South Florida speculators appear to be cooling their jets while the condominium boom heats up. Marcus & Millichap senior associate Jonathan Gerszberg said speculative buyers are acting more cautious, so as to determine if the market is oversaturated.
“When somebody announces 1,300 or 1,500 new units in a market, it actually has a cooling effect on everybody else,” Gerszberg told the Daily Business Review. “If you’re the guy that’s coming a little later, they might want to hold back a bit.”
Gerszberg and colleague Ryan Shaw brokered the sale of a $7.6 million lot on Biscayne Boulevard in Miami, asking $205 per square foot. Although there was a lot of interest, developers were more hesitant than usual, Gerszberg said. [Daily Business Review] — Mark Maurer