Multi-family housing commercial real estate deals promising

Multi-family housing commercial real estate deals promising

The multi-family housing market is on the upswing in Florida. For a while now, the main focus has been on single-family homes in the state. However, many of these inexpensive homes are now being bought up, and apartment complexes are taking center stage. When working to construct a new building in Florida or engage in a commercial real estate transaction, the process can be complex and challenging, yet fruitful, if a person has a thorough understanding of the law.

A large inventory of unoccupied single-family houses recently caused apartment buildings' values to drop. However, now these complexes are being sold for better prices. In fact, an apartment complex is now being constructed in Fort Myers for the first time in more than eight years; 2005 was around the time when the construction industry began to go belly-up in the state.

Many other apartment buildings in the southwestern section of Florida are actually being occupied at high levels now. Builders throughout the area are expected to delve deeper into the multi-family market in the near future. In Miami, multi-family homes actually make up a large majority of new homes being built due to the lofty land prices in that area.

A commercial real estate transaction is multifaceted, and not approaching each step with care may cause the deal to fail. This is especially true if both sides cannot see eye-to-eye on how to proceed in certain areas. Particularly for developers, matters dealing with tax law and securitization can have a huge impact on the transaction. It is possible to make the most of a real estate business opportunity and to grow one's business in the coming years by mastering a knowledge of related laws in Florida.

Source: news-press.com, "Multi-family housing on the rise in Southwest Florida", Dick Hogan, March 22, 2014