Tag: Commercial Real Estate

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Buying Commercial Real Estate

Is TAMI Coming To A Town Near You?

Google Puchase
Google’s Latest NYC Purchase

All of the large tech companies appear to be on a buying spree. Google’s $2.4 billion purchase of the Chelsea Market Place building shows how insatiable these large companies can be. Loaded with cash and apparently feeling bullish about how recent tax reform will affect them, they are on a purchasing and/or expansion binge.  This is great news for the economy as it keeps real estate and employment on an upward trend.

As reported last week by Lara O’Keefe of Bisnow the top tech companies are planning the following:

Google – open offices in 9 states throughout the U.S
Facebook – open five data centers over the next year.  Redevelop 3.45 M SF at the former Menlo Science & Technology Park
Apple – spend approximately $10 billion adding onto existing data center facilities.  Adding another campus at a yet to be determined location
Amazon – opening a second headquarter

So, what does this mean?  Both commercial and residential real estate prices in the areas where these companies put their offices, data centers, operation centers and warehouses are going to increase as will the employment rate and demand for skilled workers.  Since tech companies like to be with other tech companies as well as creative ones that focus on advertising, media and information, there will be an increased presence of these companies wherever Google, Facebook, Apple and Amazon locate their offices.  The effect that these companies, collectively referred to as TAMI (tech, advertising, media, information) have on an area’s real estate should not be underestimated.  Just take a look at the prices of real estate in Silicon Valley, the San Francisco Bay Area and Manhattan.

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Buying Commercial Real Estate Selling

Why Amendment 2 Matters To YOU!

Amendment 2 Is For Everybody photo credit: Brian Sharpe- Sharpe Properties
Amendment 2 Is For Everybody photo credit: Brian Sharpe- Sharpe Properties

Although this year’s elections aren’t until November and every one is pretty tired of politics, I have to take this opportunity before all of the other campaigning starts to talk about Amendment 2 and why it matters to you.

Amendment 2 is not a tax cut, it would make a current 10% cap on non-homesteaded property tax increases permanent.  If Amendment 2 does not pass in November, the current cap will expire and property owners may see their taxes increase significantly.  If you own commercial or non-homesteaded residential property, such as an investment property or second home, I think you can see how this would affect you.  Even if you don’t own any property, significant tax increases on property will affect you.  How?  Your rent and the costs of goods and services may go up significantly.

First approved by voters in 2008 as part of the Save Our Homes portability constitutional amendment, the 10% cap on non-homesteaded properties was a non-partisan issue in the Florida Legislature last year.  In order to get Amendment 2 got on 2018’s ballot, the Florida Senate passed it unanimously and the House passed it with 97% voting for it.  As the Amendment tag line states:  “Amendment 2 is for Everybody”.

Now that you know why Amendment 2 matters to you, please help get the word out to your neighbors, tenants, friends, business associates, and every Florida resident you know.  Need more information or material to share?  Check out www.EverybodyIsFor2.com

 

 

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Commercial Real Estate Investment Real Estate

Signing New Commercial Leases in 2018? Remember To Drop The Sales Tax To 5.8%

Publix on Miami Beach FL
Publix on Miami Beach FL

If you are a landlord signing new leases in 2018, remember that the state sales tax on commercial leases has dropped from 6% to 5.8%.  As a result, the sales tax rate in Miami-Dade County will drop to 6.8% and in Broward it will drop to 5.8%.  Although the drop in rate may not sound like much, it amounts to an estimated $60 million a year savings to businesses.

Florida is the only state in the nation that charges a sales tax on all commercial leases and Florida Realtors, Florida Chamber, International Council of Shopping Centers, Florida Ports Council, and many others have been working diligently to get the tax reduced in order to keep Florida competitive with other states.  The sales tax is levied on all businesses leases, large and small, regardless of profitability and therefore disproportionally affects small businesses and start ups.  Florida Realtors will continue to work with legislators to get the tax on leases reduced further.

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Restaurants South Miami

Whisk Gourmet Food & Catering Has All The Ingredients To Attract Millennials & Boomers Alike

WHISK'S Marinated Shrimp & Avocado Salad
WHISK’S Marinated Shrimp & Avocado Salad

 

In a recent post about restaurants driving retail traffic, I listed restaurants that have been added to malls and downtowns.  Today’s blog is about one of my favorite local South Miami restaurants, Whisk Gourmet Food + Catering.  A recent blog in OpenTable,  Millennial Dining: How the Share Generation Is Shaping the Restaurant Experience, discusses several features that restaurants find help attract millennials.  High tables, open kitchens, Instagrammable design (and of course, food!), at least one burger and bar seating are all important in creating a dining experience that millennials are drawn to and Whisk has them all.

The home-style Southern cooking is simple yet high quality, using seasonal, local and organic ingredients and the atmosphere is casual and friendly.  Whether you are a millennial or not, you will appreciate both the food and Southern hospitality at this local favorite.

 

 

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Brickell/Downtown Miami Commercial Real Estate Investment Real Estate Neighborhood News Selling

Self-Contained Amenities and Neighborhood Key in The Conrad Brickell Hotel Sale

The Brickell Arch - photo credit Rusty Diaz Photography
The Brickell Arch – photo credit Rusty Diaz Photography

Though the pace of commercial real estate transactions in South Florida has slowed down a bit, Miami continues to rack up big sales with the recent purchase of The Conrad Brickell Hotel for $72 million by Mast Capital and Angelo, Gordon and Company.  The 203-room hotel will be managed by HEI Hotels & Resorts, it’s first property in Miami.  At a time when the number of hotel rooms has outpaced demand, this purchase shows that experienced investors believe in the long term viability of Miami as an investment.  Both Mast Capital and Angelo, Gordon, and Company like to purchase value-add properties and it will be interesting to see if they hold onto it or sell it once the planned renovation is completed.

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Brickell/Downtown Miami Commercial Real Estate

Collaboration Is Key In Commercial Real Estate

Wells Fargo Center - Gold LEED Certified
Wells Fargo Center – Gold LEED Certified

I just completed another successful lease transaction with Andrew Trench and Ryan Holtzman of Cushman and Wakefield.  It is the second office lease we have done together and they are wonderful to work with.  In addition to being the consummate professionals you would expect when dealing with Cushman, they are extremely responsive and readily available.    Collaborating with Andrew and Ryan created a smooth transition for the tenant I represented and is why I look forward to working with them again in the near future.

 

 

 

 

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Brickell/Downtown Miami Commercial Real Estate Restaurants South Miami

Restaurants Important In Driving Retail Traffic

Pubbelly Sushi
Pubbelly Sushi

 

Food has always been important in retail centers; all you need to do is check out the food court at any major mall to see how much space is devoted to food.  Increasingly, more formal sit-down restaurants are what is needed to drive traffic to malls, strip centers, or downtowns.  Dadeland Mall added many dining options when they renovated several years ago, Downtown Dadeland is starting to bustle with the addition of The Brick and Barley to their tenant list, and Brickell City Center has a variety of restaurants, including Quinto La Huella, Pubbelly Sushi, and American Harvest to name a few.

Categories
Buying Selling

What Do The Election Results Mean For Real Estate?

 

langer-front

The long election  is finally over and the question I am getting asked a lot is, “What does it all mean for the real estate market?”  A recent video put out by the National Association of Realtors sums up the election as follows:

  • In Congress, not much has changed.  Republicans controlled the House and the Senate before the election and they control the House and the Senate after the election.  This will help NAR moving forward on flood insurance, tax reform, and the re-invention of Fannie Mae and Freddie Mac, since Realtors® had been working on these issues with the previous Congress, thereby providing continuity.
  • Flood Insurance:  The National Flood Insurance Program is $24 Billion in debt, which needs to be addressed.  States vary on the importance they give this program and how flood insurance should be covered.  Nevada has a different view than New Orleans and Florida and NAR is active in trying to negotiate a solution so that insurance is available and real estate transactions can continue taking place.
  • Tax Reform:  The mortgage interest deduction, property tax deduction, capital gains exemption and 1031 Like Kind Exchanges are all under consideration for reform.  No bills have been filed yet, but there are different proposals that have been floated by a variety of legislators.
  • Fannie Mae and Freddie Mac:  Their future is totally up in the air and NAR will keep an eye on any new proposals that are put forth.
  • Dodd Frank and the Consumer Protection Bureau:  These will be revisited.  Under Dodd Frank, regulations that affect smaller banks will probably be relaxed.  Since approximately half of current mortgage lending is being done by non-bank banks (on-line lenders), regulations may start addressing them.  Overall, the view is that federal regulations will be loosened and state and local regulations will increase.

Another topic that will be looked at is refinancing student loans, which would help get young people with a lot of student debt into mortgages and homeownership.  This is obviously a national overview.  I will go into more detail as to what the elections mean for us locally and for commercial real estate in future blogs.  Stay tuned!

 

Categories
Commercial Real Estate Investment Real Estate Restaurants

Top 3 Retail ‘Buy’ Markets Are In South Florida

ceviche-105

Ten-X’s U.S. Retail Market Outlook listed the top five markets for investors to consider buying retail real estate.  Three out of those five were Miami, Fort Lauderdale, and West Palm Beach.  Robust employment and increasing population in all three cities are pushing the demand for retail space in all of their respective counties.

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Commercial Real Estate Florida Life

Autonomous Vehicles Will Change The Urban Landscape

 

Tesla Model 3 – Estimated Delivery 2018

The technology is coming so rapidly that Florida and 12 other states have already enacted legislation to address autonomous vehicles.  So how will having autonomous vehicles change the urban landscape?

  1. It will change parking requirements allowing for more density, wider sidewalks, and rely on drop off lanes
  2. Make traffic move more efficiently
  3. Increase focus on pedestrians and bikers

Urban planners and developers can start getting creative on how to use space that used to be reserved for parking.  That space can now become parks, community centers, or anything else that adds value to a neighborhood’s aesthetic.  This fact alone, makes the possibilities of what can be overcome my hesitancy over the thought of hundreds of driverless vehicles cruising the streets and highways.  On the other hand, Florida has never been ranked high in the “good driver” column, so maybe autonomous vehicles are the solution!