The Post-COVID Real Estate Market in South Florida: What Kinds of Deals are Leading the Way in 2022?
While the COVID-19 pandemic has disrupted virtually all sectors of the economy, some sectors have seen even greater impacts than others. Without question, one of the sectors most impacted by the pandemic has been real estate. Trends that had remained relatively steady for years shifted seemingly overnight. Housing shortages, materials shortages, labor shortages, lockdowns, and the large-scale shift to working from home have all directly and substantially affected the market.
This has been especially true in South Florida.
But, now that we’re into the second quarter of 2022 and the spike in case numbers caused by the omicron variant appears to be nearing its end, what can we expect for the remainder of the year? While it is still difficult to predict with any degree of certainty, we are already starting to see some new trends emerge.
Residential Developments are Back in a Big Way
The COVID-19 pandemic caused a major housing shortage. With people seeking to take advantage of low-interest rates and many people from northern states seeking to relocate to South Florida to take advantage of the local weather, remote working opportunities, and the state’s limited COVID restrictions, demand far outpaced supply. As a result, houses started going under contract in under a day for well over asking, and bidding wars drove prices to unprecedented levels.
Another key factor leading to the demand for existing homes during 2021 was the lack of new-construction housing. As a result, builders faced materials and labor shortages, and prices became untenable. Now, however, we are starting to see a return to normal, and builders are taking the opportunity to capitalize on what is still an extremely hot residential real estate market.
Commercial Facilities and Office Space are Back in Demand
Commercial facilities and office space are also back in demand. While there was talk early on in the pandemic about a permanent shift away from the office environment, this has not played out. Instead, companies are bringing their employees back to the workplace (with appropriate COVID-19 protocols), and many employees are ready to get out of the house. These factors, combined with the influx of new permanent residents, mean that South Florida’s commercial real estate market is likely to see a significant number of major deals in 2022.
These shifts, in turn, are creating demand for new infrastructure, suppliers, and support services. As a result, the return of the South Florida commercial real estate market is likely to spur even greater growth. While much remains to be seen, at this point, it appears that 2022 could be a very busy year.
Contact Our Miami Office for More Information
The real estate lawyers in GS2Law’s Miami office represent clients involved in all aspects of acquisition, disposition, financing, leasing, and other real estate transactions. We also handle litigation involving residential and commercial real estate and construction disputes. For more information, please contact Yosef B. Shwedel at email@example.com.