In South Florida, one area of real estate that is booming is the hospitality sector. Hotel investment, management and development firms are springing up because investors are regaining confidence in this aspect of commercial real estate. It appears that the flourishing Florida tourism industry is contributing to this trend.
Some of the areas that are growing in terms of tourism include Monroe, Miami-Dade, Broward and Palm Beach counties. This has been taking place for a long time, and there are no signs that this demand will slow down anytime soon. Broward County, in particular, had 56 straight months of growth with regard to hotel occupancy. The figure for Palm Beach County is 50. In addition, room rates have increased in both of these counties.
Local companies have been aggressive with renovations and acquisitions in the hot hospitality market. The Florida Development Group has invested tens of millions of dollars to buy six hotels as well as small inns located in the town of Lauderdale-by-the-Sea. It is planning to redevelop these properties to create new lodgings.
Those who are interested in commercial real estate development may wish to take advantage of South Florida's steaming hospitality market, which appears to have strong potential in the months and years ahead. Not understanding the ins and outs of a development deal, however, can be prove detrimental, causing a transaction to go south quickly. It's important that developers understand complicated topics such as tax law and banking. An applied knowledge of real estate law may increase a person's chances of structuring a successful deal and thus reaching his or her long-term goals in Florida.
Source: sun-sentinel.com, "Local hospitality companies busy expanding portfolios", Arlene Satchell, Sept. 11, 2014