Miami is one area of Florida that remains a hot spot when it comes to the real estate market. What's surprising is that the commercial real estate market continues to boom there despite the fact that Miami is at-risk for experiencing constant flooding later on in the 21st century. Companies, investors in real estate and residents alike continue to invest in South Florida long-term.
Miami, in particular, has been experiencing a surge that has never before been seen in the construction of real estate. For instance, a huge building featuring 80 stories is in the process of being built in the urban core of the city. Although an equities and real estate crash wiped out a lot of builders in the latter part of the 2000's first decade, the South Florida area experienced a quick recovery, thus making many investors feel that large risks are certainly worth taking.
Developers do acknowledge that today's sea levels continue to get higher. Thus, climate change very well may negatively impact the city at some point in the future. However, the risk is so far beyond many developers' investment horizons that they consider it to be a moot point.
Because South Florida continues to draw investors and new residents, the area appears to be a lucrative place to focus on the commercial real estate market. However, failing to approach a deal properly may cause it to fall through. Developers must take into consideration a wide range of complicated issues, such as tax laws and project financing, when working with city officials on a commercial development. Understanding the law and complying with it may may go a long ways toward achieving commercial real estate development goals in our state.
Source: businessweek.com, "How Climate Change Is Fueling the Miami Real Estate Boom", Robert Meyer, Oct. 20, 2014