The chart above is of the 5-Year breakeven inflation rate, commonly referred to as the TIPS spread, for the five year period ending on January 7, 2025. This illustrates the difference in the yields, i.e. the spread, between United States Treasury bonds and Treasury Inflation-Protected Securities (TIPS) of the same maturity. This is a useful […]
Anyone that has had the pleasure of driving across the bridge to Key Biscayne, or even better, to walk, bike, or run on it, has to have noticed what a great view one gets of Miami’s rapidly growing skyline, the 3rd most dense in North America. What one can lose track of is just how […]
Insurance is an issue in Florida. As a commercial real estate broker, I run into it all the time. It is either decreasing net operating income for an investor or increasing association fees on an industrial condo for an owner user or something. Its effect is everywhere. I’ve found owners can look at insurance as […]
Understanding the Yield Curve The yield curve is a graphical representation of interest rates on debts for a range of maturities. Typically, it compares the yields on short-term and long-term Treasury securities. The most commonly analyzed yield curve is the difference between the 10-year Treasury note and the 2-year Treasury note, often referred to as […]
Florida Senate Bill 50 will go into effect on June 1, 2024. This will result in a reduction of more than 50% in the state’s commercial lease tax from 4.5% to 2.0%. However, this decline does not extend to any fees or taxes at the local level. In Miami-Dade, Broward, and Palm Beach counties, the […]
The Discussion: The Future of the Housing Market and Commercial Real Estate; Insights from Industry Leader Don Peebles Introduction: Recent data indicate that the housing market is beginning to cool, as evidenced by an increase in “For Sale” signs and a rise in new mortgage applications. The market is experiencing a complex interplay of factors […]
Multifamily properties offered for sale generally go up on one or more listings platforms, one of which is the commercial MLS. It has seemed that there has been a rash of multifamily listings in recent weeks. Conveniently, the commercial MLS allows one to checks such a perception by viewing active listings counts over time, filtered […]
We recently had an owner of land on which a 99-year ground lease had been put in place nearly 75 years prior ask us for a broker opinion of value. The lease was at a flat annual rent, plus expenses, with no escalation, and is a fraction of current market rent for the property. Given […]
Investors often consider commercial property primarily on the cap rate (net operating income divided by price). In most cases there is the expectation of NOI (net operating income) growth and appreciation over time. These expectations are seemingly considered as benefits, with no consideration given to them as incremental return. In this post, we seek to […]
Reviving Liberty City: A Conversation on Community, History, and Renewal In a heartfelt conversation that spans generations and experiences, a group of individuals reflects on the past, present, and future of Liberty City, a neighborhood in Miami known for its rich cultural heritage and struggles. Through their words, we see the evolution of a community, […]
The Discussion: Analyzing the Current State and Future of Commercial Real Estate; Insights from an Industry Leader The commercial real estate sector has experienced significant turbulence over the past two years, marked by a historic rise in interest rates and mounting pressures on office buildings. These challenges have led to widespread negative sentiment and headlines. […]
In the chart above of the Federal Reserve’s Multi-Family Real Estate Apartment Price Index,, retrieved from FRED (Federal Reserve Bank of St. Louis) on February 9, 2024, one can see that multifamily prices have recently declined considerably. What also stands out is that this level of decline has only happened one other time since 1996, […]
I was recently exposed to a survey for a buyer following a property tour wherein the buyer and buyer’s broker were asked a few questions, one addressing how they felt about the listing price. This immediately struck me as something that might work against the interests of the seller. I’ve long been a student of […]
The chart illustrates the dynamic changes in the average selling price of industrial property in Miami-Dade since 2019 Q4, a date just prior to the onset of COVID, with each data point scaled relative to the baseline value of 1.00 at the end of 2019. Several notable trends and patterns emerge from the dataset. In […]
The chart above, retrieved from the St. Louis Fed FRED system, illustrates the net percentage of domestic banks that are tightening their standards for commercial and industrial loans to large and middle-market firms. This data series is part of the Board of Governors of the Federal Reserve System’s Senior Loan Officer Opinion Survey on Bank […]
I’ve had a few buyers say something to me along the lines of “I’m going to wait for prices to drop to where they were.” When they mention a level, I notice that it tends to be a value from about five years ago. They could be right; this post has nothing to say about […]
