South Florida Markets Will Hurt from Changing Trends and Higher Interest Rates
by Sep Niakan | October 22, 2014
Ever since the recession, South Florida’s commercial real estate has been doing very well. However, sources say that the great recovery might be hindered by higher interest rates, market conditions, and income issues.
“Going forward, we have to think about the interest rates and the significant impact on debt service and value,” said Brian Bailey, senior financial policy analyst for the Supervision and Regulation Division of the Federal Reserve Bank of Atlanta.
There will be $7 billion in loans that will be due for South Florida between 2015 and 2017, according to Joseph McBride, a real estate analyst from New York. If interest rates rise, like McBride suggests they will, property owners will not be able to refinance their loans.
Bailey tells Miami real estate agents to be aware of the changing trends in the commercial market. As retail stores are moving away from physical stores to online stores, the demand for retail space in strip malls will drop, but the demand for storage and distribution warehouses will rise.
by Sep Niakan | December 06, 2016
It’s my favorite time of year to be in Miami! The weather has cooled off a bit. The city’s abuzz with people from every corner of the world (thanks to Art Basel). The holiday spirit is gradually taking over, and there’s a bunch of...
by Sep Niakan | November 29, 2016
This is a story of how one Miami condo dweller (that's me, Sep Niakan) gave up his car at the end of his lease and gained freedom (and $$) in its place. If you have been thinking of getting rid of your car or know someone who is, read...
by Sep Niakan | November 24, 2016
Lending, specifically FHA lending, is inching forward in favor of Miami Condos. Before President Trump pulls out any game-changers, I thought it would be the right time to reflect on a Bill passed into law by President Obama this August. The...
by Sep Niakan | November 22, 2016
It’s been almost a year since BrickellHouse’s robotic parking garage blunder, and I’ve been thinking about what this means for the automated parking business in Miami condos. In brief, Boomerang Systems (the robotic garage...