International Council of the MIAMI Association of REALTORS

     

                

International Articles and Advertisements

The MIAMI Association of REALTORS® features a half-page article each week in The Miami Herald –International Edition, promoting MIAMI Members and the South Florida real estate market to affluent consumers in Latin America and Europe.

  • New Technology Transforming Commercial Real Estate CRE Experts Analyzed Self-Driving Cars & More at RCA MIAMI event

    by | May 24, 2017
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    Imagine riding in a self-driving car, being dropped off at work and then having your car drive itself to a parking lot across town. The scenario, which experts say is closer than we think, would have a major impact on real estate as it reduces the need for today’s parking garages and surface lots.

    The structures, which often sit in prime real estate locations, can now be reimagined in new ways (housing, retail, commercial and healthcare).

    The MIAMI Association of REALTORS® (MIAMI) Realtors Commercial Alliance (RCA MIAMI) analyzed the impact of self-driving cars, the rise of e-commerce, the growth of industrial real estate, a proposal for the largest proposed mall in the United States and other topics at its fifth annual RCA MIAMI Midyear Update held recently at the Coral Gables Country Club.

    “The way we did business 30 years ago or 20 years ago or even 5 years ago is changing,” said panelist Jose I. Juncadella, an office and industrial Miami broker and the principal of Fairchild Partners. “It’s important for all (brokers) to understand that we have to move on because technology is improving.”

    New Technology Disrupting Real Estate
    Real estate is one of three industries ripe for technology disruption, according to RCA MIAMI keynote speaker Geoffrey Kasselman, the executive managing director at the Chicago office of Newmark Grubb Knight Frank. New technology, automation and digitization will also impact banking and healthcare.

    The rise of self-driving cars will not only make many of today’s parking lots extinct, but it will make passengers more productive.

    Passengers in driverless cars can travel hands-free and stay connected, increasing personal productivity and the amount of time that commuters are willing to spend in the car. Rural or suburban areas could become popular as passengers adapt to long commutes. As populations in both suburban and rural areas continue to grow, real estate developers could adapt to the new demographic and recreate suburban communities with an urban feel.

    There are other ways technology could change real estate, Kasselman said.

    Office buildings, for instance, are grossly inefficient. The average 9-to-5 office building is unoccupied for 16 hours each day. Could office buildings become flexible mixed-use properties in the future and have another use after the daily workers leave?

    Air rights could be the next litigious battle as drones or vertical taxis become mainstream, Kasselman said. What are the rules when an unnamed flying drone flies through another homeowner’s backyard? How will government regulate the flight patterns of vertical taxis?

    Growth of E-Commerce
    E-commerce is another disrupter. E-commerce comprises just 8.1 percent of U.S. retail sales, but the industry is growing fast. U.S. e-commerce sales in 2016 totaled $394.9 billion, a 15 percent increase from 2015.

    Amazon.com is the big leader, posting increased net sales of 27 percent to $136 billion in 2016 with a $2.4 billion net profit compared with a $596 million profit in 2015.

    The rise of e-commerce has led some to believe it will bring the death of brick and mortar shopping malls. Malls, such as the proposed American Dream Miami mall, argue physical stores continue to be the core of the shopping experience.

    Today’s malls are focusing more on entertainment, dining and creating an experience for mall goers. Many times, the consumer is researching a purchase online and then buying it in store.

    American Dream Miami
    If approved, American Dream Miami would be the largest theme park and mall in North America. The proposed complex in northwest Miami-Dade County which would house an indoor ski slope, water park, movie complex and more.

    American Dream Miami would total 6.2 million square feet, including 3.5 million square feet of retail, plus 2,000 hotel rooms. American Dream Miami estimates it would receive 40 million projected visitors and create 14,500 permanent jobs.

    “It’s an opportunity for the commercial world to interact with consumable world directly,” said Robert Gorlow, who is managing American Dream Miami for Triple Five Group. “That’s the way we look at it. We don’t look at it as retail versus e-commerce. When you build projects like this, if they are to be financially viable you need to survive all this change.”

    Industrial Real Estate on Fire as an Asset Class
    Amazon’s growth has helped fuel the rapid expansion of industrial real estate. Absorption for industrial real estate hit a new record last year.

    Amazon will soon have 1.4 million square feet of space in the Miami area, Juncadella said. About 20 to 30 percent of all industrial absorption around the world was by Amazon.com, Kasselman said.

    Population growth has propped up all real estate sectors but has favored the industrial sector specifically. The booming tourism industry has also helped fill the region's warehouses. Nearly 60 percent of the goods sitting in local warehouses end up in South Florida.

    Miami as a Worldwide Brand
    Among all this change heading to commercial real estate, Miami is also evolving.

    Once just a tourist location, Miami has become a center for business, technology, art, fashion culture and more.

    “Miami is one of the most recognizable brands in the world,” said F. Antonio (Tony) Puente of Fairchild Partners. “People want to be associated with Miami. Just the name itself. You say the word ‘Miami’ and a lot of cities around the world from South America to Asia know where it is.”

    Like other major global cities, Miami is already implementing and utilizing new technology.
    Kasselman’s presentation showcased waves of transformative disruption in the future. Big data, automation and package-delivering drones will be in the first wave (next three to five years). 24/7 learning via artificial intelligence, 3D printing for everything and abundant low-cost energy in the second wave (next five to 15 years)

    “We won't experience 100 years of progress in the 21st century - it will be more like 20,000 years of progress (at today's rate),” world-renowned futurist Ray Kurzweil said.

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  • South Florida’s Quality Schools Boosting Real Estate Market

    by | May 17, 2017

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    Most families with children make a decision on where to buy a home by the quality of local education, and South Florida boasts some of the nation’s top schools.

    From pre-kindergarten through graduate school, South Florida’s schools are innovative, specialized and nationally-regarded. The region’s schools excel in student achievement, a big factor for homebuyers looking for a local home.

    It begins with South Florida’s strong primary educational system, where students learn and develop the fundamentals and studying habits to become successful members of the community and workforce.

    South Florida’s four public school systems — Miami-Dade County Public Schools, Broward County Public Schools, the School District of Palm Beach County and the Martin County School District — have each achieved state and national acclaim for their educational programs.

    Innovative Public School Districts

    Miami-Dade County Public Schools (MDCPS) is the largest and arguably most acclaimed urban school district in the United States. MDCPS is home to 392 schools and 345,000 students. District students speak 56 different languages and represent 160 countries.

    Under Superintendent Alberto M. Carvalho, MDCPS has received state and national recognition for unprecedented increases in student achievement and graduation rates. In 2012, MDCPS received one of the nation’s top education prizes --- the Broad Prize for Urban Education — for its overall performance and improvement in student achievement while narrowing achievement gaps among low-income students and students of color.

    In November 2016, the White House recognized MDCPS as one of 30 leaders across the nation in personalized learning and innovation. The district offers iPrep Academy and iPrep Math, two educational programs centered on personalized learning. MDCPS also implements technology in the classroom using interactive boards, digital devices and apps.

    Miami-Dade has installed over 11,000 interactive boards and distributed 140,000 digital devices in classrooms in addition to setting up 30,000 WiFi access points on school campuses.

    MDCPS receives more National Magnet Schools of Merit Awards than any other school district nationally. MDCPS offers 460 choice programs in all grade levels, which is the most of any Florida school district and among the top in the country.

    Broward County Public Schools (BCPS), the first fully accredited school system in Florida since 1962, offers 236 schools, centers and technical colleges. BCPS has more than 271,000 students and about 175,000 adult students. BCPS students represent 208 different countries and 181 different languages.

    BCPS finished a finalist for the Broad Prize in 2008, 2009 and 2011 because it outperformed other Florida districts serving students with similar family incomes in math at all school levels (elementary, middle and high school) and in reading at the middle and high school levels, according to the Broad Prize methodology

    The School District of Palm Beach ranks as the top-performing urban school district in Florida. The school district is the fifth largest in the state of Florida with 185 schools, serving more than 183,000 students. The student population speaks 150 languages.

    Education Week recognized the District as having the eighth-highest graduation rate in the nation. Palm Beach County has a higher percentage of “A” and “B” district-operated elementary and middle schools compared to the state and the state’s largest urban school districts, according to the 2014 School Grades.

    The Martin County School District, located north of Palm Beach, has the fifth highest graduation rate in the state (88.9 percent in 2014-15 compared to the state average of 77.8 percent). Martin County offers 25 career academy programs at its three high schools and several career and technical education programs at its five middle schools.

    Standout Private Schools

    South Florida is also home to some of the best private schools in the nation.

    Miami’s Ransom Everglades School, located in Coconut Grove, finished as the top-ranked private school in the nation in 2016, according to Niche.com. About 71 percent of the Ransom faculty holds advanced degrees. Twenty years is the average faculty tenure at the school, which has 1,084 students. 100 percent of graduates matriculate to four-year colleges or universities.

    Palmer Trinity School, located in the Miami suburb of Palmetto Bay, also has a 100 percent student acceptance into four-year universities. About 67 percent of the faculty has advanced degrees at the school, which has 740 students enrolled in grades six through twelve.

    In Broward County, the Pine Crest School finished as the second-best private school in Florida, according to Niche. The all-faith college prep school in Fort Lauderdale boasts a 13:1 student-teacher ratio and a 99 percent four-year matriculation rate to four-year colleges and universities.

    Robust Colleges, Universities

    Greater Miami ranks as the eighth largest “college town” in the nation because of its 438,000 full-time and part-time students.

    South Florida has seven universities/colleges and five law schools. Miami Dade College (92,085 credit students in 2014-15) is the largest and most diverse college in the nation.

    The University of Miami, a private institution in Coral Gables, is ranked as the 44th best university in the nation, according to U.S. News & World Report rankings for 2017. Miami is ranked No. 1 among Florida schools. Miami’s excellence helps to attract international students.

    Florida International University — Miami’s first and only public research university — has the fifth-most international business programs in the nation. FIU, which is classified as an R1 institution for highest research activity, is the nation’s leader in awarding bachelor’s and master’s degrees to Hispanic students.

    Barry University in Miami Shores is one of the largest Catholic universities in the Southeast and was recognized as one of “America’s Top Colleges” by Forbes magazine in 2013 for the third consecutive year.

    Florida Atlantic University, the first public university in southeast Florida, opened its doors in 1964 and today serves more than 30,000 students at campuses in Boca Raton, Dania Beach, Davie, Fort Lauderdale, Harbor Branch and Jupiter. More than 180 degree programs, 40 research centers are available at the university.

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