Miami November 2020 – Key Take Aways

• It was a long tax season; lot’s of focus now on estate planning with potential changes coming in 2021 or 2022.  Also a lot of cost segregation works, 1031’s and Opportunity Zone opportunities.
• Foreign investors are coming back into the market, particularly looking at multi-family assets.
• Bankruptcy work is ramping up, particularly in retail, hospitality and hotels.  The large wave of distressed assets likely won’t hit the market for another year or so.
• On the mortgage banking front, while the banks sit mostly on the sidelines, life companies are very active, especially in the industrial space.  Those that are able to secure loans from banks are generally existing relationships with smaller to mid-sized banks.
• Rates continue at all time lows, so many are going for long term refinancing.
• There is a lot of money out there chasing distressed debt.
• The supply of multi-family under construction have worried people for the near to mid-term.
• In the office leasing world, most deals are blend and extend, and those seeking space reductions seem to be eyeing about 30% percent.
• Site selectors are seeing an uptick with food & beverage, warehouse/distribution, e-commerce and new energy projects.
• Investors are laser focused right now on industrial, flex space and single story office.  Rent collections have held up well for these assets.
• People are seeing more and more people move into Florida from the Northeast.  Tax benefits, weather and ability to work anywhere has aided the activity.
• Construction activity remained fairly steady thru the shut down since construction was considered an essential service.  Reporting sales are ahead year over year.  Most work is in aviation, pharma, senior living and healthcare.
• Municipalities are spending money on improvements – greenspaces, walking paths, neighborhood improvements.
• Civil engineering is at the front end of development and are seeing a number of out of state developers entering the market.  Most active markets are grocery-anchored retail, gas/convenience, self-storage, anything with a drive-thru and industrial.
• In the public sector, likely to see entities figuring out how to generate revenue thru adaptive reuse projects.