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New York Real Estate Market: Co-ops Struggle, New Developments Forced, Brooklyn Triumphs

By Columbus International,11 October 202311 October 2023

The decline in New York home sales has left virtually no one in the real estate industry unscathed, with particular areas of the city’s market experiencing the most acute pain. Despite the seasonal increase in property listings this fall, the market won’t escape the grip of the low-supply environment that has kept prices high, even as mortgage rates have surged, further dissuading potential buyers. For instance, on Staten Island, new property listings in August saw a 17 percent drop, and inventory plummeted by 37 percent compared to the previous year. Simultaneously, the median price rose by 3 percent, and the days a property spent on the market increased by a staggering 50 percent, as reported by the Staten Island Board of Realtors. “These are challenging times for the real estate market,” stated Sandy Krueger, CEO of the organization. “But challenges also create opportunities for those who remain attentive to the market’s signals.”

Here are three key signals to watch as the fall selling season gets underway:

Co-ops: The Losers
Co-op properties were already facing difficulties before the increase in mortgage rates impacted sales. Cheaper co-ops have been particularly affected by the rising rates. Buyers in recent years had become increasingly discouraged by the antiquated rules and bureaucracy of co-op boards. Now, with higher mortgage rates, homebuyers on the lower end of the income spectrum find themselves priced out due to co-ops’ stringent debt-to-income and post-close liquidity requirements. Just a year earlier, a couple earning $240,000 annually could borrow $600,000 for a co-op valued at $750,000 and successfully pass a board application. However, in today’s market, this is no longer possible. This situation is striking, considering that $240,000 is roughly three times the area’s median income in New York City, and $750,000 often represents the starting point for homes in many neighborhoods. Monthly charges are also rising in many co-op buildings due to Local Law 97, which caps greenhouse gas emissions in larger buildings, and Local Law 11, which mandates facade inspections and repairs for buildings taller than six stories every five years. This, in addition to rising rents, makes it increasingly challenging for lower-end and first-time buyers to enter the market.

New Development: The Losers
Developers who had been waiting for a more favorable economic climate before launching their projects may now be compelled by their loan terms to list properties this fall. Projects with units lingering on the market may be forced to offer price reductions. Developers have pre-payment milestones with their lenders and can no longer delay their projects. While some units were overpriced for the current rate environment, others missed the post-lockdown market boom due to supply and labor shortages. For instance, the last available penthouse at One Clinton Street in Brooklyn Heights recently sold for $8 million, down from the original asking price of $10.2 million. An opportunistic buyer’s broker can search for older properties that may have been overlooked, presenting an excellent investment opportunity in the city.

Brooklyn: The Winner
Brooklyn’s real estate market has remained strong throughout the year, a trend that is expected to continue into the fall. Brooklyn has been outperforming Manhattan in terms of market expediency, primarily due to the demand for more space and outdoor living. Brooklyn has been growing into a primary market for years, a trend that accelerated during the lockdown period of the pandemic. Buyers sought to avoid high-rise elevators, subways, and crowded streets. Although transit use has mostly recovered, the shift towards Brooklyn shows no signs of slowing down. “The trend for Brooklyn has been on fire,” remarked UrbanDigs founder John Walkup.

Source: TRD

Repurposing Office Buildings: American Universities’ Novel Approach to Campus Expansion

By Columbus International,11 October 2023

In an unexpected trend, colleges and universities across the United States have found a unique solution to their campus expansion needs by repurposing vacant office buildings. This innovative approach allows educational institutions to acquire office spaces at attractive prices in a sluggish real estate market and subsequently adapt them for academic use. However, while it effectively addresses their need for additional facilities, it doesn’t alleviate the broader problem of empty office spaces, which has been exacerbated by the shift to remote work during the pandemic.

A New Approach to Campus Expansion
For colleges and universities in the United States, acquiring office buildings has become an increasingly popular means of expanding their campuses. The availability of such spaces at bargain prices, attributed to a sluggish office market, makes this approach particularly appealing. The renovations required to adapt these structures for academic use are typically less costly and time-consuming than constructing new buildings from the ground up.

A Sluggish Office Market
While this creative approach serves the purpose of academic expansion, it doesn’t mitigate the underlying issue of a sluggish office market. The COVID-19 pandemic has drastically reduced the demand for office spaces, with the nationwide office availability rate exceeding 24%. This increase from 17% before the pandemic reflects the reduced demand for leased office space, forcing property owners to grapple with this surplus. Some office buildings have lost so much value that mortgage-holding banks have taken control of them.

Government Initiatives
In light of the current environment, there is growing interest in converting office buildings into residential spaces to address the national housing shortage. However, this transition involves overcoming various regulatory and architectural hurdles, such as rezoning for residential use, kitchen and bathroom installations, and ensuring access to natural light.

College Diversification
Colleges and universities have explored a range of real estate diversification options. In response to the increasing demand for on-campus accommodation and the limited availability of dorm space, some institutions have even ventured into acquiring hotels. However, the low costs of office buildings have proven particularly attractive to many institutions, even when they do not have an immediate use for the space.

Various Case Studies
Several institutions have embarked on this novel approach to acquiring office buildings. For instance, the University of Southern California purchased an office building in Washington, D.C., to serve as an immediate satellite campus. The University of Louisville was even offered an office building for free by Humana, a health insurance company. While these acquisitions benefit the institutions, they can also have implications for towns and cities, as colleges and universities typically do not pay taxes on their academic buildings and dorms, effectively removing these properties from tax rolls.

Overcoming Challenges
Repurposing office buildings for academic use comes with its own set of challenges. For example, buildings designed for office work may not have sufficient ceiling height to accommodate the ductwork required for improved ventilation, and large floor plans can make ensuring natural light in every classroom a challenge. This transformative approach to campus expansion showcases the ability of educational institutions to adapt and evolve within a changing real estate landscape. These creative solutions help universities grow while providing opportunities for towns and cities to revitalize downtown areas and bring life to quiet districts that have suffered due to remote work trends.

Please note that the information provided is based on The New York Times article.

Trump Looks for Information Regarding the Future of His Family’s New York Real Estate Holdings (Wall Street Journal)

By Columbus International,11 October 2023

According to The Wall Street Journal, Donald Trump’s legal team has sought clarity from New York State Supreme Court Justice Arthur Engoron regarding a ruling that could potentially strip the former president of control over part of his real estate empire.

Justice Engoron recently ruled in a civil case brought by New York State Attorney General Letitia James, stating that Trump and his company had committed fraud by falsely valuing his properties. This ruling could significantly impact the Trump family’s business entities, potentially affecting hundreds of entities, including real estate assets like Trump Tower. The judge has ordered the cancellation of legal certificates that permitted these entities to conduct business in New York and instructed both parties to identify a receiver to oversee their dissolution.

This decision could also affect trial proceedings set to begin on Monday, where further allegations of fraud will be addressed. Trump’s lawyers have sought clarification on the ruling’s impact, including whether affected properties will be sold or managed by the receiver. James’ lawsuit alleges that Trump inflated his net worth by falsely valuing his properties, potentially impacting his ability to obtain favorable bank loans. In addition to canceling business certificates, James has sought $250 million in penalties. Trump has accused James of pursuing him for political reasons, arguing that asset valuations are subjective and that no one suffered financial harm.

Canceling business certificates is a drastic remedy, typically reserved for cases involving illegal enterprises or fraudulent schemes. The ruling effectively bars Trump from transacting business in New York, potentially affecting his financial interests within the state, though the fate of his out-of-state assets connected to New York-based corporate entities remains unclear. Despite its potential financial impact, Trump’s business focus has shifted away from New York over the last two decades, emphasizing deals in other states and countries.

Many New York buildings bearing the Trump name have been renamed due to his policies and persona’s unpopularity among New York voters. The Trump Organization’s last significant deal in New York City was a hotel and condominium development in Soho, which underwent a name change in 2017 amid controversy.

Redefining Luxury Living: Branded Real Estate’s Ascendance in Miami and Beyond (Source: The New York Times)

By Columbus International,11 October 2023

Exploring a 10-mile stretch along the enchanting Miami coastline reveals a plethora of opulent shopping opportunities. However, it’s not haute couture or luxury cars that shoppers are taking home with them; they are securing homes with prestigious labels. The market for branded real estate is experiencing an impressive surge. According to a report by Knight Frank, global real estate consultants, the demand for luxury condominiums bearing renowned names is expected to grow by 12 percent annually until 2026. Just as purveyors of blue jeans and handbags have long recognized the allure of a prominent label, property developers now understand its significance. In virtually every major city, prospective homeowners can peruse residences offered by well-known hospitality brands such as Four Seasons, Aman, and Ritz-Carlton. Surprisingly, more unconventional brands are now venturing into this trend, with luxury car and fashion couture companies eyeing condos as their next frontier. In the tranquil enclave of Sunny Isles Beach, nestled within Miami-Dade County, some of the prominent towers boast illustrious names like Porsche Design Tower, Residences by Armani Casa, and the upcoming Bentley Residences. By 2026, the Bentley Residences will soar into the sky, featuring an exterior adorned with recessed glass in Bentley’s iconic diamond-in-diamond quilted design, instantly recognizable to aficionados of the esteemed British automaker. All of these remarkable developments share a common visionary: Gil Dezer.

For over a decade, he has been quietly placing his bets on this moment, expanding his brand partnerships as Miami’s real estate values continued to climb. “Today’s automobile brands aspire to be more than just cars; they aim to establish themselves as lifestyle brands,” remarks Mr. Dezer, who first joined forces with Porsche in 2012. “This sentiment extends to everything, from golf clubs to sunglasses, and we were fortunate to be at the forefront of this evolution in real estate.” The New York Times reports that Mr. Gil Dezer, the scion of the Dezer Development empire in South Florida, has played a pivotal role in marrying two seemingly disparate worlds: real estate and automobiles. The Dezer Development, owned by his father, Michael Dezer, commands an impressive presence, boasting ownership of nine towering structures sprawled over nearly 30 acres of prime Miami oceanfront real estate. Simultaneously, Michael Dezer is renowned as a zealous car collector, housing a staggering fleet of approximately 1,800 vehicles, many of which are exhibited within his privately owned automotive museum. In contrast, Gil Dezer’s personal collection, totaling 32 cars, is relatively modest. Nonetheless, he wholeheartedly embraced the family business, standing at the intersection of two passionate pursuits: real estate and cars. While the Armani brand may seem a tad unusual in this context, the concept of auto-branded buildings harmonizes seamlessly with Dezer Development’s vision.

The Dezer family has already carved a niche in branded real estate, with Gil Dezer being the first developer to secure a licensing agreement with Donald Trump. This collaboration resulted in the construction of six Trump-branded towers. Notably, Mr. Dezer openly supports the former President, even choosing to hold his wedding ceremony at Mar-a-Lago in 2007. However, the early 2010s marked a change of course for the company when they ventured into a licensing agreement with Porsche, a pioneering move for the company. Mr. Dezer recognized that for the project to thrive, he needed to think beyond conventional boundaries. “Porsche doesn’t exactly correlate with real estate,” he remarked. The Porsche Design Tower, which broke ground in 2014 and welcomed residents in 2017, exudes the same sleek, high-octane masculinity that characterizes the car shows Mr. Dezer frequented as a child with his father. The building itself lacks a dedicated pedestrian entrance. Instead, visitors are greeted by a graphite-hued archway bearing the inscription “Porsche Design” in the iconic Porsche 911 font. Upon arrival, residents can either park and enter the airy lobby adorned with the same bronze, red, and black hues as Porsche’s logo or opt for a more unique experience: driving their vehicles into the building via the patented car elevator known as the “Dezervator.” This innovative elevator, which conveniently deposits cars behind a glass wall in front of each unit, was heralded by Stefan Buescher, the CEO of Porsche Lifestyle Group, as a standout feature. He stated, “It was a natural continuation to transfer our unique design principles to the world of real estate.”

Creating the Porsche Design Tower was a substantial financial investment, with Mr. Dezer allocating $480 million to the project. Of this considerable sum, he estimates that roughly ten percent was dedicated solely to the creation of the Dezervator. Nonetheless, he views this expenditure as entirely justified. Initially, the idea stemmed from the notion of parking a Porsche, Lamborghini, or Bugatti in one’s living room. However, the concept evolved, with buyers increasingly attracted to the privacy that these units offered, circumventing the inconveniences associated with condo living, particularly for prominent individuals. The allure of brand recognition played a pivotal role in attracting buyers like Juan Pablo Verdiquio, a Miami-based real estate developer. In 2017, he acquired a three-bedroom unit in the Porsche Design Tower. His roster of neighbors now includes iconic figures like Lionel Messi, Alicia Keys, and Swizz Beatz.

With a personal penchant for Porsche cars, which extends to his Taycan and his wife’s Panamera Turbo, Mr. Verdiquio viewed this condominium as a symbol of quality in Miami’s competitive real estate market. “There are thousands of new apartments built each year here, so going with a brand I knew felt like a way to preserve the long-term value,” he explained. “From a financial sense, I really liked that it was branded with Porsche.” Carlos Rosso, a luxury Miami developer, observes a growing trend among homebuyers who are increasingly swayed by the logic that brand association elevates the value of their real estate investment. “We are all in the same market for buyers, and we are all trying to differentiate our products,” he noted. “Every residential building needs to tell a story, and branding is a way to not have to explain what a building is all about. You’re associating yourself with a brand that’s already familiar.” As the head of Rosso Development, Mr. Rosso is currently focused on The Standard Residences, Midtown Miami, a 12-story condominium tower that aims to captivate buyers by harnessing the distinctively audacious ambiance of the Standard Hotels. These hotels are perhaps best known for their West Hollywood iteration, where lithe, sun-kissed models lounged in a plexiglass box behind the front desk.

In 2014, Mr. Rosso joined forces with Mr. Dezer on Residences by Armani Casa, a 56-story condominium tower located in close proximity to the Porsche Design Tower. This opulent building, which opened its doors in December 2019, reflects the design sensibilities of the legendary Giorgio Armani himself. From the tapestries and textiles to hand-selected furnishings, every detail exudes an opulent femininity. Muted floral wallpaper, curved furnishings in taupe and gold – it’s a stark contrast to the Porsche Design Tower’s millionaire-meets-man-cave vibe, with its sharp edges and bold primary hues. Turning his focus to the upcoming Bentley Residences Miami, Mr. Dezer anticipates breaking ground later this year on the site of Miami’s Thunderbird Motel, a historic structure from the 1950s that was demolished in June. This 62-story oceanfront building is poised to elevate the luxury experience by featuring four Dezervator elevators, garages capable of accommodating three to four cars, and private outdoor swimming pools attached to each of the 216 units.

Ocean-view residences will also boast outdoor showers. Common areas will include a Macallan Whisky Bar, a restaurant by Todd English, and a cigar lounge. Units are priced between $5.5 million and $35 million, catering to those seeking an exclusive and distinctive living experience. Ian Reisner, Vice President of Dezer Development, emphasizes the unique nature of these offerings. “People are looking for something unique,” he noted. “There’s not a million Porsches up and down the block — there’s only one. Now we’re going to do even better with Bentley.” For serious car collectors desiring to merge their passion for automobiles with luxury housing, Miami presents several alluring options. The Aston Martin Residences, located in downtown Miami, is a prime example. Currently under construction and scheduled for completion by the end of the year, this 391-unit development is nearly entirely sold out. The 66-story tower boasts a distinctive, gleaming curved sail shape, with units starting at $6.5 million and ascending to $59 million for the triplex penthouse, which includes a rare $2.3-million hypercar, the Aston Martin Vulcan.

The development touts itself as “A car made into a skyscraper,” aiming to embody a timeless, James Bond-approved zeitgeist. According to the developer, German Coto, it will be appreciated by those who value a unique luxury lifestyle. This trend is not confined to Miami alone. On Jumeira Bay Island in Dubai, the Bulgari Lighthouse, a 27-story tower with a distinctive undulating facade inspired by coral, is under development by the luxury watchmaker Bulgari. Lamborghini, which previously attempted a branded residential property in Dubai without success, is now making a renewed effort with planned developments in Egypt, Brazil, China, and Spain. Renowned Lebanese fashion designer Elie Saab has lent his design expertise to residences in London and Dubai, while the late Karl Lagerfeld’s iconic design sensibilities are reflected in five villas on Marbella’s Golden Mile. All these developments, according to Clelia Warburg Peters, Managing Partner of Era Ventures, a tech-based real estate venture fund, cater to the wealthy elite and reflect the notion of living in name-brand playgrounds. As the housing market remains competitive, this trend is expected to gain further traction.

“We’re living in a new Gilded Age, and there’s a lot of rich people,” she observed. In the past, prime location was the primary way to differentiate high-end assets. However, with prime locations becoming increasingly limited, developers should not be surprised if more unconventional brands endeavor to carve their niche in the residential real estate arena. “I don’t think anyone wants to live in the Coca-Cola building,” Ms. Peters mused. “But would I be surprised if Restoration Hardware introduced their own line of homes? Absolutely not. This is one of the most significant areas of growth in the real estate industry.”

Florida’s Real Estate Market Thrives Amidst Wealth Migration (Source: New York Post)

By Columbus International,10 October 2023

South Florida is experiencing a period of remarkable growth. In downtown Miami, ground is being broken for what will become Florida’s tallest office tower, boasting 1.5 million square feet of space, yet to be occupied by firms that have no prior presence in the state. Additionally, condo towers with prestigious St. Regis and Waldorf-Astoria branding are in the works for the same area. While their completion is several years away, the units that are yet to be built have already been predominantly reserved with buyer deposits. This phenomenon isn’t limited to Miami alone. Further north in West Palm Beach, the arrival of financial giants such as Goldman Sachs and BlackRock has driven office rents to record highs during the second quarter of this year. New workplaces offering private terraces and access to yacht charters are now rising along the city’s waterfront, while developers plan condos to accommodate the influx of future employees. Nick Bienstock, CEO of New York City office landlord Savanna, commented, “We’ve got four or five thousand people coming to West Palm Beach who have not yet arrived.” In a bid to capture a share of this market, Savanna is making its inaugural investment in Florida – a 275-unit condo development known as Olara – as part of the larger initiative to build 3,000 new homes across West Palm Beach.

More than three years into a massive migration of both money and people to the Sunshine State, Florida’s property market continues to outperform nearly all other regions in the US. What initially began as a warm-weather haven from pandemic restrictions has now evolved into a destination catering not only to the current influx of professionals but also doubling down on the premise that even more are yet to come. According to Ken H. Johnson, a housing economist with Florida Atlantic University’s College of Business, “The old, 1980s Florida is disappearing. We’re just not getting those retirement-community, fixed-income folks we used to. We’re getting people with significant incomes, and they’re usually bringing work and jobs with them.” Indeed, Florida ranks as the No. 1 destination for professionals aged 25 to 36 earning at least $200,000, as per a recent report by financial advisory SmartAsset. Crucially, high-earning individuals relocating to Florida have outnumbered those departing by more than three-to-one in recent years. Along with youth and job opportunities, newcomers are arriving with significant cash reserves, purchasing homes in a state where supply simply can’t keep up with demand.

As a result, the Florida real estate market consistently ranks at the top of various superlative lists. For example, of the 10 most overpriced housing markets in the country, seven are located in Florida, according to a monthly analysis co-published by Prof. Johnson. This means that Florida buyers are paying the highest premiums for their homes nationwide when compared to price averages over the past 27 years. In August, Miami’s median home price rose by 14.6% year-over-year, according to brokerage Redfin, and Fort Lauderdale saw a 5.3% increase – all while downtown Fort Lauderdale’s population has surged by 80% since 2010. These spikes in property values coincide with declines in other much-hyped “boom-towns” of the pandemic era. For instance, home prices in Phoenix fell by 2% in August, Fort Worth dropped by 2.7%, and Austin, which previously ranked at the bottom of Redfin’s price growth list, plunged by 7%. To make matters more concerning, these numbers follow double-digit corrections in both Phoenix and Austin just a few months prior. Eli Beracha, director of the Hollo School of Real Estate at Florida International University, remarked, “Texas is different from Florida even though both are identified as tax-free states. Florida is viewed as a tropical vacation place – where you can also live. People just don’t go on vacation to Dallas.”

During the pandemic, Florida received the largest influx of wealth in the US. In 2021 alone, newcomers boosted the state’s taxable income by $39.3 billion, which is more than three times the amount that second-place Texas saw, according to the Economic Innovation Group, a DC-based think tank. Census data released in September suggests that this growth will continue. Florida’s population grew by 2.13% – the highest jump in the US – between 2021 and 2022. Jonathan Miller, president of real estate appraisal firm Miller Samuel, stated, “Florida is being reset and restructured in a way that no one else is.” What sets this current cycle apart is that it’s happening without the massive international demand that fueled previous Florida housing and population booms. So, what is driving it instead? “New Yorkers are the new foreign buyers,” Miller noted, referencing the nearly 130,000 Empire State residents who relocated to the Sunshine State in 2021 and 2022 alone. Many of these new residents split their time between cities while making Florida, a no-income-tax state, their primary residence. Consequently, there’s a boom in furnished Miami condos designed for owners to easily rent out while they’re away. Florida’s appeal to northerners is evident. Frustrated with big-city crime and quality-of-life issues, and enticed by tax benefits and the prospect of beachfront home offices, the state provides a ready-made solution to many of urban America’s most pressing problems. Nitin Motwani, managing partner of Miami Worldcenter Associates, the master developer of the 27-acre Miami Worldcenter district, a $6 billion project spanning 10 city blocks, remarked, “It’s just a different way people are choosing to live, and Miami is a big beneficiary of that.” Motwani shared that he regularly receives calls from executives seeking logistical assistance for their move south. “Sometimes it’s just questions like ‘Where should we look?'” Motwani said. “Other times, it’s discussions about talent, or ‘Can you connect me with another C-suite executive who has made the move?'”

This guidance is in high demand. According to media reports this year, top Miami-area schools have become so crowded that billionaire newcomers are literally writing multimillion-dollar “charity” checks to secure placements for their children. From every angle, Florida’s real estate market is outperforming expectations. While this may benefit investors, the lack of affordable housing has become a concern for policymakers, who are striving to incentivize the development of more reasonably priced apartments. A recent report by the Florida Policy Project reveals that over 1 million residents statewide are spending more than 50% of their income on housing. Rising homeowners’ insurance premiums are only exacerbating the problem. According to a recent study by the Florida Apartment Association, Florida will need approximately 500,000 new housing units by 2030 to alleviate costs and meet future demand. Not surprisingly, Florida’s housing shortage has translated into some of the highest price increases in the nation. Miami’s median home and condo prices have climbed by 64% since mid-2019, according to Miller Samuel. In comparison, Los Angeles saw a 14% increase during the same period, and Manhattan even experienced a 1.2% decline. Price gains were robust outside Miami as well, with a 62% increase in Boca Raton and a 59% jump in Delray Beach. In finance-focused Palm Beach, residential property has been turbocharged by the pandemic, rising 141% since the second quarter of 2019, according to Miller Samuel. While prices are beginning to stabilize, this year has already seen at least five homes trade for over $50 million, including a $155 million compound sold by the widow of Rush Limbaugh. “Forty years ago, Palm Beach was a place where old people went for their last few years, and that’s absolutely not the case now,” noted Savanna’s Bienstock.

Similar to residential developers, commercial property investors are also helping South Florida maintain its real estate edge, pouring more than $63 billion into the three regional counties in 2021 and 2022, according to data by MSCI Real Assets. In Miami, New York’s Related Cos and Swire Properties are making the highest-profile bet yet that Miami’s ongoing influx of human and economic capital is both permanent and continuous. The developers are currently constructing Florida’s tallest commercial tower, the 1.5 million-square-foot, 1,000-foot-tall One Brickell City Centre in downtown Miami. Developments like One Brickell are crucial for Miami’s continued growth. Corporate relocations surged by 33% last year, and the total assets managed by financial firms in Miami reached $390 billion in August 2022, up from $75 billion in 2019, according to the city’s Downtown Development Authority. “The missing link is quality office space, and that’s the gap we’re aiming to fill,” said David Martin, senior vice president of retail and commercial leasing for Swire’s US operation. Office vacancies stood at just 10.4% in the second quarter of this year in Miami-Dade County, according to Colliers, compared to a record high of 17.8% in Manhattan and over 30% in San Francisco.

Miami’s Downtown is now also more easily accessible to Boca Raton and Palm Beach thanks to the new $6.2 billion Brightline high-speed rail service. Other New York-based developers, including real estate titan Harry Macklowe, Chrysler Building owner Aby Rosen, and the Naftali Group, are all planning their debuts in Florida. “There is still a migration of people,” says billionaire developer Richard LeFrak, who has more than doubled his South Florida staff since the pandemic. “It’s not as dramatic as it was during COVID, but it’s still a steady stream.” For the time being, signs indicate that newcomers will continue to arrive both in the short and long term. Miami’s current metropolitan area population of 6.26 million is expected to grow an additional seven percent by 2030. This could help Florida withstand the housing downturn that many experts fear, given the soaring mortgage rates and ongoing inflation in the US. According to a recent study by the University of Florida’s GeoPlan Center, the state’s population could surge to 33 million from its current 21.7 million by 2070.

“Our economy here in Florida is where California was circa the late 1960s when it really started to expand,” Prof. Johnson said. “There was always the weather and the saltwater, but now the professional opportunities are here as well. This expansion is going to go on for quite some time, and we’re going to be talking about housing for quite some time.”

Source: New York Post (By Oshrat Carmiel, Publisher of Highest & Best)

Agenzia investimenti immobiliari | Chianti

Tuscany: The Ultimate Real Estate Dream for Foreign Buyers. Discover the Latest Trends and Insights!

By Columbus International,9 October 2023

Foreign buyers are making waves in the Tuscan real estate scene, ready to splash out an average of over 500,000 euros. Hailing mainly from the United States and Germany, they’re dreaming of homes, and if there’s a garden, even better!

Lucca province is their prime pick, accounting for the lion’s share of requests, with Pisa, Massa-Carrara, and Siena following suit. This captivating real estate portrait comes courtesy of Gate-away. Americans lead the charge, snapping up 29% of the real estate pie, followed by Germany at 14%, and the UK at 7.6%. Even Canada is joining the party, showing a 5.2% increase in interest. While apartments still hold the crown with 23.7% of the demand, villas are gaining ground at 12.7%.

A pool, garden, or some land to call their own isn’t a deal-breaker, but gardens take the gold with a whopping 69% preference rate. In the first four months of 2023, investments are hot in the sub-100,000 euro range, representing 33.9% of total requests. The 100-250,000 euro bracket is next in line at 23.5%, followed by 250-500,000 euros (18.3%), 500,000-1 million euros (14.6%), and over 1 million euros (9.5%). The average property sought? A cool 516,865 euros.

Italian Real Estate Market in September 2023: Milan Takes the Lead with Over €5,300 per Square Meter (Immobiliare.it)

By Columbus International,3 October 2023

In September 2023, the average cost per square meter to purchase a house in Italy stands at €2,122. However, if we consider Milan, prices soar to over €5,300 per square meter.

These figures have been revealed by the monthly Observatory of the Italian real estate market by Immobiliare.it Insights, pertaining to property transactions in September 2023. There are no significant variations in house sale prices across the entire national territory.

The national difference is 0.2% compared to the previous month (3.2% compared to the same period last year), with a slight variation between the Northern regions (0.6%) and the Central-Islands area (-0.2% and -0.1%). The average price per square meter on a national level reflects vastly different scenarios. While in the Central-Northern regions, prices comfortably exceed €2,000 per square meter, in the South and Islands, they stabilize between €1,300 and €1,500.

In August, there was a nearly 9% drop in real estate supply in all regions, particularly in the Northwest and Center with a -10%. In September, the situation changed drastically, with a national average growth of over 9.1%. The areas that had experienced a significant decline the previous month are the ones that show the most recovery: Northwest (+10.5%) and Center (+10.1%), followed by the South (+8.1%), Northeast (+6.9%), and Islands (+6.5%). A similar trend is observed in demand: in August, due to seasonality, there was a sharp decline, while in September, there is a recovery, with peaks of 25.2% in the Northwest. The national average surpasses 20%, precisely 21.3%.

Demand is growing everywhere, albeit less markedly in the Islands, where it stands at 8.2%. Average rental prices show a trend towards stability, with slight increases in both major cities (+0.4%, at €3,250 per square meter) and smaller centers (+0.2%, at €1,797 per square meter) – the latter being those with fewer than 250,000 inhabitants. The most noticeable aspect emerges when analyzing demand and supply: there is a clear difference between major cities and smaller centers. In cities, there has been a rush in sales contracts, with a demand growth of 33.4% compared to August, although there is a decline of -4.1% compared to the same period last year. In smaller centers, there is an increase of 11.6% (-0.3% compared to September 2022). Simultaneously, supply has also expanded: +20.8% in centers with over 250,000 inhabitants and +6.4% in those below this threshold.

Milan reaffirms itself as the most expensive city in Italy. To purchase a property, one would need €5,301 per square meter. This is the first time that the €5,300 threshold has been surpassed, given that in August, the price was €5,271 per square meter. Bolzano secures the second spot with €4,657 per square meter, slightly lower than the €4,684 per square meter in August, followed by Florence with €4,125 per square meter (compared to €4,130 in August). Among provincial capitals, Catanzaro is the least expensive, at €988 per square meter.

Florida Surpasses New York as the Second Most Valuable Housing Market in the United States (Source: New York Post)

By Columbus International,28 September 2023

In a groundbreaking shift, Florida has dethroned New York, emerging as the second most valuable housing market in the United States. According to a comprehensive survey, the Sunshine State witnessed an astonishing surge in residential property values, surpassing even the Empire State.

Over the course of one year, starting from June 2022, Florida’s residential property values skyrocketed by an astounding $160 billion. This remarkable growth is a testament to the unprecedented demand for living in the state, a trend ignited during the height of the COVID-19 pandemic. The pandemic prompted a mass exodus of residents from high-tax and restrictive “blue” states, seeking refuge in Florida’s welcoming environment. The allure of Florida lies not only in its favorable tax structure but also in its relatively low crime rates and a more relaxed approach to lockdown restrictions, which allowed businesses and schools to remain open for longer durations.

California, while maintaining its status as the nation’s most expensive residential real estate market, saw a 3.3% decrease in property values since June of the previous year, as reported by Bloomberg News. Despite this dip, the total worth of homes in the Golden State, the most populous in the nation, remains a staggering $10.175 trillion. Florida’s meteoric rise to the second position has been underlined by Zillow’s valuation, which places the state’s housing stock at a formidable $3.8 trillion, narrowly outpacing New York’s $3.69 trillion.

The top ten states with the most valuable housing markets, according to Zillow’s data, include Texas ($3.39 trillion), New Jersey ($1.85 trillion), Massachusetts ($1.73 trillion), Washington ($1.7 trillion), Pennsylvania ($1.56 trillion), North Carolina ($1.4 trillion), and Virginia ($1.38 trillion).

Notably, despite soaring interest rates and a lag in housing supply, Zillow reports a nationwide increase of over $2.6 trillion in the total value of housing over the last year. Miami, propelled by Florida’s real estate boom, has surged into the top five metropolitan areas ranked by the value of housing stock. According to Zillow, residential properties in the Miami metro area have appreciated by 8.6% since June of the previous year. This upward trajectory has elevated Miami’s real estate market to a valuation exceeding $1.27 trillion, solidifying its place among the exclusive club of cities where the housing stock is worth more than $1 trillion. Meanwhile, New York City retains its stronghold as the leader in this category, with real estate valued at an impressive $4.24 trillion, representing a 4.2% increase since June of the previous year. Los Angeles follows as the second most valuable city in terms of real estate market worth, with a housing stock valued at $3.71 trillion, according to Zillow.

The remarkable transformation of Florida’s housing market not only signifies its appeal but also reflects the shifting dynamics in the real estate landscape across the United States.

Source: New York Post

Investing in Milan’s Real Estate: Where’s the Best Return? (Source: Immobiliare.it and La Repubblica di Milano)

By Columbus International,18 September 2023

Looking to invest in real estate? Perhaps it’s better to focus on properties in the outskirts rather than the heart of the city. This is the main conclusion of a study conducted by Immobiliare.it exclusively for Repubblica Milano, which examined the gross profitability of various city areas. Experts compared the average selling prices of properties in each neighborhood with market rents, providing an insight into potential real estate investments.

The study results indicate that the most cost-effective area for real estate investments includes Bisceglie, Baggio, and Olmi. In these areas, the average cost of a home (mainly studios or small one-bedroom apartments) is approximately €165,400, with average monthly rents amounting to €950. This translates to an average annual yield of 7.38%, surpassing the citywide average of 5.01%. In second place is the Ponte Lambro-Santa Giulia macroarea, offering an average yield of 6.7%. The third spot goes to the Affori-Bovisa area with 6.62%. Conversely, the Arco della Pace-Arena-Pagano area has an average yield of 3.45%, even lower than the Garibaldi-Moscova-Porta Nuova area at 3.49%. “By purchasing a one-bedroom apartment in the areas outside the 90/91 circular line, the price is nearly 50% lower compared to a property in a central city location (€230,000 versus €430,000)”, explains Antonio Intini, Chief Business Officer of Immobiliare.it. “Furthermore, the rental differential decreases to 25% (€1,100 versus €1,480).

This is primarily due to two factors: on one hand, the rental market is more responsive to socioeconomic changes compared to property transactions, and in a city like Milan, with various attractive areas, growth affects the entire territory. On the other hand, not owning the property often pushes renters to seek alternative solutions if rents in the central and desirable areas exceed their budget, while when purchasing, the choice of location remains a significant factor,” adds the expert.

New York’s Perelman Performing Arts Center: A Beacon of Culture in Lower Manhattan (source: The New York Times)

By Columbus International,14 September 20239 November 2024

The Perelman Performing Arts Center, recently unveiled, stands as one of New York’s most opulent civic structures in years. Its official inauguration is set for Wednesday, and if you’ve been near Lower Manhattan’s World Trade Center over the past year, you likely caught sight of its construction. A floating, translucent marble cube, nestled at the base of One World Trade Center, it stands at a mere eight stories tall amidst a cluster of towering commercial skyscrapers, yet commands attention. This $500 million, 129,000-square-foot endeavor arrives at a time starkly different from its conception two decades ago. Back then, New York was consumed by grief and fear, its economy plummeting, and ground zero remained a somber resting place.

Just this week, we were reminded of the toll as the names of the thousands lost were once again solemnly recited. In the wake of September 11, focus rightly centered on the families of victims, some of whom fervently advocated for the entire 16-acre site to be dedicated as a memorial. Officials grappled with reconciling these pleas with the urgent need for economic and downtown revitalization. Shiny new office towers were heralded as defiant symbols in the face of Osama bin Laden, encircled by new checkpoints and bollards, encompassing the twin memorial pools. Simultaneously, downtown residents and others argued that a response to terrorism — and what the neighborhood needed for revival — was a hub for the arts. “The community that stayed was steadfast in supporting a cultural component,” stated Catherine McVay Hughes, former chairwoman of the area’s Community Board 1, in an interview with The New York Times in 2016. “It was important that something alive gets created here, right here, at the World Trade Center site.” A generation has passed, New York has weathered other crises, and more challenges lie ahead. Perelman debuts in a post-pandemic era, with the theater industry hemorrhaging jobs, and uncertainties about the return to office work, let alone venturing to the World Trade Center for an evening of performance. Ground zero remains incomplete, with significant plots still vacant, and Perelman is just one part of the puzzle — albeit the most prominent, welcoming piece yet, distinct from a shopping mall or a Path train station. And also the most promising. Designed by architect Joshua Ramus, the building is referred to as a “mystery box,” a nod to the three ingeniously engineered, shape-shifting theaters it houses. Small, medium, and large, they’re cloaked in modular acoustic wood panels, resting on robust rubber pads that further muffle the vibrations of subways passing beneath. They can be combined and reconfigured into over 60 layouts, with raked or flat floors, collapsible or extended balconies, movable walls, and adjustable stages.

These high-tech theaters are veiled by a facade composed of thousands of half-inch-thick, intricately veined marble panels, sandwiched between delicate layers of glass. The veining forms lozenge-shaped patterns that span all four sides of the building. After nightfall, when the memorial park across the street empties, and office workers head home, Perelman illuminates like a lantern. Its white stone transforms to amber. Chandeliers in the towering corridor along the center’s curtain wall cast the silhouettes of bustling theatergoers onto the radiant marble, beckoning the neighborhood back to life. Lower Manhattan didn’t succumb, it thrived after September 11, with its residential population tripling. However, the World Trade Center has remained an unfamiliar zone. An arts institution was among the early casualties of the chaos. Frank Gehry was initially commissioned to design it, but was subsequently replaced. Tenants came and went. The Port Authority imposed the Oculus, a flamboyant, extravagant showcase building by Santiago Calatrava, to house the Path station and shopping mall. As time passed, dreams of an arts center gradually faded from memory. Yet, they never vanished.

In 2015, Ramus’s marble cube emerged victorious in an international design competition held to reinvigorate the project. The following year, cosmetics mogul Ronald O. Perelman donated $75 million to bolster funding. Ramus, now 54, had previously overseen the design of Seattle’s Central Library, one of the standout buildings of the early 21st century. At the time, he was a partner with Rem Koolhaas, co-owning their New York office. The partners eventually separated, with Ramus taking over the firm and rebranding it as Rex. Seattle’s library evidently served as a precedent for Perelman, marked by a similar obsession with rationalism and its vertiginous, adaptable interiors. It’s likely that Ramus and his team also visited the splendid Chiesa di Nostra Signora della Misericordia in Milan from the 1950s, renowned for its matte glass exterior. Another clear influence is Gordon Bunshaft’s Beinecke Rare Book & Manuscript Library at Yale, not only for its translucent marble but also for its sepulchral atmosphere. In Perelman’s case, the structural challenge was building it atop four underground stories of intricate, immovable infrastructure — a labyrinth of train tracks, ventilation ducts, and truck ramps that service the World Trade Center site. The first 21 feet above the sidewalk also fell under the jurisdiction of the Port Authority, for both practical and security reasons. Ramus collaborated with Davis Brody Bond, a seasoned New York architecture firm, and Jay Taylor, a senior principal at Magnusson Klemencic Associates, the engineering firm that worked on the original Twin Towers. Amidst the tracks and ramps, they identified distant load-bearing points in the bedrock to support a system of belt trusses, which cradle the theaters. Yielding the Port Authority its 21 feet, they elevated Perelman onto a plinth of black granite, concealing an entry stair below the south wall. The cantilevered corner of the building lifts enticingly from the sidewalk, akin to a pleated skirt. This stairway serves as the closest thing the World Trade Center has to a public stoop for gathering, which it sorely needs. Hopefully, security won’t shoo away those who choose to sit on the steps. Visitors who opt for the stairs arrive at a lobby on the building’s lower level, serving as its warm, inviting heart.

Designed by the Rockwell Group, the sculptured ceiling is adorned with lights nestled into spirals of wooden ribs. This floor of the building will be accessible to the public from morning until late at night, featuring a stage, lounge, and a restaurant by Marcus Samuelsson. Additionally, a terrace provides a vantage point akin to that of the High Line, offering a view of Lower Manhattan. Exquisitely crafted, Perelman ultimately exceeded its initial budget twofold — a sum that could have supported numerous existing community arts organizations throughout the city for countless years. The majority of the funding was privately donated, with Michael Bloomberg providing the largest contribution at $130 million. New Yorkers may recall that during his tenure as mayor, he advocated for housing and schools to be included alongside offices and a smaller memorial at the World Trade Center, though his proposal was met with resistance.

Photo via Pac NYC

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Investing in Milan’s Real Estate: Where’s the Best Return? (Source: Immobiliare.it and La Repubblica di Milano)

New York’s Perelman Performing Arts Center: A Beacon of Culture in Lower Manhattan (source: The New York Times)

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