Florida is just different….
As a broker, it’s exhausting to constantly hear that the sky is falling in commercial real estate. The headlines often lead people to expect a wave of opportunities at bargain prices. But let’s remember—WE ARE IN FLORIDA!
Here, the weather is consistent, getting a plumber on time is rare, and good luck with dinner reservations. No matter what the media says, Florida operates differently from the rest of the country. Every day, clients and friends ask, “Is now a good time to be aggressive with real estate pricing?” The answer: Well, if you’re in Chicago, maybe? But in Miami, the answer is, “Whatever you pay today will be less than tomorrow.” I know that doesn’t sound very professional, but the reality down here is that the real profit is almost always on the exit side, not on the buy side. No matter if it is the weather or the market, the heat here doesn’t let up!
And here is why….
For years, Florida has thrived as an economy of “Capital Preservation”—many people investing here to safeguard their wealth from economies elsewhere. This influx of capital has driven our growth, and prices, for decades. Now, add the recent flood of domestic business owners relocating due to the pandemic. This just adds fuel to the fire in an already hot market. Yes, conventional wisdom says higher interest rates and inflation should cool things off, but Florida defies this logic. Inventory remains tight, and prices keep climbing, like a SpaceX rocket launch. The impact of all this is that for us professionals, finding the right property at the “right price” for the traditional investor is a daily struggle.
So, back to the big question—when will prices drop? Based on 30+ years in the business, I can tell you that in Florida, recessions and inflation rarely have led to significant price decreases. So, if you find a property that may fit your needs either now or later, make that offer—because, again, it’s only going to cost more later.
I may not always have the answer you want, but I can help find a solution that works for you. Give me a call, and let’s discuss how to handle the “heat”.
– Gregg Guilford