Rafael Aregger, Head of Investments US, spoke at Bisnow’s South Florida Development and Construction conference on economic impacts and market dynamics in the region.

Insights were shared on how current economic conditions, demographic shifts, and international investments are shaping commercial real estate. With softening market fundamentals, the need for creative capital raising is paramount as South Florida’s growth will ultimately outpace new supply coming online. “In the multifamily development world, we’ve gone from an environment with a record amount of starts into an environment where basically nothing gets started,” said Aregger. “That itself breeds opportunity in the years to come.”

The sentiment of developers was optimistic, with those who are able to break ground on projects now eager to do so as they will deliver in a much tighter market in three to five years. With mass capital migration and new net revenue recognition in South Florida, panelists were in agreement that the region will continue to capitalize on this growth.

Aregger mentioned that both apartments and condos have “way more takers than there is supply” and when comparing the cost of home or condo ownership to the cost of renting in today’s market there’s a 70%-100% premium. While rents have gone up, home and condo ownership costs have increased more with soaring hikes in interest costs, HOA dues, insurance, maintenance, and property taxes. There’s opportunity for multifamily developers to build in dramatically underserved submarkets such as Brickell, as this will address the affordability problem and create desirable rental housing in an urban core where people work and want to live.

Read more about the panel discussion here: https://lnkd.in/eZs45cfX

Hashtag#EmpiraGroup Hashtag#Development Hashtag#Multifamily Hashtag#RealEstate Hashtag#Insights