Tag: Investment Real Estate

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Commercial Real Estate Selling Small Business

Travel Adventures Start in South Florida

Traveling: Antigua Casona Hotel in Cusco Peru

One of my favorite things about living in South Florida is how easy it is to travel anywhere from here. Miami International Airport (MIA) is one of the busiest airports in the country with over 80 airlines serving 150+ places around the world. We also have the Fort Lauderdale and Palm Beach airports, so plenty of airlines and airfares to choose from.

This year, my family was invited to a wedding in Lima, Peru. What an amazing country! They truly understand the meaning of customer service. Miami’s hospitality industry can definitely learn something from the Peruvians.

After the wedding, we took a side trip to Cusco and stayed at this amazing hotel, the Antigua Casona. From a real estate perspective, it was incredibly interesting as the owners rebuilt a falling down house into this intimate, boutique hotel. That in and of itself is enough for an entire blog post, but I’ll save that portion for another day.

What I found so compelling about this hotel was how they managed to integrate the local artwork,

the theme of the area (Incan architecture), the weather and altitude (almost 15,000 feet above sea level, which is rough on Miamians) and the food into an overall incredible experience.

Leaving the hotel at 5:00 a.m. for a Machu Picchu trek? No worries they have a picnic breakfast ready for you. Being affected by the altitude? Again, no worries, every night they bring a thermos with hot water and a local mint tea to help with the effects. In the morning, they have a coca tea to help. A little chilly? Every evening with the tea service, they place covered hot water bottles under the covers on each side of the bed.

The customer service and the attention to detail, anticipating what the client might want or need was beyond anything I have experienced in my travels and made me wonder, do I go far enough in providing that experience to my real estate customers? Does my company? If not, how can we do better?

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Commercial Real Estate Florida Life

6 Florida Laws That Go Into Effect Will Impact Commercial Real Estate

Part of what I do every year is travel to Tallahassee and Washington D.C. to lobby for private property rights and issues that affect commercial real estate.  This year, we had a lot of wins, especially at the state level, with Governor DeSantis signing several bills we supported into law in the last month.  These laws will be going into effect between July 1, 2019 and January 1, 2020 and all have an impact on commercial real estate.

Florida Gov. Ron DeSantis signed several bills into law that have a direct impact on real estate.  The results include the following:

  • Reduction to the state tax on commercial leases to 5.5%.  Known as the business rent tax (BRT), the decrease will take effect January 1, 2020. (HB 7123).  If you are a landlord, remember to adjust the sales tax on your invoicing.  If you are a tenant, make sure the adjustment has been made.
  • Allowing local governments to close a permit six years after issuance, as long as there are no apparent safety hazards, and preventing local governments for penalizing property owners for open permits applied for before they owned the property.  This law will take effect Octover 1, 2019. (HB 447).  This is great news, as closings should not be delayed for permits that were opened and not closed long ago.
  • Authorization of online remote notaries while protecting the integrity and security of documents being notarized.  You can start using online remote notaries beginning January 1, 2020. (HB 409)  This is especially good news for our international buyers and sellers as notaries in other countries are quite different from notaries and the U.S., making getting documents notarized abroad a challenge.
  • Allocation of $682 million for environmental projects specifically for improving water quality and for Everglades and beach restoration.  This is wonderful news for all Floridians.  After all, people come here for our beaches and water activities, not our mountains!
  • Developers in areas lacking private wetlands mitigation credits may now partner with local governments to mitigate on publicly-owned conservation land. Goes into effect July 1, 2019. (HB 521)
  • Legalization of self-driving cars.  Effective July 1, 2019 (HB 311).  How will this change parking requirements in buildings, cities, and neighborhoods?

If there is an issue in your neighborhood or that you are facing that restricts your private property rights or that affects how you conduct business in a negative way, give me a call to discuss.





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Commercial Real Estate Investment Real Estate

Have A Warehouse You Want to Sell?

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.





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Commercial Real Estate Investment Real Estate Selling

MIAMI Realtors and FIABCI Arabic Countries Sign Collaboration Agreement

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.





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Commercial Real Estate

Commercial Real Estate Insights From NAR Convention in Boston

Prudential Building - Boston

Prudential Building – Boston

NAR’s annual conference was held in Boston earlier this week, and there were several takeaways for those of us who buy, sell and own commercial real estate.  Like the light shining forth to the Prudential building pictured above, Florida’s economy is strong and the future for bright.

  1.  Florida was the top state in the country for job growth rates for the 12 months ending September 2018.  The 4.83% in job growth will result in more real estate sales across the board.   Florida is well over a full % point ahead of the second state.
  2. Opportunity Zones (OZ) are still the talk among investors.  With two distinct tax advantages, deferral of capital gain tax with a portion (10% or 15%) escaping the tax depending on how long (5 years or 7 years) investment is held, and no tax on the appreciation if the asset is held for 10 years or more, there will be a lot of money flowing into these areas. Clarification from the Treasury is needed on a variety of the nuances of investing in these zones.  If you are considering investing in one of the funds, remember that the fact that a property is in an OZ won’t make a bad project good or even better, but it will make a good project very good.





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Commercial Real Estate Florida Life Investment Real Estate Renting in Miami

Early Voting Starts Today – Vote Yes On Amendment 2!





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Commercial Real Estate

Retailers Can Learn From RH’s Efforts To Revolutionize Physical Stores

RH New York - The Gallery

RH New York – The Gallery

 

I just received my copy of RH’s catalogue and immediately loved the building pictured on the front.  I liked RH as a brand even more when I opened the front cover and read CEO Gary Friedman’s piece, The Death of Retail Is Overrated.  In it, he states that “…most retail stores are archaic, windowless boxes that lack any sense of humanity” fresh air or natural light.  Just that description of a retail store would make me shop more online, from the comfort of my home or office, both of which have plenty of windows and light.

However, he goes on to state that since we are both social and physical creatures we still like experiences.  This of course ties in to the whole “experiential retail” trend that the industry is pursuing to keep the customers it still  has and bring new customers in. RH New York – The Gallery is the building featured on the cover.  It is RH’s latest space that integrates food, wine, art and design in the Historic Meat Packing District.

In addition to 5 Ways Retailers Can Engage Consumers, brick an mortar stores can follow RH’s example by creating spaces that:

  • “blur the lines between residential and retail, indoors and outdoors”
  • “are more home than store”
  • “are filled with fresh air and natural light”
  • have “garden courtyards, rooftop parks, restaurants, wine vaults and barista bars”
  • “activate all of the senses, and spaces that cannot be replicated online”

In Don’t Hold A Funeral For Retail Just Yet,  I emphasized that retail wasn’t dead but rather shifting and that brands that provided their customers with options and experiences would fare well.  Mr. Friedman worded it eloquently when he wrote: “… the physical manifestation of a brand will prove to be the most compelling and cost effective way to engage and inspire customers in a physical world.”

 

 

 





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Buying Commercial Real Estate Investment Real Estate Selling

What Happening in Miami-Dade Multi-Family Market? Sales Rise In Second Quarter

 

As reported in Vizzda’s Quarterly Report For South Florida Commercial Real Estate, the total dollar amount of multi-family sales in Miami-Dade County rose to $232,943,000 in the second quarter of 2018, up from $196,115,503 in the first quarter.  This is approximately half of the $462,372,302 worth of sales in the second quarter of 2017.

The largest transaction was for Sundance Village Apartments, a 304 unit complex at 11325 NW 7 St., which closed for $65,600,000 or approximately $215,789 per unit.

What will third quarter activity look like?  Stay tuned for our next report or subscribe to our blog, so you don’t miss it.  Mill Creek Residential just closed on a 127 unit apartment complex in Dania Beach for $37.2 million.  Will it make the top 5 list of largest transactions in 3Q2018?





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Buying Commercial Real Estate Investment Real Estate

Is South Florida Real Estate Still Affordable?

Affordability has become a real estate hot topic over the last several years and is going to continue to be one for at least the next 5 years.  As both millennials and baby boomers age, their demand on residential and commercial real estate are driving up prices at a time when incomes are close to stagnant and definitely not keeping pace with rising construction and real estate prices.

With boomers living longer and opting to age in place and millennials’ ability to work remotely due to advances in technology, cities and states that remain affordable to these two age groups should fare well and be considered for potential investment properties.

In Florida, some of the cities that have made “affordable best of” lists include:

In South Florida Miami and Hialeah:  made Quicken Loans’ list of Most Affordable Big Cities in America

Tallahassee:  on Realtor.com’s  America’s Most Affordable Outdoorsy Cities 2018

Palm Bay and Port Saint Lucie both made Realtor.com’s list of America’s Most Affordable Beach Towns 2018 edition

According to Livability.com, the six most affordable places to live in Florida are Kissimmee, Palm Coast, Cape Coral, Palm Bay, Orlando, and Gainesville.

Cape Coral was also picked as one of the cheapest places where you’ll want to retire.

Although not all of Miami is affordable, according to Zillow the median home price in Miami-Dade County is $296,400, so there are pockets where both residential and commercial real estate is more affordable than in the higher priced areas, better known areas of the county.  These pockets still have room for appreciation over the next 5-10 years.





Categories
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.