The Future of South Florida is Bright

Law360 reporter Nathan Hale interviewed Rafael Aregger on the state of the South Florida real estate market.
 
Looking back to 2023, while most national real estate markets stood still, South Florida kept pushing forward. "It's especially encouraging to see large-scale developers announcing substantial new office development, which is unthinkable in most other parts of the US, given the troubled situation of offices. It demonstrates the strength of the underlying local economy in South Florida, which benefits the performance of all types of real estate," Rafael told Law360.
Rafael expanded on key factors set to impact this important US market in the coming years:
➡ Difficult Capital Markets Environment: Construction starts have decreased substantially compared to the last two years and will likely remain very low during the first half of 2024. As interest rates start declining, lower construction and lower financing costs will bring developers back to the table.
➡ Demand for Housing Will Remain Elevated: But, due to large amounts of new unit deliveries in a few submarkets — e.g., Wynwood and Edgewater — it's expected that there will be lower rent growth and concessions (temporarily). As the metro absorbs these units, the situation should normalize throughout 2025 with rent growth re-accelerating into 2026.
 
➡ The Future of South Florida is Bright: Miami is transforming into a mixed-use super hub with dynamic and modern office spaces, world-class retail, entertainment, and some of the most attractive housing globally. Developments that are currently being planned and executed will continue to push Miami into becoming one of the world’s leading cities, which will keep attracting businesses and people. For real estate developers like Empira, this backdrop provides the perfect canvas for continued large-scale investment.
 
We are currently developing two multifamily sites in the Miami Brickell area and believe South Florida will remain one of the premier real estate investment locations in the US, yielding attractive investment opportunities for the next decade and more!