July 9, 2008
Future Bright, But Near-Term Challenges Plague South Florida Real Estate
To: REAL ESTATE EDITORS
Contact: Jeff Heebner of the University of Miami School of Business Administration, +1-305-284-4005, [email protected]Industry Leaders Assess the State of the Industry at University of Miami School of Business
CORAL GABLES, Fla.,July 9/PRNewswire-USNewswire/--The fundamentals look good in many areas of the South Florida real estate market, but some sectors will continue to feel pressure in the near term from issues ranging from unemployment to tight credit markets and developer impact fees. That, according to many of the industry leaders participating in the recent forum South Florida Real Estate: Boom and Bust--Reflections on the Past and Realistic Perspectives for the Future.The forum, sponsored by the University of Miami (UM) School of Business Administration, provided an opportunity for a candid assessment of the state of the South Florida real estate market among many of the industrys key players.
The forum brought together 12 leaders from the regions development, banking, government, and education sectors, representing such firms as The Related Group, Carlisle Development Group, Ponce Circle Developers, CB Richard Ellis, BankUnited and Condo.com, among others. It was moderated by Rene Sacasas, director of real estate programs at the UM School of Business Administration and included dozens of invited guests in the audience. The assessments made during the forum are detailed in a report available at www.bus.miami.edu/realestateand include such views as:
-- Although the fundamentals are strong in commercial real estate and new development continues, the rise in unemployment and downsizing in banking and other industries will pose challenges for the office sector in South Florida.
-- The weak dollar will have an impact on foreign investment in the South Florida commercial, residential and vacation real estate sectors; the growth rate of foreign investment is beginning to slow.
-- Although there are positive signs from buyers in the residential sector, as indicated by the Web traffic on Condo.com, the difficulty in obtaining financing is hampering that side of the Miami and South Florida real estate market.
-- Miami maintains a competitive edge in international business and will continue to do so with its expertise in moving goods to and from Latin America and with Asia becoming a key link in the trading pattern.
-- In some parts of the South Florida commercial sector, buyers knock your door down to get space, and are willing to pay $750 per square foot.
This dialogue, among such distinguished leaders in the South Florida real estate market, provides valuable insight that can help us all learn from the past, better meet todays challenges and find new opportunities for the future, said Barbara Kahn, dean of the University of Miami School of Business. We look forward to continuing our work with members of the regions business community to find opportunities to share our own knowledge and to learn from them.
Participants in the real estate forum, held on April 30, 2008, included Matthew Allen, executive vice president and COO of The Related Group; Charles Bohl, director of the Masters in Real Estate Development and Urbanism program at the University of Miami School of Architecture; John Dellagloria, general counsel for the Community Development Agency of the City of Palm Bay, Fla.; Matthew Greer, CEO of the Carlisle Development Group; Andrea Heuson, professor of finance at the University of Miami School of Business; Manuel Lasaga, president and co-founder of Strategic Information Analysis Inc.; Julian Perez, a senior program manager and urban planner; Rafael Ralph Sanchez, president of Ponce Circle Developers LLC; Matthew Shore, director of acquisitions at DRA Advisors; Scott Sime, managing director at CB Richard Ellis; Richard Swerdlow, founder and CEO of Condo.com; and Clay Wilson, executive vice president of commercial real estate at BankUnited.
An executive summary detailing the discussion, along with transcript excerpts and slide presentations, is available at www.bus.miami.edu/realestate. A hardcopy report will also be available.
About the University of Miami School of Business Administration
The University of Miami School of Business Administration is a leading business school, offering undergraduate business, full-time MBA, Executive MBA, MS, PhD and non-degree executive education programs. One of 12 colleges and schools at the University of Miami, the School is located in a major hub of international trade and commerce and acclaimed for the global orientation and diversity of its faculty, students and curriculum. The School delivers its programs at its main campus in Coral Gables as well as at locations across Florida and abroad. More information about the University of Miami School of Business Administration can be found at www.bus.miami.edu.
SOURCE University of Miami School of Business Administration
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