’t make money on it for years. The South Florida industrial market has been so hot that businesses are considering other options in the central and northern parts of the state because the rates have become so high and there is little supply. Everything Miami is on fire right now, which means office retail and industrial leasing, residential and commercial sales. The best news here may be that more companies from around the country and the globe are taking advantage of Florida’s business tax friendly real estate market which should continue (Office Depot) as the economy continues to slide. But with the bioscience industry still in its fledgling state and tourism being the number one revenue source for South Florida, where will the growth and jobs come from that are needed to sustain a healthy economy?

WHERE IS THIS SOUTH FLORIDA REAL ESTATE MARKET???

South Florida Residential Real Estate


The Residential Market. Seemingly everyone’s favorite subject in Florida since the beginning of time. While this is not what I do, this information is very important as it signifies many things about the local economy in general and the commercial market. The commercial market typically is 6 months behind the residential market, so it is a future indicator of sorts. It is also a monitor of business activity in many ways. Every time someone buys a house, they need contractors, painters, furniture, etc. It helps lots of different businesses and sometimes the people moving are new to the area and might need or provide jobs, bringing more money to the local economy. The residential sales numbers we have been seeing are generally positive and have been for some time now. With so many people having all their money tied up in their homes, it is crucial for them that this good news continues and it is a big reflection on consumer confidence since the value of their homes are higher. As we all know, as people’s personal incomes go so does the economy.


There have been increasing numbers monthly for sales prices, volume and velocity, and there is a more streamlined foreclosure process bringing product to the market faster. It all sounds good right? Not exactly, and here is where the conflicting info comes it. Right now Florida is leading the nation is residential cash sales. Why? One of the biggest reasons is the global economy. We are seeing a huge influx of money from Russia, China, Brazil, the UK and of course Canada. The reason is that with their weakened economies, people from those places are seeking safe investments in a stable country and market. So these international cash buyers are not even moving into the apartments in many cases, seeking to either flip, hold the property or rent it. This doesn’t help the economy and inflates the residential market with unrealistic data. Speaking of which, the rental market deserves mention. It is booming now, and has even revived the construction and development industries to an extent. The underlying reason for this is that since so many people have lost their homes they no longer have the credit or capital to buy them. So they have to rent, not necessarily a good thing especially when there are historically low interest rates available to buyers. It is worth noting that Florida is once again leading the nation in foreclosed homes and high end foreclosures. 

Bottom line – is this good market? Like everything, it is good for some and bad for others - a true mixed bag. I think it is not very good, and that the numbers and data have been very misleading. If you are not informed it could cause you to make some poor decisions. That being said, I prefer a positive message highlighting the good news out there than the opposite. With anything really so local and national television news please listen up! Can you imagine a news program that highlighted all the good things that happened in a day instead of all the bad? It would be great!