Ladies & Gentlemen, we have already arrived at the second week of May, which can only mean two things:
1. The Miami Marlins are almost out of the playoff hunt (already); and
Ladies & Gentlemen, we have already arrived at the second week of May, which can only mean two things:
1. The Miami Marlins are almost out of the playoff hunt (already); and
The Miami Downtown Development Authority’s Annual Residential Market Study Update for the Greater Downtown Miami area, prepared by Integra Realty Resources (IRR), came out in early February, and is full of interesting/useful information. In this post we will discuss a few of the attention-grabbing tidbits from the Miami Downtown Development Authority (MDDA) report, and begin to address how some of these developments are going to affect you as buyers/sellers here in the Miami area.
According to the Senior Managing Director for IRR, Anthony M. Graziano, and Market Research Analyst, Dan Bowen, a big picture view on the state of the market should recognize that while inventory is up, there is no distress in the market. New pre-construction deliveries closed out successfully in 2016, demonstrating buyer confidence.
Resale pricing retreated modestly (6% – 7%), reflecting both a correction after five consecutive years of growth, as well as a stronger US Dollar, resulting in nominal price increases for most foreign buyers, according to the MDDA report.
With regard to condo delivery, the report notes that the greater downtown Miami area saw the largest volume of delivery (2,202 units delivered in 2016) since 2008, although it was also noted that this figure is mostly in line with the expected 11-year and 15-year cycle of absorption.
As you know, in today’s real estate market, everything that is listed on the multiple listing services is available to be seen on hundreds of duplicated websites at no cost to you. Independent surveys state that over 95% of buyers search the Internet to find a home. Virtually no one surveyed said their agent found them a home that they had not seen on the Internet or by driving around. If you are one of the over 95% of the buyers out there doing their own homework, we figure why not pay you for your efforts so that you save money on your transaction closing costs.
Serving the Next Generation of First-Time Home Buyers
Today, Millennials (even Gen X and Gen Y) prefer to research information online or through their friends. Our clients are savvy home buyers. They’re involved in their search and know what they want. They don’t need an agent to look on the Internet for new listings. There are plenty of online tools they can use for that. They don’t need an agent to drive them all over town every weekend. And, they certainly don’t want to pay a full commission just to close the deal. Buyers want someone who is on their side and who is hired to represent their interests.
How does the Real Estate Consulting Model Work?
Due Diligence on Commercial Real Estate Transaction in Miami, South Florida
Safety, risk management, and environmental due diligence before a commercial real estate transaction is becoming more complex. Here are some guidelines for performing due diligence on a commercial real estate transaction involving an existing structure.
Safety Assessment:
By: Alejandro E. Jordan, JD
Frequently Asked Questions (FAQs) – 1031 Exchanges (Tax Deferred Exchanges) for Commercial Real Estate
Question 1: What is the difference between a sale and an exchange?
Answer 1: A sale is an exchange of real property for cash. An exchange is a transfer of property for other like-kind property – a “non-taxable” sale.
Question 2: What provisions are required in a Purchase and Sale Agreement to enter into an exchange?
Answer 2: A Purchase and Sale Agreement should contain language establishing the exchangor’s intent and notifying the buyer of the exchange. Examples are:
When Selling:
“It is the intent of the Seller to perform an IRC Section 1031 tax deferred exchange by trading the property herein with [_________________]. Buyer agrees to execute an Assignment Agreement at the request of Seller at no additional cost or liability to Buyer.”
When Buying:
“It is the intent of the Buyer to perform an IRC Section 1031 tax deferred exchange by trading the property herein with [_________________]. Seller agrees to execute an Assignment Agreement at the request of Buyer at no additional cost or liability to Seller.”
Question 3: Can an investor trade from several small properties into one large one?
Investing in NNN Triple Net Leased Commercial Real Estate Properties
Not all real estate investors are created equal. A large number of them simply are looking to place their hard-earned money into a safe haven to avoid the often unpredictable nature of the financial market. In a nutshell, based on how the leases are drafted, NNN leased investments state that the tenants are responsible for paying rent plus the operating expenses of the building such as taxes, insurance, repairs and utilities. A true passive investment for the owner/landlord.
These NNN (Triple Net Leased) investments are valued using a combination of factors, such as the tenant’s credit, the length of the lease and rent escalations over the term, and, last but not least, the real estate itself.
“NNN leased properties survive the ups and downs of the markets. As an investor, you know your lease is guaranteed long term, often with rental escalations worked into the leases, meaning the investor will be receiving a steady income, regardless of how the outside forces are performing,” says Enrique Jordan, Investment Sales Associate with NAI Miami, Commercial Real Estate Services Worldwide. Continue Reading ›
By: Alejandro E. Jordan, Esq.
Total Industrial inventory in the Miami-Dade County market area amounted to 229,374,658 square feet in 8,790 buildings as of the end of the second quarter 2014. The Flex sector consisted of 16,908,307 square feet in 600 projects. The Warehouse sector consisted of 212,466,351 square feet in 8,190 buildings. Within the Industrial market there were 782 owner-occupied buildings accounting for 30,523,593 square feet of Industrial space.
Sales Activity
Miami-Dade County industrial sales figures for industrial building sales of over 15,000 square feet fell during the first quarter 2014 in terms of dollar volume compared to the fourth quarter of 2013.
Whether you are a seasoned real estate veteran or a first time investor, having a due diligence checklist in “black and white” is a valuable and necessary tool for any real estate purchase. For commercial real estate, value is determined by analyzing the income stream the property generates or is expected to generate. Of all the commercial properties types, perhaps none of them are more complex than the analysis of a mixed-use multi-tenant property with residential, office, and retail uses. While every commercial real estate investment presents a unique set of challenges and opportunities, each transaction beings with essentially the same due diligence.
Below is a commercial real estate due diligence checklist that provides you with a general list of some of the most necessary documents to review and analyze with your South Florida due diligence real estate lawyer.
We have gathered the most frequently asked questions (FAQs) from buyers and sellers of real estate in Miami-Dade, Broward and Palm Beach Counties as they relate to residential real estate closing costs. Below is a list of our answers to the most common questions:
Q: What are the typical closing costs for Buyers?
A: Buyer’s closing costs are negotiated and set forth in the Purchase and Sale Agreement (the “Contract”) entered into by the parties. The typical closing costs to be paid by the buyers are as follows:
Cash Deals:
By: Dan Pascale, Esq.
Offices located in Delray Beach and Coral Gables, FL
As the South Florida real estate market continues to heat up, construction disputes are once again becoming a common occurrence in Miami-Dade, Broward and Palm Beach County.
The Doctrine of Substantial Performance
While a party’s legal rights in a construction dispute are governed by the operative contract documents, they are also governed by the doctrine of substantial performance or substantial completion. Florida courts have defined substantial performance as that performance of a contract which, while not full performance, is so nearly equivalent to what was bargained for that it would be unreasonable to deny the contractor the full contract price subject to the client’s right to recover whatever damages they may have suffered because of the contractor’s failure to render full performance, i.e. complete the construction job.
According to Florida law, under the doctrine of substantial performance, the contractor has the right to recover the contract price from the client; however, the client also has the right to recover any damages caused by the contractor’s failure to render full performance. Sometimes, the offset damages that the client is entitled to because construction was not completed end up exceeding the contract price that the contractor is entitled to.