South Florida Market [Miami FLL Tampa etc]
What's your view on South Florida CRE market?
One of the largest MSAs is Miami. Thus, let's take Miami as an example: multifamily rents doubled or even tripled in the past 2 years or so. Multifamily development pipeline has 21,000 new units coming-in in 2023/24 (see Berkadia dev pipeline pdf attached). South beach non flagged hotels trade at 5% cap rates or stronger with net cash barely breaking even. Office rents seen 20%++ growth as well, with similar in retail.
Is it South FL bubble with a bust, soft landing or more growth?
| Attachment | Size |
|---|---|
| Berkadia-Miami-3Q22-Construction-Pipeline-Report.pdf 1.27 MB | 1.27 MB |
RJ is 105 base
what's that mean?
Nice. Thanks. Any chance you work for JLL in SoFL =)
No, I work for JLL in Portland.
Continued growth IMO, although current growth is obviously not sustainable the underlying fundamentals are strong and the demand for Florida and other sunbelt markets is continuing to grow.
One thing that's causing some hesitancy is insurance though - some insurers flat out will not insure commercial property in Florida right now.
totally agreed, RET and insurance is a big problem in sunbelt states
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