The Start of a New Cycle? Shovels Being Sunk in Miami by Foreign Developers
Bloomberg reports: After several years of draught, commercial property development may begin to pick up again this year, and is likely to include a more diverse mix of players, including a number of oversees firms. In order to fill a large municipal budget deficit this year, the City of Miami has recently engaged with Asia-based developers to construct two major projects that will generate millions in permit fees and property taxes, once built. The Mayor of Miami, Tomas Regalado, courted both Hong Kong-based Swire Pacific Ltd and Genting Malaysia Berhad to spur the city’s development activity.
Bloomberg recently suggested that development might reemerge during the coming year, as existing property sales have increased over the previous 12 month period and foreign buyers’ interest in US property has rapidly returned as well. Cross-border buyers have purchased nearly $450 million in US commercial real estate during the first six months of 2011, according to data aggregated by Real Capital Analytics (RCA). This preliminary total is remarkable in comparison to the just-$48 million in cross-border sales tallied during the same period last year.
Regarding the news of a new development cycle being kicked off in Miami, RCA’s Ben Carlos Thypin told Bloomberg that foreign buyers are being lured to the US by a comparably weak local currency and commercial property prices, and added that, “The large-scale projects indicate the interest to stay in the market a significant amount of time.”
For more information on this nascent spurt of activity that may be dependent on the health of the US’ macroeconomics, please see the full article on Bloomberg’s site.
View the full article on Bloomberg: The Start of a New Cycle? Shovels Being Sunk in Miami by Foreign Developers
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Posted by: Nina Turner