When it comes to South Florida condo development, it’s Jorge Pérez’s world, we all just live in it. The condo king’s Related Group has more than four times the number of condo units in its pipeline as its closest competitor during this real estate cycle and has been expanding its work in other arenas, too, including rentals and mixed-use projects.
But even royalty has rough days, and like South Florida’s other top developers, Related has been forced to delay and cancel projects as the market grapples with an overabundance of inventory.
In the summer issue of The Real Deal South Florida, we asked Pérez where he thinks we are in the cycle — he said anyone who answers that question is “either a fool or a liar,” but he did give us some clues — and discussed his current view of frenemy President Donald Trump.
We also ranked the top 25 biggest condo developers in the tri-county region — Related among them, of course — looking at the varied ways these titans of towers are rolling with the punches. Among the tactics: ramped-up incentives. Those giant cracks in the condo market are also affecting the single-family home business, with brokers convincing sellers of luxe homes to shave millions off their asking prices as months of residential supply stack up.
In reporting our story on the biggest general contractors in South Florida, we heard how the competition between firms has been ratcheted up as the cycle matures, with the top dogs going after a slew of midsize, nonresidential projects.
And speaking of competition, there seems to be a downright frenzy of poaching activity on the commercial real estate scene, with top talent in high demand. It’s good news for brokers with the goods. Elsewhere on the commercial scene, the multifamily market is picking up where condos left off, but some worry overbuilding means it will suffer the fate of the current condo market. And the hotel business continues to suffer, with lenders pulling back and downward pressure on room rates.
We also talked to the colorful architect Piero Lissoni, who is working on Oceana Bal Harbour, among other high-profile projects. He calls himself “crazier than my clients”. And in our Closing interview, we chatted with Turnberry Associates’ Jackie Soffer about what it was like growing up with the guy who built Aventura and how she unplugs from the real estate world.
Enjoy the issue!