Jorge Perez: Miami “not yet a global city”

Miami /
Nov.November 14, 2014 03:10 PM

While participating in a panel discussion during the Urban Land Institute’s annual Miami Condo Market Symposium, Related Group CEO Jorge Perez had a sobering take on the city’s booming real estate market.

“While we are here to promote Miami, it is not yet a global city,” Perez said. “We are highly dependent on buyers from New York, Europe and South America. We have very few local buyers even for condos going for $500 a square foot.”

On Thursday morning at downtown Miami’s Epic Hotel, Perez joined fellow developers Ugo Colombo, Eduardo Costantini and Richard LeFrak, along with Douglas Elliman chairman Howard Lorber, for a discussion on the latest trends in the Miami market. Perez said Miami lacks a young, strong middle class and still has a hard time attracting Fortune 500 companies to open offices in the city.

“We have done a poor job attracting high-paying jobs in comparison to Atlanta or Houston,” Perez told the standing room only crowd. “We have a long way to go.”

LeFrak, the New York real estate mogul who is developing 1 Hotel & Homes South Beach, echoed Perez’s comments.

“I was recently speaking to the CEO of a New York financial company,” Lefrak said. “He told me all his employees over 55 want to relocate to Miami. But he doesn’t know if he can convince those under 55 to move.”

The symposium also featured a discussion with commercial lenders on the resurgence of construction financing for Miami condo projects.

Panel participant Jonathan Roth, president of Canyon Capital Realty Advisors, and Michael Wadler, vice president of real estate finance for HSBC Bank USA, noted banks and nontraditional lenders are willing to loan money to developers who have a proven track record of finishing projects and have a substantial number of presold units.


Related Articles

arrow_forward_ios
Related Group’s Jon Paul Pérez and Jorge Pérez with 600 North Andrews Avenue (Google Maps, Getty)
Related nabs $56M loan to build FATVillage affordable rentals
Related nabs $56M loan to build FATVillage affordable rentals
Teddy Sagi (Photo by Andy Paradise)
Inside an Israeli billionaire’s Miami gamble
Inside an Israeli billionaire’s Miami gamble
Related Companies' Steve Ross and Related Group's Jorge Perez (Getty)
Related-party transactions: Where do Ross and Pérez go from here?
Related-party transactions: Where do Ross and Pérez go from here?
Related Group's Jorge Pérez and Related Companies' Stephen Ross
Watch: Billionaire breakup: Related moguls split up
Watch: Billionaire breakup: Related moguls split up
Michael Shvo, Rishi Kapoor, Jorge Pérez and Eric Schmidt with 407 Lincoln Road, 1260 Washington Avenue, 120 MacArthur Causeway, Terminal Island, 944 Fifth Street and 411 Michigan Avenue (SHVO, Related Companies, Location Ventures, Guillaume Paumier, CC BY 3.0 via Wikimedia CommonsLoopNet, Arquitectonica, Touzet Studios, TECMA)
Map: Here are 655K sf of offices on tap in Miami Beach
Map: Here are 655K sf of offices on tap in Miami Beach
Lincoln Property Company’s Tim Byrne and the development site at 3450 Northwest 85th Court in Doral (Google Maps, Lincoln Property Company)
Lincoln scores $103M construction loan for Doral apartments
Lincoln scores $103M construction loan for Doral apartments
From left: Jon Paul and Jorge Pérez with 1650 NE 124 Street (North Miami Florida,
Pérez’s Related scoops up multifamily dev site in North Miami
Pérez’s Related scoops up multifamily dev site in North Miami
From left: Isaac Toledano, Teddy Sagi, Jorge Pérez and Michael Masanoff with a rendering of Transit Village (Related, LinkedIn, Rendering via Arquitectonica)
Pérez and Sagi’s Transit Village in WPB advances
Pérez and Sagi’s Transit Village in WPB advances
arrow_forward_ios

The Deal's newsletters give you the latest scoops, fresh headlines, marketing data, and things to know within the industry.

Loading...