Florida has had a great year in the real estate sector.
For those who are not aware, last year, South Florida had more than a dozen commercial real estate transactions that was worth more than $100 million dollars. In addition, billions of dollars worth of condominium buildings, shopping centers and warehouse buildings were purchased and sold throughout the region, according to WLRN.
But one question remains: Will the boom in the commercial real estate (CRE) continue? The Sunshine Economy spoke to three CRE experts and here is what they have to say in the matter.
John Kanas (Bbanker), Bank United Chairman and CEO
The condominium construction will continue to boom and spill over into some of the other commercial real estate areas such as the office [market], retail, industrial and warehousing out near the airports, for instance.
There is no evidence that the market may slow down. Other areas are even catching on such as Tampa and Orlando.
The interest rates will continue to rise. We are also being cautious and even regulators are advising banks to do the same. Lastly, there is no evidence of bubble.
President Carlos Russo (Builder), The Related Group Condominium Division President
I think we are going to have slowdown and other areas would have areas where the race is faster.
We still go to Mexico, Brazil, Colombia and Spain to promote our projects. We also see a lot of investors and money coming from China although we haven't seen any Chinese buyers in Florida yet but they are going to come.
As to the bubble, we are building less and the banks are becoming more stringent with the lending.
Mike Fisk (The Buyer), TIAA-CREF Senior Director and Manager South Region
South Florida is one of our strategic markets. We will be looking at office, retail, industrial, residential commercial properties and possibly student housing. We like Brickwell and downtown Miami especially for office spaces.
Our most recent purchase is called the Manor at Flagler Village. It's a multi-family project in Fort Lauderdale.
No, we do not see a bubble in the CRE sector right now.
