Pedro Martin

This new year holds much promise for commercial real estate investors, especially as the industry adjusts to new tax laws and rises above the economic and political uncertainty of the past couple of years.  Image source: bisnow.com One thing to pay attention to is whether interest rates will go up or not. This is highly dependent on the pace of inflation; Last December saw an unexpected increase, and rate hikes are most likely if that trend continues. But if inflation maintains its sluggish progression as was the case for most of the past year, the Federal Reserve would find it hard to justify any additional hike. The bottom line is if interest rates don’t go up, the cost of borrowing and the value of properties will remain stable.  The latest U.S. tax changes will affect the stability of foreign lending in 2018. While these tax reforms do benefit businesses by allowing lower corporate taxes, they may have detrimental effects on commercial real estate lend...

Despite nearly five years of plateau in its office-space segment, the South Florida real estate market is now on the rise, evidenced by new office buildings all set to open within the year. This welcome development is fueled by a growing number of renters, mostly in the submarkets.  Image source: miamicentral.com While this does not yet signify an official boom, multiple projects are being planned in the area in a huge effort to meet increasing demand. Residential construction has dipped a little through the first eight months of 2017, but nonresidential construction, including various types of commercial real estate, has gone up by 36 percent to $3.8 billion.  The rationale is, there having been few constructions in South Florida for quite a while, the amount of vacant space has declined. The yearly net records of office spaces have been steady, yet higher rents in certain submarkets have made new developments attractive, paired with consistent growth of ...

Although each location offers some unique topographical and infrastructure characteristics, commercial real estate in South Florida still follows and is informed by some of the trends around the country. The sunny side of the state can expect to sustain the bright outlook, according to experts, if certain things are put into perspective. Net absorption, in general, has been leaning toward the positive since last year and the only time absorption rate drops is when the reality of fewer supplies set in. Given that net absorption measurements aid in knowing more about the relationship between supply and demand in real estate, it is important for tenants and developers to evaluate these things for them to have a finger on the pulse of market movements. Image source : terragroup.com Before the end of last year, there was a sudden demand for offices, industrial, and retail spaces that provided the necessary boost for the following year’s momentum. The supply shortage ...

One of the main concerns of homebuyers in South Florida is the price spike in the local home real estate market. For a time, wealthy foreigners were making purchases left and right while locals, especially those with minimal educational background, were having a hard time finding the perfect budgetary fit when breaking the bank was not an option. Potential homebuyers from other states have also been added to the competition mix. Even with near-steep pricing, the deal for South Florida remains relatively attractive compared to other global centers with prices closer to exorbitant levels. The lifestyle experience is also what South Florida is selling. The thriving cultural, gastronomic, and events scenes helped in the creation of South Florida’s reputation. Image source : terragroup.com Favorable conditions might help local buyers, especially if the dollar stays strong, incomes increase, and the pricing pressures ease up. The only problem one might encounter woul...