Back in May, the National Association of Realtors released “Case Studies of Repurposing Vacant Malls.” Although none of them were in Florida, the case studies, and Morgan Stanley’s warning that 30-35% of U.S. shopping malls could close permanently, got me to thinking about what some of our local shopping malls have done to not close or have to repurpose.
New Restaurants from Groot Hospitality Coming to Coconut Grove
My favorite one of the moment is CocoWalk. Purchased in 2015 for $87.5 million by Federal Realty Investment Trust, Grass River Property, and Michael Comras, the property is currently undergoing a major renovation turning it into a modern, mixed-use center, with office, retail and entertainment. I am especially looking forward to the offerings by Groot Hospitality
I am not one of the people who believe retail is dead. I only think it is changing, from old and passive to new and exciting. As always, those with a vision like the new CocoWalk group, will bring the change required to revive and renovate commercial buildings that may be affected by the pandemic.
Yesterday, during Beth Azor’s Rockstar Book Club, we discussed the book ‘Indistractable‘, by Nir Eyal. In it, Eyal discusses the difference between external triggers (think social media, e-mail notifications, knock on the door by a colleague) and internal triggers (such as boredom, stress or fear) and how these triggers can lead us to either traction or distraction. The former moves us forward toward achieving our goals and the latter leads us away from them.
If we focus on the negative side of anything, we are vulnerable to distraction and, chances are, our outcomes will be negative. Many authors have discussed how we are hardwired to see things from a negative perspective. It is what has allowed us to survive and evolve. However, we can change the way we think about our triggers by identifying them, and coming up with several methods of dealing with the triggers. One of my favorites, was the identity pact. Here, you change the wording from a negative context (I can’t eat meat, I am not an athlete, I have to exercise) to a positive one (I am a vegetarian/vegan, I am athletic/active, I exercise). By doing so, you will define yourself or the situation positively vs negatively and that will change your mindset. Saying “Remember to” vs “Don’t Forget To” is similar.
This is not a new concept, but especially now, during a worldwide pandemic and when negative news and behaviors bombard us, I find it is worth remembering and practicing. What does this have to do with real estate? If your goal is to invest in real estate, open a business or expand or pivot a current one, avoiding the distractions and focusing on your goal will ensure that you can say, “I am a real estate investor/business owner”.
Commercial real estate is different from residential real estate in so many ways, starting with finding it! Residential real estate has local MLS, Realtor.com, Zillow, Trulia, residential real estate company websites, and plenty of social media posts, pictures, and video.
Commercial real estate has always been a bit more elusive. Investors either relied on their network/word of mouth, commercial agent, or driving neighborhoods and knocking on doors. Commercial agents who didn’t have properties that met their investors’ criteria also relied on their network/word of mouth, driving neighborhoods and knocking on doors.
With the advent of the internet and rise of social media, real estate investors have become more efficient in their search for property and millennials are driving the demand for more information and data. As a result, there is a lot of money being spent on gathering commercial property data and developing new, on-line methods of marketing, some of which can be very expensive.
MIAMI Commercial, the commercial division of MIAMI Realtors, saw the need to provide both agents and the public with a transparent way of searching for commercial and investment property and, in September 2019, launched The South Florida Commercial MLS.
This platform takes all properties, excluding residential which are already on public platforms, that are listed in MIAMI Realtors MLS and allows the public to search for free, without registering or providing any contact information. It is intuitive and the searching public can choose to search in English, Spanish, or Portuguese, a variety of currencies, or in square feet or square meters.
The numbers relating to the public site for November are as follows:
4,064 listings
3,039 users
2,068 new users
25,087 page views
Argentina, Venezuela and China were the top four countries outside of the U.S that searched the site and the top three U.S. States outside of Florida were California, Texas, and North Carolina.
Searching for commercial property in South Florida? Your search just got a bit easier.
You know how as soon as you decide on the make and model of the new car you want you start seeing it everywhere? Well, that same phenomenon is happening to me now with Dubai. A couple of weeks ago, I was lucky enough to go on a trade mission with Florida Realtors to Dubai. What an amazing trade mission it was. Now, I see Dubai everywhere! Ads for Emirates Airlines, with convenient, direct flights from Fort Lauderdale; an article in Prestige Magazine, and now a good friend and designer extraordinaire, Adriana Hoyos‘ furniture is in Bloomingdales Dubai.
So how is Dubai a bit like Miami? Other than having a Bloomingdales and being hot, a lot hotter than Miami, there are other similarities:
Amazing Architecture – Like Miami’s Instagrammable architecture, Dubai is an architect’s dream. From Palm Island Jumeirah to the Burj Khalifa, the world’s tallest building, to the beautiful mosques, there are amazing buildings everywhere you look.
Culturally Diverse – Dubai is an extremely international city with a large community of expats.
Real Estate – Miami real estate is in demand by investors from around the world. Dubai real estate is being sought out by investors looking for deals due to the high inventories.
Malls and Shopping – The Dubai Mall, like Bal Harbour Shops and Aventura Mall, is a place to visit even if you are like me and don’t particularly like to shop. There is an indoor aquarium in the middle of the mall and beautiful art installations throughout.
I really enjoyed our trade mission to Dubai and am grateful for the experience. I am even more grateful that I love life in South Florida and get to call Miami Home!
I drove by The Underline’s Brickell Backyard, the first phase of 9 phases, and am excited to see that construction has started. This ambitious project will convert 10 miles and 120 acres of unused space under the existing MetroRail into a vibrant linear park. In the process, it will transform the real estate along the 10 mile corridor as well.
Renovation is nothing new to investors who look for value-add properties. Sometimes a fresh coat of paint, new fixtures, or an exterior update are all that is needed for a new owner to be able to boost rents.
Renovated Office Building on Red Road in South Miami, FL
I have read several articles lately about re-purposing buildings, and there is a great example of one in Coconut Grove. Touzette studios designed a mixed use office and retail building out of a parking garage.
Previous parking garage being repurposed to office – Mary Street, Coconut Grove, FL
The Shoppes at Sunset Place and Cocowalk are a combination of all three.
Construction of new office space at CocoWalk – Coconut Grove, FL
If you do, congratulations! Warehouse is currently the most sought after asset class in South Florida. So many of the older warehouse areas, such as Wynwood, have been re-imagined into vibrant neighborhoods and the warehouses have been replaced with new offices, condos, and retail space. In an area where PortMiami and Miami International Airport are top international freight gateways, warehouse space is critical. I have buyers for both large and small warehouses.
MIAMI Realtors with FIABCI World President Walid Moussa
MIAMI Realtors with FIABCI World President Walid Moussa
Today, several MIAMI Realtor Board members were present for the visit of Walid Moussa, who is FIABCI Arabic Countries President and FIABCI World President Elect. The MIAMI Association of REALTORS signed an international collaboration agreement with FIABCI Arabic Countries to promote Miami as a place to do business and create opportunities to work together to sell properties in South Florida.
At a time when commercial real estate investors from around the world are showing an interest in Miami, these agreements help create the relationships required to get deals done.
Today, Canada becomes the first G7 Country to fully legalize marijuana. Canada had already legalized medical marijuana in 2001 and the law to legalize recreational marijuana, which was passed in June of this year, goes into effect today.
Although Florida and several other states have legalized medicinal use of marijuana, and nine states plus Washington D.C have legalized recreational use, marijuana is still illegal in the United States. This dichotomy between state and federal law creates a variety of legal hurdles, especially in banking and real estate, for marijuana growers and businesses.
CREW-Miami ‘s October luncheon featured an expert panel that discussed some of the legal challenges as they pertain to commercial real estate. Since Florida requires medical marijuana treatment centers be vertically integrated, they have to not only grow and process the marijuana, they also need to have retail locations, making the commercial real estate crucial to the business. However, purchasing the property with a mortgage can be a challenge, since most banks will not issue a mortgage for property that is involved in an illegal activity, landlords may be afraid of leasing property for the same reason, and many cities have moratoriums or ordinances that limit where these facilities and growers can be located.
Global spending on legal cannabis is expected to hit $57B by 2027. Now that the United States is sandwiched between two countries, Mexico legalized medicinal marijuana in June of 2017, that have legalized marijuana, the US is starting to revisit it’s policy on cannabis.
