From construction projects to office rentals to housing, COVID-19 has delivered a hard hit to the real estate market in South Florida, according to an FIU Business Hollo School panel of real estate experts. The live presentation was held May 10, 2020 via Zoom.
The road ahead is long, and the recovery will be slow. Still, “there’s a lot of money parked on the sidelines” and opportunities are out there.
The experts agree that pricing for office and retail spaces has suffered most and will continue to decline. The residential market, however, remains stable.
Today, many are rethinking their visions of the real estate industry. Investors are taking a step back. Capital markets are frozen. Sellers are trying to get top dollar while buyers are looking for a deal. Banks are working with all sides to deliver funding.
“Two years ago, the market thought people were overpaying, and we shifted the business from the usual Class A,” said Victor Ballestas, principal, Integra Investment. “We knew something was going to happen, but we never imagined this.”
In the residential market, many are favoring rentals and for some, single-family homes are the answer.
“The 50-plus market is renting because they don’t want to be tied down to anything,” said Diego Procel, principal and co-founder, Global City. “Millennials move a lot, they want the telecom features they would get downtown or in the heart of the city… and with a house, the kids and the dog have a yard.”
While the future is hard to predict, will anyone win?
“Absolutely. Florida will be the long-term winner versus the northeast,” said Anthony Burns, co-president, Plaza Equity Partners.
- Victor Ballestas, principal, Integra Investment
- Anthony Burns, co-president, Plaza Equity Partners
- Diego Procel, principal and co-founder, Global City