2022 REALTORS COMMERICAL ALLIANCE SYMPOSIUM "Knowing the Market Means Knowing Success"

I moderated an all-star panel at the 7th Annual RCA Conference. A packed room of nearly 200 commercial real estate professionals enjoyed a great program featuring Kelley Smallridge, President and CEO of the Business Development Board of Palm Beach County, Leslie Deutch, Economist and Managing Principal with John Burns Consulting, and our panel.??

Our panelists included Rick Greene, Director of Development Services for the City of West Palm Beach; AJ Meyer VP of Project Development for ANF Construction Group Development, Pete Crane, Regional Director of the Southeast for Sansone; Raelin Storey, Director of Communications, Marketing and Economic Development for the City of Hollywood, and Chris Clemens, the Economic Development Manager for the City of Pompano Beach. All the panelists were bullish on South Florida but acknowledged a few headwinds on the horizon for 2023. Some of the high-level takeaways were as follows:

#1 SOUTH FLORIDA IS A FLIGHT TO QUALITY MARKET.?The panelists had concerns about the impacts of the projected 2023 economy on secondary and tertiary Florida markets. Still, they were very bullish about South Florida as a targeted flight to quality industrial and logistics market. Although they have scrapped plans elsewhere, Amazon is still bullish on South Florida.

#2 HURRICANE IAN IMPACTS MIXED. The panelists all agreed there will be short-term negative impacts due to labor and materials being spread thin to assist with the massive recovery efforts. All agreed that the Southwest market will be built back better in the long term, enhancing the region's long-term resiliency. Mid-range, most see insurance premiums increased markedly.

#3 SOME DEALS WON'T PENCIL OUT. Several instances were noted where deals that were feasible 8 to 12 months ago do not currently make financial sense. Deals are getting re-traded, and all agreed that the uncertainty about when monetary tightening will end is causing market anxiety.??

#4 CITY PLANNERS PLAY A KEY ROLE TO REDEVELOPMENT. ?We learned that Florida cities that are often thriving had a long-term vision and plan and executed that plan. Good examples are Pompano Beach, Hollywood, and West Palm Beach. The planners on the panel all agreed that collaboration with the private sector is a significant key to municipal success.

#5 MASSIVE REDEVELOPMENT IN COASTAL CITIES. Despite the headwinds, there is still enormous redevelopment underway in most of South Florida's coastal cities, even small and mid-size cities. Transit-oriented corridors are often a targeted investment. Developers and municipalities are working together to create game-changing developments that are a win-win-win for the taxpayers, city, and developer.?