CONSTRUCTION REAL ESTATE OVERVIEW
On the commercial side of things, COVID-19 will also heavily influence the future office space, with an equal injection of touchless technology, sanitizing measures, spaced out areas, improved HVAC systems and whenever possible, open air spaces. Multifamily Beginning in July 2020, the smoke from COVID had started to clear and the multifamily space proved more resilient than initially thought. A Cushman & Wakefield report found CARES Act financial aid went a long way in avoiding rent defaults, keeping delinquencies at bay in South Florida. Moreover, the value of multifamily assets also proved COVID-19-resistant as price adjustments only range within the 0-4% bracket. Therefore, those properties showcasing continuous collections and filled occupancies can expect their value to increase. Historically low interest rates, according to Cushman & Wakefield, rank multifamily developments in South Florida as the favorite residential asset investment-wise, although figures suffered through the first pandemicwracked half of 2020: 91 multifamily assets totalling $1 billion sold in in South Florida during the period, representing a 50% decrease in sale volume compared to 2019. Broward County itself underperformed in the 1H20 compared to Miami-Dade and Palm Beach. On the rent side of the business, the report posits that rent performance will be directly tied to how quickly the job market recovers and rebounds. On the vacancies front, South Florida showed mildly higher vacancies in the first half of 2020. The overall South Florida vacancy rate stood at 5.5%, a 0.6% increase compared to 2019’s 4.9%. Cushman & Wakefield attributed the higher vacancy to 7,545 new units delivered to the market in the first half of 2020 in South Florida while the net absorption rate stood at 3,178 units. Three projects in the Broward County Commission pipeline deserve honorable mentions. First, a 147-townhouse project extending over 16.3 acres by 13th Floor Homes. Second, a 0.61-acre commercial development including 30,000 square feet of commercial space by 401 Fourth LLC. Last but not least, 41 garden-style apartments in a 1.1-acre site by HUS Group LLC. Industrial The now popularized “Amazon Effect” has breathed new life into industrial real estate, and Greater Fort Lauderdale is no exception. To meet demand, especially for warehousing and distribution, new inventory is being added to the market. About 2.1 million square feet was added in the 12 months to the end of March 2021, ( )
Patricia Will Founder & CEO Belmont Village Senior Living
How do you maintain affordability for those depending on a fixed income? Affordability is an issue that we cannot solve by ourselves. Our cost structure is defined by the cost of the real estate, as well as by the cost of the operation. Sixty percent of our expenses is taken up by payroll. Interestingly, for seniors, what they earn is less important than their net worth. The increase in home values over the years has significantly benefited this demographic. How has telehealth impacted activities in the Belmont Village Senior Living facility? We took the technology we already had in the communities and put that in the hands of our residents and caregivers. At the beginning of COVID-19, we became extremely concerned about the availability in ERs and the number of seniors who typically need to go to the ER. We engaged a telehealth platform where expert geriatric doctors could triage patients in real time with our nurses, often allowing us to keep residents out of the hospital. Telehealth is one of the silver linings of COVID-19 that will stay with us. What is your vision for the project in Coral Gables? Baptist Health recognized the importance of seniors’ health and well-being and the compatibility between senior housing and senior healthcare. To help implement this vision, the hospital system sought out a capable long-term partner. Belmont Village has the development and operational experience and the commitment to be in this partnership for the long term. In Coral Gables there is a parcel of land owned by Baptist Health that is perfect for senior accommodation. There are attractive retail spaces within walking distance and a high school across the street. We are already working with the school on some collaborative projects. We are also working together on Healthy Living by Baptist, a ground floor center dedicated to health and wellness; the center will be a terrific complement for our residents and seniors throughout Coral Gables. www.capitalanalyticsassociates.com
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