Discussion over a recent breakfast put to rest concerns that South Florida’s nascent development boom is destined for yet another bust. This wasn’t just any breakfast, either.
Law firm Bilzin Sumberg welcomed 100 of Miami’s top real estate and business professionals for another installment of its New Miami Breakfast Series.
Suzanne Amaducci-Adams, the firm’s hospitality practice group leader, served as a moderator for a panel discussion that explored the return of real estate financing to the Miami market, among other topics. Panelists included Steven Cohen, Executive Vice President of Commercial Real Estate at Sabadell United Bank; Jim Dockerty, Managing Director of HFF; Charles Foschini, Vice Chairman of Debt & Equity Finance in the Institutional Group of CBRE Capital Markets; and Isaac Pesin, Managing Director of Investments & Business Development at LNR Property, LLC.
In other words, these panelists know a thing or two about South Florida real estate.
The general consensus was that there’s reason for optimism. Panelists agreed Miami is on the verge of its biggest development boom in history and, most importantly, that this next wave of progress isn’t likely to cause economic calamity.
Why is that? It all stems from diversity.
Whereas the last boom was focused almost purely in residential condo speculation, Miami’s economy has learned from its mistakes and become more varied. Now we are seeing new development across various sectors, including hospitality, retail, office, and multifamily apartments.
This diversity means the overall economy will be better insulated in the event that one sector of the economy collapses. And when it comes to financing, we’re seeing lenders take a far more careful approach to lending money. This caution, coupled with a trend toward cash-heavy transactions, means banks (and the economy in general) will be better protected should the unexpected strike.
Read more at Bilzin Sumberg’s New Miami blog: http://www.newmiamiblog.com