Florida dodged a bullet with Hurricane Dorian but its real estate market could still suffer
Though Hurricane Dorian didn’t make landfall in South Florida, it heightened concerns for real estate buyers and brokers, who saw the catastrophic damage that it caused in the northern Bahamas. Brokers in South Florida say the once-Category 5 hurricane won’t have a lasting impact on buyers and sellers’ minds. But the hurricane, which hit the Abaco Islands and Grand Bahama on Labor Day weekend, is giving some buyers and sellers pause. [Source: The Real Deal]
The much-anticipated day has finally arrived: the Federal Emergency Management Agency (FEMA) has released its draft floodplain maps, which will affect how insurance rates are calculated in the Keys. Municipalities have posted online draft maps where citizens can search by address. Key West’s is found on the city website, by going to the Building Department, then “New Flood Maps” and “Draft Flood Maps.” [Source: Keys Weekly]
Since the start of 2019, WeWork’s lofty $47 billion has been a fixture of fascination — how could an unprofitable startup be worth more than 15 times its revenue? Believers of that stratospheric valuation got a reality check this week when reports emerged that WeWork’s parent company was considering halving its valuation to around $20 billion for its impending public offering. [Source: The Real Deal]
Jacksonville’s house price appreciation is ranked in the top 10 in the United States for the second quarter of business April through June. The U.S. Federal Housing Finance Agency listed Jacksonville as the seventh-best market for house price appreciation in the country out of 100 markets. Jacksonville’s house price appreciation jumped 8 percent over the previous year. Florida ranked as the 15th best state in the country for house price appreciation increasing by 5.8 percent in the past year. [Source: Florida Times Union]
South Florida’s ever-rising rents can be a pain, but a wave of new apartments may help keep rent prices from skyrocketing, according to a national survey. In a favorable sign for millennials and new arrivals seeking housing, South Florida ranks fourth nationally in 2019 apartment construction, with more than 13,000 new units coming online by year’s end. “As it usually happens, whenever the apartment supply is abundant, there’s a certain slowdown in rent growth," said RentCafe analyst Florentina Sarac. [Source: South Florida Sun-Sentinel]
› Steps away from Ocean Drive, Walgreens property in Miami Beach sells for $33 million [Miami Herald]
A high-profile property on the corner of Collins Avenue and Fifth Streets in Miami Beach has sold for $33 million, just slightly above its 2014 sales price, according to brokerage Marcus & Millichap. The seller, D & R Design District LLC, registered under real estate investor Sam Herzberg, purchased the commercial property at 509 Collins Ave. for $32 million in 2014, according to property records.
› Hurricane Dorian spared South Florida but will still cost developers and contractors [The Real Deal]
Most general contractors are back to work in South Florida, after securing and shutting down their job sites last week in anticipation of Hurricane Dorian’s arrival. While South Florida escaped the storm’s wrath, developers and contractors saw their costs rise as the days ticked by.
› Sarasota-Manatee home prices lag US growth [Sarasota Herald-Tribune]
Home prices in the Sarasota-Manatee County region continue to grow more slowly than in the state and nation. Single-family home prices increased 3.2% in July over the year in the two-county region, real estate database CoreLogic said in a new report. That lagged the gains of 3.9% in Florida and 3.6% in the U.S., where prices have cooled for 15 straight months.
› After stores move, Daytona’s older shopping centers struggle [Daytona Beach News Journal]
When Daytona Mall opened on the corner of Nova Road and what is now West International Speedway Boulevard in 1973, it was considered the hot new retail destination in town. But Daytona Mall was quickly overshadowed the next year when the bigger, glitzier Volusia Mall opened one mile to the west. Today, the city’s hottest destinations for shopping and dining are further west.
The FSU Real Estate Center presents the 25th Real Estate TRENDS Conference, a world-class forum that highlights emerging trends and issues facing the real estate industry. This annual event is organized to strengthen professional contacts and present a broad range of career opportunities to our students. To join us October 24-25, register now at FSUTrends.com.