Toward the end of 2014, Realtor.com® reported that Miami was the second most searched U.S. city, behind Los Angeles, by non U.S. based consumers. Interesting, Fort Lauderdale, which also consistently ranks in the top ten most searched U.S. cities, is considered separately, indicating South Florida may be the most searched area, for real estate by non U.S. people, in the entire country.
Yes, Miami is hot. And, this time, the signs of this abating are less evident.
Miami has been in a long-term period of economic growth as it has benefits from its status as a geographic and cultural center of Latin America, North America, and Europe. Adding to the ever more interesting stew is increasing talk of Asians entering the market, as reported by CCTV and others.
Much of the talk regarding real estate in Miami has centered on residential real estate. Commercial real estate, however, may soon follow as a global asset of preference. It, after all, comes with those ever comforting measures like net operating income, cap rates, and the like, as opposed to residential real estate, which frequently trades more like art, with a home or condominium selling for some price simple because the place next to is sold for close to that not long ago. Does it not follow that global investors, as they decide on Miami as a place to own real assets, will consider what the effect of their optimistic views of the area on commercial real estate?
Miami has unique features, competitive advantages, if you will, that the world has seen before. Among these are all the benefits of freedom and property rights afforded by being part of the United States. Adding to this, however, is a multi-cultural society like few others in the world. People in Miami love the United States, and love being a part of it. However, those that are still here, i.e. those that have not left (“with the flag”) for places like North Carolina, almost without exception have a strong respect for all cultures, and an appreciation of the business and other benefits that come from the extra effort sometimes required simply to communicate. Hong Kong, New York, London are all places that developed similarly and that have experienced extraordinary growth. To be sure, Miami has come a long way. However, it may just be getting started.