Month: March 2024

The Conversation: Understanding America’s Industrial Real Estate Landscape

In a recent episode of “America’s Commercial Real Estate Show,” the show host delved into the complex and evolving world of industrial real estate with his guest, Aaron Halfacre, CEO and President of Modiv Industrial. Modiv Industrial is a Real Estate Investment Trust (REIT) that owns and leases manufacturing facilities across the United States. The conversation provided insights into the resurgence of manufacturing in the U.S., the unique challenges and opportunities within the industrial real estate sector, and the investment potential it offers. The essence of this conversation revolves around industrial and manufacturing real estate throughout the United States. Given this, recognize that some observations may be less pertinent or entirely irrelevant to such in Miami.

The Resurgence of U.S. Manufacturing

The host kicked off the discussion by addressing the buzz around the resurgence of manufacturing in the United States. With global challenges like supply chain disruptions and the COVID-19 pandemic, there has been increasing talk about bringing manufacturing back to U.S. shores. Halfacre confirmed that this trend is indeed a reality. He pointed out that various factors, including supply chain disruptions, geopolitical tensions, and a shift towards just-in-case inventory strategies, have contributed to the revival of domestic manufacturing.

The Importance of Critical Manufacturing

Halfacre emphasized that Modiv Industrial focuses on critical manufacturing sectors such as aerospace, medical, and defense. These industries produce goods that are indispensable and cannot be substituted or outsourced easily. Unlike consumer discretionary items, which can afford longer lead times, critical components require a more immediate and reliable supply chain, making domestic production essential.

Long-Term Leases and Specialized Facilities

One distinguishing feature of industrial real estate in the manufacturing sector is the prevalence of long-term leases, typically spanning 20 to 25 years. These leases reflect the specialized nature of manufacturing facilities, which are often tailored to accommodate specific equipment and production processes. For instance, equipment like heavy presses or specialized machinery necessitates custom-built spaces that aren’t easily interchangeable, contributing to the stability of tenancies.

Investment Dynamics in Industrial Real Estate

The host and Halfacre discussed investment dynamics within the industrial real estate sector, particularly focusing on cap rates and barriers to entry. Unlike traditional industrial properties like warehouses or distribution centers, manufacturing facilities tend to have slightly higher cap rates, reflecting the specialized nature of the assets and the longer lease terms. Moreover, the barrier to entry is higher due to the substantial upfront investment required for specialized manufacturing infrastructure, which often deters individual investors.

Underwriting Manufacturing Facilities

Halfacre shed light on the nuanced process of underwriting manufacturing facilities, emphasizing the importance of understanding the industry, the specific needs of tenants, and the local market dynamics. Unlike retail or office spaces, where metrics like demographics and foot traffic play significant roles, underwriting manufacturing assets requires a deep dive into the operational aspects of the tenant’s business, including supply chain reliability, labor requirements, and industry outlook.

The Human Element in Industrial Real Estate

Throughout the conversation, Halfacre underscored the human aspect of industrial real estate. Despite the focus on tangible assets and financial metrics, successful investment in manufacturing facilities hinges on building relationships with tenants, understanding their operational needs, and aligning investment strategies with long-term economic trends.

Conclusion

The dialogue between the show host and Aaron Halfacre provided valuable insights into the industrial real estate sector’s intricacies, highlighting its resilience, investment potential, and the critical role it plays in supporting domestic manufacturing. As the U.S. continues to navigate global challenges and economic shifts, industrial real estate stands as a cornerstone of economic stability, offering investors opportunities for long-term growth and income generation.

In summary, the conversation illuminated the multifaceted nature of industrial real estate, emphasizing its significance in shaping the future of American manufacturing and its enduring appeal as an investment asset class.

The post Video: Modiv Industrial CEO Aaron Halfacre Discusses Investing in Industrial and Manufacturing Real Estate appeared first on Hawkins Commercial Realty.

Aimco’s waterfront Brickell office and apartment towers hit the market for $650M: source

Brickell hit the market for roughly $650 million, marketed as a possible redevelopment opportunity, The Real Deal has learned. The Denver-based real estate investment trust wants to sell the 32-story Brickell Bay Office Tower at 1001 Brickell Bay Drive and the 31-story, 357-unit Yacht Club Apartments at 1111 Brickell Bay Drive, according to a news release from the listing brokers…

28-Lane Lucky Strike Opens At Miami Worldcenter As Project’s Next Phase Being Planned

Bowlero’s Lucky Strike opened this week at Miami Worldcenter, while the next phase of the development is being planned. Lucky Strike Miami is located at Worldcenter’s Jewel Box and features 28 lanes, including a VIP room with six private bowling lanes. The 30,000 sq. ft. facility also features an arcade, a craft cocktail bar, and culinary offerings. Bowlero first announced the…

Lucky Strike Returns to Miami After a Decade

After closing a decade ago in Miami Beach, Lucky Strike has returned with bowling, arcade games, and, of course, a food and cocktail menu that screams Miami — this time, in downtown Miami. Over a decade ago, the bowling venue was a popular venue just off of Lincoln Road in South Beach, but it closed down in December of 2014. Years later, in September of 2023, Bowlero…

R&B Realty’s Gateway at Wynwood hit with foreclosure lawsuit

The owner of a fairly new Wynwood office building is facing foreclosure over an alleged $101 million mortgage debt. Wilmington Trust NA, as trustee for Boise-based A10 Capital, sued an affiliate of New York-based R&B Realty for allegedly defaulting on two loans by failing to make monthly… The mortgages are secured by Gateway at Wynwood at 2916 North Miami Avenue in Miami.

$113M Foreclosure Suit Filed At New York Developer’s Wynwood Office

The developer of a recently completed Wynwood office building is at risk of losing control of the property after falling behind on mortgage payments, according to a foreclosure suit filed this week. New York-based R&B Realty Group was sued Tuesday, with its lender claiming it hadn’t made a payment since November on two mortgages totaling $113M tied to The Gateway at Wynwood.

New Construction Hotel Proposed In South Beach With 238 Rooms

An application has been filed with Miami Beach planners for a new hotel on Washington Avenue. Renderings show the hotel will be named The Cloud One. The chain has locations in New York, Hamburg and Nuremberg. The new South Beach hotel will rise 7 stories and have 238 hotel keys, with a rooftoop pool deck and lounge with outdoor seating, along with a ground floor…

Miami-Dade Breaks Ground On Dadeland South Intermodal Station

Miami-Dade County held a groundbreaking ceremony yesterday for the Dadeland South Intermodal Station. The Station is the southernmost end of the existing Metrorail system and is the northern terminal station of the South Dade TransitWay. The $66m project includes enhancements at the 40-year-old Dadeland South Metrorail station, as well as new connectivity to the…

South Florida MF Rents Rise Dramatically Since COVID, While Bay Area Stagnates

In the four years since the global pandemic began and caused massive swings in the U.S. apartment industry, average effective rents have climbed approximately one quarter nationwide. Two regions of the country, however, demonstrate the two extremes of that rent change. In South Florida, which is comprised of three markets including Miami, Fort Lauderdale…

South Florida and Bay Area Truly a Tale of Two Apartment Markets

Population growth and employment gains have combined to create the greatest disparity in rent growth percentage between key apartment markets since the pandemic, according to RealPage Analytics. While in South Florida apartment growth is climbing – performing better than in any area in the country – the opposite is the case for the Bay Area in Northern…

CREI Holdings Secures $67 Million In Construction Financing For ‘ Li’l Abner III’ Affordable Housing Project In Sweetwater

CREI Holdings has secured a $67 million construction loan from Centennial Bank to build an affordable workforce housing mid-rise building at 455 Northwest 114th Avenue in the City of Sweetwater, Miami-Dade County. Construction of Li’l Abner III is set to begin in the second quarter of 2024 and be completed in the second quarter of 2026. Prospective tenants can now register…

CREI lands $67M construction loan for Sweetwater apartment building

CREI Holdings nabbed $67 million in construction financing to build an $83 million multifamily project with 326 apartments in Sweetwater. Conway, Arkansas-based Centennial Bank provided the construction loan to Sweetwater-based CREI, a press release states. The developer is planning to break ground next quarter on Li’l Abner III, an eight-story building with the one…

Developer Files Pre-Application for 856-Unit Complex at the Earlington Heights Metrorail Station

A developer has filed a pre-application for a workforce housing complex at the Earlington Heights Metrorail Station in Miami-Dade County. The unnamed project would require close to 945,000 square feet of new construction, comprising two 15-story buildings, connected by an amenity deck. Together, they would feature 856 residences, and they would measure 441 sf…

Judge Nixes Approval Of Miami-Dade UDB Expansion For Industrial Megaproject

The decision marks the latest chapter in the controversial proposal for the 5.9 million-square-foot South Dade Logistics and Technology District on the southeast corner of the Florida Turnpike and Southwest 122nd Avenue in an unincorporated area of southeast Miami-Dade. The post Judge Nixes Approval Of Miami-Dade UDB Expansion For Industrial Megaproject appeared…

Design review board approves Art Falcone’s condo-hotel at Miami Worldcenter

Art Falcone’s planned Miami Worldcenter condo-hotel and two other mixed-use projects got the green light from the city’s architecture panel. In addition to Falcone Group’s 53-story tower, the Miami Urban Design Review Board approved Dulce Vida, a planned eight-story apartment building in Allapattah to be developed by Coral Rock Development, and a planned 35-story high-rise…

Top Off Ceremony Held For 39-Story Downtown Miami Tower

A top off ceremony was held earlier this month for a 39-story downtown Miami that is being built without a parking garage, according to contractor Craft Construction. A total of 343 condos are being built, which will be permitted for rental on a short term basis through platforms such as Airbnb. All of the condos are sold out. Foundation work began in July 2022, with the first tower…

Construction Underway On $136M Parking Garage At MIA

A new parking garage is now under construction at Miami International Airport. The new Park 6 garage is being built adjacent to the existing Flamingo Garage, and will have 2,240 spaces. Miami-Dade County says it is spending $136 million on the project. That equates to a cost of around $61,000 per space. Both passenger and employees will use the new 7-story garage, the county…

HTG, AM Affordable Housing Open $44M Tucker Tower Senior Apartments in Miami

Housing Trust Group (HTG), a leading multifamily developer, and AM Affordable Housing, a nonprofit founded by NBA Hall of Famer and Miami Heat legend Alonzo Mourning, have opened Tucker Tower. The $44 million affordable housing community for seniors age 62 and older is located in the Perrine neighborhood of southern Miami. Tucker Tower, the eighth joint venture…

Japanese drugmaker Noven gets county aid to expand in Miami-Dade

Miami’s pharmaceutical world is gearing up for an expansion of Japanese-owned Noven Pharmaceuticals Inc. as county commissioners last week approved a $709,420 incentive to grow Noven’s South Dade operations. The company plans to add 24,500 square feet to its current operations in 118,600 square feet at 11960 SW 144th St. and increase employment by 10 persons to…

Plans for Avenues elite private school in Miami “indefinitely suspended”

Avenues The World School “indefinitely suspended” its planned development of a $180 million private school campus in Miami, more than five years after acquiring the site. A lack of demand for an elite private school like Avenues wasn’t the issue. Top private schools across South Florida have reported long wait lists for enrollment, with private school acceptance becoming…

Elite Private School Backs Out Of $180M Miami Campus

Wealthy new Miamians who are desperate to place their children in private schools have one less option to hold out hope for. Avenues: The World School has canceled its plans to build a campus in the city’s Little Haiti neighborhood that could have accommodated 2,500 students, the private school confirmed to Bisnow. Avenues had a deal in place to build a $180M, 717K SF facility…

Ronald Wasson: Aventura city manager seeks to develop parks, open spaces

For the past six years, Ronald Joseph Wasson has been running the City of Aventura as the city manager – putting the residents’ quality of life first. Mr. Wasson says he plans to continue to provide beautiful landscaping, open spaces and parks along with negotiations for a new school development and maintaining the most qualified city staff.  With over 35 years of executive-level management…

Housing Trust Group, AM Affordable Housing Celebrate Grand Opening Of ‘Tucker Tower’ in Perrine, Miami-Dade County

Housing Trust Group (HTG), a leading multifamily developer, and AM Affordable Housing, a nonprofit founded by NBA Hall of Famer and Miami Heat legend Alonzo Mourning, are excited to announce the completion of Tucker Tower, a new $44 million, 120-unit affordable housing community for seniors aged 62 and older at 9910 Hibiscus Street in the Perrine neighborhood…

Turnberry scores $172M construction loan for SoLé Mia condo tower in North Miami

Turnberry secured a $172 million construction loan for One Park Tower at SoLé Mia, a planned luxury condo tower. Bank OZK, one of the largest construction lenders for South Florida projects, is providing the financing for the planned 33-story, 292-unit building at 2411 Laguna Circle in North Miami. A Berkadia team led by Scott Wadler and Alec Fox arranged the loan, which closed…

Photo: Equipment At Miami Freedom Park Stadium Construction Site

Equipment can be seen at the Miami Freedom Park construction site, where a 25,000 seat stadium is planned for Inter Miami. Multiple construction permits are now in process for the site, including phased foundation and vertical permits. According to Miami New Times, Miami-Dade commissioners voted in December to ask for $5 million of state taxpayer funding to clean up…

Short-Term-Rental-Friendly 172-Unit Domus Brickell Park Breaks Ground

A short-term-rental-friendly condo project has broken ground in Brickell and obtained construction financing. Domus Brickell Park is planned to include 172 condo units in a 12-story building. North Development, a joint-venture between Ricardo Dunin’s Oak Capital and Peru-based Edifica, led by Juan Carlos Tassara, held a groundbreaking ceremony at the construction site…

North Development Secures $70 Million Construction Loan, Breaks Ground On Domus Brickell Park

North Development has begun construction on Domus Brickell Park, a new addition to Miami’s Brickell Financial District known for facilitating short-term rentals. The project, a collaborative venture between Oak Capital’s Ricardo Dunin and Peru’s Edifica led by Juan Carlos Tassara, secured a $70 million construction loan from Forman Capital and Core Capital. Designed…

Ricardo Dunin, Peruvian partner score $70M loan for Domus Brickell

Developers Ricardo Dunin and Juan Carlos Tassara secured a $70 million construction loan for Domus Brickell Park, a short-term rental friendly condo development in the works. Forman Capital and Core Capital provided the financing to North Development, a joint venture between Dunin’s Oak Capital and Tassara’s Edifica, for the planned 12-story, 172-unit Brickell-area building…

Beitel lists Edgewater dev site for $75M, but is it really for sale?

An out-of-town developer boasts he’s still committed to building a mega-project in Miami. So why would Ben Beitel go through the trouble of hiring a commercial brokerage to market his entire blocklong site? In a recent phone interview, Beitel insisted his eponymous Brooklyn-based firm is not really interested in selling the nearly 3-acre development site in Edgewater.

Aria Development Group, Largo, and Place Projects Announce Groundbreaking Of 2200 Brickell

Aria Development Group, Largo, and Place Projects have announced the official groundbreaking of 2200 Brickell, a luxury 5-story residential development at 2200 Brickell Avenue in the heart of Miami’s Brickell neighborhood. Designed by Revuelta Architecture International, with interiors by the award-winning team at ODA New York, this building will offer 105…

Craig Robins and partners add retail building to Miami Design District portfolio

Craig Robins and his partners have a new addition to their Miami Design District portfolio, picking up a retail building for $18 million. An affiliate of Miami Design District Associates acquired a 5,668-square-foot store at 80 Northeast 40th Street, records and Vizzda show. Miami Design Center Associates is a partnership between Robins’ Miami-based Dacra, L Catterton Real Estate…

2200 Brickell Development With 105 Luxury Condos Breaks Ground

The developers of 2200 Brickell held a groundbreaking ceremony this morning. The 5-story development includes 105 luxury condos priced from $1.2 million. Aria Development Group, Largo, and Place Projects are the developers. Revuelta is the architect, with interiors by ODA New York. Completion is planned for 2026.

New Tower At Miami Worldcenter’s Block C Approved

Miami’s Urban Development Review Board voted yesterday to recommend approval of a new tower at Miami Worldcenter’s Block C. The board praised the clean and elegant design of the tower, according to architect Nichols. The new tower is planned to rise 53 stories, or 632 feet above sea level at the roof, and include: 280 hotel keys 351 multifamily units with multiple amenity levels bar…

Miller Construction Delivers 143,571 SF Industrial Facility in Medley

Miller Construction Co. has delivered a 143,571-square-foot warehouse located at 7290 N.W. 77th Court in Medley, a town in Miami-Dade County. Woods Grove Capital is the developer of the Class A industrial facility, which features 36-foot clear heights, 42 columns with 54-foot spacing, 37 dock doors and two drive-in ramps. The project team includes IBI Group’s RLC Architects, Puga…

South Florida Retail Real Estate Summary: Leases, Sales & Construction Projects

Here’s our quarterly summary South Florida commercial real estate focusing on Miami retail real estate. The report includes statistical highlights (cap rates, vacancy rates, absorption, etc), the latest retail transactions, signed leases, retail trends, and current market activity. The retail real estate report is updated by our CRE experts who focus on the retail real estate sector. The analysis…

It May Be the End of an Era for Duffy’s Tavern in Miami

Just on the edge of Coral Gables lies Duffy’s Tavern, a quirky, cash-only Irish sports bar that has served beer, loaded sandwiches, soups and chili, fish dip, and burgers to a sports-loving crowd for almost 70 years. It’s been the place to go to when you want to cheer a local team on, especially the Hurricanes or the Dolphins because every inch of wall space is lined with a sports banner…

Lease roundup: Mac & cheese restaurant moving HQ in Boca Raton, Raccoon Coffee opening in Miami

Raccoon Coffee leased 1,800 square feet at 23 Northeast 17th Terrace in Miami, marking the first retail tenant at the development, according to the landlords’ news release. Wynwood Haus is in the Arts & Entertainment District, which is south of Wynwood. Raccoon Coffee will operate a full-service food truck in front of its space until the interior buildout of its new space is finished…

Why there’s confidence South Florida is (mostly) immune to a commercial real estate correction

Whatever the national real estate market experiences, South Florida’s market overdoes it. That’s the usual playbook. But commercial real estate experts here and elsewhere think the region’s commercial real estate market should be largely immune to the difficulty other areas are experiencing. And there are plenty of worries about commercial real estate and the risks it may pose to the…

BTI Partners Tops Off Construction On ‘The Bread Building’ At 1740 S. Young Circle In Downtown Hollywood

Fort Lauderdale-based BTI Partners has reached a significant milestone with the topping-off of The Bread Building, a 25-story apartment tower at 1740 South Young Circle in downtown Hollywood. The redevelopment of the former Hollywood Bread Building site will bring 362 luxury apartments and 16,000 square feet of retail space to the city’s vibrant heart. Modis Architects…

Kushner buying dev sites near Hard Rock Hotel & Casino in Hollywood

Kushner Companies is under contract to buy a land assemblage in Hollywood near the Seminole Hard Rock Hotel & Casino, The Real Deal has learned. New York-based Kushner, led by Charles Kushner, his daughter Nicole Kushner Meyer and Laurent Morali, is buying the two adjacent plots at 4220 and 4231 North 58th Avenue, according to sources. The sites are just south of Stirling…

37-Story ‘Icon Beach’ To Offer 350 Condos At 3724 South Ocean Drive in Hollywood

Sales have launched for a 37-story condo in Hollywood, Florida––despite not breaking ground yet. Icon Beach is set to offer 350 condos, ranging from one-bedroom to three-bedroom floorplans. The Real Deal reports that homes would span 950 to 2,600 square feet, with ownership starting at $825,000. In addition to the residences, Icon Beach would offer 30,000 square feet…

Construction Starts on ‘The Tropic’ at 1744 N. Federal Highway in Hollywood

Construction has started on The Tropic, a 224-unit development in Hollywood, Florida. The 18-story workforce housing project will comprise one-bedroom to three-bedroom homes, with half intended for those making at or above 100 percent of the area median income (AMI). At the time of publication, Broward County Affordable Housing noted that the AMI for 2022 in Broward…

Stiles, PGIM’s new apartment building in Plantation hits market for $150M

Stiles and PGIM Real Estate’s 315-unit Ellsworth apartment building in Plantation hit the market for roughly $150 million, The Real Deal has learned. Fort Lauderdale-based Stiles and Newark, New Jersey-based PGIM want to sell the property, which is 93 percent leased, according to a source, who also confirmed the asking price. Ellsworth offers one-bedroom to three-bedroom units…

Hines, Urban Street Development Celebrate Groundbreaking Of FAT Village In Flagler Village, Fort Lauderdale

The FAT Village master plan, a collaborative effort between Hines and Urban Street Development, has broken ground, setting the stage for vertical growth within the 5.6-acre site in Fort Lauderdale. This expansive urban redevelopment aims to transform the FAT Village district with an influx of new housing, retail options, dining venues, Class AA office spaces, and entertainment…

Developer Proposes 189-Unit Complex for 700 N.W. First Avenue, Fort Lauderdale, Florida

Blue River Realty hopes to get approval for a multi-family housing development in Fort Lauderdale. The unnamed venture would measure 12 stories, requiring 280,972 square feet of new construction. Upon completion, it would offer 189 apartments—offering studios and two-bedroom units. Per the South Florida Business Journal, they would span about 490 square feet to 1,355 square feet…

FAT Village Breaks Ground in Fort Lauderdale, to Have 850 Residential Units

Fort Lauderdale’s FAT Village has broken ground after developers secured $220m in construction financing. The development site spans 5.6 acres over two city blocks, and will include: 850 residential units 200,000 square feet of Class AA office space 80,000+ square feet of food, shopping, entertainment, art studios, and galleries 1,200 parking spaces Completion is planned in 2026.

Trinsic plans 340-unit apartment building in Fort Lauderdale’s Cypress Creek area

Trinsic Residential Group plans to build a 340-unit apartment building with an affordable housing component on a parking lot next to a Westin hotel in the Cypress Creek area of Fort Lauderdale. Trinsic hopes to break ground on the 12-story apartment building by the end of this year and will operate the building under its Aura brand, said Chad Bradshaw, Trinsic’s managing director…

DigitalBridge Signs 79 KSF Delray Beach HQ Lease

Sundy Village will consist of 180,000 square feet of office space and 30,000 square feet of retail. Image courtesy of Pebb Capital Sundy Village will consist of 180,000 square feet of office space and 30,000 square feet of retail. Image courtesy of Pebb Capital Sundy Village will consist of 180,000 square feet of office space and 30,000 square feet of retail. Image courtesy of Pebb Capital…

Related Group & BH Group Unveil The Ritz-Carlton Residences, West Palm Beach

Miami-based real estate developers Related Group (Related) and BH Group have unveiled The Ritz-Carlton Residences, West Palm Beach (The Residences) at 1717 North Flagler Drive. Envisioned by an award-winning team that includes design luminaries Arquitectonica and Rockwell Group, The Residences reflect the highest expression of the brand in a boutique setting – offering…

Tiger Woods-Backed Golf League Rolls Out New Stadium Plans Following Collapse At First Arena

After heavy storms led to the partial collapse of its under-construction arena, a virtual golf league backed by Tiger Woods and Rory McIlroy is taking a mulligan with a more resilient design. The league, called TGL presented by SoFi, revealed design renderings and plans for a new stadium in Palm Beach Gardens, Florida, on the Palm Beach State College campus. The league is expected…

Lotis scores $44M construction loan for Wellington mixed-use project

Lotis Group scored a $44 million construction loan for the first phase of its massive planned Wellington mixed-use project. Lotis, led by John Markey, Adam Freedman and James Gielda, plans The Square & Residences at Lotis Wellington, as the first phase is named, with 372 apartments in garden-style complexes; 60,000 square feet of medical offices and 61,400 square feet…

Trump Plans Office Building at his Jupiter Golf Course as $454M Judgement Looms

With New York’s attorney general preparing to potentially seize Donald Trump’s properties, the former president is planning to build a new office at his golf course in Jupiter, Florida. Plans call for a three-story office building on a parking lot at Trump National, the golf club north of Palm Beach that the former president has owned since 2012. The 45K SF building could cost up to $15M..

Industrial Market Will Resume Expansion In 2025, Experts Say

NAIOP pinpoints 2025 as when the industrial market will start to expand. It estimates that quarterly net absorption of industrial space will average 14 million square feet per quarter over the next two years, or 62.8 and 49.1 million square feet in 2024 and 2025, respectively. This forecast represents a relative “cooling” trend following what had been a protracted period of above-average…

Video: Seyfarth Partner Ron Gart Presents 2024 Real Estate Sentiment Survey

The Discussion: Navigating Commercial Real Estate Trends; Insights from the 2024 Market Sentiment Survey In the ever-evolving landscape of commercial real estate, staying ahead of market trends is paramount for professionals across the industry. To shed light on the current sentiments and expectations within the sector, the 2024 Real Estate Market Sentiment Survey…

How technology can help optimize multifamily operations

“Embracing technology unlocks efficiency and sustainability across all industries, particularly in the multifamily space,” said Witness Yi, Central Region Treasury Services Manager for Commercial Term Lending. “In today’s world of growing competition, operational bottlenecks and rising costs, leveraging technology not only keeps our clients’ costs in check but differentiates…”

DeSantis signs law easing demolitions of aging coastal buildings, creating “massive redevelopment implications”

Florida Gov. Ron DeSantis signed into law a controversial bill that will make it easier to demolish aging coastal properties, another major win for developers from the Florida Legislature. Senate Bill 1526 strips local municipalities of their authority to ban, restrict or prevent the demolition of “nonconforming” and unsafe structures. The exceptions are for buildings individually placed…

“Even more difficult.” Here’s how South Florida’s condo buyout landscape will shift following landmark ruling

The developer of the planned Edition Residences in Miami’s Edgewater is on unforeseen footing after a recent ruling that could cost it millions of dollars, and alter the landscape of future condo buyouts and terminations statewide. Two Roads, a Miami and West Palm Beach-based development firm led by Reid Boren and Taylor Collins, completed a bulk $150 million purchase…

The post Miami Commercial Real Estate News March 27, 2024: Brickell Assemblage Hits Market for $650M; Elite Private School Scraps $180M Campus Plans; More… appeared first on Hawkins Commercial Realty.

The Discussion: Navigating Commercial Real Estate Trends; Insights from the 2024 Market Sentiment Survey

In the ever-evolving landscape of commercial real estate, staying ahead of market trends is paramount for professionals across the industry. To shed light on the current sentiments and expectations within the sector, the 2024 Real Estate Market Sentiment Survey, conducted by Seyfarth, offers a comprehensive glimpse into the perspectives of industry stakeholders.

Hosted by Michael Bull, the discussion delved into key findings from the survey with Seyfarth Partner Ron Gart, offering insights into market sentiment, emerging trends, and areas of focus for commercial real estate professionals moving forward. The focus of this discussion is on commercial real estate across the United States, with observations that may have varying relevance to commercial properties in Miami.

Optimism Reigns Supreme

One of the notable takeaways from the survey is the surge in optimism among respondents compared to previous years. The sentiment of opportunity outweighing retrenchment rose significantly, with 83% of participants expressing a positive outlook for the commercial real estate landscape in 2024. Factors contributing to this optimism include expectations of interest rate adjustments, the emergence of distressed asset opportunities, and a perceived sense of stability amidst a presidential election year.

The Impact of Political Dynamics

While the survey found that the majority of respondents did not anticipate significant implications on commercial real estate based on the outcome of the presidential election, there was a notable preference among participants for former President Trump over President Biden regarding policies perceived to benefit the industry. This preference was attributed to expectations of tax cuts, deregulation, and potential economic stability under Republican leadership, aligning with industry interests.

Transaction Dynamics and Interest Rate Expectations

Transaction volume and activity in buying and selling remain focal points for industry professionals. The survey indicated a heightened interest in distressed assets, with 74% of respondents expressing intent to explore opportunities in this segment—a notable increase from previous years. Expectations regarding interest rate adjustments were moderated, with realism prevailing among respondents despite earlier speculations of significant rate cuts. The majority anticipated a more conservative approach by the Federal Reserve, aligning with recent market dynamics.

Adapting to Remote Work Trends

The shift towards remote work and its implications for commercial real estate were also examined in the survey. While concerns about remote work persist, particularly regarding its impact on office culture, respondents displayed a growing acceptance of hybrid work models. A significant portion indicated a willingness to embrace remote work arrangements, signaling a shift in traditional office dynamics. However, a majority still anticipated spending four to five days in the office, underscoring the enduring value of physical workspace.

Challenges and Opportunities Ahead

Despite the prevailing optimism, challenges such as interest rates, financing availability, and construction costs remain key considerations for industry professionals. Respondents identified interest rates as the primary concern, followed by debt financing and construction costs. Additionally, the rising prominence of property insurance premiums emerged as a potential area of focus for future surveys, reflecting evolving market dynamics and emerging challenges.

Embracing Technology and Innovation

The survey also highlighted the growing adoption of technology, particularly artificial intelligence (AI), within the commercial real estate sector. While approximately half of respondents reported either implementing or planning to implement AI solutions, there remains considerable room for growth and innovation in this space. From design and development to data analysis and contract administration, AI offers transformative opportunities for streamlining processes and enhancing decision-making in commercial real estate.

Looking Ahead

As commercial real estate professionals navigate the complexities of an evolving market landscape, the insights gleaned from the 2024 Market Sentiment Survey offer valuable guidance for strategic planning and decision-making. By remaining attuned to market dynamics, embracing innovation, and leveraging emerging opportunities, stakeholders can position themselves for success in an increasingly dynamic and competitive environment.

The 2024 Real Estate Market Sentiment Survey serves as a barometer for industry sentiments, providing a roadmap for navigating the opportunities and challenges that lie ahead. By fostering collaboration, innovation, and adaptability, commercial real estate professionals can chart a course towards sustainable growth and prosperity in the years to come.

The post Video: Seyfarth Partner Ron Gart Presents 2024 Real Estate Sentiment Survey appeared first on Hawkins Commercial Realty.

WeDevelop: Here are Adam Neumann’s plans at Miami Worldcenter

Flow, the apartment startup founded by billionaire Adam Neumann and backed by venture capital firm Andreessen Horowitz, has three projects in various stages of development at Miami Worldcenter. The buildings are valued at about $450 million, according to a source. Neumann’s purchases at Miami Worldcenter date back to at least 2021, but additional details about his projects…

Adam Neumann’s Flow Expands Miami Holdings Despite Brand’s Delayed Launch

Adam Neumann’s startup Flow is investing heavily in projects at Miami Worldcenter as it expands its South Florida holdings. The real estate firm started by WeWork’s co-founder is building a 41-story second phase of the Caoba apartments, a 44-story tower it purchased in 2021. Flow also has plans for office and retail space across the street, according to a municipal bond offering…

Fisher Brothers And Suffolk Construction Top Off ‘Wynhouse Miami’ At 2200 NW 1st Avenue In Wynwood

Fisher Brothers has topped off construction on Wynhouse Miami, an 8-story mixed-use development located at 2200 Northwest 1st Avenue in the heart of Miami’s Wynwood neighborhood. This construction milestone, achieved by national contractor Suffolk Construction, brings the project closer to opening its doors in Q1 2025. Designed by Nichols Architects…

Falcone proposes 53-story condo-hotel at Miami Worldcenter

Falcone Group wants to build a 53-story condo-hotel at Miami Worldcenter, marking the latest planned addition to the 27-acre mixed-use complex. The Boca Raton-based firm, led by Art Falcone, proposes a tower with 280 hotel keys, 351 condos, 3,500 square feet of retail and an 8,000-square-foot restaurant on a 0.7-acre site at 155 Northeast 10th Street in Miami, according to a proposal…

Appeals court ruling upending an Edgewater condo termination could put buyouts statewide in limbo

An appeals court ruling this week upending a condo termination in Miami is causing shockwaves among developers, as it will likely put buyouts in legal limbo. The court’s opinion regarding Biscayne 21 in Miami’s Edgewater marks a major win for the condo owners who fought to block the termination of their association. Furthermore, it has huge implications for developers…

‘We Call It Herding Cats’: Sellers Are Slowing The Expected Wave Of Condo Buyouts

Unit owners at the Four Winds condos in Surfside were busy evaluating bids from contractors for repairs to secure the building’s 50-year occupancy recertification in early 2023 when two developers appeared with unsolicited offers to buy the property. Naftali Group sent a letter last January saying it would pay $115M for the 12-story, 144-unit building, a price it said was a 56% premium…

Design Refinements Submitted For 800-Room Grand Hyatt Miami Beach

Developers planning the Grand Hyatt Convention Center hotel in Miami Beach have submitted design refinements to a city board for review. The Miami Beach Design Review Board had requested the changes at a previous meeting, and also requested that the updated designs be submitted for review once they had been made. The developer is additionally requesting the board,,,

Transit-Oriented Luxury Condo Planned Next To Wynwood’s Upcoming Train station

Developer Rilea Group has announced plans to build The Rider at Wynwood, a transit-oriented development. The luxury condominium will have a rock-n-roll theme, and will be built next to Wynwood’s upcoming train station along the Brightline tracks. “The upcoming Brightline station, situated just 85 yards from The Rider at Wynwood site, symbolizes the exciting future ahead…

Miller Construction Completes Medley Industrial Project

Miller Construction Company, a statewide, privately-held construction firm, has delivered the 143,571-square-foot industrial project for Woods Grove Capital in Medley. The Class A warehouse in Medley, Florida, is situated at 7290 NW 77th Court near major highways with easy access to Miami International Airport and Port of Miami, the region’s busiest import-export centers.

PMG Announces 34-Story ‘One Twenty Brickell Residences’ At 120 SW 8th Street In Brickell District

Property Markets Group (PMG) has announced One Twenty Brickell Residences, a 34-story residential tower set to rise in the heart of Brickell, designed by internationally renowned architecture firm Sieger Suarez Architects, with interiors by Cotofana Designs. Located at 120 Southwest 8th Street, One Twenty Brickell Residences will consist of 240 fully finished and furnished residences…

‘301-341 Madeira’ Planned for 301 to 335 Madeira Avenue in Coral Gables

Urban 301 Madeira LLC, an Aventura-based firm, recently secured a $59 million loan for a residential project. Dubbed “301-341 Madeira” by Coral Gables city records, the complex would measure nine stories above grade and offer 145 apartments. The Commercial Observer reports that of those 145 apartments, nine would be ground-floor, live/work units. The 100-foot-tall building,,,

900-Foot Cranes Submitted To FAA For Baccarat Construction Site on Brickell

Plans for two new construction cranes have been submitted to the Federal Aviation Administration for the Baccarat Residences site in Brickell. The filing was made on March 15. One of the cranes is planned to reach a top height of 887 feet above ground and 889 feet above sea level, the filing states. The second crane is planned to reach a top height of 906 feet above ground and 908…

Signage & Crane Installed At 67-Story Mercedes-Benz Tower Construction Site

Signage and a crane have been installed at the Brickell site where a 67-story Mercedes-Benz branded tower is under construction. Construction on the tower has actually been underway for some time, but the Mercedes-Benz branding and technical silver color scheme was only unveiled last month. A total of 791 Mercedes-Benz residences are planned. In addition to the residences…

PMG Announces 34-Story One Twenty Brickell Residences

Developer PMG has announced plans for a 34-story tower called One Twenty Brickell Residences near Brickell City Centre. The project will include 240 condos, delivered fully finished and furnished. Over 60,000 square feet of residential amenities are planned, including a Wellness & Fitness center, pickleball court, kid’s club and gym, sky bar and lounge, and a cafe and juice bar.

Subsidies push stalls for long-awaited American Dream Mall

A legislative bid to potentially offer Miami-Dade County subsidies to get a long-stalled, multi-billion mega-project, the American Dream Mall, under way in Northwest Miami-Dade was swiftly sidetracked by a county committee last week. The legislation aims to remove the county’s self-imposed prohibition on subsidies for design or construction of the project, whose movement has…

Coral Gables Office Park Trades For $76M, A 25% Discount From Last Sale

A Coral Gables office park traded for a nearly 25% discount despite the market’s recent rise as a popular destination for businesses looking for space outside Miami’s urban core. Colonnade Properties paid $76M for the five-building Douglas Entrance office park in the northeast corner of Coral Gables, deed records compiled by property intelligence platform Vizzda confirm.The 475K SF…

Miami-Dade wins vast former Job Corps property near Homestead

Miami-Dade County is in the process of acquiring a former 42-acre Job Corps site near Homestead after winning a federal bid for the land. As Miami Today reported in September, after the US declared it surplus, the county expressed interest in the land to use for an emergency management response center or a park. “There was a surplus process run by the federal government…

Miami hits federal funding jackpot for Underdeck with $60M transportation grant

After the city commission passed a resolution in January urging local, state and federal entities to make funding available to support the Underdeck, Miami has been awarded a $60 million transportation grant for the project. The March 14 commission meeting started with Chairwoman Christine King and Mayor Francis Suarez announcing the massive influx of federal funding for…

Despite opposition, Miami-Dade greenlights an agritourism district in rural Redland

After two failed efforts, Miami-Dade commissioners created a new tourism district that expands amusement operations in the county’s rural Redland farming area despite opposition from residents and agriculture officials. The proposal, passed 10-2 without taking public comment on Tuesday, will allow more buildings and parking — which residents fear will dramatically change…

Michael Lewis: Everybody wants to live in Florida – anywhere but Miami

If we believe our own publicity, Miami-Dade is booming as people from across the nation rush to live here and our population soars. Fortunately or unfortunately, depending on your views, it just ain’t so. The fact is, the county’s population is nearly 15,000 people smaller – yes, smaller – than it was just after the start of the pandemic four years ago. That’s what US census numbers…

Onyx Housing Group Closes On Land For 159-Unit Multifamily ‘Regatta Point’ In Homestead

Today Onyx Housing Group, a multifaceted real estate development firm based in South Florida, announced the closing of six land parcels at 16300 Southwest 296th Street in Homestead, Florida. The 150,201 square foot, 3.45 acre-lot was asking $4.95 million and will be the future home of Regatta Point, a $46.5 million-dollar multi-family project. Current Real Estate Advisors…

Mixed-Use ‘Giller Tower’ Proposed for 976 W. 41st Street on Miami Beach

The Miami Beach Planning Board is scheduled to hear a proposal for a mixed-use project on March 26. Giller Tower would measure seven stories above grade, measuring more than 102,000 square feet. The South Florida Business Journal reports that of that square footage, 25,869 would be office space, 6,681 would be retail, and 4,056 would be restaurants. Sources indicate that…

308-Unit Wynhouse Holds Top-Off Ceremony

Wynhouse Miami has topped off at 8 stories. A ceremony to mark topping off was held on Friday. The project is being built with a $117.5 million construction loan provided by JP Morgan Chase and affiliates of Canyon Partners. Wynhouse is planned to include: 308 rental residences approximately 26,000 square feet of ground floor retail nearly 25,000 square feet of indoor and…

Census: Miami Ranked #1 For International Population Growth In 2023

Miami-Dade’s net international population growth surged in 2023, and was the highest of any county in the U.S., according to new Census data. The number of new Miami-Dade residents coming from outside the U.S. rise almost 40% last year, to 54,457. No other county added as many new international residents. When counting total population growth, including from domestic sources…

Oak Row Equities Closes $181M Construction Loan From Bank OZK For 2600 Biscayne Boulevard In Edgewater

Oak Row Equities has closed on a $181M construction loan from Bank OZK for 2600 Biscayne Boulevard, a 41-story Class AAA office and multifamily tower in Miami’s rapidly-maturing Edgewater submarket. This transaction is one of the largest mixed-used construction loans to close in South Florida in the past year. Newmark’s Dustin Stolly, Jordan Roeschlaub, Chris Kramer…

Construction Progresses On CMC Group’s ‘Vita at Grove Isle’ Condominium In Coconut Grove

Miami’s CMC Group, under the leadership of Ugo Colombo, has reached a significant milestone, advancing past the halfway mark in the construction of Vita at Grove Isle. This seven-story boutique luxury condominium is emerging on Grove Isle, a secluded 20-acre island just off the coast of Miami’s Coconut Grove neighborhood. Located at 5 Grove Isle Drive, the development features…

Developer Proposes 396-Foot-Tall ‘3200 Biscayne’ in Miami

Miami-based Green Circle Development LLC, an affiliate of Urbanica Hotels, has proposed a 35-story mixed-use high-rise in Miami’s Edgewater neighborhood. 3200 Biscayne would comprise 677,813 square feet of new construction, offering both hotels and residences. Arquitectonica designed the 396-foot-tall structure. The South Florida Business Journal reports that plans call…

Privee Capital scores $59M construction loan for 144-unit apartment project in Coral Gables

Privee Capital scored a $59 million construction loan for a 144-unit apartment project in Coral Gables. The Miami Beach-based development firm plans a nine-story building on a 1.4-acre site at 301-341 Madeira Avenue, said Privee’s managing partner Jonatan Sredni. City National Bank of Florida is the lender for the floating-rate debt, according to records and Sredni.

Nichols Architects Reveals Design For 53-Story Mixed-Use Tower In Miami Worldcenter’s Block C, East

The Falcone Group, led by Founder and CEO Art Falcone and in collaboration with Nichols Architects, has unveiled the design for a new 53-story mixed-use tower at Block C, East of Miami Worldcenter. This development is poised to significantly impact the luxury living and hospitality sectors of the expansive Miami Worldcenter complex, encompassing ten blocks and 27 acres.

Ares Management Provides $50M Refinancing for New Apartment Community Soleste Spring Gardens in Miami

Ares Management Real Estate has provided a $50 million loan via one of its funds for the refinancing of Soleste Spring Gardens, a newly delivered apartment community in Miami’s Spring Garden district. The eight-story community is located at 1033 Spring Garden Road, two blocks from the Culmer Metrorail station. Brian Gaswirth, Chris Drew, Jesse Wright and J.J. Hovenden…

Rok family’s mortgage firm seeks to foreclose on Aventura dev site

A Miami developer’s plan to build a seven-story medical office building in Aventura appears to be in jeopardy. Aventura-based Rok Lending last week filed a foreclosure lawsuit in Miami-Dade Circuit Court against the Gomez Development Group entity that owns the 1.6-acre development site at 21291 Northeast 28th Avenue, court records show. Rok Lending, the mortgage…

‘Landmark’ 53-Story Mixed-Use tower Planned At Miami Worldcenter

Miami Worldcenter is slated for yet another tower, according to newly revealed plans. Falcone Group led by founder & CEO Art Falcone is collaborating with Nichols Architects on the new tower. Previously, the One Worldcenter office tower had been proposed on the site by Hines. The new tower at Worldcenter’s Block C East is planned to rise 53 stories, or 632 feet above sea level…

Revealed: 35-Story Hotel & Residential Tower Planned At 3200 Biscayne

Plans have been filed to build a hotel and residential tower in Edgewater. 3200 Biscayne is planned to rise 396 feet and include: 110 residential units; 160 lodging units; 8,443 square feet of commercial area (ground floor restaurant, bar/coffee space, and retail); 6,531 square foot ballroom and 6,567 pre-function space on level 2; 383 parking spaces on five levels – above the 293 parking…

Codina loses appeal in Doral condominium construction dispute

Codina Partners’ legal bill from fighting Grycon keeps rising, now hitting $12 million after losing an appeal. Coral Gables-based Codina, led by Chairman Armando Codina and CEO Ana-Marie Codina Barlick, had contested a lower court’s $7.8 million verdict in favor of Fort Lauderdale-based Grycon. The Third District Court of Appeals last week affirmed Miami-Dade Circuit Court…

Downtown Miami’s $83M The Underdeck Gets Federal Funding

Miami has been awarded a grant from the U.S. Department of Transportation to build The Underdeck underneath the new Signature Bridge. The federal grant is for $60M – the largest in the City of Miami’s history, according to Mayor Francis Suarez. It was awarded under the DOT’s Neighborhood Access and Equity program initiative, which aims to correct mistakes made…

Mandarin Oriental Residences: New Renderings Released As Preview Lounge Opens

Swire Properties has released new renderings and details of the Mandarin Oriental Residences planned in Brickell and opened a Preview Lounge. Two towers are planned. The South Tower will rise over 800 feet, while the North Tower will stand at approximately 400 feet. A total of 228 two-to-four-bedroom in the taller South Tower. Mandarin Oriental will have its flagship North…

Swire Properties Unveils First Preview Of ‘The Residences at Mandarin Oriental, Miami’

Swire Properties today unveiled the first official preview of The Residences at Mandarin Oriental, Miami, ahead of the official launch of sales scheduled for later this spring. The Residences, an exquisite collection of private homes, is part of an unparalleled residential and hospitality destination set within a secluded island sanctuary, only moments away from Miami’s vibrant urban core.

Developers Propose ‘Aventana’ for 19640 Harriet Tubman Highway (formerly West Dixie Highway) in Miami

Ram Realty Services and Pinnacle Communities have filed a pre-application for Aventana, a 16-story residential tower in Miami’s Ojus district. The 354,238-square-foot building would offer 344 apartments––about 34 will be set aside as workforce housing. At least 17 would be designated for those making up to 110 percent of the area median income (AMI). Plans call for a dog…

David and Leila Centner abandon fight for city of Miami park

Fed up with being tied to Miami’s dysfunctional government corruption, David and Leila Centner backed out of their no-bid deal to build a $10 million recreation center at a city-owned park. During public comments at Thursday’s Miami City Commission, David Centner said he and his wife are backing out of a license agreement to develop a youth sports complex with a dome in Biscayne…

Lease roundup: Santander Bank took 4K sf at Miami Worldcenter; more…

Santander Bank leased at Miami Worldcenter. The bank, which is the U.S. subsidiary of Madrid-based Banco Santander, took 4,000 square feet at the Jewel Box at 150 Northeast Eighth Street in Miami, according to a record filed to Miami-Dade County last month. The lease, which is for a 10-year term with two five-year extension options, started on Jan. 31, the record shows…

Condo buildings at sprawling northeast Miami-Dade Jade Winds complex deemed unsafe

Miami-Dade County declared several buildings at a condo complex in Northeast Miami-Dade unsafe, after they failed their 50-year recertification. Residents at buildings in the Jade Winds condominium complex received the notices earlier this week, NBC 6 reported. Jade Winds, at 1720 Northeast 191st Street, was built between the late 1960s and early 1970s. Residents were…

Can a $150 million makeover revive this Miami mall? Shopping is just a part of it

Shopping malls are changing in South Florida. They’re no longer just corridors with store after store. They’re becoming town squares, with fitness centers, residential towers, arcades and amusement centers — alongside the traditional retail. A Northeast Miami-Dade mall, with roots over six decades, is the latest to join the trend in moving from shopping center to lifestyle center.

FundRebel pays $62M for new apartment building in Hollywood

FundRebel completed its first commercial real estate acquisition, purchasing a new apartment building in Hollywood for $62 million. The New York-based crowdfunding real estate start-up bought Nine Hollywood at 809 Jackson Street and 320 South Federal Highway, records show. The 12-story apartment building with 204 units and 7,000 square feet of ground-floor retail…

Ari Pearl advances downsized condo plan for Hollywood golf course

Developer Ari Pearl advanced a downsized plan to redesign and redevelop a Hollywood golf course with 322 condos. Pearl’s company, PPG Development, originally planned to develop 486 rental units, a mix of apartments, townhouses, and villas, along the The Club at Emerald Hills golf course. But rapid home price appreciation in South Florida during the pandemic led Pearl…

Affiliated lands $46M construction loan for 223-unit apartment project in Hollywood

Affiliated Development landed a $45.5 million construction loan for a 223-unit apartment project with a workforce housing component in downtown Hollywood. The Fort Lauderdale-based firm started construction of the 18-story building, called The Tropic, with one-bedroom to three-bedroom apartments at 303 South Federal Highway, according to records and an Affiliated news release.

PMG plans first luxury condo tower in Fort Lauderdale

PMG is moving forward with its first condo tower in Fort Lauderdale that will replace an aging waterfront co-op building on the Intracoastal Waterway. The New York and Miami-based firm is launching Sage Intracoastal Residences, a planned 18-story, 44-unit building at 900 Intracoastal Drive. The luxury project would replace a circa-1957 co-op named…

West Palm Beach Office Project Lands 40K SF HQ Relocation

A boutique office building in Downtown West Palm Beach is now more than 50% pre-leased after a telecommunications firm announced it would relocate its headquarters to the under-construction property. Dycom Industries will relocate from Palm Beach Gardens to 40K SF on the top two floors of 300 Banyan, a 12-story building with 115K SF of offices that is expected to deliver…

Fanjul family scores $56M construction loan for 320-unit rental complex in Royal Palm Beach

The Fanjul family, sugarcane and real estate moguls in Florida, scored a $55.7 million construction loan for a 320-unit apartment complex in Royal Palm Beach. FCI Residential, the Fanjuls’ development company, started building the project with 11 three-story buildings and two two-story townhouse buildings on the 25-acre site on the southeast corner of Acme Road…

Analyst: Eventually Nearshoring Will Impact All Commercial Real Estate

Nearshoring is a significant evolutionary trend driven by geopolitical forces, manufacturing costs, shipping costs, evolving shipping route risks, and logistics trends. For the first time since 2002, the total annual imports from Mexico exceeded the total from China, reiterating the trend toward bringing manufacturing closer to the US. While this trend could significantly affect industrial…

The Fed: Has US-China decoupling energized American manufacturing?

In recent decades, the US has grown increasingly dependent on imports from China to access a vast variety of goods. The FRED graph above shows Chinese import data: From 1990 through 2016, as China became a globally integrated economy, the US import share from China grew steadily, from close to 2% of aggregate US imports in the late 1980s to close to 22% in 2016.

Video: MSCI Researc Executive Director Jim Costello Discusses Retail Property Performance & Expectations

The Conversation: Insights from Jim Costello Regarding Navigating the Real Estate Landscape In the ever-evolving landscape of commercial real estate, understanding the nuances of various property types and market trends is essential for investors, developers, and industry professionals alike. Recently, on America’s Commercial Real Estate Show, show host Michael sat…

Self-Storage Development Hits Pause After Record Year for Spending

Construction spending in the self-storage sector topped $6.9 billion in 2023 as developers moved through a development pipeline that expanded after the COVID-19 pandemic. According to U.S. Census Bureau statistics, last year’s spending marked a 24% increase over 2022, with $5.6 billion spent building or expanding self-storage facilities. The sector spent an average of $4.4 billion…

The post Miami Commercial Real Estate News March 20, 2024: Condo Termination Ruling Puts Buyouts in Limbo; Adam Neumann’s Plans at Miami Worldcenter; More… appeared first on Hawkins Commercial Realty.

The Conversation: Insights from Jim Costello Regarding Navigating the Real Estate Landscape

In the ever-evolving landscape of commercial real estate, understanding the nuances of various property types and market trends is essential for investors, developers, and industry professionals alike. Recently, on America’s Commercial Real Estate Show, show host Michael sat down with Jim Costello, Executive Director at MSCI Research (Morgan Stanley Capital International Research), to delve into the current state of commercial real estate, with a particular focus on often-misunderstood retail properties.

Discussions include why retail property continues to thrive despite misconceptions and persistent “doom and gloom” headlines, data trends for retail performance, transaction volume, and cap rates, and some tips for investors and property managers in the retail real estate space. The discussion is about the landscape of retail commercial real estate spanning the entire United States. Thus, observations may be less pertinent or even not applicable to such properties in Miami or other South Florida locales.

Changing Perceptions and Market Realities

The conversation kicked off with a discussion about the prevailing perceptions in the commercial real estate sector. Costello addressed the headlines painting a bleak picture, especially concerning office spaces, which historically have been significant components of commercial real estate investment. He highlighted the drastic price declines in CBD (central business district) offices, citing a cumulative 39% decrease from July 2022 to January 2024. However, he cautioned against a blanket assumption that all sectors are experiencing similar challenges.

Costello emphasized the need to recognize the diversity within the commercial real estate market. While CBD offices face fundamental changes in tenant usage patterns, other sectors such as retail and suburban offices present different dynamics. Retail, in particular, has seen milder price declines compared to CBD offices, with a 3% decrease over the past year.

Retail Resilience and Transaction Trends

Despite concerns about the impact of e-commerce and shifting consumer behaviors, Costello highlighted the resilience of retail properties. He noted that while certain retail centers may struggle, those in the right locations with suitable management and tenant profiles continue to thrive. Additionally, he discussed transaction trends, noting a recent uptick in deal activity, particularly driven by private capital investors.

Costello acknowledged that while institutional investors have been cautious, there are indications of potential shifts in the market. As transaction volumes fluctuate and interest rates remain a key consideration, the outlook for retail real estate remains nuanced.

Cap Rate Dynamics and Future Projections

One of the key metrics discussed was capitalization rates (cap rates), which have seen a moderate increase in response to changing market conditions. Costello noted that while cap rates are on the rise, the pace of increase is moderating, indicating a potential stabilization in pricing.

Looking ahead, Costello highlighted the importance of monitoring interest rate movements and their impact on investor sentiment and decision-making. While uncertainty may lead to delays in transactions, there remains optimism regarding the resilience of retail real estate, especially in the context of in-person consumer spending and the gradual return to normalcy post-pandemic.

Key Takeaways and Closing Thoughts

In conclusion, Costello emphasized the importance of a nuanced approach to understanding commercial real estate markets. While certain segments may face challenges, others continue to present opportunities for savvy investors. As the industry navigates through economic uncertainties and evolving consumer trends, staying informed and adaptable remains paramount.

The conversation between the host and Jim Costello provided valuable insights into the current state of commercial real estate, particularly within the retail sector. As stakeholders assess opportunities and risks in the market, Costello’s expertise offers guidance for making informed decisions in an ever-changing landscape.

The post Video: MSCI Researc Executive Director Jim Costello Discusses Retail Property Performance & Expectations appeared first on Hawkins Commercial Realty.