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Delray Beach Raises Building Height Limit To 4 Stories From 3 To Settle A Lawsuit

Delray Beach raised the building height limit for four parcels along Atlantic Avenue from three stories to four to settle a lawsuit filed by the owners.

The land owners, William “Billy” Himmelrich and David Hosokawa, sought at least $6.9 million in damages from the city for alleged violation of the Bert Harris Act, a state law that protects the rights of private land owners.

Delray Beach city commissioners narrowly approved the four-parcel upzoning designation in a 3-2 vote. Commissioner Bill Bathurst, who voted against the measure, told the Palm Beach Post that the  one-story increase in the building height limit for the four parcels will encourage other land owners to seek similar treatment.

Located just east of the city’s Old School Square cultural center, the upzoned property includes two parking lots and two restaurants, Cabana El Ray and Tramonti.

Himmelrich and Hosokawa had planned to build a four-story hotel before the city imposed a three-story limit on building height along East Atlantic Avenue between Swinton Avenue and the Intracoastal Waterway, an district that encompasses their four parcels.

City attorney Max Lohman said city commissioners effectively carved those four parcels out of the three-story district.

Himmelrich told the Palm Beach Post that he and Hosokawa plan to move forward with a four-story development on their Atlantic Avenue property, possibly as a non-hotel project.

 

Source: The Real Deal

The Best Small Cities To Start A Business: Two Of The Top Five Are In South Florida

Entrepreneurs looking to start a small business in a small city have some of the best options for locations right here in South Florida.

Weston ranks No. 2 in that category nationally, according to a new report by Verizon Business, while Delray Beach came in No. 5.

Lauderhill was No. 13 on the list, with Homestead at No. 38.

Factors considered in Verizon’s study include population, education, travel time to work, income per capita, loans per capita, broadband access and tax scores. (The report notes that to be considered a “small city” according to the U.S. census, the population must fall between 50,000 to 75,000 people.)

Only Portland, Maine, was a more attractive small city for starting a small business than Weston.

“Being No. 8 among the top 100 safest cities in the country is reassuring for a fledgling business,” Verizon’s report says of Weston. “This is also the most educated city in the top 10, with nearly 60% of the population holding at least a bachelor’s degree. So Weston has got a lot going for it, and people are taking notice. The only downside to setting up shop here is the commute to work, which runs at about half an hour, but hey — you’re not far from the beach and the Everglades are basically in the city’s backyard, so let’s call it even.”

The South Florida lifestyle also played a role in Delray Beach ranking so high.

“There’s more of a draw to this city than its spread of sunny beaches along the southeastern coast of the state,” the Verizon’s report says. “Not quite as high on the education scale as Weston but higher than Kissimmee, Delray Beach is a happy Floridian medium with the shortest average commute time between the three cities. It enjoys a thriving industry of restaurants, nightclubs, retail shops, and art galleries, which is important to keep in mind when considering where to put your business’s roots down. And hey, the beach might not be the most important thing, but a beach day every now and then definitely couldn’t hurt.”

Florida wound up with eight cities in the top 50, the others being Kissimmee (No. 7), Daytona Beach (11), North Port (39) and Sarasota (44).

The Top 50

  1. Portland, Maine
  2. Weston, Florida
  3. Missoula, Montana
  4. Southfield, Michigan
  5. Delray Beach, Florida
  6. South Jordan, Utah
  7. Kissimmee, Florida
  8. Rochester Hills, Michigan
  9. Rapid City, South Dakota
  10. Bismarck, North Dakota
  11. Daytona Beach, Florida
  12. Broomfield, Colorado
  13. Lauderhill, Florida
  14. Evanston, Illinois
  15. Alpharetta, Georgia
  16. Redondo Beach, California
  17. Wilmington, Delaware
  18. Eau Claire, Wisconsin
  19. Rockville, Maryland
  20. Logan, Utah
  21. Greenville, South Carolina
  22. Flagstaff, Arizona
  23. Walnut Creek, California
  24. Mansfield, Texas
  25. Maple Grove, Minnesota
  26. St. Charles, Missouri
  27. St. Cloud, Minnesota
  28. Georgetown, Texas
  29. Eagan, Minnesota
  30. Appleton, Wisconsin
  31. Schaumburg, Illinois
  32. Palo Alto, California
  33. Laguna Niguel, California
  34. Lehi, Utah
  35. Pawtucket, Rhode Island
  36. Novi, Michigan
  37. Cheyenne, Wyoming
  38. Homestead, Florida
  39. North Port, Florida
  40. Corvallis, Oregon
  41. Waukesha, Wisconsin
  42. Missouri City, Texas
  43. Waltham, Massachusetts
  44. Sarasota, Florida
  45. Lafayette, Indiana
  46. Medford, Massachusetts
  47. Redlands, California
  48. Gaithersburg, Maryland
  49. Canton, Ohio
  50. Taylorsville, Utah

 

Source: SunSentinel

200-Acre Project Could Bring Homes, Schools, Hotel, Park And More To One Of Palm Beach County’s Busiest Intersections

34309962 - silhouettes of construction and power lines at sunset

A Royal Palm Beach project could get more than 1,000 new homes, schools, a theater and more.

Brian Tuttle, head of Tuttle Land Development, said it has taken him about five years to assemble 200 acres in what he called one of the busiest intersections in Palm Beach County. He estimated his project, called “Tuttle Royale,” would have a market value of $650 million.

The plan, at Southern Boulevard and State Road 441, calls for 1,000 rental apartments, 100 single-family homes, a K-12 Sports Leadership and Management (SLAM) charter school for 1,500 students, a 200-student preschool, grocer, pharmacy with a drive-through, convenience store with an eight-pump gas station, a 150-room hotel and a 10-acre regional park.

There’s also 350,000 square feet of space for restaurants and entertainment offerings, including a 915-seat movie theater and a health club, according to city documents. The development would also include a street named Erica Boulevard, in honor of Tuttle’s daughter, who died unexpectedly at age 24 in 2016, he said.

The Royal Palm Beach Village Council tentatively signed off on the land use changes this month. There are hearings scheduled in September and October, according to the village clerk. More specifics will come once site plans are approved. Mayor Fred Pinto estimated it would take 10 years to build.

The land, sandwiched between Wellington and West Palm Beach, was mostly empty except for a dog rescue facility, which has since moved, as well as a handful of single-family homes, most of which have since sold, the mayor said. The land was annexed into Royal Palm Beach within the last few years.

Pinto said he hoped village residents could take advantage “of the entertainment venues” instead of having to drive to West Palm Beach.

As for the potential for increased traffic, Pinto said, “Anything you do there’s always going to be traffic.” But he added, “we’re not creating more traffic internally in the village. The traffic is confined to the people who live in the development or visitors for the entertainment.”

 

Source: SunSentinel

Evolving Workplace Trends Force Office Occupiers and Owners to Adjust Traditional Strategies

New approaches from technology companies and co-working providers across North America and Europe are challenging occupiers’ and landlords’ office-space accommodation strategies, forcing players in more established sectors to adjust how they think about the size, physical form and operational function of their premises.

This transformation continues to encourage new development, which is racing to keep up with demand in some markets and being bolstered by a young, educated workforce gravitating to urban centres.

These are some of the key trends noted in Avison Young’s Mid-Year 2018 North America and Europe Office Market Report, that was just released.

The report covers the office markets in 67 metropolitan regions in Canada , the U.S., Mexico, the United Kingdom, Germany and Romania: Calgary, Edmonton, Halifax, Lethbridge, Montreal, Ottawa, Regina, Toronto, Vancouver, Waterloo Region, Winnipeg, Atlanta, Austin, Boston, Charleston, Charlotte, Chicago, Cleveland, Columbus, OH; Dallas, Denver, Detroit, Fairfield County, Fort Lauderdale, Greenville, Hartford, Houston, Indianapolis, Jacksonville, Las Vegas, Long Island, Los Angeles, Memphis, Miami, Minneapolis, Nashville, New Jersey, New York, Oakland, Orange County, Orlando, Philadelphia, Phoenix, Pittsburgh, Raleigh-Durham, Reno, Sacramento, San Antonio, San Diego County, San Francisco, San Jose, Silicon Valley, San Mateo, St. Louis, Tampa, Washington, DC; West Palm Beach, Westchester County, Mexico City, Coventry, London, U.K.; Manchester, Berlin, Duesseldorf, Frankfurt, Hamburg, Munich, and Bucharest.

“Against a backdrop of economic, geopolitical and financial volatility, the commercial property markets – for the most part – are functioning under relatively sound fundamentals,” comments Mark E. Rose, Chair and CEO of Avison Young. “Nowhere are we seeing more profound changes than in the office sector – especially in urban areas of major metropolitan markets across the six countries covered in our annual review. The impact can be seen on city skylines, which are changing rapidly as new construction picks up pace, driven by insatiable tenant demand from organizations adjusting their workplace strategies to a growing millennial workforce and their adaptability to innovative technologies.”

Rose continues: “At the same time, sectors that have historically accounted for a significant amount of demand for office space are now being both augmented and squeezed by ever-expanding technology and co-working industries. This phenomenon is being seen across national boundaries, particularly in markets with dense and growing urban populations.”

According to the report, of the 67 office markets tracked by Avison Young in North America and Europe, which comprise more than 6 billion square feet (bsf), market-wide vacancy rates declined in 38 markets, remained unchanged in seven, and increased in 22 markets as almost 74 million square feet (msf) was absorbed on an annualized basis.

The report goes on to say that construction cranes remained prominent fixtures across many skylines as nearly 74 msf of office space was completed during the 12-month period, while another 138 msf was under construction at mid-year 2018 – with 50% of the space preleased.

“It’s great to see so much confidence on the part of developers as they respond to the supply-demand imbalance in many markets,” says Rose. “As always in this industry, the inherent risk is that circumstances could change, resulting in an oversupply of product at the time of delivery. In many cases, this scenario is the result of external economic and geopolitical factors. This time around, however, the new influences of disruptive technologies and increasing co-working space availability are also affecting how and where people work, potentially impacting the office sector from within – and challenging conventional wisdom.”

Rose adds: “Generally sound office market fundamentals are being threatened on the North American front by ongoing NAFTA talks. In Europe, the looming Brexit deadline continues to dominate the headlines in the U.K., while in Germany, strong leasing activity continues to drive vacancy rates downward in all Avison Young markets. In Bucharest, Romania, development continues in response to demand.”

THE UNITED STATES

The U.S. office market has benefited from another strong 12-month period of positive economic indicators: Further business expansion and job growth, decades-low unemployment, and rising consumer and business spending. Business spending kept its momentum in the first half of 2018, boosted by corporate tax breaks even while the federal government moved toward greater isolationism and global trade uncertainty. As of June, U.S. unemployment averaged 4% and employment over the last 12 months grew by 2.4 million, supported by the office-occupying professional and business sector gaining 521,000 jobs.

The 5.2-bsf U.S. office market reported net absorption of 43 msf on the strength of gains in five markets each achieving more than 3 msf.

“In spite of this strong take-up, I’m not surprised that the overall vacancy rate remains elevated given the volume of construction underway and the continuing trend of more efficient space design,” says Earl Webb, Avison Young‘s President, U.S. Operations.

U.S. office market trends mirror those in Canada, registering an increasing impact from co-working firms. Occasionally, co-working companies have occupied large blocks of space in oversupplied markets, helping to keep vacancy in check, and the concept’s popularity with tenants has forced landlords to compete by adding conference rooms, tenant centers and social spaces.

Webb continues: “Flexible occupancy is key. We also see some national corporate tenants utilizing co-working space in order to control costs and create that flexibility. One co-working operator’s recent announcement that it is moving into brokerage operations could further disrupt the office market, and we’ll be watching that situation and other co-working developments as we head into 2019.”

The report goes on to discuss other recent and continuing trends, including the redevelopment of aging inventory and developers’ emphasis on offering transit-oriented mixed-use projects. Tenants continue to display a preference for amenity-laden buildings and geographies – an important recruiting strategy designed to appeal to the millennial workforce in the tight U.S. labor environment.

Notable Mid-Year 2018 U.S. Office Market Highlights:

  • Five U.S. markets each achieved more than 3 msf of net absorption. San Jose/Silicon Valley and San Francisco together represented 29% of the U.S. total with net absorption of 7.5 msf and 5 msf, respectively. As well, a handful of U.S. markets recorded negative net absorption. Of those, Houston lost the most ground with negative 2 msf during the last 12-month period.
  • Total vacancy in the U.S. was 12.1% as of June 30, 2018, a drop of 10 bps year-over-year. In spite of strong absorption, vacancy rates remained stubbornly high overall with the highest levels in Memphis(20.9%), Westchester County (19.5%) and Houston (18.3%). All but 13 of the 46 U.S. markets reported vacancy averaging more than 10%.
  • Improvement was centered in the downtown inventory (1.7 bsf) with average vacancy falling to 11.2% at mid-year 2018 compared with 11.4% one year earlier, while the bigger suburban market (3.5 bsf) recorded no change in vacancy year-over-year (12.6%).
  • Construction volume fell year-over-year although 96 msf remained under development across the U.S. In new projects overall, 53% of the space was preleased at mid-year 2018 compared with 49% one year earlier. The 379-msf Washington, DC region led the country with 11 msf underway. Demand for new product is high in Washington and preleasing in buildings under construction reached 69% by mid-year. This level was almost matched by New York, where 10.6 msf was under construction (47% preleased) at mid-year 2018.
  • Completions in the 12-month period ending at mid-year 2018 totaled 57.8 msf, increasing slightly from the prior year’s total (55.2 msf). Dallas and Northern California’sSan Jose/Silicon Valley led the country by delivering 7.5 msf each, followed by Washington’s 5.1 msf of completions.
  • Eleven U.S. markets reported asking rents that exceeded the downtown class A average of $48.04 psf full-service gross. Not surprisingly, tight leasing market conditions in Northern Californiaresulted in San Mateo ($84.96 psf), San Jose/Silicon Valley ($74.74psf), San Francisco ($76.54 psf) and Oakland ($57.56 psf) having some of the highest rents in the country. In the Northeast, Boston($66.91 psf), New York ($64.08 psf) and Fairfield County ($54.72psf) were the leaders.
  • Suburban class A rents tell a similar story with Northern Californiamarkets leading the country by far, while most U.S. markets hovered near the national average of $31.32 psf.

“As we forecasted at mid-year 2017, the flight to quality and tenant demand for efficient, amenity-rich options carried into 2018 – and showed no signs of abatement, while class A rents, downtown and suburban, edged higher,” concludes Webb. “High-quality development will continue to boost tenant occupancy and garner higher rents and institutional interest while outperforming the market at large through year-end.”

CANADA

Canada’s office property markets remained sound through the first half of 2018, supported by stable macroeconomic indicators, including healthy employment numbers, GDP growth and a rebounding Alberta economy. However, U.S. protectionist policies and escalating tariffs pose a risk to the Canadian economy and global trade flows, and may lead to moderating growth ahead.

“Intense competition for office space continues to bolster office market fundamentals across Canada – especially in downtown markets,” states Bill Argeropoulos, Principal and Practice Leader, Research (Canada) for Avison Young. “Demand from traditional sectors is being augmented by the proliferation of domestic and global technology and co-working firms, ongoing urbanization and a burgeoning millennial workforce – all part of Canada’s emerging innovation economy.”

The report shows declining vacancy rates in more than half of the Canadian office markets with suburban markets outpacing downtown markets in terms of absorption (led by Montreal and Vancouver) and new deliveries (led by Toronto, Vancouver and Montreal) during the past 12 months. However, the amount of downtown space under construction at mid-year (led by Toronto) outstripped the suburbs by a significant margin.

Argeropoulos concludes: “Urbanization – partly attributable to growth in the technology sector – has created a noticeable gulf between downtown and suburban vacancy rates in emerging tech hubs such as Vancouver, Toronto, Waterloo Region, Ottawa and Montreal. Given tight conditions and upward pressure on rents in some of the nation’s downtown markets, and with little or no near-term supply relief, suburban markets – particularly those offering transit connectivity and other urban amenities – may be the beneficiaries of overflowing tenant demand during the next couple of years.”

Notable Mid-Year 2018 Canadian Office Market Highlights:

  • Canada’s 530-msf office market recorded positive absorption of almost 6 msf in the 12 months ending at June 30, 2018, led by strong gains in Toronto, Vancouver and Montreal – offsetting losses in the struggling, but stabilizing, Calgary market.
  • Canada’s overall office vacancy retreated 60 basis points (bps) year-over-year to finish the first half of 2018 at 11.5%. Vacancy declined in six of 11 markets. Unchanged from one year ago, Calgary (23.5%) maintained the highest vacancy rate, Toronto (6.2%) now has the lowest, while Waterloo Region (up 360 bps to 17.1%), Edmonton(down 320 bps to 14.1%) and Ottawa (down 320 bps to 9.5%) recorded the biggest swings.
  • Most downtown markets posted positive results, combining for more than 2.2 msf of absorption in the 12 months ending at mid-year 2018 – led by Toronto, Vancouver and Edmonton. Consequently, Canada’sdowntown vacancy rate declined 80 bps year-over-year to reach 10.5% at mid-year 2018. Vacancy was lower in seven of 11 downtown markets; four remained in single digits and below the national downtown average, while Toronto (2.2%) registered the lowest downtown vacancy – not just in Canada, but North America.
  • Aside from Edmonton and Calgary, the nation’s suburban markets expanded by varying degrees with strong results in Montreal and Vancouver. Outpacing downtowns, suburban markets combined for positive 12-month absorption of nearly 3.4 msf – slightly behind the previous 12 months’ pace. Suburban vacancy fell 50 bps during the year to close first-half 2018 at 13.1%. Though double-digit vacancy prevailed in all but two suburban markets, six of 11 suburban markets recorded lower vacancy levels year-over-year – with Winnipeg being the tightest (5.5%).
  • New office completions slowed to 3.6 msf delivered in the 12 months ending at mid-year 2018, down from nearly 10 msf in the previous 12-month period – aggravating the shortage of available space, especially in Vancouver’s and Toronto’s downtown markets. In a change from the prior period, suburban completions (led by Toronto, Vancouverand Montreal) overtook downtown completions, while Torontorecorded the most deliveries overall.
  • Trying to keep pace with demand, developers had more than 15 msf under construction (52% preleased, 3% of existing inventory) at mid-year 2018 as downtown construction outstripped the suburbs by a four-to-one margin. Toronto had the most overall (8.5 msf) and downtown (7.2 msf) office space under construction in Canada and was in good company globally with cities such as London, Mexico City, Washington, DC and New York.
  • Weighed down primarily by Calgary and, to a lesser degree, Ottawa, average class A gross rents softened collectively year-over-year. The downtown average was down $1.97 per square foot (psf) to $38.83psf, and the suburban dipped $0.43 psf to $31.86 psf. Similar to one year prior, Vancouver boasted the highest downtown class A gross rent at $59 psf and Regina edged out Vancouver for the highest suburban class A gross rent at $40 psf.

 

Source: MarketsInsider

West Palm City Commissioners Set To Vote On Downtown Rezoning Proposal

West Palm Beach

The West Palm Beach City Commission is set to take a final vote Monday on a proposed business district that would rezone part of the city’s downtown area.

The proposed Okeechobee Business District would change land-use rules in several blocks of the Okeechobee Boulevard corridor west of the city’s waterfront.

In particular, the district would allow The Related Companies to build a 25-story office building about 400 feet from the waterfront along Lakeview Drive, where current zoning limits building heights to five stories.

The Florida Department of Transportation (FDOT), Palm Beach County and the Town of Palm Beach have criticized the proposed business district.

The city should delay a vote on the business district to study the district’s impact on traffic, according to Stacy Miller, a regional director of transportation development for FDOT.

The city hasn’t demonstrated “the long-term adequacy of transportation facilities to meet established acceptable levels of service,” Miller wrote in an Aug. 7 letter to the municipal development services director in West Palm Beach.

The state Department of Economic Opportunity, which would have to approve the Okeechobee Business District, recently told the city it doesn’t object to the proposed district, but warned the city that failing to respond to objections from other state agencies could subject the district to challenges in court.

The city hasn’t shown how the high-rise Okeechobee Business District would benefit downtown West Palm Beach as a whole or surrounding areas, assistant county administrator Patrick Rutter wrote in an Aug. 3 letter to city officials.

West Palm Beach Mayor Jeri Muoio told the Palm Beach Post that the proposed business district drew “comments” from state agencies, “but they were not objections.”

 

Source: The Real Deal

Broward Industrial Market Gets Stronger, Miami-Dade Stabilizes: Q2 Report

The industrial market is still hot across Miami-Dade and Broward counties.

Competition for industrial space is fierce in Miami-Dade and it’s driving demand from buyers and tenants who are eyeing smaller warehouse properties. That, in turn, is leading to higher lease rates, according to a recently released report by CBRE.

And in Broward County, a dip in vacancy rates is helping lure more outside investors and tenants amid a sizable amount of new industrial deliveries.

MIAMI-DADE

Vacancy rates in Miami-Dade held steady at 3.6 percent in the second quarter, up slightly from 3.5 percent the same period of the previous year.

Most of the leasing activity occurred in Airport/Doral (557,124 square feet), followed by Central Dade (218,984 square feet), and Miami Lakes (94,900 square feet), according to the report.

Rents are also rising. Miami-Dade’s industrial market had an average asking rate of $9.23 per square foot in the second quarter, up 3.9 percent compared to the same period of 2017, according to CBRE. More than 90 leases were signed totaling 1.9 million square feet, with an average lease size of 20,000 square feet, the report shows.

Overall sales for Miami-Dade’s industrial market during the second quarter amounted to $362 million with 34 transactions for a total of 2.5 million square feet, up from $78 million for 15 sales totaling 553,000 square feet in the first quarter. The average sale price per square foot in the second quarter was $145, and the average deal size was 73,500 square feet.

Hialeah continues to be a top industrial submarket in Miami-Dade. The North Hialeah submarket accounted to 50 percent of the industrial transactions in the second quarter of 2018. Among recent deals was Duke Realty’s $180 million purchase of Flagler Global Logistics’ 8 million-square-foot industrial park.

Nine buildings were delivered in the second quarter, totaling 1.1 million square feet of new industrial space. Foundry Commercial’s Carrie Meek International Business Park is among one of the largest industrial projects under construction in the region, totaling 855,000 square feet and set to be completed by the fourth quarter of 2018.

Despite numerous larger transactions, spaces in the 10,000-square-foot to 25,000-square-foot range are the most desired, and is expected to push rental rates for those buildings up near those sought for newer construction, according to the report.

BROWARD

Broward’s industrial market is showing no signs of slowing down. Vacancy rates dipped in the second quarter to 3.9 percent from 5.3 percent, on a year-over-year basis, the report shows.

Leasing activity was mixed within the region. Northeast Broward had the highest level of net absorption during the second quarter, at 168,672 square feet, but southeast Broward saw a negative absorption rate of 334,533 square feet. The report said the level of negative net absorption is due to the addition of at least three new buildings in the Pompano Center of Commerce as well as the 131,000-square-foot East Davie Commerce Center.

Broward’s industrial market had an average asking rate of $8.29 per square foot in the second quarter, up 3 percent compared to the same period of 2017, according to CBRE.

Overall sales for Broward’s industrial market reached nearly $200 million in the second quarter. Notable sales include Fortress Investment Group’s $66.4 million acquisition of a SuperValu distribution center in Pompano Beach, as part of a larger $483 million national portfolio deal. Another is Exeter Property Group’s portfolio sale of nine warehouses amounting to about $43 million.

Supply is also increasing in the county. One of the first buildings of the South Florida Distribution Center in Pembroke Pines is on the verge of being completed, offering 225,000 square feet, according to the report. Seneca Commerce Center I, spanning 222,000 square feet at Pembroke Park, and Coral Springs Commerce Center III, with 215,500 square feet, are on pace to be completed by the third quarter of 2018 and the beginning of next year, respectively.

Low vacancy rates and rising rents are expected to keep driving demand in Broward, the report says.

 

Source: The Real Deal

Hollywood Eyes Key Industries To Spur Job-Creating Economic Growth

The City of Hollywood is working to develop and expand targeted industries to become more successful, resulting in higher paying jobs and ultimately more money for the City.

Health Care

Memorial Healthcare System, one of the largest in the nation and it is continuing to grow.  Memorial Regional Hospital is the flagship facility of this system. It offers extensive and diverse health care services that include Memorial Cardiac and Vascular Institute featuring renowned surgeons, Memorial Cancer Institute and Memorial Neuroscience Institute providing innovative technology.

There is Joe DiMaggio Children’s Hospital at Memorial, one of the region’s leading pediatric hospitals. It offers a comprehensive scope of healthcare services and programs in a child-friendly atmosphere. It is a full-service hospital and offers treatment for minor illnesses, trauma-related accidents, and complex medical conditions. It combines advanced technology and the expertise of a large group of board-certified pediatric specialists. The hospital has 226 beds.

Tourism

Tourism and hospitality is another major objective. The Diplomat Beach Resort has completed major renovations and offers many high-end restaurants and amenities. The Margaritaville Hollywood Beach Resort offers fine dining a high-quality hotel, a beautiful pool, and other amenities. And there are other hotels located at Hollywood Beach and throughout the city.

Aerospace and Aviation

Hollywood is home to HEICO Corporation, is a top manufacturer of aerospace, industrial, defense and electronics products. They make products that are found on commercial airplanes, military aircraft, industrial turbines, targeting systems, and missiles. HEICO operates in two segments, the Flight Support, and Electronic Technologies Group.

And there is Quiet Technology Aerospace which recently moved into a 30,000 square foot facility. This company performs repair work for aviation. It is a market leader in the application of advanced composites for noise attenuation and structures.

The Fort Lauderdale Hollywood International Airport is one of the fastest growing airports in the nation. Major developments are underway and new destinations are being added.

Marine Technology

Marine technology is another major industry for Hollywood. Most of Port Everglades is in Hollywood. Each cruise ship that comes to the port brings thousands of passengers. And there is more development taking place with cruise terminals.

A major expansion project at the port will allow larger freight ships to come to the port and all this means more people and money coming into Hollywood. Quantum Marine Engineering of Florida is a leader in producing stabilization technology for yachts. The company is operating in Hollywood. There are many other businesses that are prospering in the marine industry. Nova Southeastern University is operating an Oceanographic Center in Hollywood for various research programs.

Education and Technology

In the area of education and technology, Barry University recently opened a health sciences building in Hollywood, adding to a number of high-quality private schools, charter schools and public schools in the city.

And there are many other thriving businesses in the City. Chewy.com has a location in the City. In addition to developing these key industries, small businesses throughout the city are thriving and offering career opportunities for residents.

 

Source: Hollywood Gazette

Tracking E-Commerce To A Career In Industrial Real Estate Brokerage

Doubts of growing your retail brick-and-mortar clientele have you reaching for antacid from the bubble wrap parcel on your porch?

Don’t post a “closed” sign on your commercial real estate journey. Instead, consider pivoting to 32-foot clear heights and secured trailer parking.

E-commerce keeps growing. In 2017, U.S. online retail sales increased 16% year-over-year, up four out of five years running, and yielded $453.5 billion in total sales, according to CBRE.  Of the 50 largest industrial leases finalized last year, approximately 43% involved e-commerce companies.

For some, specializing in industrial brokerage may be the way forward. Experts see the logistics real estate market as early stage.UBS forecasts the pace of change in e-commerce is expected to accelerate market-share transfer, from in-store retail sales to online, driven by quicker-than-expected adoption of mobile from consumers.

Speaking to the crowd at I.CON ’18 in June in Jersey City, the Senior Managing Director with Crow Holdings Industrial Clark Machemer put it, “Today’s warehouse industry is the logistics business.”

Now may be time to synchronize your industrial sales and leasing future, as demand is up for real estate along the rapid throughput supply chain. CBRE calculated that for an incremental $1 billion growth in e-commerce sales, an additional 1.25 million square feet of distribution space is needed to service the growth. NAIOP, the Commercial Real Estate Development Association, cited Forrester’s forecast where U.S. e-commerce sales will rise 9.3% annually over the next 5 years to top $523 billion.

Media interest in e-commerce has added foot-candle on the interrelationship of goods fulfillment factors and real estate. Of course, there’s the Amazon HQ2 bonanza. Over in home improvement, Home Depot is gearing up to spend $1.2 billion across five years on 170 distribution facilities to access “90% of the U.S. population in one day or less.”

In this unfolding era of omni-channel retailing, industrial pros know expanding the supply of new construction and repurposing obsolete facilities is about satisfying the space race. Site selection for first mile, middle mile and last mile facilities won’t just affect industrial parks. Inner cities are in play. It’s about population. Many e-commerce companies and third-party logistics providers want a perch near densely-packed rooftops of consumers.

Earning Their Business

With e-commerce projected as a growth driver over the next five years for both the U.S. economy and development of facilities, what imperatives should e-commerce clients expect from their industrial real estate brokers?

“E-commerce clients expect a level of sophistication from the industrial brokerage business that didn’t exist 10 years ago,” says William Waxman, executive vice president at CBRE.

Waxman is an authority on corporate, industrial and supply chain real estate. In 2017, he was awarded NAIOP New Jersey’s Industrial Deal of the Year for Blue Apron’s 495,000-square-foot lease.

“My e-commerce clients expect me to have a comprehensive understanding of what they’re doing,” Waxman says. “Not just an understanding of their business, but an understanding of their values. And to respect their values, and to make sure the developments, the facilities are respectful of their values, as well.”

Waxman, who also was a speaker at I.CON ’18, is well regarded for maintaining relationships.

“E-commerce clients especially want to know they have a trusted advisor in their industrial broker. They want to know everything will get done at a very high level. From a tertiary environment to a primary environment, the quality of the work will be the same no matter where the properties are located,” said Waxman.

Representing In A Disruptive Age

Whether you’re already growing your book of business or shifting careers, specializing in logistics real estate on property types that support e-commerce may be your next thing.

“It’s the kind of industry you just need to be passionate about,” Waxman says. “When your clients have a pain point, you must have a solution for them.”

Waxman observes clients in e-commerce desire collaboration, and hire a multitude of service providers on deals, so they expect connections from the broker.

“You’ve got to know the right experts, as a service of building-out their project teams,” Waxman advises. “My e-commerce and tech clients want me to recognize through cost-benefit analysis whether they would benefit from a particular economic incentives package, or benefit from an in-depth labor analysis. Don’t be transactional brokers. Be a resource. You’re working for their best interest. Whether you’re onsite at a trucking company, or in a Fortune 200 board room, show how you’ll save them money. It goes to their bottom line.”

Even though Waxman leads CBRE‘s world renowned Port and Integrated Logistics Practice, he doesn’t forget to pound pavement.

“Old-fashioned shoe leather – there’s nothing wrong with that,” say Waxman.

 

Source: Forbes

South Florida’s Commercial Market Post Gains Across All Sectors

According to the new 1Q 2018 The Quarterly Report – South Florida Commercial Real Estate released this week by data firm Vizzda and the MIAMI Association of Realtors, South Florida‘s multifamily real estate transactions jumped 8.5 percent year-over-year in 1Q 2018 and per-unit multifamily prices increased in Miami-Dade, Broward and Palm Beach counties.

“Increasing population, job growth and rising single-family home prices are increasing demand for South Florida multifamily properties,” said 2018 MIAMI Commercial President Brian Sharpe. “South Florida’s new transit options such as the new Brightline Miami-to-West Palm train service is fueling more multifamily growth.”

Palm Beach County Posts a Banner Quarter for Multifamily Sales

Palm Beach County posted a record 34 multifamily transactions in 1Q 2018, totaling nearly 2,200 units for $151,600 per unit. The West Palm/Riviera Beach and Green Acres/Palm Springs sub-markets had the most transactions with 12.

The South Florida tri-county region finished with 140 multifamily transactions in 1Q 2018, an 8.5 percent increase over the same period last year.

Miami-Dade County had the highest number of transactions at 65, which was in line with the third and first quarters of 2007 but lower than the strong showing in 4Q 2017. Broward, meanwhile, saw an increase in multifamily transactions because of a rise in transactions in Fort Lauderdale.

Miami-Dade County Enjoys Retail Growth in 1Q 2018

Miami-Dade County retail enjoyed strong year-over-year growth in transactions, square footage and dollar volume transacted. Nearly half of the sub-markets in Miami-Dade County had price appreciation on a per square foot basis quarter over quarter.

South Florida average per square foot valuation for retail property increased by 11.1 percent to $304 market wide in the 1Q of 2018.

Broward had year-over-year declines in retail transactions, square footage and dollar volume. Fort Lauderdale was Broward‘s only submarket with quarterly and annual growth in square footage transacted.

Palm Beach square footage transacted went down slightly but both transactions and dollar volume transacted increased on a quarterly basis.

Broward County Office Surges in Several Metrics in 1Q 2018

The Broward County office sector showed robust year-over-year growth in square footage and dollar volume. The sector posted 15 percent more office transactions than this time last year. The increase in sales volume led to a decline in per square foot valuations on an annual basis.

The Miami-Dade office market saw declines in transactions, square footage and dollar volume on an annual basis.

Palm Beach office also saw declines in all four metrics tracked by Vizzda. The Boynton Beach/Delray Beach is the submarket with highest per square foot valuation at $634 per square foot.

South Florida Posts More than 200 Industrial Transactions for the Fifth Consecutive Quarter

South Florida registered 213 industrial transactions in 1Q 2018, showing the continued strength of the market. South Florida is a top-tier U.S. industrial real estate market. New warehouses and distribution centers continue popping up throughout South Florida, adding jobs and boosting the economy.

The Miami-Dade industrial market saw the same number of transactions as the 4Q 2017 but saw declines in square footage and dollar volume transacted on an annual basis.

“While volume of industrial square footage declined in Miami-Dade, values did not,” Vizzda CEO Kris Thompson said. “This is indicative of an increased demand for a scarce supply. In layman’s terms, industrial properties in Miami-Dade are white hot.”

Broward saw a decline in industrial square footage transacted, number of transactions and dollar volume. Broward office’s first quarter of 2018 was the first quarter in which fewer than 1 million square feet of industrial property was transacted in more than a year.

The Palm Beach industrial market also saw declines on every metric other than transaction volume on an annual basis. The Green Acres/Palm Springs submarket grew its industrial transactions by double digits over the same period last year.

 

Source: WPJ

City Approves Business District In West Palm Beach, Paving Way For Related’s Office Tower

West Palm Beach

After months of back-and-forth, the city commission of West Palm Beach finally approved the creation of an Okeechobee Business District.

The recent unanimous vote paves the way for a number of proposed developments, including the Related Companies’ 25-story office tower at 134 Lakeview Avenue. Related has not yet announced if it will go forward with its One Flagler project, according to the Palm Beach Post.

The district, proposed by Related last year, was voted down by the commission in September. Since then, the proposal was revised to encourage the use of transportation alternatives, like trolleys and bicycles, as well as some environmental-friendly alternatives, according to the publication.

The Okeechobee Boulevard corridor features some prime waterfront parcels on Flagler Drive and Okeechobee Boulevard. Currently, zoning in the area only allows for five-story buildings.

The measure now heads for state approval and will return to the commission in August for final city approval.

 

Source: The Real Deal

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Seven Ways Generation Z Will Change CRE

Finally, it seems, we have gotten a handle on Millennials — their desires, their habits and ideas of how to live life.

Now with Millennials a known entity we turn our attention to the next generation: a cohort that has been dubbed Generation Z. Born between the mid-1990s to early 2010, many are just starting to enter the workforce. And they will be just as, if not more, a potent force than Millennials as they make up 25% of the population.

To find how Gen Z will affect commercial real estate — both within as brokers and without, as apartment and office occupiers — we turn to Pushpa Gowda, the Miami-based Global Technology Engagement Director for JLL.

“In 2015, Millennials became the largest generation in the American workforce, according to Pew,” Gowda tells GlobeSt.com.

Little surprise, then, that real estate decision makers are tuned into what millennials are looking for given their significant purchasing power.

“But,”Gowda continues, “they now need to turn towards the next generation and understand importance nuances between these cultural cousins. This generation will be influenced, marketed to, and sold differently than past generations, including real estate, where there is a great opportunity for Gen Z to help shape the future of real estate sales, particularly as Gen Z becomes an increasingly important real estate buyer.”

Here, are seven ways this will happen.

Being Brokers

1. They’ll be very good at online cold calling. “Generation Z is the first to have truly grown up completely immersed in social media from birth – which shapes the way Generation Z makes major purchasing decisions. We’ve seen brokers begin to use social media, other than LinkedIn, to generate leads and new business opportunities.” Generation Z won’t know anything else and will likely be very successful in “online cold calling, Pushpa concludes.

2. Technology will be critical for recruiting and retention. Brokers relying on technology for their business is fairly new, Gowda says. Generation Z will expect the latest technology and will expect it to be seamlessly incorporated into business processes. “This will become critical for recruiting and retention.”

Apartment Dwellers versus Home Buyers

Generation Z outnumbers their Millennials peers by large margins, ultimately positioning them as the force driving the home buying and building market soon, Gowda says.

3. A suburbs revival. As Generation Z is just beginning to come of age, they are slowly entering the housing market, Gowda says. Yet while many are currently renters, they aren’t content staying renters for long, in part due skyrocketing rental prices across the country but more so because they are more family-oriented and will be settling down. They will be raising children. “It may not look the same as their elders’ generation, but they will need housing, and they will want to ease their work-life balance,” she says. For that reason, she adds, “the suburbs are not dead, and even though we’ve seen a lot of shift toward downtowns across the country, don’t count the suburbs out just yet.”

This will force companies to reexamine their headquarters when considering long term moves, she adds.

Office Occupier Trends

Workplace environments have changed dramatically, thanks to Millennials who have reshaped the very concept of work. But Generation Z will spur its own workplace revolution, Gowda says. “These new college graduates are not coming from environments where they sit in one place for hours at a time, as universities have adapted the student experience. This will directly translate to their expectations in the workplace.”

Generation Z is bringing with them an entirely new set of expectations that companies and buildings must strive to achieve in order to remain relevant and competitive to attract this next generation of workers, she says.

4. Less amenities, more flexibility. Generation Z is social, collaborative, and less focused on amenities, requiring flexible spaces that can be adapted to collaborative projects or individual work, Gowda says. In fact, 69% of Generation Z would rather have their own workspace than share it with someone else, while at the same time 74% of Generation Z prefer to communicate face-to-face with colleagues, so both private workspaces (or quiet zones) and collaboration spaces are important. “It will be interesting to see this play out at as Millennials become managers of Generation Z, this will likely be a good match with some differences to accommodate.”

5. Flexible roles too. “Expect Gen Z to be focused on more than just flexible spaces, they want flexibles roles too, Gowda says. Seventy-five percent of Generation Z would be interested in a situation in which they could have multiple roles within one place of employment. “Corporations will need to consider how to physically organize departments throughout the physical office to encourage hybrid roles.”

6. It’s the technology, stupid. “Generation Z is in need of corporate workplaces that support the highly interactive and tech-enabled environments they’ve grown up in,” Gowda says. In fact, 40% of Generation Z said that working Wifi was more important to them than working bathrooms. This is in line with Generation Z expecting not only technology basics but also the latest technology. ”Corporations should make certain to provide a variety of workplace sizes and styles accessible 24/7, as choice and individuality are defining characteristics of Generation Z.”

7. Free-flowing environment. But technology is just one element, Gowda says. “Generation Z demands a free-flowing environment that supports all their needs, from workout rooms, workspaces designed for any given day and spaces that build community and collaboration.”

 

Source: GlobeSt.

Planner Sought To Create Vision For 140 Acres Around BB&T Center

Broward County is seeking a planning firm to design a “unique” blueprint to build out 140 acres near the BB&T Center in Sunrise.

The issued request calls for an architectural or master planning firm to design a master plan for the land around the arena, which is home to the Florida Panthers professional hockey team and a venue for concerts and other entertainment events.

“I am very excited,” said County Commissioner Nan Rich, who noted that affordable housing is a real possibility for the spot. The plan is to create a “real mixed-use” and make a “really nice community.”

The redevelopment project could take at least 10 years to complete. The land is bordered by the Sawgrass Expressway to the southeast; Northwest 136th Avenue (Panther Parkway) and the Sawgrass Mills mall to the northwest; Pat Salerno Drive to the south; and the Preserve neighborhood to the east.

“It is the county’s intent the redevelopment of the BB&T Center property be the nucleus of a community that will anchor western Broward County as Fort Lauderdale anchors eastern Broward County,” according to the request posted online. “It is anticipated the new development will be a community for people to live, work and play that includes office, residential, full-service hotel(s), retail/entertainment and structured parking … ”

“That could mean a self-sustained community,” Rich said. “That’s the direction of lots of development today.”

 

Source: SunSentinel