Why Savvy Investors Are Flocking To Florida
Estimates suggest that 1,000 people are moving to Florida each day, with most of them heading to South Florida. For developers and investors lured by the meteoric growth and favorable business conditions, it’s crucial to quickly grasp the region’s key players, its culture, and its challenges.
But getting to know Miami-Dade, which is comprised of 35 different municipalities—and, in turn, home to countless charitable, cultural, and civic organizations—is a complex undertaking, to say nothing of understanding Broward and Palm Beach counties to the north. Additionally, successful projects in South Florida feature a cast of characters, including contractors, architects, brokers, and consultants, each of whom likely has deep ties to and successful track records in the area.
Understanding the region’s complexities and players is important, especially for developers and investors keenly focused on not missing this moment.
Developers and investors in South Florida will likely tell you that this boom period is different. To start, this growth is both commercial and residential—with central business districts and condos rising in value and demand at the same pace as suburban-style homes. Also, the current rush isn’t driven by a single industry: multiple sectors—notably tech, hospitality, private equity, and finance—are contributing by relocating their companies and personnel to the area.
The investments also aren’t originating from a single geography, such as Central or South America. Florida in 2022 is attracting equal interest from investors across the US and around the globe.
Two other factors—Florida’s climate and its tax advantages—also are not new and indeed may get too much credit for the current boom. The state’s climate has certainly become more of a draw as a global pandemic makes being outside more attractive. And the area’s tax benefits were made more advantageous after the passage of the Tax Cuts and Jobs Act, as were changes to state and local tax deductions in recent years.
With all of this as a backdrop, and as 2022 dawns, law firm Bilzin Sumberg wanted to help out-of-state and overseas developers, lenders, and investors looking to maximize their interests in the Sunshine State by sharing insights into key legal and business considerations at the heart of surging interest in Miami and its environs.
Florida Is The Future:
An Insider’s View of the Market
Bilzin Sumberg attorneys interview local business, community, and government leaders to get their insight on the state of Florida’s real estate market, the forces driving its growth, and what out-of-state investors and developers need to know to navigate this dynamic market.
Video Interview | February 2022
With Florida undergoing unprecedented economic growth, the state’s real estate market is undergoing seismic transformations. Renowned businessman Stephen M. Ross, Chairman and Founder of Related Companies, and Joy Spillis Lundeen, Practice Group Leader of Bilzin Sumberg’s Construction Group, discuss the current investment climate in South Florida and what they see as the forces driving growth in the South Florida real estate market. Mr. Ross and Ms. Lundeen share their combined decades-long experience and insight from working in Florida’s real estate development industry.
How is Miami changing as it welcomes new corporate arrivals from diverse economic sectors? What will Miami’s physical landscape look like in the coming years? Javier Aviñó, Bilzin Sumberg's Practice Group Leader for Land Development & Government Relations, and City of Miami Mayor, Francis X. Suarez, sit down for a #CafecitoChat to discuss how Miami is changing and what it means for local real estate as they offer insightful observations on how recent development trends are changing the lay of the land.
“It is critical for new players to have local partners that thoroughly understand the different layers of regulations that could affect a given development, and the corollary to that is having local partners who also possess long-term relationships with county and municipal staff to help navigate all approval processes.” - Anthony De Yurre, Land Development & Government Relations Partner, Bilzin Sumberg
Making Room for the Condo Hotel and Apartment Hotel in Miami
With the advent of short-term rental solutions such as Sonder, Domio, Guild, and others, the private sector was significantly ahead of the curve in expanding upon housing typology. Their ultimate success was, however, limited in certain instances by municipal regulations that didn’t fully appreciate the use, its need, and how to regulate it. The City of Miami was able to successfully address this issue by clarifying applicable regulations.
“With Florida’s pro-business climate and warm weather, the state has always been a target for corporate headquarter relocation and business expansion. Couple that with the elimination of the SALT deduction and a focus on quality of life issues in the age of COVID, Florida has gone from the shortlist to the default choice for expansion and relocation.”
New Florida Law Increases Interest Rates for Late Payments for Certain Construction Services and Imposes Criminal Penalties for Misappropriating Construction Funds
The 2021 Florida Senate Bill 378 became effective as of July 1, 2021, implementing major changes for owners, municipalities, and other local government entities that pay contractors for construction services in Florida, mainly as it relates to late payment penalties and misappropriation of construction funds.
“Florida is an interesting state and it's got a phenomenal regulatory scheme and a lot of great tools for reuse of urban areas, reuse of impacted areas, both at a state and local level, but it's also a very complex system. And those rules change greatly depending on where you are.” Says Howard Nelson, head of Bilzin Sumberg's Environmental Practice Group.