With spring around the corner, many businesses are embracing new opportunities to break ground and grow their enterprises in 2014. In Florida, breaking ground can be challenging, however, due to the many aspects of a commercial real estate transaction that have to be negotiated and properly addressed. Many companies were able to successfully complete these deals in South Florida, which is becoming a popular place for regional operations and headquarters.
In Florida, big parcels have been bought and preserved for development on a large scale. Some of the largest real estate transactions recently include the pharmaceutical company Unipharma's purchase of the Tamarac site for $9.7 million. Another major deal was Larkin's purchase of a 48-acre area for a medical school campus.
This deal was valued at $64 million. Other big deals involve hotels and residential real estate sites. Many of these deals contribute to job growth in the state due to construction as well as new homes.
A commercial real estate transaction doesn't always go as planned, no matter how large or small it is. This is because each deal may be complicated in its own way, and not being prepared to handle the issues that may crop up might prove detrimental. Securitization as well as tax law and banking all have a huge impact on the final outcome of a real estate deal in Florida. Understanding laws related to these areas will increase a company's chance of facilitating a successful deal and thus experiencing new growth in today's recovering economy.
Source: South Florida Business Journal, Top 10 Real Estate Deals of the Year, Shaun Bevan, March 7, 2014