Bisnow’s list of the 10 cities with the highest office vacancy rates does not include Miami, which is one of the most in-demand office markets in the country. With the exception of some office space at Brickell City Center, there isn’t any new construction of office space due to the high cost of land and construction. According to JLL’s Office Insight Report for the fourth quarter of 2015, Miami’s vacancy rate was 12.3% in 2015.
Forbes’ 2016 top cities to invest in is out and seven of the best investment cities are in Florida. Two, West Palm Beach and Fort Lauderdale, are in South Florida. The Fort Lauderdale Metropolitan Statistical Area and Divisions (MSAD), which includes Fort Lauderdale, Pompano Beach and Deerfield Beach, has a three-year home price growth forecast of 20%. West Palm Beach’s MSAD, encompassing West Palm Beach, Boca Raton and Boynton Beach, has a three-year home price growth projection of 23%.
Based on Florida’s employment recovery and the overall improvement in the national economy, Florida dominates the housing investment list for 2016. Those are the “scientific” reasons given. In my opinion the weather, water, cultural diversity and favorable tax climate are also contribute to Florida being a great place to live and invest!
Two changes made to the U.S. Foreign Investment in Real Property Tax Act of 1980 (FIRPTA) will go into effect February 17. While one affects foreign investment in publicly-traded real estate investment trusts (REITs) and should make commercial property in the U.S. more attractive to foreign buyers, the second one affects foreign buyers of residential properties.
The change relating to ownership of U.S. REITs is the doubling of the maximum amount of stock a foreign investor may have in REITs from 5% to 10% and allowing foreign pension funds to invest in REITs withoug having FIRPTA apply. Ralph W. Holmen, associate general counsel for the National Association of Realtors® (NAR) states that these changes “… are conservatively estimated to boost foreign investment in U.S. commercial real estate by $20-$30 billion per year'”.
In order to cover the costs associated with the two commercial provisions, the withholding amount for residential properties will increase from 10% up to 15% on properties that are over $1 million, whether it is used as a primary residence or not. For properties $300,000 or less or $300,000 to $1 million, the rules don’t change. Under $300,000, no FIRPTA tax is paid if it is to be used as a primary residence. From $300,000 – $1 million, the current 10% FIRPTA tax will not change as long as the property is used as a primary residence.
Buyers need to know that although most settlement agents do withhold the FIRPTA tax, if they do not, the buyer is the one that is legally responsible for the tax owed if it is not withheld.
Bank of America/USA Today Better Money Habits® Millennial Report, provides great insight into the financial concerns of the millennial generation. As the mother of three millennials, ages 21-25, and a Realtor I am always interested in what reports say drive this group of young adults.
Of great interest is the correlation between jobs and housing in areas where millennials like to live, which tend to be cities with plenty of cultural and social activities, strong public transportation, high percentage of others in their age group (18-34) and ethnic diversity.
According to the B of A study, “No matter where they live, the cost of living is a concern for a majority of millennials. More than half are also concerned about their ability to save based on where they live.” This is also one of my concerns for my children. My youngest is already thinking about where she is going to move once she graduates. Although she realizes it will depend where she finds a job in film editing, she is looking at cities that have both a large film/television production industry and a lower cost of living than some of the big cities, such as Los Angeles and New York.
Given the top Forbes’ Best Cities for Millennials in 2015, it is not surprising that cost of living is such a large concern. Eleven of the top 25 cities have rents at or close to $1300 per month. If you go by the rule of thumb that no more than 30% of your annual income should go to rent, then millennials in these cities would have to make a minimum of $52,000 per year. Miami rents have gone up significantly as well and though we didn’t make Forbes’ cut as top 25 cities, I think that is changing with the emergence of a strong tech entrepreneurial center.
I am blessed to live in Miami, but it inevitably means lots of entertaining friends and family from out of town over the holidays. I had people arrive 2 weeks before Thanksgiving and the last of them leave back to colder climates tomorrow. This year, I decided to go way out of my comfort zone, not cook, and cater all except for Thanksgiving.
I would like to thank the following local merchants for making this Christmas and New Years stress free!
First, a huge thank you to Bikram Hot Yoga 305 for helping me heal after a back injury and keeping me healthy and relaxed during the holidays.
To Malanga Cafe for providing a delicious pernil, yuca, plantain, and rice and bean dinner for Christmas Eve. It was my easiest Christmas ever and wave reviews. P.S fed way more than the 18-20 people the menu advertised.
And finally, to the Bottega La Dolce Vita for the most delicious beef lasagna, cannelloni and meatballs for New Years Eve! The food was amazing!
CoreLogic, is projecting overall U.S. housing prices to rise 5.2% next year. Florida is projected to increase by 9.3%, which is the second highest increase in the nation, just behind California at 10.8%.
Just in time for Art Miami and Art Basel, this unique New York City style apartment comes on the market. The light and bright unit features an open floor plan with plenty of wall space for art. The kitchen features a Viking gas stove and a great layout for entertaining.
Located in the heart of Miami Beach on tree-lined Meridian Avenue, you are walking distance to everything: beach, grocery stores, shops, parks, and restaurants.
Miami Beach’s Art Week featuring Art Miami, Art Basel, and many other satellite art fairs isn’t doesn’t start until December 1, but Christie’s just hinted at what may be the biggest art season yet with a record setting night, including the sale of Amedeo Modigliani’s Nu couché.
Spring is here and brings with it Spring cleaning and gardening. If you are looking for a fun way to incorporate plant buying into a whole day and family event, head over to Fairchild Tropical Gardens this weekend for their Spring Garden Festival.
In addition to their 36th Annual Plant Sale, you can shop for locally-grown fresh fruits, vegetables, and herbs at the garden marketplace, sample crisp and refreshing brews at the Beer Tasting Garden presented by New Belgium Brewing, enjoy live music, and view Dale Chihuly‘s most comprehensive garden exhibition.
Wow, the Spring Selling Season is definitely here in Miami! Our office alone has had three consecutive weeks with over $30 million in real estate transactions and two of those weeks we were over $35 million. Sales continue to outpace listings and 30% of our sales were at or over asking.