Personal Finance Guide

Isaac Robert Toussie believes that many states have had real estate bubbles but Florida tend to be more intense.The first real estate bubble in Florida history occurred in 1925, foreshadowing the stock market collapse a few years later. Florida swampland has since become a byword for real estate fraud in the popular lexicon, notes Isaac Toussie. And so Florida real estate has of late been operating on the growth-for-growth’s-sake philosophy. Indeed, from 2002 through 2006 a good 20% of private industry growth has involved real estate and construction, principally in the form of speculative development (in Orlando the figure was almost thirty-three percent). Overbuilding ensued, as one people developed property not for actual tenants but for fellow speculators!

Yes, we’re in hard economic times, observes Isaac Toussie, but you can always count on the commercial real estate market in Florida to be profitable. Of course, you’ll still have to apply due diligence and do your homework, carefully evaluating the property before purchasing or leasing it. And when it comes to commercial real estate in Flordia, shopping centers have been a sure profit-maker. And a novel way of looking at profitability with respect to those shopping centers is this: do they have a movie theater? Movie theaters, perhaps even more than food courts, are great “anchors” for a sprawling shopping complex.

So go where everyone else goes (in this case, anyway), and head on over to Miami, Fort Lauderdale, West Palm Beach, and South Beach. Naturally, anytime a rule of thumb is given a host of exceptions crop up, so be sure to keep an eye out north and westwards at Orlando, Daytona Beach, and even Tampa, too. Real estate investment is a lot like playing the stock market. One of the main factors determining your success is the relationship between supply and oversupply. The differences are important, too.

And when it comes to supply and oversupply, real estate and stocks behave similarly in some instances and differently in others. Florida’s south beach boats many vacancies now and many projects along Collins avenue seem to have grinded to a halt. Hopefully financing and consumer demand will come back and these projects which are strategically located on the waterfront can take off with renewed momentum

This article has been posted strictly for informational and human interest purposes only, not for advisory purposes, and should not be used in any way by any person or institution. No reader should rely on the validity of any of the information contained herein. Readers are urged to consult a variety of professionals when making business or any other significant decision, including accountants, lawyers, investment advisors, insurance companies and the like. Again, this article has been presented merely for human interest and informational purposes, not for advisory purposes.

Share This