ULI Florida: Generational Commercial Real Estate Buying Opportunity
April 12, 2024
Florida commercial real estate investors with the means to execute new acquisitions would be wise to get aggressive now in Florida, multiple industry leaders expressed during the Urban Land Institute’s 2024 Florida Summit in downtown Tampa. One speaker, CBRE economist Spencer Levy, went as far as declaring that “commercial real estate has some of the best buying opportunities I have ever seen.”
Levy, whose presentation was appropriately titled “Look on the Bright Side, You’re in Florida,” and other speakers noted that office and apartment properties are most impacted by recent macroeconomic and commercial real estate trends. The “labor versus management” debate over remote work – amid continued strong employment indicators – and elevated cost of capital are stifling office real estate investment and development, Levy said. The apartment sector has been especially affected by cost increases for Florida property and casualty insurance, with Net Operating Income (NOI) declining as much as 15-to-20%.
During one panel discussion, Casey Cummings of Ram Realty Advisors described 2024 as “the year of asset management.” However, he added that Ram is strategically pursuing opportunities to acquire existing real estate outright or invest equity to help other owners of well-located real estate, with a long-term mindset. He expects 2026 through 2028 to be the “best multifamily market in the past 10 years,” benefiting developers who complete new projects in that timeframe.
“If you buy good real estate and don’t borrow too much money, you’re going to be fine,” Cummings said. “You need to be able to afford to be wrong on timing.”
Another panelist, Mike McDonald of JLL, touched on the current “bifurcation” of the office sector and compared it to what occurred with retail real estate 30 years ago.
“Office was always painted with a broad brush,” McDonald said. The sector “needs to split what works and what doesn’t. Institutions will come back and buy office, but 30% of office space across the U.S. will need to be reimagined.”
BoardroomPR’s acclaimed real estate publicists and social media experts make sure to attend important real estate conferences in Florida and beyond. That enables team members to stay ahead of the curve on relevant industry trends, topics and issues. From media relations and lead generation social media to video production and special event publicity, BoardroomPR’s highly experienced team works with many of Florida’s top real estate developers, brokers, financiers and marketers to generate buzz and bring in the buyers.
Eric Kalis
Senior Vice President