Is Downtown Miami About To See Retail Overload?

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About 2.3 million square feet of retail space is set to deliver in Miami by 2018. What will a massive influx of retail supply mean for the overall market?

Jason Shapiro, managing director at Aztec Group, has some opinions. First, he tells GlobeSt.com, it’s noteworthy that the vast majority of that space—approximately 1.4 million square feet—is located within Brickell and Downtown Miami with major mixed-use projects such as Brickell City Centre, Miami Worldcenter and Met Square fueling this new development. That’s according to a Miami Downtown Development Authority.

“While the delivery of over 2 million square feet of retail space by 2018 may sound like a huge number, it is not necessarily an oversupply,” Shapiro says. “Historically speaking, the Miami’s Central Business District has been underserved in terms of access to high quality, international retail brands.”

As Shapiro sees it, substantial residential growth in the Downtown Miami area, along with organic employment growth and increased visitation, have all contributed to improved retail fundamentals. The DDA report found that over 30% of tourists to Miami in 2014 visited the downtown area. That’s a record-breaking number.

“As our city’s demographics evolve and neighborhoods such as Downtown Miami and Wynwood continue to build up and grow more sophisticated, the stronger market fundamentals support the fact that the additional supply will meet demand,” Shapiro says. “Most of the new product coming down the pipeline is luxury, high-street retail that will serve new demographics that live and work in those key urban areas.”

 

Source: GlobeSt.

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Miami Named Top 10 Most Expensive City In The World For Rents

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A new study by commercial real estate firm CBRE says that rents in Miami are among the most expensive in the world.

Miami’s average monthly rent of $1,868 places it tenth out of 35 global cities studied. Rents in Miami are also increasing quickly, with the seventh fastest rate of growth worldwide last year.

Overall, investors in Miami are said to be earning an overall yield of 2.6$ – second highest in the world.

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CLICK HERE TO DOWNLOAD THE CBRE GLOBAL LIVING 2016 REPORT

 

Source: The Next Miami

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Competition Could Drive PACE Program Prices Down, Boosters Say

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Costs could start to fall for Florida consumers who want to finance energy efficiency improvements with no money down and no credit check.

That’s the optimistic view from Paul Handerhan, a principal of the new Fort Lauderdale-based company, Clean PACE Inc., created to promote and certify program providers in the Property Assessed Clean Energy program.

Over the summer, four providers reached agreements with Broward County to offer property owners countywide the opportunity to finance a wide variety of energy efficiency and storm hardening improvements. Palm Beach County is working out details and expects to finalize agreements by early 2017, Handerhan said.

“Having them compete against each other, ultimately we’re going to see better consumer protections, interest rates and contractor controls,” Handerhan said. “We’re seeing that now. PACE providers are starting to get somewhat competitive in their offerings in order to gain market share.”

Unlike traditional loans, repayment is set up as an assessment on the owner’s property tax bill, and the loan can be transferred to a new owner when the property is sold. Homeowners with mortgage loans can have the repayments rolled into their monthly mortgage bills.

Eligible projects include solar energy systems, new roofs, new hot water heaters, new air conditioning units, upgraded insulation and impact-resistant windows and doors. Customers see cost savings right away as utility bills and homeowner insurance bills fall, supporters say.

Renew Financial, approved on June 14 to offer PACE financing programs countywide in Broward, officially launched its program in Florida.

Cisco DeVries, the company’s CEO, said his business recently certified 150 Florida contractors for PACE programs and is ready to market the program to homeowners throughout Broward and many cities in Palm Beach and other counties.

“Already, the company has hundreds of thousands of dollars in approved contracts with Florida homeowners, many of whom can’t afford upfront costs for expensive improvements,” DeVries said, adding, “We help them knock down those barriers. Formed in 2008 in California, the company completed more than $300 million in residential PACE projects in the state over the past two years. It’s growing very quickly. We signed contracts for more than $49 million in projects in August.”

Interest rates for financing through Renew Financial range from mid-6 percent to low 8 percent, depending on the size and term of the financing, among other factors.

“Assuming interest rates remain low overall in the financial world, consumers could see competition driving rates lower,” DeVries said. Competition is good for consumers and good for cities and counties they serve. Our approach is to encourage multiple PACE providers in cities so everyone benefits. But it’s critical for the programs to have strong rules — clear disclosures to consumers and protections for everyone involved so this continues to evolve.”

The other PACE providers approved to compete countywide are Ygrene Energy Fund, which pioneered the concept in the South Florida market over the past year; Renovate America; and Florida PACE Funding Agency.

Handerhan predicted the PACE market could see some companies offering interest rates as low as 5.9 percent regardless of the loan term. Also, some might seek an edge by lowering origination fees, which tend to be slightly higher than traditional financing.

“Those higher fees come with benefits borrowers don’t get from traditional financing,” Handerhan said. “If I go to a bank and borrow $10,000, I’m kind of on my own at that point. If the contractor walks away, I owe that $10,000 regardless. With PACE, the provider manages every step of the process, including pulling permits and certifying the contractor. The customer only signs off at the end of the process.”

 

Source: SunSentinel

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Florida Primary Voters Give Green Light To Solar Tax Break

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Primary-election voters approved the expansion of a renewable-energy tax break that backers say will help businesses and spark the expanded use of solar energy in Florida.

But while the measure had support from an array of groups, they are divided on an unrelated solar amendment on the November general-election ballot that could lead to a major political fight.

The proposed constitutional amendment approved Tuesday was known as Amendment 4 and was placed on the ballot by the Legislature. It is designed to extend a residential renewable-energy tax break to commercial and industrial properties.

Shortly after the polls closed, the measure was more than 10 percentage points above the required 60 percent threshold needed for approval of constitutional amendments. The preliminary results indicated that the measure, which backers say will spur growth in solar and renewable energy, was supported in almost every county.

“The strong showing of support for Amendment 4 sends a clear message to elected officials at all levels of government that Florida voters want more diversity in our energy market,” said Sen. Jeff Brandes, a St. Petersburg Republican who sponsored the proposal during the 2016 legislative session.

Though approved by voters, the measure still needs the Legislature to enact the changes. The measure, sponsored in the House by Rep. Ray Rodrigues, R-Estero, and Rep. Lori Berman, D-Lantana, will exempt for 20 years the assessed value of solar and renewable-energy devices installed on businesses and industrial properties.

“Eliminating high tax barriers will unleash the potential of the ‘Sunshine State’ to become a leader in solar energy production,” Rodrigues said in a statement.

“The election results allow Florida to enter a new era where renewable energy can be accessible for all, and clean energy jobs can be at the forefront of Florida’s economy,” Berman said.

Voters approved a similar exemption for residential property owners in 2008, with the measure taking effect in 2014.

The new proposal also has an element to help residential property owners, as it would exempt all renewable-energy equipment from state tangible personal property taxes.

Support for the measure came from a wide range of organizations such as the Florida Retail Federation, the Florida Restaurant & Lodging Association, the Florida Petroleum Marketers and Convenience Store Association, the Florida AFL-CIO, the Nature Conservancy, the Sierra Club of Florida and Surfrider Foundation.

A poll released last week by the Florida Chamber of Commerce showed 70 percent of Floridians supported the proposal, with 14 percent opposed. Yet on Friday Mason-Dixon Polling & Research released findings that indicated the measure was having serious trouble with Republicans and independent voters.

Some late opposition to the measure came from groups such as the Orlando-based political action committees Stop Playing Favorites and the Advocacy, Action & Accountability Alliance, which claimed the amendment would provide “millions in tax breaks to big corporations” at the expense of money that would otherwise flow into minority communities.

Backers of the measure also had to overcome some confusion that the proposal was linked to a separate utility-backed solar proposal on the November ballot.

With Tuesday’s victory, supporters of Amendment 4 are now expected to divide up on what is known as Amendment 1 in November.

Stephen Smith, executive director of the Southern Alliance for Clean Energy, said his group is ready to immediately “pivot” from having supported Amendment 4 to vocally opposing Amendment 1.

“What Amendment 1 does not have is the support of a broad, very diverse, grassroots coalition,” Smith said. “It is exactly what it is, a utility-backed, utility-funded, self-promoting approach to try to keep a monopoly control on their terms.”

The November “Consumers for Smart Solar” initiative would generally maintain the status quo in allowing Floridians with solar equipment on their property to sell energy to power companies.

More than $15 million has already been spent promoting the November amendment.

 

Source: Daily Business Review

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