The recent boom in Commercial Real Estate in Florida has not gone unnoticed. Many interested parties have been holding their breath as a result of the ongoing pandemic that has all but destroyed many businesses throughout the United States. That fear may not be warranted in the long term as it pertains to the state of Florida. This week alone, a global investor, Nuveen Global, acquired a large Industrial Portfolio for well over 250 million dollars which included four locations in Florida. Yet another healthy deal follows Nuveen with reports indicating that Marcus & Millichap brokered a 2 million dollar sale of a commercial location, close to 4,000 square feet of property, that was net leased to Starbucks.
Market Adaptation During Coronavirus
The old saying goes “New York, the city that never sleeps”, the fact is that South Florida never sleeps. South Florida Commercial Real Estate is not sitting the market out. Even in what would appear to be a downward market that no doubt, did have and will continue to have both highs and lows, Florida Real Estate is still in demand.
The market has learned to adapt and everyone from Real Estate Attorneys to Brokers and all industry parties in between have adapted. Some of this adaptation includes an emphasis on virtual tours and private appointments but that’s not all, on the realtor end, it also includes online events like the recent Miami Association of Realtors conducting a virtual commercial real estate conference. In addition, events with high profile parties diving into and discussing South Florida Real Estate like the Wynwood event covering an overview of Wynwood’s commercial real estate market.
Moving Forward During The Pandemic
Both business and life are moving forward in South Florida and that includes new commercial and retail locations, purchase, sales, and builds. From a string of national retail business opening shop along the Miami River to a brand new Wing Stop retail location opening shop in Fort Lauderdale and any number of other new commercial locations rising up through the pandemic to start, re-start or renovate commercial locations, the time to acquire your commercial real estate is now.
Looking To Purchase Or Sell Commercial Real Estate In South Florida?
You need an experience and knowledgeable Commercial Real Estate attorney who has an indepth knowledge of Commercial Real Estate in South Florida. Mark Schecter specializes in the South Florida markets and can offer you superior commercial real estate counsel.
Are You In The Market For Commercial Or Office Space In South Florida?
If you have been contemplating South Florida for a commercial or office-related venue, not only are you in luck, you’re also in good company.
The Pandemic has had a variety of sectors leaving areas like New York City and Los Angeles with even more considering making a move to the Sunshine state. The benefits of moving business down to South Florida are numerous and more entrepreneurs and corporations are catching on, these benefits include but are not limited to the short list below:
- Less Taxes by way of no personal income state taxes
- No income tax on corporate limited partnerships
- No state-level property tax assessed
Good Company In South Florida’s Thriving Market
This next step in the Pandemic recovery means that many of these companies will be moving many of their operations to the thriving market of South Florida and they will be in good company. As reported by Commercial Cafe back in March, Spotify, one of the ever growing Media Tech companies chose to establish roots at Wynwood in Miami. Last year Live Nation, a giant among entertainment companies, signed a lease for the new wynwood building, both of the aforementioned joining popular Design and Architechure Firm Genslar.
Prices Will Go Up
South Florida is a beacon for renewal right now and there is no better time to pursue your new office space or re-locate current operations than at this very moment. Not only is there the ability to locate commercial space and office space in highly-sought after areas, but there is also the bonus of re-locating your start-up, operations, or expansion to one of the incredibly vibrant and stunning office parks and landscapes in Florida before the cost of investment increases. It is a sobering thought when you understand how valuable this opportunity is.
Veteran Luxury Real Estate Attorney Mark Schecter
A South Florida Luxury Real Estate Attorney can act as your liaison by facilitating all of the necessary legal documents ahead of your visit to explore your options. It is vital that you have experienced counsel who understands the South Florida Luxury market at your disposal. Contact my office today to learn how I can assist you.
Breaking Into Commercial Real Estate In South Florida
Commercial real estate can be an intimidating world for many, but the benefits are well worth the risk and the learning curve. With a solid team behind you, you can break into the commercial real estate world and start building your portfolio. But why invest in CRE in the first place? Here are a few of our top reasons why we think you might want to invest in commercial real estate.
Even if you already have a good portfolio, adding some commercial real estate into the mix can be beneficial. You’ll find much different behavior than what you’re used to with stocks and bonds, since commercial real estate doesn’t typically correlate with the stock market. Essentially, your investment won’t be at the mercy of the market. There are tons of different projects you can invest in, from office space to apartment buildings and everything in between.
If you’re purchasing an apartment complex, for example, you’re likely to experience little volatility within your cash flow. Tenants in CRE long-term rentals typically sign 3- to 5-year lease agreements, giving you a solid window for reliable cash flow. In general, you can expect less volatility than you would with publicly traded REITs and stocks.
Hedge Against Inflation
While many markets suffer with inflation, real estate tends to stay steady. As profits and wages increase, tenants can afford to pay more, which means you can charge more for your space, whether you own apartments or offices. You can watch the effects of inflation on goods and services, while your own investments stay reliable.
If you negotiate your contract properly, you might be able to take advantage of tax deductions related to interest expenses, depreciation, and more. As of 2018, tax laws allow for CRE owners to claim a 20% deduction of income received through pass-through entities, like LLCs. Additionally, you might be able to deduct some of your property’s depreciated value to cover the cost of your upkeep and maintenance.
Work With An Experienced Commercial Real Estate Attorney In South Florida
If you’ve decided to take the leap to invest in commercial real estate, you’ll definitely want a lawyer on our side to help you negotiate contracts and secure your spot at a fair price. Mark Schecter is an experienced Florida commercial real estate lawyer who has seen countless cases, so he’s ready for anything you need. Contact Schecter Law today to learn more!
Adopting A New Normal In Florida Commercial Real Estate
With everything that 2020 has thrown at us, almost every industry has been negatively impacted. Unfortunately, the commercial real estate sector is no exception. As multiple sectors have had to adapt to a “new normal,” there’s no question that we’ve found some solutions that may continue to work well past this year. It’s likely that we’ll see some big changes in the commercial real estate industry in the near future, including these trends.
- Faster Communication
Communication is vital in the commercial real estate industry, and by using the latest technologies, tenants and management can talk much more quickly and efficiently. The use of AI leasing assistants can help answer questions instantly, and two-way text features allow for quicker conversations and greater transparency with tenant requests.
- Greater Lender Flexibility
Now that lenders are working to get back on their feet, we’re likely to see innovative and flexible structures as they try to find solutions for themselves and their borrowers. We may see practices like originating subordinate debt, providing convertible equity, or splitting loans into multiple risk tranches.
- Efficient Spaces
Particularly when it comes to office spaces, efficiency is becoming more of an emphasis. The new generation is dedicated to time management and sustainability, so it would follow that office spaces would need to adapt to meet these needs. While we may see more technology being used, it’s also important to maintain a human element.
- Lower Rental Costs
Working From Home
We’re starting to realize that more people can work from home, so it’s probable that the cost of office spaces will decrease. Offices in downtown spaces will need to be especially adaptable and innovative in order to keep tenants coming in, and the need to focus on the local economy will become more and more apparent.
Contact Us For Help Today
As the whole world works to return to some semblance of normal, it might be time to pursue your dream of owning commercial real estate. If you do decide to take the big leap, be sure to enlist a commercial real estate lawyer on your side. Mark Schecter is a trusted South Florida commercial real estate lawyer who has worked in the industry for decades. He can help you find the right space and secure it with terms that work for you. Contact Schecter Law to speak with Mark and to get started!
Finding Commercial Real Estate In South Florida
Let’s say you’re a business owner whose entire operation to date has been online, but you’re now looking to expand into a brick-and-mortar location. Or, maybe you’re jumping in from the start with a physical location. Finding the ideal spot for your business can seem like a daunting task, but it doesn’t have to be. There are several different resources at your disposal to help you find the perfect commercial property.
Do I Need Commercial Property?
Before you start your search, ask yourself if you even need commercial property. If you’re starting a brand-new business, consider whether you need an office space or if you can work from home or in a coworking space while you get things off the ground. If you decide you do need your own property, this should be one of the first investments you make, as prices can rise quickly.
If you already have a successful business, you might consider buying commercial property to expand your company. Purchasing property can help you reach a new audience in a different city, for instance. Buying commercial property could also be helpful if your at-home business is becoming too large in scale and you now need a dedicated space for your work.
How to Find Commercial Property
As with any property search, typically the best place to start is on the internet. You can easily do a web search for available spaces in your area and can tailor your search to your specifications. If you need a certain amount of space or want a property in a specific area, this is your fastest option.
You can also work with a real estate agent to find your ideal location. Experienced agents should know about the area and will be able to help you navigate the possibilities. Finally, don’t underestimate the importance of scouting for yourself. Drive around your area and look for “for sale” or “for lease” signs on commercial properties. You might be surprised at what you can find!
Contact Mark Schecter For Assistance
No matter where you are in your commercial property journey, having a lawyer at your disposal is a great asset. They can help you negotiate contracts and ensure that you understand exactly what you’re purchasing. Mark Schecter is a top South Florida commercial real estate attorney who has years of experience in the field. Contact Mark today to see how he can help you secure your dream office space.
Impact Of Covid-19
The impact of the COVID-19 pandemic cannot be overstated. We’ve seen changes to every aspect of our society, and the commercial real estate industry is no different. While the luxury housing market is doing surprisingly well, the office market has not been as lucky. There have been some interesting developments, but as a whole, the commercial real estate market has seen a steady decline since the start of the outbreak.
Distress in the Industry
So far in 2020, the commercial real estate industry for South Florida peaked in January and has seen a decline every month since. The total number of monthly sales has decreased considerably, with April taking a particularly hard blow. While stimulus aids are helping to keep some rents afloat, there aren’t many new properties being bought or leased at this time.
Many lease transactions are being paused, and those who were looking to buy are now starting to question valuations. One of the most impacted operations are co-working spaces. Thanks to social distancing requirements, many of these spaces have had to significantly decrease their capacity or shut down altogether.
A Surprising Increase
While the commercial real estate market is taking a hit right now, there may be a rising market for out-of-state buyers. Some property owners are seeing interest from those in cities like New York, Los Angeles, and Chicago. Business owners in these cities are looking to set up satellite offices in South Florida in an attempt to give their workers more flexibility and space.
A Bright Future?
Some are predicting that the South Florida commercial real estate market will see a boom after the COVID-19 pandemic begins to level out. If business owners are unable to pay their rents and have to vacate their spaces, future buyers may be able to grab these coveted offices at a fraction of the price. Many remain optimistic about the future of the industry, but it’s a matter of time before the market will prove itself.
Get Help Today
If you’re looking to purchase commercial real estate now or at some point after COVID-19, be sure to get a commercial real estate attorney. These professionals can help you navigate the complicated work of property purchasing. Mark Schecter is one of the top South Florida commercial real estate lawyers and can help you find and purchase your ideal business space. Contact Mark today to learn more.
The Right Team Behind You During Your Purchase
If you’re considering commercial property for your business, you’ll need a team behind you to help you make the right decisions. One of the most influential people in your life will be your commercial real estate lawyer. You’ll have a better insight into the industry and can protect yourself from future financial issues. Here are a few of the biggest benefits of hiring a commercial real estate attorney.
Protecting Your Interests
Especially if you’ve never purchased commercial real estate before, the lengthy process and the complex contracts can be overwhelming. By working with an experienced commercial real estate attorney, you’ll have a guide to help you understand what you’re signing and avoid potentially costly legal issues down the road. If any issues do arise, they can handle the situation before it turns into a court battle.
Getting a Fair Deal
Speaking of money, commercial real estate isn’t cheap. However, many people don’t realize that there is room for negotiation. Your commercial real estate attorney works for you, not on commission, meaning they will be able to help you get the best value for your money. They can help you see where negotiations may be possible in your contract and which points are more rigid.
Gaining Industry Knowledge
Commercial real estate attorneys will be familiar with the unique codes and zoning laws that will apply to you. They can go through different development options with you to make sure you’re picking the best location, and they will be particularly helpful when it comes time to sell your property. Your attorney can help you find a buyer and maximize your profit.
Our most valuable asset is time, and hiring a commercial real estate attorney will save you a lot of it. You can avoid countless hours of research, familiarizing yourself with a whole new industry, and help deal with legal disputes. At every step of the way, your attorney can step in to handle an issue, allowing you to focus solely on your business.
If you’re considering buying commercial real estate in South Florida, contact Mike Schecter. He has long been one of the most trusted Broward County commercial real estate attorneys and is dedicated to helping you find the ideal property for your business. Contact Schecter Law today for more information.
What You Need To Know About Negotationing A Commercial Lease
When you’re purchasing commercial real estate, you may think there’s no room to negotiate your contract. Luckily, that’s not the case. Landlords are often open to negotiation so that everyone gets a fair deal. With a commercial real estate attorney on your side, you’ll have the knowledge and expertise to get the best value for your money. Here are a few of our top tips when negotiating a commercial lease.
Look for Comps
Take the time to look at comparable rents in the area and compare them to what you’re being offered. Consider the amount of space you’re looking at, as well as the location itself. Be sure to also look at renewal options. Your landlord will likely want to increase the rent each year, so try to negotiate a cap.
Check the Length
Consider how long your lease will last. Many small businesses lease for 1-2 years at a time, but every property and every landlord is different. Make sure you have the option to renew, but don’t lock yourself into a lengthy lease. You don’t want to be stuck in a location that turns out to be unfavorable, and you don’t want to be unable to move if other options in the area become cheaper.
Are There Hidden Costs?
When you sign a lease, you may not just be paying for the use of the space. Additional costs like upkeep and maintenance can add up fast and throw off your whole budget if you’re not prepared. Learn the current conditions of the space and determine whether you or your landlord will be responsible for repairs. Ask about who will be covering utility costs as well.
Ask About Termination
You will eventually have to terminate your lease for one reason or another, so check to see what the terms are. Find out the circumstances for early termination and ask about any additional fees you’ll need to pay. Request a clause that gives you time to cure a default before eviction in the case that things go south.
Hire an Attorney
A Fort Lauderdale commercial real estate attorney can help you with every aspect of your negotiation. They will have the expertise to help you understand the contract and get the best deal for your company. Mark Schecter is your South Florida commercial real estate lawyer. Contact Schecter Law to learn how Mark can help you negotiate your commercial lease.
Looking For Commercial Space In South Florida?
If you are looking for a new commercial space for your business, you may be wondering whether to buy or rent. There are certainly pros and cons of each, so you will have to determine which situation is best for you and your company. Read on for some tips when deciding whether to buy or lease commercial real estate.
Pros of Buying Commercial Real Estate
When buying commercial real estate, you have complete control over the space, within the confines of zoning restrictions. Your mortgage payments will be fixed and can’t change like they could under a lease. You can also deduct several expenses on your taxes, and you may benefit from capital appreciation in the long run. Additionally, you might be able to rent out some of your space to tenants and receive additional income this way.
Cons of Buying Commercial Real Estate
Purchasing commercial real estate can be expensive upfront, as most spaces require a 10% to 40% down payment. You will be held liable if someone is hurt on your property, and you may incur prepayment penalties or have difficulty qualifying for financing. There is also a chance that your value will decline over time and you will face capital loss.
Pros of Leasing Commercial Real Estate
If you choose to lease commercial real estate, you’ll have more flexibility than when purchasing. Qualifying for a lease is relatively easy, and you may have the opportunity to get into a prime location. There are also several costs you can deduct on your taxes, and rent is typically easy to budget for. You won’t have to worry about insurance requirements and the upkeep of the space, giving you more time and energy to focus on your business.
Cons of Leasing Commercial Real Estate
If you lease, you will not have the opportunity to earn rental income from other tenants. You won’t have any control over the space, and you won’t be able to deduct expenses you may have with a mortgage. There’s no way to benefit from an appreciating asset or build equity on the space, and your monthly rent payments may increase to more than what it would cost for a mortgage.
Deciding whether to buy or lease commercial real estate is a big choice, so you need someone on your side to help. If you’re considering hiring a South Florida commercial real estate attorney, Mark Schecter is one of the best in the business. Contact Schecter Law today to see how we can help.
South Florida Commercial Real Estate Remains Warm
Throughout 2020 we can expect the South Florida commercial real estate market to remain warm to hot due to a number of factors including increases in job growth, tax-friendly laws, tourism, major corporations opening new offices and many other factors.
Are you considering taking part in this vibrant market? Talk to an expert commercial real estate lawyer in South Florida at Schecter Law to get unique insights into the best opportunities in the market or assistance with many aspects of your deal including negotiation, legal issues, zoning, closing, transactional issues and more.
Economic stability in South Florida is the result of a range of factors including steady population growth as well as increasing tourism levels. The economic stability drives commercial real estate demand as new restaurants, offices, corporations and retailers compete for prime locations. The state is expected to see an additional 6 million residents over the next decade to bring the total to approximately 26 million by the year 2030. Population growth estimates remain bullish, which means that commercial real estate is not likely to see a major dip in demand overall, barring certain economic factors.
The state also offers unique business incentives that keep demand for commercial real estate high. Florida is rated as the #2 state for business according to Chief Executive Magazine. 20% of U.S. export goods are located in Florida because of its favorable tax laws. It also remains a friendly tax state for retirement – the increase in relocators and retirees drives commercial areas such as retail. Entrepreneurs, investors and business owners will continue to flock to Florida because of all of the tax incentives, including no personal income tax, estate tax or inheritance tax.
Foreign Investment in Real Estate
Over the past few years, foreign real estate investment has remained high in Florida, with the state open ranking #1 for foreign investment dollar amounts. There are a number of factors driving this investment including the climate, tourism, relatively low cost of living compared to global cities and economic stability.
Get Help With Your Commercial Real Estate In South Florida
The retail market is one of the strongest in the country because of all of the domestic and foreign tourism and investment. Time will tell, but several sectors of the South Florida commercial real estate market look to be on the uptick. If you have any questions about what this means for your next commercial real estate move, talk to a leading South Florida commercial real estate lawyer. Call Mark Schecter at Schecter Law today at (954)-779-7009.