South Florida’s National Real Estate Appeal

The tri-county area remains a hotbed for investors.

By Issenberg Britti Group

Florida has seen tremendous growth and an increase in new developments throughout the state. Overseas investors have decreased due to pandemic restrictions, while domestic U.S. investors have increased activity in Florida by 70-80%.

“The investors we see sweeping the market are big buyers, from all asset classes from New York to California, who are looking for safe and long-term net leased investments,” Gabriel Britti says (pictured top), Senior Managing Director of Investments of Marcus & Millichap’s Miami office. Since 2007, Britti has worked with the nation’s largest institutional real estate companies, including publicly-traded REITs, private equity funds, hedge funds and high net-worth individuals.

The leading trends are retail and single-tenant buildings with drive-thrus, mainly fast-food properties. The team is experiencing multiple offer scenarios within 24 hours of launching net leased restaurants with drive-thrus such as Wendy’s or Taco Bell. These assets’ low rent and low price point nature make them insulated from interest rate hikes.

1031 exchanges have also become another major driver behind the economic boost in Florida. People are dissatisfied with the rising costs on the West and East Coast, both residentially and commercially. In a word, they are selling their assets and making the cross-country move to Florida.

Many who have already migrated to Florida hint that another wave of investors are on their way. Once they arrive and start enjoying everything in Florida, especially South Florida, coupled with the advantages of working remotely – there’s no turning back.

“Equally, the pandemic shut down, which could become something of the norm has taught us that those retail assets that were categorized as ‘essential businesses’ continued to pay their rents throughout,” Ronnie Issenberg says, (pictured left) also a Senior Managing Director of Investments in Marcus & Millichap’s Miami office.

Issenberg has been working in the investment real estate community since 1998 and in 2005, became a member of the National Retail, Net Leased Properties and Land Divisions of Marcus & Millichap, specializing in the brokerage of single-tenant retail and fuel service assets. Issenberg is a South Florida native and graduate of the University of Miami.

“Many believe as interest rates rise, so too will cap rates. This could be true with higher-priced transactions requiring financing; while lower-cost assets typically attract cash purchasers who are willing to take a lower return for a lower risk,” Issenberg adds.

The Issenberg Britti Group has sold more than 800 properties for a value of more than $3 billion in commercial assets. To see their current listings, visit us online at Marcusmillichap.com or scan our QR code:

SFBW Staff
sfbw@lmgfl.com
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