If you are waiting for interest rates to drop before you sell, you might be missing the most aggressive buyer pool we’ve seen this cycle.
Right now, debt is hovering in the high 5% to low 6% range. Logically, this should stall low-cap rate acquisitions due to negative leverage. But South Florida is operating in an alternate reality.
We recently took a larger retail plaza to market with a sub-4.5% in-place cap rate and generated over 200 registered buyers in 30 days. Capital is completely ignoring the cost of debt to secure prime assets in Palm Beach and Broward counties.
In this week’s issue of Vision Into The Market:
- The Market Monitor: Massive news for landlords as property insurance costs are finally dropping, with some renewals coming in 30%+ lower. This is rapidly improving NOI and reigniting buyer activity.
- Sector Spotlight: Why the South Florida office market is defying national trends, boasting some of the lowest vacancy rates in the country thanks to massive executive migration.
- Firm Update: We recently secured $2 Million in hard money deposits across three Under Contract properties, and Partners Adam H. Klein and Elon Gerberg were just named Top CRE Influencers nationwide for the 3rd consecutive year by the CREi Summit.