With all the condo development going on east of I-95 in Miami-Dade County, what is happening in Doral?

Doral, a city of 50,200 residents, which was incorporated in 2003, is one of the strongest economic engines — and base for employers — in Miami-Dade County. This suburban city, located on reclaimed swampland located west of Miami International Airport, is known internationally for being home to numerous multinational operations, federal offices, a major golf tournament and most recently, the Miss Universe pageant.

Doral also has a reputation for offering reasonably priced housing options in Miami-Dade, aimed at primary users who are looking to live in a suburban setting near their jobs, in hopes of avoiding the area’s heavy traffic congestion.

In response to the projected demand for nearby housing, more than 9,000 new residential units  with 3,000 units currently under construction  have already been approved for this suburb, according to the city of Doral’s website. Currently, nearly 250 condo units are on the resale market in Doral at an average asking price of $214 per square foot as of Thursday, according to the Southeast Florida MLXchange.

In 2014, buyers purchased more than 320 condos at an average transaction price of $171 per square foot. A year earlier in 2013, buyers acquired more than 400 condos at an average asking price of $153 per square foot, according to the data.

Based on the 2014 sales pace of about 27 condo resales monthly, Doral currently has about 9.3 months of supply available for purchase. A balanced market is thought to have about six months of supply. More months of supply indicates a buyer’s market, and less months suggests a seller’s market.

The Doral market has an additional 191 townhouses available for purchase, at an average asking price of about $207 per square foot. Buyers purchased more than 235 townhouses, at an average price of $175 per square foot in 2014, compared to 285 townhouses at an average price of $161 per square foot in 2013. Currently, Doral has about 9.6 months of supply of townhouses available for purchase, based on the 2014 resale activity.

On the rental front, nearly 290 properties are currently available for lease at a median asking price of $1.43 per square foot monthly. Tenants leased more than 1,820 properties, at a median price of $1.36 per square foot monthly in 2014, compared to less than 1,500 properties at a median price of $1.32 per square foot in 2013. Doral currently has about 1.9 months of rental properties available for lease based on the 2014 leasing activity.

The unanswered question going forward is whether Doral has enough primary users to fill up all of the existing and new residential units that are currently available and planned for this suburban economic powerhouse.

 

Source: The Real Deal

When Scott Hardin found a home four years ago for his real estate appraisal firm, The Appraiser Guy, at Woburn’s Trade Center 128, he was pleased to settle into the “green” building.

Besides the convenient location on Route 128, the building was equipped with solar panels, low-flow toilets, and even bathroom towel dispensers that use smaller sheets of paper. The building’s advertised LEED credentials played a big part in Hardin’s decision to rent there. The LEED award – Leadership in Energy and Environmental Design – is the building industry standard for environmental and energy efficiency used worldwide and issued by the non-profit U.S. Green Building Council.

A bronze wall plaque in the lobby of the half-million-square-foot Trade Center, owned by Cummings Properties, features a USGBC logo. Posters displayed in hallways highlight the building’s green features with a logo touting “LEED Gold pre-certified,” using the USGBC name. But the office complex is not, in fact, certified for any LEED award by the non-profit group.

“It’s not?” asked Hardin, when told by a reporter who had checked the USGBC registry. “I just thought the building was.”

While Cummings uses the LEED branding in promotional material and registered the building to become certified for the award, the company decided not to continue what it considered an onerous process merely to obtain “a piece of paper,” said Dennis Clarke, the company’s president. Company officials maintain that the building was built as “green” as if it were certified by the USGBC.

LEED administrators are concerned about “a small group of developers or project owners who may take advantage of the LEED name” by using their simple registration of intention to build green as an actual LEED award, said Marisa Long, the USGBC spokeswoman. They may use it in their advertising, while never following through to get certified.

GreenLeedHowACommercialBuildingIsCertifiedGreenIn the world of building green, there may be no bigger influence than the US Green Building Council and its LEED certification, which can assure higher rents and sale prices for commercial buildings. But the New England Center for Investigative Reporting has found that limited USGBC oversight allows developers to misappropriate the LEED brand. Some use misleading advertising that can deceive renters or buyers by exaggerating a project’s LEED certification status – or by obscuring the lack of one.

“There’s a lot of gamesmanship and strategy promoting buildings as LEED-certified,” said Norm Miller, a professor of real estate at the University of San Diego. Miller helped produce a 2011 study in 14 American cities that found that buildings advertising LEED certification bring an average of 7 percent higher rents than ones without the designation. In Boston, where large-scale projects are legally required to meet LEED standards, the researchers found LEED-certified buildings command nearly double the rent of those without it.

A LEED award only goes to projects that have completed a rigorous certification process, said Long: “The only way to measure a building’s sustainability – energy efficiency, environmental features – is through certification. There’s no other way to do it. If a project is not certified to LEED standards, it’s not verified by USGBC that it’s a green building.” But, Long added, the policing of the standards – and public misunderstanding of them – is not something the council can fully control. “It’s like any trademark or any copyright – we can’t control everyone who is using our name. We can only address it when it’s brought to our attention.”

In an informal review of Boston-area developers, NECIR found eight projects – including Trade Center 128, the current home of Middlesex Superior Court – that have used the LEED brand to advertise their green features without LEED certification.

Some building owners inflate the fact that they are “LEED registered,” and some say they are “pre-certified” – but that simply means a builder has submitted green construction plans for preliminary review. Neither is an award, said USGBC officials, and one even called these designations “pretty minor.” “A lot of buildings have filed papers to become a LEED project, but that doesn’t mean they’ve completed the LEED certification process,” said John Scofield, an Oberlin College professor who has studied the energy efficiency of LEED-certified buildings and is a critic of the USGBC system. “It’s a huge difference.”

For example, in Northampton, PeoplesBank advertised the green attributes of a LEED “registered” branch for at least a year; but it did receive certification for the LEED gold award Jan. 26.

The Nantucket Dreamland theater’s website touted conflicting claims about its renovation – one that it had earned a LEED silver certification, the other that it was in the process of becoming LEED certified. When NECIR reached them by phone Feb. 3, the executive director Melissa Murphy said the certification claim was an error and she removed it.

In Braintree, the Campanelli construction company advertises three Massachusetts projects with the LEED branding, even though none is certified by the Green Building Council. “Even if you don’t have the formality of [LEED], the building is still sustainable,” said Danielle Simbliaris, the Campanelli marketing manager.

Campanelli advertises the 400 Uplands Woods Corporate Center in Norwood as LEED “registered” – but it was never built and has been replaced by an apartment building that broke ground in November. The company stretches LEED branding in wording that says its 2 Pond Park Medical office in Hingham “could have” achieved a LEED award. And it also highlights the LEED “pre-certification” of the Presidential Woods Corporate Center project in Woburn, says Simbliaris, which will not likely be built.

“There is nothing that is said here that is incorrect,” said Simbliaris. “It’s the truth, whether [the customers] understand that or not.” And that’s what LEED administrators are concerned about – as in the case of The Appraiser Guy, Hardin, who did not understand his building’s LEED status. “[W]e don’t want to dilute the LEED brand by having projects that haven’t gone through that rigorous third-party verification to be promoting it as a LEED building,” said Long.

LEEDing The Way To Green

LEED is in demand. A 2014 Turner Construction study of 300 executives found that 62 percent said it was “extremely or very likely” they’d seek LEED certification for constructing green projects, up from 48 percent in 2012.

McGraw Hill Construction reported that between 2005 and 2011 (the latest data available) the green building business grew from $10 billion worldwide to about $78 billion. And according to the latest tax records available, USGBC earned revenues of more than $74 million in 2013 – up nearly 40 percent – from $53.6 million in 2012. LEED certifications are issued by the Green Building Certification Institute, a sister organization of the USGBC, which also issues professional accreditation to about 190,000 members who do reviews of LEED award applicants.

“People who are in the US Green Building Council and people who get LEED certifications are looking for a financial edge. This is a very big money operation,” said John Scofield, an Oberlin College professor who has studied the energy efficiency of LEED-certified buildings and is a critic of the USGBC system.

Across the U.S., more than 140 federally owned or leased office spaces are LEED-certified, according to the Government Services Administration. Since 2007, Massachusetts has required LEED certification for state-owned building projects larger than 20,000 square feet. And Boston and Cambridge require some developers to ensure their projects meet LEED standards; while a handful of towns in the state encourage building to LEED standards.

In Massachusetts, there are more than 680 certified commercial properties, including hospitals and schools, according to the USGBC. (Among them is WGBH headquarters in Brighton, which hosts some offices of the New England Center for Investigative Reporting.)

Other local LEED-certified projects include UMass Memorial Medical Center’s Lincoln Street ophthalmology facility in Worcester, as well as the U.S. federal courthouse and the White Street fire station in Springfield. Worcester State University’s administration building, Worcester Polytechnic Institute’s recreation center, and Clark University’s Blackstone Hall all have LEED certifications. Local retailers also operate LEED-certified spaces, including a Stop & Shop in Springfield and a Shaw’s in Worcester.

LEED certification is a point-based system – scores increase with each feature, such as making use of sustainable materials, implementing energy and water efficiency, and taking advantage of mass transit. “What a sophisticated consumer or potential tenant needs to ask, [is], ‘What kind of certification, and what level?’” said Miller, the University of San Diego professor.

Deciding what makes a building “green” is judged by a growing number of private and governmental groups. But few have the influence of the non-profit USGBC LEED program, which has certified more than 25,000 new construction and retrofit commercial projects and government offices globally with its LEED award. “Getting LEED certification is a very long, drawn-out process that requires a lot of time and documentation with the USGBC,” said Scott Weiss, managing director of commercial development at the Burlington-based Gutierrez Company. His company’s office building at 5 Wall Street in Burlington was LEED certified in 2009.

Meaningless Logos

In the case of the Woburn Trade Center, with about 150 tenants, Clarke, the Cummings Properties president, downplayed the significance of the LEED award. After his company obtained pre-certification for the Trade Center, he said, it decided that obtaining a LEED award wasn’t worth the time.

But Trade Center advertising suggests there is value in LEED branding – it liberally uses USGBC logos on its lobby plaque and on posters around the building. Management removed custom-made USGBC logos from its website after NECIR asked questions about them. Told of the logos used by the Trade Center – which is, indeed, pre-certified by the Council – the USGBC’s Long, said an official logo for pre-certification “doesn’t exist.”

In Newton, Elaine Construction Company’s president, Lisa Wexler, removed a USGBC membership logo from her company’s website after being asked about it by an NECIR reporter last summer. The membership, which offers reduced rates on building reviews, had expired in December 2008. Wexler said its continued use was an oversight.

The Elaine website highlights the firm’s LEED experience, including eight projects it says are LEED-certified. Six are listed as certified in the USGBC database. One, Boston Coach, in Everett, is not in the council public database at all. And Elaine’s renovation of the Presentation School Foundation in Boston – touted on its website as “LEED gold,” with “pending” added after NECIR queries on Feb. 3 – is not certified, according to the database and a former board member of the school who maintains the building at Oak Square, Michael Green. But Green expects certification by March, and said the foundation needed three years to raise the $12,000 to $15,000 to pay for the certification process. USGBC would not confirm that certification is pending.

Elaine also advertises six projects that it claims haven’t sought LEED but meet its standards. The company advertises that its own office space has “the rigorous standards of LEED Gold certification,” without claiming actual certification.

It Pays To Check Your ‘Green’ Status

The USGBC’s public database is not always an accurate picture of LEED certification in Massachusetts. Abandoned projects, such as IKEA’s aborted Somerville store proposal, remain listed as “in progress” for certification. And some LEED-certified projects aren’t listed, such as Staples’ Roslindale store, which received a LEED certification in 2009.

The USGBC typically relies on project managers to provide updated data on any project registered in the LEED system, said Long. Another USGBC official said that the council has three employees and some “informal data stewards” who follow up on reports of misuse of the LEED brand. Long, who could not confirm that, did say that the organization can only investigate misuse when informed of it and would have “no reason” to track all registered projects until they’re ready to begin the certification process.

In the case of the Gutierrez Company’s office building at 5 Wall St. in Burlington, the USGBC repeatedly told a NECIR reporter that the project was never certified, even though the USBGC’s own press release said it was certified in 2009. Upon further NECIR questions, USGBC discovered that Gutierrez did achieve a LEED gold certification, but the company had not clicked an online form that would trigger notice of certification.

Gutierrez’s Weiss said he was not aware of the error until a reporter raised the issue. “We’re not typically looking up our own buildings online to see if they’re there or not,” Weiss said. “Perhaps in the future we should do that.”

 

Source: WGBH News

According to the Miami Association of Realtors, the Miami real estate market continued to perform robustly in the fourth quarter of 2014 due to increasing demand from both domestic and international buyers.

Median and Average Sales Prices Continue to Rise

The median sales price for single-family homes in Miami-Dade County increased to $246,140 in the fourth quarter, a 4.7 percent jump compared to the same period last year. The median sale price for condominiums increased 8.6 percent to $190,000 in the fourth quarter compared to a year earlier. Miami-Dade County has now seen 12 consecutive quarters of growth for both single-family homes and condominiums.

“We expect Miami home prices to continue to increase in 2015 but at a more moderate rate,” said Christopher Zoller, a 27-year Miami-based realtor and the 2015 Residential President of the Miami Association of Realtors. “Limited supply and strong demand for single-family homes is still reflective of a seller’s market. There is also strong demand for both new construction and existing condominiums, so we will continue to see price growth for residential properties in Miami-Dade.”

Nationally, the median sales price of existing single-family homes was $208,700 in the fourth quarter, up 6.0 percent from the fourth quarter of 2013, according to the National Association of Realtors.  The national median sales price for condominiums was $203,300, a 3.3 percent increase over the previous year.

The statewide median sales price for single-family existing homes in the fourth quarter was $180,000, up 5.9 percent from the same quarter a year ago, according to the latest housing data released by Florida Realtors. The median sales price for condominiums in Florida was up 7.9 percent compared to the same quarter last year at $143,000.

Compared to the fourth quarter of 2013, the average sales prices for condominiums in Miami-Dade County increased 18.5 percent to $375,269. The average sales price for single-family homes decreased 2 percent to $394,095.

Sales Continue to Rise for Single-Family Homes

Sales of single-family homes, which set an all-time record for all of 2014, increased 7.7 percent to 3,426, while condominiums decreased 3.3 percent to 3,981 compared with the same period in 2013.

There were 7,407 homes and condos sold in Miami-Dade County during the fourth quarter of 2014, an increase of 1.5 percent compared to the fourth quarter of 2013.

“Much of the increase in single-family home sales activity is due to consumer confidence,” said Carlos Gutierrez, the principal Realtor of Gutierrez Group Miami Real Estate and the 2015 president-elect of Miami Association of Realtors. “Many buyers who were staying on the sidelines are now buying. Huge gains in job growth and more solid economic indicators are resulting in more consumers returning to the housing market.”

Nationally, total existing-home sales, including single family and condo, declined 1.0 percent to a seasonally adjusted annual rate of 5.07 million in the fourth quarter from 5.12 million in the third quarter, but are 2.6 percent higher than the 4.94 million pace during the fourth quarter 2013.

Statewide closed sales of existing single-family homes totaled 62,080 in the fourth quarter 2014, up 14.9 percent over the fourth quarter 2013 figure. Statewide closed sales totaled 26,070 during the fourth quarter 2014, up 4.8 percent compared to the same period last year.

Residential Inventory Moving Rapidly Despite More New Listings

Home and condominium listings also increased in the fourth quarter of 2014. There were 5,716 new single-family home listings during the fourth quarter, a growth of 3 percent relative to the same period last year. New condominium listings increased by 4.2 percent from 7,585 in the fourth quarter of 2013 to 7,907 in the fourth quarter of 2014.

Fourth quarter active listings in Miami-Dade County totaled 17,695, representing an increase of 10.8 percent.

At the current sales pace, the number of active listings represents 5.6 months of inventory for single-family homes and 8.4 for condominiums. Compared to the fourth quarter of 2013, the months’ supply of inventory for condominiums increased 19.7 percent. The inventory for single-family homes decreased 0.2 percent compared to the same period from last year. A balanced market between buyers and sellers offers between six and nine months of supply inventory.

The median days on the market of single-family home listings during the fourth quarter was 45 days compared to 40 days during the same period last year, an increase of 12.5 percent. Similarly, the median days on the market for condominium listings were 58 days compared to 47 last year, an increase of 23.4 percent.

Percentage of Cash Sales Declines

In the fourth quarter of 2014, 55 percent of closed sales were all cash compared to 60 percent a year ago. All cash sales were 41.4 percent of single-family home closings and 66.9 percent of all condominium sales. Since nearly 90 percent of foreign buyers pay cash, this reflects Miami’s top position as a prime market for foreign buyers. Miami has a significant percentage of international buyers, generating more than double the cash transactions than the national average.

December 2014 New Construction Market Update

Strong sales in the coastal new construction condominium Miami market (east of I-95) continue to reflect significant demand for new properties, according to the latest New Construction Market Status Report released today by Cranespotters.com and the Miami Association of Realtors.

As of December 29, there were nine (9) towers with 981 units that had been completed through 2014 in Miami-Dade County east of I-95, 66 towers with 9,598 units under construction, and 73 towers with 10,554 units that are planned but have not begun development.  There are also 54 towers with 7,905 units that have been announced but not approved.

Overall in Miami-Dade County, developers had announced 202 towers with 29,038 units since 2011 through December 29.

 

Source: World Property Journal

The US Federal National Mortgage Association has announced it will provide lower interest rate loans to green multi-residential buildings.

Rick Fedrizzi, chief executive and founding chair of the US Green Building Council, commented:

“This is a great demonstration of leadership from Fannie Mae, and the partnership between the multifamily finance industry and the green building industry…This is real money and an incentive to not only build green but also for existing buildings to achieve certification. For the first time, Fannie Mae multifamily lenders will be able to reward building owners for their better buildings.”

Jeffery Hayward, executive vice president for multifamily at Fannie Mae said the organization was leading the way in financing through its low interest rate offering:

“We clearly see the value in the triple-bottom line of certified green buildings: financial benefits of lower operating costs for owners and tenants; social benefits of better quality housing for renters; and environmental benefits for everyone.”

All loans financed under the lower interest rate will be securitised as green mortgage-backed securities, growing the total volume of green bonds in the market. Fannie Mae provided $28.9 billion in financing to the multifamily market in 2014, working with lenders to finance 446,000 multifamily housing units.

 

Source Intelligent Building Today

Edge, Sushi Samba, River Oyster Bar and Fox Hole Marketplace and Deli —  are just some of the planned new eateries banking on the Miami River.

 New restaurants, retail and increased public access along the Miami River were among the highlights of a development boat tour of the five-mile-long waterfront district on Thursday.

Renderings of River Landing Project

Renderings of River Landing Project

Developers and real estate professionals toured the river as part of an Urban Land Institute and NAIOP partnership. Brett Bibeau, managing director of the Miami River Commission, said that popular restaurants Seaspice (formerly Sea Salt and Pepper), Garcia’s Seafood and Casablanca have brought business to the area.

Among the restaurants awaiting permits or under construction are Sushi Samba, at 40 Southwest North River Drive; Edge at 39 to 55 Southwest Miami Avenue Road; a new location for the River Oyster Bar at 350 Flagler Street, and Fox Hole Marketplace and Deli at Latitude on the River, 615 Southwest Second Avenue.

River Landing rendering and Andrew Hellinger

River Landing rendering and Andrew Hellinger

The Miami River has increasingly drawn interest from developers who are embracing the river lifestyle. “It’s a place that people don’t have to see as up and coming. It exists,” said Andy Hellinger, developer of the River Landing project, a massive nine-acre development that will include apartments, retail and a linear park along the riverwalk.

River Landing’s retail component will include a five-story vertical shopping center, with a different theme for each floor. Among them: restaurants and supermarkets, sporting goods and entertainment. Two acres of the project are dedicated to parks and pathways. Hellinger compared the linear park, with a 50-foot setback, to the Highline in New York.

River Landing recently applied for a seawall permit, and digging for the foundation will be complete in a few weeks, Hellinger told The Real Deal.

Cleaning up the water and building the riverwalk are both key to the area’s success. Bibeau said his organization, the Miami River Commission, sends clean-up crews to pick up trash, pressure clean and paint over graffiti. “If the riverwalk is not maintained,” Bibeau said, “it will not live up to its potential.”

 

Source: The Real Deal

Many Miami real estate investors are doing their part to ward off global warming and save energy as the city ranked high for green commercial real estate.

A new study by CBRE Group and Maastrict University ranked Miami ninth in the nation, with 19.4 percent of its commercial real estate certified as green. There are 79 buildings totaling 21 million square feet of office space with either U.S. Green Building Council LEED certification or Energy Star labels.

Given that South Florida would be among the first places in the nation to be swamped by sea level rise, that’s a helpful move.

“Miami was slow to embrace green building standards relative to cities like San Francisco and Manhattan, but has caught up quickly thanks in part to good public policy and buy-in from owners and investors who realize there is growing demand from tenants for more sustainable, energy efficient space,” said Patricia Nooney, LEED AP, who leads investor services for CBRE Florida, in a news release.

In fact, Miami’s municipal code requires all new private development over 50,000 square feet to achieve LEED Silver certification.

The study rated Minneapolis as the greenest city for commercial real estate, with 77 percent of buildings certified as green.

Since 2005, the number of LEED certified buildings has increased more than 1,000 percent nationwide.

Florida homeowners are also going green. A recent study by the USGCB ranked Florida seventh for the most LEED-certified homes, with 1,860. California was first, with 9,186.

 

Source: SFBJ

Architect ADD Inc has prepared a creative plan to preserve the historic church at 1836 Biscayne Boulevard, while adding 352 residential units and a parking garage.

1836 Biscayne Boulevard - 2Under a proposal scheduled to be reviewed by Miami’s Historic and Environmental Preservation Board, the church would be restored and retrofitted to become hurricane-resistant. Instead of a place of worship, a grocer would occupy the space.

A 34-story residential tower would be built next to the church. ‘Floating’ above the former church would be a parking garage. In total, up to 480 parking spaces are planned.

Developer Fifteen Group paid $14.25 million for the property last year. R.J. Heisenbottle Architects is working alongside ADD Inc for the developer as a historic preservation consultant.

The church is directly across the street from Atlas Capital Group’s newly proposed 429-unit residential tower at 1900 Biscayne.

 

Source: The Next Miami

Several green building trends emerged over the past 12 months that will impact commercial real estate in the United States in 2015, according to Doug Lawrence, founder and managing principal of 5 Stone Green Capital—Bainbridge, an institutional real estate company.

Lawrence serves on the investment and natural resources committees of the University of Connecticut Foundation and the advisory board of Rutgers Business School.

Here’s what he foresees for emerging trends in green real estate in the year ahead.

1. Aging baby boomers and Gen X, Y and Z will continue to move to cities, requiring more affordable housing—and expecting it to be green.

CREPredictionNo1U.S. cities are growing faster than the suburbs. Baby boomers will need urban housing that supports their health and community needs, but so will the younger generations flocking to live in urban environments. As a policy matter, this means cities will be pressured to create housing that serves a wider range of income and age demographics. Affordable housing is likely to be the target of municipal agendas throughout the country.

Green multifamily really wins within this demand picture. The ability to reduce overall operating expenses through green technology, therefore also reducing occupancy costs for tenants, should improve residential affordability. Green multifamily properties featuring optimal health designs will become increasingly attractive. These would include better air filtration systems to reduce dust, pollen and airborne pathogens that may trigger asthma; more daylighting to improve natural vitamin D production; and antibacterial countertops and doorknobs.

Expect multifamily vacancy rates to continue to fall for affordable and seniors housing sub-sectors. Absorption rates will remain solid for new multifamily construction. The 18-to-34-year-olds seem psychologically predisposed to green housing and, thanks to tight lending standards and high student loan debt, this group will not be seeking single-family homes in the near future. Thus, multifamily demand looks pretty good for 2015, and green multifamily will be the likely winner with the younger generations.

2. The anti-climate-change voices will yell even louder.

CREPredictionNo2Some naysayers will stop arguing that there is no increase in carbon dioxide (CO2) in our atmosphere. Instead, they will argue that increasing CO2 is good for the global economy because CO2 is necessary to increase agriculture. Under this theory, more CO2 in the atmosphere would mean a golden age for crop production. Green real estate investors will continue to reduce their carbon footprint under the belief that doing so increases profitability and is good for the environment as well.

3. Renewable technology, particularly solar, will continue to fall in price and improve in efficiency.

CREPredictionNo3Solar panels that can convert up to 70 percent of the sun’s light spectrum into electricity (from gamma rays to X-rays) are already in beta testing. This could be a game-changer for real estate owners, especially in the multifamily and industrial sectors, as well as for those with properties in dense urban environments in high-cost electricity states.

The cost of solar energy could fall below that of fossil fuel-generated electricity per kilowatt hour, even with the drop in oil and/or gas prices. As technology improves, real estate managers will explore new ways to provide energy to tenants and users at more efficient prices.

4. Urban resiliency and climate change will become topics for deeper discussion among policy-makers.

CREPredictionNo4Following rising average sea levels in a wide range of American cities—from Los Angeles to Galveston, Texas to New York and Boston—and more frequent and more damaging storms, cities are becoming very focused on hardening essential infrastructure.

The real estate industry may see new building codes that emphasize sustainability, as well as resiliency.

5. Utilities companies and smart developers will form partnerships for distributed generation.

CREPredictionNo5It’s getting harder and harder to build new power plants, yet we have more people for whom to provide electricity; meanwhile, business demand for electricity is increasing as the economy strengthens. U.S. power plants are not only aged, but also use incredibly large amounts of fresh water for cooling. Moreover, some experts predict that as much as 10 percent of coal-fired electricity-generating plants in the United States may be shut down over the next few years. More demand, coupled with fewer production resources, may spur real estate owners and power companies into an alliance.

The concept of distributed generation, wherein solar-powered rooftops are used to create renewable energy that feeds the grid, will become more attractive. In this way, the utility company will gain a production source to feed growing demand without having to go through nightmarish public hearings to obtain the production increase. Meanwhile, the real estate owner may see a new revenue stream, or at least a reduction in energy consumption. All in all, partnerships between developers and utility companies may reduce overall operating expenses for garages, public areas, elevators and other electrical hot points.

6. The sharing economy will continue to grow.

CREPredictionNo6Sharing economy enterprises are thriving, particularly in urban markets. Think office sharing, or even Airbnb.com. These phenomena are no longer fads, and they are changing how we think about office space, hoteling and more.

Many experts assume that the more we share, the less stress we will have on the environment, but it may still be too early to tell whether that’s true.

7. Food production will become more urban and commercial buildings’ rooftops will increase in value.

CREPredictionNo7It’s becoming less profitable to truck a tomato from California to New York and, due to the increasing demand for locally-grown produce, the term “farm-to-table” has become embedded in our vocabulary. The demand for food that is grown without pesticides, fungicides or other chemicals is increasing. We already see grocers like Whole Foods establishing hydroponic farms on their rooftops. Such production reduces transportation costs and improves produce freshness and variety. Other grocers, including Safeway, have gone green by deploying solar arrays and other renewable energy technologies on their stores’ rooftops in order to reduce peak-demand electricity charges. Large rooftops will therefore continue to find new value as non-traditional tenants begin to use them in new ways.

8. Mortgage finance and insurance organizations will consider green standards.

CREPredictionNo8As the government-sponsored entities Freddie Mac and Fannie Mae continue reviewing and improving their standards for green buildings, other mainstream lenders and insurance companies will catch up with the trend. Insurance companies will see green buildings as a way to reduce risk. Lenders will potentially see lower volatility in net operating cash flows. As the capital markets go green, so will more building owners and investors.

The Dow Jones Sustainability Index is proving that green business outperforms the non-green Dow Jones Industrials Index. Green building will mimic that outperformance and, as a result, gain momentum in 2015.

 

Source: NREI

A retail development site in Miami’s Edgewater neighborhood traded for $64 million, or $200 per square foot, to a well-known businessman.

The 7.35-acre site at the northwest corner of Northeast 17th Street and Northeast Second Ave. was previously approved as Bayview Market with 653,659 square feet of retail, a 2,047-square-foot gym/spa and 24 apartments. The seller obtained approval in 2009 but didn’t start construction.

EdgewaterMiamiBayviewMarketBDB Miami LLC and 110 Avon, a partnership between Atlanta-based BDB Realty and Redwood Capital Investments, sold the property to Rebuild Miami-Edgewater, which is headed by Richard Meruelo. The deal included $34 million of seller financing.

Meruelo was the co-founder and chairman of EVOQ Properties, which was sold in 2014 to Atlas Capital Group and Square Mile Capital Management. EVOQ was one of the largest property owners in downtown Los Angeles. He’s also part of the Cuban American Meruelo family, which has owned the Deauville Beach Resort in Miami Beach for many years.

The deal was brokered by CBRE’s Gerard Yetming, Robert Given, Zachary Sackley, Casey Rosen, Dennis Carson and Tim Gifford.

CBRE said the site could be zoned for up to 3 million square feet of development. Edgewater has a host of new condo towers rising along Biscayne Bay.

“BDB Miami is the perfect canvas for a visionary developer,” Yetming said in a news release. “Population growth for the one-mile radius around this site is forecast at nearly 10 percent over the next five years. With this acquisition, the buyer has an opportunity to capitalize on all of the new energy associated with Miami’s most transformative commercial real estate development projects.”

 

Source: SFBJ

Backers of broader use of solar energy in Florida have quietly launched a petition for the 2016 ballot that would allow those who generate electricity from the sun to sell the power directly to other consumers.

If the measure passes, solar proponents argue that it would open up Florida’s solar energy market, which has largely stagnated for years. The measure would allow business or property owners to produce up to 2 megawatts of solar power and then sell that power directly to others, such as tenants, without having to go through a utility.

Under Florida law, only utilities can sell electricity directly to consumers, though solar proponents argue that 36 states allow the practice. By removing the utilities as middlemen, the argument goes, it could help spur solar as a clean-energy alternative.

Tory Perfetti of Tampa leads Conservatives for Energy Freedom

Tory Perfetti of Tampa leads Conservatives for Energy Freedom

Led by Republican Tory Perfetti, a Tampa resident and head of Conservatives for Energy Freedom, the effort is making for strange bedfellows.

Some Republicans, including the Republican Liberty Caucus of Tampa Bay, and Democrats are teaming up to support the initiative that they say is long overdue. Environmental groups are expected to join the effort at a press conference Jan. 14.

Under the political action committee Floridians for Solar Choice Inc., backers of the amendment criticize Florida utilities as having too much control over the Sunshine State’s power. “Floridians have a right to choose where they are going to have their energy coming from,” Perfetti said.

The group started its petition drive this week but plans to make a major push over the weekend and early next week. “I think the people understand that … the power companies have been running the show in Florida for too long,” said one supporter, Rep. Dwight Dudley, D-St. Petersburg. “I’m very excited and happy they’re doing it.”

The Florida Department of State approved the petition Dec. 23 without fanfare. Perfetti waited until after the holidays to begin circulating it.

Perfetti is working with Georgia tea party leader Debbie Dooley, who has pledged to push for more solar in Florida. Dooley has successfully pressed other regulators and policymakers for more solar in neighboring Georgia.

Dooley said the reason the solar efforts have been successful in Republican-dominated areas is that opening up the free market and giving people choice is a core conservative principle. “Conservatives will be out front on this to give Floridians choice and a voice,” Dooley said. “All too often, the only voice that is heard is the voice of these very powerful and deep-pocketed monopoly utilities.”

Scott McIntyre, president of the Florida Alliance for Renewable Energy and CEO of Solar Energy Management, said the issue was about free enterprise. Prohibiting the sale of electricity from solar power owners to consumers is “stopping the growth of solar power in Florida,” he said.

Floridians for Solar Choice has significant hurdles to overcome. First, the group must gain 683,149 signatures by Feb. 1, 2016, to get the initiative on the 2016 ballot. Then, the measure will need 60 percent support to pass. Advocates could face tough opposition from Florida’s utilities, which have opposed the proliferation of rooftop solar.

Utilities have argued that as more homeowners and business put solar on their rooftops, it puts more pressure on low-income and poor residents to pay to maintain power plants, power lines and other parts of the electric grid. Others counter that constantly building power plants hurts the poor more, and say the utilities simply are worried about losing revenue.

Tampa Electric spokeswoman Cherie Jacobs said the utility expects the solar petition to be one of “many energy policy proposals that will emerge over the next few months. We will evaluate the proposal and support the ones that are fair and beneficial to all customers.”

Duke Energy Florida also said it wants to ensure any proposal benefits all customers.

 

Source: Tampa Bay Times