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3860 SW 8 St., Coral Gables – Free Standing Office Building For Sale
Free Standing Office Building with Parking
This updaated and well maintained office building is in the bustling medical and office district of 8th street, between Galiano and Ponce De Leon in Coral Gables. Hurricane shutters, 14 parking spaces, an automatic gate and great location, make this an ideal building for an owner-user. 6,535 square feet at $229 per square foot.
San Jose Island, Pearl Islands, Panama
I first visited breathtakingly beautiful San Jose Island was two years ago. After arriving at the Tocumen airport in Panama City, less than a three hour flight from Miami, I jumped on an Air Panama flight for the short 20 minute flight to the island. As we were flying over the Gulf of Panama, I was amazed that I could see schools of fish from the air.
As we circled over the island and came down the 5,000 linear feet landing strip, I had the insane notion that Tatoo was standing on the island somewhere saying “De plane, de plane!”. We were picked up and driven through beautiful jungle canopy to the boutique resort, Hacienda del Mar
I spent four days there and can’t wait to go back! It is currently for sale and would make a spectacular world-class resort destination.
Commercial Real Estate: Vacancy Rates Expected to Decline
According to NAR an improvement in the economy, coupled with an increase of liquidity in Commercial Mortgage Backed Securities, is projected to decrease current vacancy rates across the commercial sectors.
Although these are positive indications that the commercial sector didn’t fall as far or for as long as the residential market, it is still a buyer’s market where cash is king.
Miami Real Estate: High Affordability + Low Prices = Buy
An article in today’s Wall Street Journal uses Miami as one example as to why 2011 may be the year to buy.
- Affordability, which looks at how many months of income an average family would take to pay for a home, is at the lowest level in 35 years
- Pricing is believed to be at or close to bottom
- Investors are getting back in the market
The article does a good job of differentiating between buying a home and investing in real estate. In terms of buying a home, Michael Larson, a real-estate analyst in Florida, is quoted, “Pricing is down so much in some markets that when you analyze renting versus owning it makes much more sense to own”.
If you are planning to buy for investment, the article returns to the old adage of “buy and hold”. They recommend at least a 10-year hold plan for investment real estate or suggest investing in funds that have real estate in the mix if you want to make real estate a part of your portfolio.
Remember to see what the numbers are in the area you are planning to purchase. While the affordability index was high in most areas, it is low in Washington D.C.
“Economists Bullish On Miami”
In case you missed my posts on the projected economic improvement of South Florida and Miami-Dade in particular, read today’s front page Miami Herald article, Forecast calls for robust rebound in Dade.
Previous posts I have written include a lot more detail if you want to read more:
Commercial Real Estate Starting To Pick Up
Still Doubt An Economic Recovery Is Taking Place In Miami?
Miami Real Estate – If You Are Looking To Invest, Miami Is Top Choice
Commercial Real Estate Starting to Pick Up
The recent up-tick in consumer spending has resulted in an increase in demand for retail space. Since the multi-family and office had been showing improvement, this is a good sign the economy is starting to pick up.
On a local level, Miami Today reported the following increases in November:
- Total taxable sales are up 7.5% from last year
- Autos and accessories taxable sales are up 14.8%
- Tourism and recreation taxable sales are up 14.2%
- Hotel occupancy up 8.6% with daily room rates up 3.5%
- Building investment taxable sales up 4.9%
At a commercial meeting yesterday, the main spaces people were looking for were restaurant space and shopping/retail centers. The majority of the investors looking were from Venezuela, Argentina and Brazil.
Although our unemployment rate is high in Miami, the fact that tourism is up and investors are coming back to commercial, seems to indicate we have turned a corner.
Still Doubt An Economic Recovery Is Taking Place In Miami?
There was so much good news about economic activity in the Miami Today, today that I had to share some of the ones that popped out at me. In addition to the one about all of the economic growth numbers from November (see tomorrow’s post), the following things jumped out at me as a good sign that Miami, despite the economic downturn, has continued pursuing projects that focus on long term growth
- Record number of passengers arrive at Port of Miami
- Downtown Miami condos are filling, resulting in new activity at Bayside Marketplace
- Seagis Property Group buying up more industrial space with long term plans to stay in Miami market
- Major film and entertainment projects are heading into town (The Magic City, Bones, Charlies Angels)
- Downtown population jumped 81% over the past 10 years
- Codina is getting ready to build a 230 unit luxury rental in Doral
- Twin 27-story residential towers close to getting okay
- 369 unit condominium project moving forward with plans to begin in second quarter
- Tech incubator at FIU lands million-$ military contract
I point all this out because it is easy to focus on the negatives of unemployment, short sales, and foreclosures, all of which are very real and very painful. The fact that companies are investing here, tourists are visiting, inventories are getting absorbed, and developers are getting ready to start building again, all tell me that we are bouncing along the bottom, but the end is in sight. Since unemployment is a lagging indicator, it will be one of the last economic indicators to pick up. All of the items listed above will help the unemployment rate, which in turn will further help stabilize our battered housing market.
Rental Property Owners Must Issue 1099′s
The Small Business Jobs Act that passed Congress last year requires all property owners that rent out properties to file a 1099 for each vendor who does $600 or more in work. Even if you only rent out a single property, you must collect the following for each vendor:
- name
- address
- Social Security or Federal Employer Identification Number
The details to the exceptions to this requirement have yet to be ironed out but the exceptions include:
- burden: if gathering the required information and issuing the forms create a hardship
- duration: the property is only a temporary rental of your own residence
- income: your income from the rental doesn’t meet minimal threshold requirements (as yet unidentified)
If you are renting out a property, make sure you, your bookkeeper, and/or CPA have a way of tracking each vendor starting January 1, 2011.
Miami Real Estate – If You Are Looking To Invest, Miami Is Top Choice
According to Mark Vitner, an economist for Wells Fargo, Miami is his top choice of a market poised for economic growth. How can that be? We have one of the highest unemployment, foreclosure and number of underwater homes in the country. However, Vitner stated that Miami is currently posting some of the highest taxable sales and number of jobs created in the state.
Miami has always been blessed with gorgeous weather, colorful landscapes, tourquoise waters, and beautiful beaches. One of the main reasons our economy has been chugging along better than most is due to our popularity with tourists, especially international ones, who have helped both our tourism and retail industries.
Miami Real Estate – Shadow Inventory
Shadow inventory is basically the number of properties that are projected to hit the market due to distressed owners, those who are behind 90 days or more on their mortgage, or because they will be or already have been taken back by the bank. There has been a lot of speculation lately about how this background inventory will affect the housing recovery, with many experts saying it will significantly delay it.
A CNNMoney.com article on Shadow Inventory states: “Of the 20 separate markets S&P analyzed, Miami was the only market of the 20 that S&P analyzed where shadow inventory did not did expand during the first three quarters of 2010.”
What does this mean for buyers? Record high affordability and a wide selection of properties to choose from.
For sellers, it means a continued suppression of prices, with prices either dropping further or bouncing along the bottom for a while. If you were thinking of selling your home within the next year or two, you may want to put it on the market now. Or, if you have equity in your home and have entertained the idea of owning investment property, turn it into a rental and buy your move-up, downsizing, or retirement home at the lowest prices we have seen in a long time.
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