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A judge has sided with the city of Hollywood in a dispute with a developer over an affordable housing project proposed under Florida’s Live Local Act.

In a March 26 ruling, Broward County Circuit Court Judge David A. Haimes held that Hollywood officials were within their rights when they rejected Miami Beach-based Condra Property Group’s proposal for a 17-story beachfront high-rise.

Keith Poliakoff, the developer’s attorney, told the Business Journal on Monday that his client plans to appeal.

“We are incredibly disappointed with the court’s decision,” said Poliakoff, with Fort Lauderdale-based Government Law Group. “This ruling creates a massive loophole that completely undermines the Live Local Act and the state’s goal to provide affordable housing.”

“The city is pleased with the ruling and the judgment, but is not surprised,” said Daniel L. Abbott, with Coral Gables-based Weiss Serota Helfman Cole & Bierman, who represented the city. “The judge’s reasoning was similar to that of city staff when they denied the application.”

The dispute began when Condra filed plans, under the Live Local Act, to replace a group of hotels with a mixed-use project that would’ve included 282 multifamily units across multiple buildings. Forty percent of the units would’ve been set aside as workforce housing. The highest building would’ve been 183 feet tall – well beyond the site’s current maximum limit of 65 feet.

The plan concerned 3.33 acres at 2007 and 2115 N. Ocean Drive; 309, 333 and 341 Oklahoma St.; 320 and 324 McKinley St.; 320, 322, 324 and 326 Nebraska St.; and 2012 N. Surf Road.

The Live Local Act permits developers to bypass municipal public hearings and zoning approvals to build multifamily on commercial or industrial land with the greatest density allowed in a city and the tallest height within a 1-mile radius, so long as 40% of the units are workforce housing for households earning up to 120% of area median income.

Condra said it met those requirements, claiming the Margaritaville Hollywood Beach Resort, which has a height of 183 feet and 8 inches and is located less than 1 mile away, as a benchmark.

But City Hall rejected the proposal, saying the Margaritaville Resort couldn’t be used as a point of comparison since it was built on city-owned property and received a special bonus for additional height when it was first approved.

That prompted Condra, through affiliates, to sue Hollywood in Broward County Circuit Court on Jan. 10, 2025. In its complaint, Condra asked the court to overturn the city’s denial of its project, but did not request additional financial compensation.

In a wrinkle, the judge issued his ruling just hours after the parties jointly applied for a stay of proceedings to allow settlement discussions to begin. By ruling, Haimes implicitly denied that motion, according to Abbott.

This is one of the first lawsuits a judge has ruled on that involves the Live Local Act in South Florida. There are also pending cases against the city of Miami Beach and village of Bal Harbour, which developers have similarly accused of blocking Live Local Act applications.

Since it first passed in 2023, the Live Local Act has been the subject of controversy. Proponents say it’s needed to expand the availability of affordable housing, while critics say it takes away local officials’ authority.

Earlier this month, state legislators approved amendments to the law that further expand the categories of land on which developers can propose Live Local Act projects, among other changes.

As of this year, there have been nearly 200 Live Local Act projects filed statewide, but most haven’t broken ground yet. About 60% of the state’s Live Local Act projects are proposed in South Florida, according to figures from the Florida Housing Coalition, a Tallahassee-based nonprofit.

Article Link: Judge rules in city’s favor in Live Local lawsuit; developer plans appeal
Author: Mark Dovich

At a time when housing affordability is a major concern among constituents, Florida state lawmakers produced mixed results in the realm of real estate during their 2026 session, taking some significant actions but also not reaching consensus on numerous proposals, including the most prominent — property tax reform.

Friday marked the end of the Florida Legislature’s annual, 60-day regular session, but the two chambers passed fewer bills than in recent years. And for the second year in a row, they were unable to agree on a budget — their one constitutionally required task — amidst ongoing tension between state leaders.

“There were a lot of eggs cracked in this session, and we are still inspecting the omelets that are being served up to the governor, but overall the Legislature continued its multiyear push to increase housing supply, most notably by expanding the Live Local Act in H.B. 1389,” South Florida attorney John Shubin of Shubin Law Group told Law360 Real Estate Authority. “That said, the session also showed the limits of Tallahassee consensus: some broader land-use reforms stalled … and ongoing uncertainty around local planning authority and environmental constraints remains a challenge for developers.”

Bills aimed at authorizing accessory dwelling units, large-scale “blue ribbon” development projects, a “rural renaissance,” uniform impact fees and property insurance reforms were among those that gained traction in one chamber but ultimately fell short.

“The bottom line is that Florida is still moving toward more state-driven housing policy but, as I continue to maintain, the real test will be how these laws translate into actual projects and whether local governments cooperate in implementation,” Shubin added.

Here is a look at notable real estate-related actions the Florida Legislature took in this year’s regular session.

Property Tax Debate

Arguably the most consequential matters have yet to be resolved: the state budget and the controversial question of reducing or eliminating property tax — a major source of funding for local governments.

With a push from Gov. Ron DeSantis, property tax cuts became the hottest topic heading into the session. While the governor and Senate President Ben Albritton, R-Bartow, spoke of waiting to take up the issue in a special session, the House forged ahead under Speaker Daniel Perez, R-Miami.

Any significant change to property taxes will have to go before voters in a statewide referendum to amend the Florida Constitution. Most of the proposals failed to advance, but representatives voted 80-30 in favor of House Joint Resolution 203, which would have asked voters to weigh in this November on a phased elimination of all nonschool taxes for homesteads by 2037.

The measure prohibited cuts to first responder services, but it was still met with concerns, including in a report commissioned by the Florida League of Cities, about local governments’ ability to absorb significant tax cuts without cutting essential services and potential disparate impacts across municipalities. The report found property taxes account for nearly 79% of local government’s tax revenues and 43% of all general fund revenues. The Senate never took the measure up for a vote.

Legislative leaders said members will return to Tallahassee in a few weeks after the Easter and Passover holidays for a special session to complete the budget. Failing to do so before July 1 would result in a partial government shutdown.

DeSantis also previously called a special session starting April 20 to focus on congressional redistricting, and he expressed a preference to pursue property tax cuts in a special session, so the topic may yet have some life.

H.B. 1389: Affordable Housing 

The focal point of the Legislature’s efforts on affordable housing came in H.B. 1389, which lawmakers described as Version 4.0 of the state’s landmark Live Local Act, first passed in 2023.

Attorneys say the new legislation makes significant refinements. It expands on the existing law — which required local governments to open commercial and industrial properties to affordable housing projects — by adding land owned by county and city governments, school districts and religious institutions to that list. It also makes land near airports eligible for Live Local projects if the airport’s governing body approves.

To address concerns from lenders, the bill establishes a vesting period to ensure that property owners who have received a building permit have a window to retain or still apply for tax exemptions under the Live Local Act if a local government exercises opt-out provisions, and it also tightens the rules for opting out.

It also extends Florida Fair Housing Act protections to prohibit local governments from treating Live Local projects differently, and it closes some loopholes on local preemptions, including prohibiting local governments from using setbacks or similar measures to overly restrict height allowances.

Additionally, the bill specifies that “multifamily” and “mixed-use” development includes certain collections of commonly owned buildings, which would cover garden-style apartments, for instance. And along with S.B. 962, it also takes steps to preserve agricultural land by clarifying that land used for farms or farm operations is excluded from definitions of commercial, industrial or mixed-use zoning under the Live Local Act, which would otherwise require local governments to approve affordable housing projects on them.

While the Legislature drew positive reviews for these steps, this is not likely to be the last word to address the Live Local Act’s slow implementation in the face of local opposition, according to some attorneys, including Keith Poliakoff of Government Law Group, who said “it still leaves numerous open issues, which will require further refinement in the next legislative session.”

H.B. 399 and S.B. 1434: Land Use and Development

The theme of preemption of local government control over real estate matters continued to be a major theme in Tallahassee despite controversies, attorneys noted.

“This year’s legislative session witnessed a continued shift in land use authority from local governments to the state and an attempt to reign in regulatory costs for the real estate development industry,” said Steven J. Wernick, a Miami-based partner at Day Pitney LLP.

Lawmakers passed H.B. 399, which takes steps to impose more uniform fees and processes for permitting and application reviews, and ties fees more closely to actual administrative costs.

Wernick also noted provisions in H.B. 1139, which was passed in the House but not the Senate, that would have created new caps on future impact fee increases and given prevailing property owners access to recoup costs and attorney fees for unlawful impact fee assessments.

However, the debate over H.B. 399 revealed what Neisen Kasdin, co-office managing partner of the Miami office of Akerman LLP, suggested was a “somewhat more nuanced” approach to the preemption push. Before passing the bill, the Senate removed provisions that would have made it easier to change or remove Miami-Dade County’s urban development boundary, which restricts sprawl toward the Everglades, and other counties’ similar rural boundaries. However, it left intact a provision that preempted Miami Beach’s review of a water park proposal at the historic Fontainebleau resort, despite heavy opposition from local officials and residents.

While going against the preemption grain, the Legislature’s rejection of the attempts to loosen local development boundaries were consistent with its approval of S.B. 1434, which preempts certain local land development regulations to promote residential infill development of polluted urban properties.

“The Infill Redevelopment Act is a potential game-changer for South Florida’s real estate market,” said Kerri Barsh, a Miami shareholder at Greenberg Traurig LLP and co-chair of the firm’s environmental practice. “By broadening the types of environmentally impacted lands eligible for redevelopment and streamlining the approval process, the bill could pave the way for significant new residential opportunities.”

S.B. 484: Data Centers

Lawmakers also took steps to prepare for the development of data centers. While Florida, has not seen much activity in this red-hot sector for various reasons, it seems like only a matter of time before these often massive projects arrive.

In S.B. 484, they left authority with local governments for comprehensive planning for these projects but took steps to protect general ratepayers from risks of nonpayment to electrical utilities by data center owners and against harmful water use by these facilities.

In the final stages of debate on the bill, several senators expressed concern about the House’s removal of provisions meant to ensure transparency in government dealings with data center developers, but they said they thought it was important to get some regulations in place.

“This is what we have,” Sen. Carlos Smith, D-Orlando, said on the Senate floor. “My fear is we have no bill pass, there’s no regulation of data centers whatsoever, and it’s just the Wild Wild West.”

–Editing by Nicole Bleier.

Article Link: Fla. Lawmakers Expanded Housing Efforts In Slow Session
Author: Nathan Hale

Village council warned developers of rejection if more horse-friendly changes aren’t made

Wellington narrowly approved zoning changes that would allow former Los Angeles Dodgers owner Frank McCourt and Mike Meldman’s Discovery Land Company to transform a polo field into a mixed-use project with homes, an equestrian complex and private club.

On Monday, the village council voted 3 to 2 on first reading to move the Isla Carroll Polo and Residences development forward.

Mayor Michael Napoloeone cautioned that the plans need extensive changes if the developers hope to secure approval for second and final reading in February — despite assurances that the development’s polo field would be used by the United States Polo Association.

“In the interest of preserving the [polo] field I am giving you another shot, but I don’t know how you are going to get there unless there are fundamental changes,” said Napoleone, who voted yes along with Vice Mayor Tanya Siskin and Councilman John McGovern. Councilwoman Maria S. Antuna and Councilwoman Amanda Silvestri voted no.

New York-based McCourt Partners and Scottsdale, Arizona-based Discovery Land Company want to redevelop the 79.2-acre former East Isla Caroll at 3665 120th Avenue South in polo-centric Wellington into a development that would include an equestrian complex with a polo field and a private club with a polo observation deck, restaurants, a spa, racquet sports, gym, and polo training simulators.

The rezoning portion of the developers’ request centered on being able to build 40 single-family homes on lots averaging a half acre. Under the property’s present zoning, those 40 houses must be built on lots that are two acres each, large enough for an owner to construct a home with a horse stable, in keeping with Wellington’s equestrian preservation zone.

McCourt, who said he traveled from Cairo, Egypt to speak at the meeting, told council members that he wanted to make sure his development benefited the sport of polo. He did not want it to become “another soulless subdivision.”

“We have gone to great lengths to comply with your code and not ask for a single thing we are not entitled to,” McCourt said. “This is a project we’re extremely proud of and we have a lot of people supporting it.”

McCourt’s attorney Neil Schiller said the project has 120 letters of support and the backing of Wellington’s planning staff. Among those speaking in favor was Stewart Armstrong, chairman of the USPA, who confirmed the organization has an agreement to lease the property for $1 a year, as well as the $250,000 a year cost of maintaining the field, at 10-year increments for up to 45 years.

“That is like FAU [Florida Atlantic University] having a deal with the NFL to have games and programming at their stadium [in Boca Raton],” Schiller said.

The USPA won’t have to travel far since the neighboring National Polo Center is already used by the professional polo association. Schiller argued that not having a polo-oriented private club would be a missed opportunity. Discovery Land Company partner Ed Davitas said that the development, designed by New York-Buenos Aires architecture firm Estudio Ramos, would center around learning and watching polo.

Critics of the project countered that the 24-stall barn would be demolished, only one of the site’s two polo fields would be preserved, and that there were no facilities for horses to stay overnight on site. They also feared that the project could go the way of 23 other polo fields in Wellington and end up being replaced with more residential development should the arrangement between the developers and USPA fall apart. Schiller countered that a covenant would require that any further land use changes would have to be unanimously backed by the council if this deal is approved.

McGovern told Schiller that if this vote was for final approval, he would have voted against. He hopes McCourt and Discovery come back with a plan that’s more than just a “polo field and a country club.”

One way to do that was to craft a site plan where there were “five farms plus homes,” McGovern added.

A company tied to McCourt paid $52 million for East Isla Carroll in 2022, about a decade after McCourt sold the Dodgers baseball team for $2.2 billion.

This wasn’t McCourt’s first transaction in Wellington. He sold a 5.2-acre equestrian property at 13808 Fairlane Court for nearly $12 million in 2016 and a 9-acre equestrian property for $12 million in Mallet Hill that was a short walk away from Microsoft founder Bill Gates’ assemblage. (Gates’ daughter, Jennifer Gates, is an equestrian.)

Discover Land Company, a luxury community developer, teamed up with Becker Holding Company to build Atlantic Fields, a 1,500-acre development in Hobe Sound in Martin County with 317 single-family homes and a golf course.

Article Link: Billionaire Frank McCourt narrowly nabs initial approval for mixed-use project in Wellington
Author: Erik Bojnansky

Critics of a plan that would see a sleek condo tower rise on a quiet stretch of public beach in Hollywood are fighting to save what they call a little patch of paradise.

So far, they’re losing.

Hollywood commissioners said yes to the deal in 2022, signing off on a comprehensive development agreement with the Related Group that calls for a 99-year lease of the land.

Another blow to the critics came Wednesday night, when the commission approved the developer’s request for a land-use change 5-2. A second and final vote is expected early next year.

The land in question is home to Harry Berry Park and the Hollywood Beach Culture & Community Center at 1301 S. Ocean Drive.

The developer submitted an unsolicited proposal to the city in January 2020 for a luxury condo tower that has since been named Portofino Residences Hollywood. In 2021, the land had a value of $35 million. By 2022, commissioners had agreed to the public-private partnership.

Because the project will be built on public land, it’s exempt from height and density rules, city officials say.

The Related Group plans to break ground on the $375 million project in late 2026, according to Keith Poliakoff, attorney for the developer.

During the City Hall meeting, Poliakoff unveiled new renderings, showing a slightly shorter, more streamlined tower.

“The project you see today is a drop from 190 to 111 units,” Poliakoff told the commission.

Original plans called for a tower standing 365 feet high — seven times what the current code allows. New plans call for a 327-foot tower with 27 floors.

The tower was reoriented to preserve views of the neighboring condo to the north, Poliakoff said.

The developer has also promised to build a spiffy new two-story community center with a view of the ocean. Hollywood taxpayers would pick up the tab for the new center, which could cost up to $20 million. The developer would pay for upgrades to the park.

The condos would have a starting sales price of $4 million, according to Poliakoff.

After the condos are sold, the city would collect $71 million in rent, Hollywood officials say. According to city estimates, Hollywood would net more than $1.3 billion over the term of the 99-year lease.

Critics don’t care.

They have held protests, spoken out at City Hall and taken their battle to social media, blasting the project with relentless ferocity.

Cat Uden, a Hollywood activist who lost a run for mayor in 2024, has led the charge to stop the project. On Wednesday, she was one of 36 people who signed up to speak against the new tower.

She argued that a 27-story building doesn’t fit in with the quiet neighborhood on the south end of Hollywood beach. That it’s in conflict with the county’s resiliency plan. That it flies in the face of the city’s own beach master plan.

“The city’s Planning and Development board recommended denial of the land use amendment and you should follow their recommendation,” she said.

Hollywood activist Ann Ralston argued the commission should hold a referendum vote to let the residents decide.

“I just hate this project,” she said. “It’s the wrong place and the wrong size on a barrier island that’s an evacuation zone. I’m sorry. I just don’t like it. A 99-year lease is just a giveaway to get around the charter and (avoid) having a public vote. Just put it to a vote. If we lose, we lose. But if we win, we preserve the barrier island for many generations to come.”

Resident Dennis Dimartino reminded the commission of all the people who had already spoken against the project over the past five years.

“What is it that I can say that hasn’t already been said,” he told the commission. “One word just keeps coming to mind: No. No, we don’t want that tower. No, we don’t want the face of Hollywood beach to be looking like Sunny Isles. No, we don’t want the increased cars coming in making A1A look like Hallandale Beach Boulevard. No, we don’t want to run the risk of buildings sinking on a very small and very short portion of the beach.”

Commissioner Adam Gruber told the crowd he’d heard from hundreds of people in his district who back the project.

“What has been proposed and voted on and (approved) was to have a new community center with views of the ocean,” Gruber said. “The size of the park will be increased and the green space for the parcel will be increased. And what is paying for all of that will be condos. It’s a touchy subject. But please understand that there are people in the city that are OK with it.”

The city’s planning board cast a unanimous voteagainst the project two years ago, but the Hollywood commission has the final say.

And Wednesday night, the majority of the commission said yes.

Mayor Josh Levy joined Commissioners Peter Hernandez, Traci Callari, Adam Gruber and Kevin Biederman in approving the land-use change from community facility to medium high residential. Vice Mayor Idelma Quintana and Commissioner Caryl Shuham voted no.

Before the vote, Shuham argued the land-use change request should go back to the city’s planning board because the project had undergone significant changes.

“The new application is completely different,” she said. “New design. Different height. Different footprint.”

For that reason, the commission also needed to take another vote on the comprehensive agreement it approved three years ago, Shuham said.

“We are looking at a complete new deal,” she said.

The developer’s attorney agreed the comprehensive agreement would require a new commission vote, but said it could be addressed at a later date.

On Friday, Mayor Levy said each and every critic was welcome to speak up and have their say, but that doesn’t mean they represent each and every resident of Hollywood.

“Thirty-six people don’t reflect the sentiment of 150,000 residents of the city,” Levy said. “In a perfect world, everyone would love the project. Residents are getting a brand-new modern community center and an improved park. And the city is getting $1.3 billion over 99 years. This is all by the public, for the public.”

Article Link: Public outcry in Hollywood doesn’t stop proposed beachfront condo from clearing another hurdle
Author: Susannah Bryan

The Federal Reserve’s long-awaited announcement Wednesday that it is cutting its benchmark interest rate by 0.25% drew measured reactions from real estate attorneys and professionals, who said the move definitely provides reason for optimism but had already largely been factored into markets and does not represent the major step some sought.

In comments shared with Law360 Real Estate Authority, these professionals in a variety roles and locations across the country said they expect the rate cut will get some projects moving and encourage investment and transaction activity. That will especially be the case in stronger markets, such as South Florida, and sectors such as multifamily, prime office and industrial.

However, many also pointed out that they still have their eyes on a number of other factors, such as tariffs, a weak labor market, and high construction costs and insurance rates, as well as long-term rates and Treasuries.

Ultimately, the biggest impact may depend on whether this cut and the Fed’s indication that it expects to make two more cuts this year provide enough of a boost in confidence, which several sources noted is a key factor for investors, buyers and lenders across the price spectrum.

Eric Rapkin

Practice group chair, real estate, Akerman

“Any reduction in interest rates is a terrific thing for the commercial real estate industry. Lowering borrowing costs always spurs activity, in all sectors of the CRE world. Although a 25-basis-point reduction is for sure a positive thing, I don’t think it means the floodgates are open or that other factors affecting the market are now irrelevant. For example, construction costs, insurance rates, potential effects from tariffs, a weakening labor market and other factors still exist. But the rate reduction is very welcome news.”

Rich Traub

Partner, Smith Gambrell & Russell

“With today’s quarter-point rate cut, the Fed made a clear bet on job creation, but it didn’t go all-in. This was the bare minimum markets expected — more of a strategic jab than a knockout swing. [Fed Chairman Jerome] Powell’s message is that labor market strength still matters more than inflation fears — at least for now. Equities responded with a short-lived boost, but yields barely moved, signaling that investors see this as a cautious, possibly one-off move rather than the start of an easing cycle. The Fed may be trying to buy insurance against a slowdown without spooking inflation hawks. But this fight is far from over. Inflation could still punch back, especially if demand picks up. Round one goes to labor, but the next moves from both the Fed and the market will tell us whether that lead holds.”

Michael Lee

Partner, HKS Real Estate Advisors

“The Fed’s decision to cut rates by a quarter point was widely anticipated, with markets already pricing it in. The latest jobs report underscored the challenges facing the economy, coming in more than a third below expectations and continuing a trend of steady declines. Payrolls are shrinking, unemployment is edging up, and yet the stock market just hit a record high, reflecting investor confidence in monetary easing.

“The real question now is what comes after this cut. If Treasury yields bounce back up as they did last fall, the commercial real estate market will once again be caught in a cycle of volatility. Treasuries have already plummeted in recent days, putting more downward pressure on yields than the cut itself. That dynamic will be critical in determining how capital flows into CRE in the months ahead.”

Isaac Toledano

Founder and CEO, BH Group

“Investors have been cautious while rates remain high, but even this modest cut could quickly change that. Lower borrowing costs restore confidence, spur capital deployment, and accelerate transactions already underway. South Florida’s market for income-producing commercial and mixed-use assets is already active, and this rate shift could further energize demand.

“Political developments in New York could add another layer beyond the Fed’s decision today. If [Zohran] Mamdani becomes the next mayor, we could see more companies and executives relocating to Florida, increasing the need for modern mixed-use developments that combine offices, upscale residences, retail and lifestyle amenities. That momentum could spark new construction and redevelopment, reshaping the region’s commercial landscape.”

Daniel Diaz Leyva

Partner and chair, Florida real estate practice, Day Pitney

“Today’s rate cut and the Fed’s signaling of two more cuts by year end marks a pivotal shift for real estate. For the past two years, higher borrowing costs have slowed transactions, sidelined buyers and forced developers to rethink projects. A clearer path to lower rates restores confidence and should begin to unlock both capital markets activity and buyer demand. In Florida, where population growth and business migration continue at historic levels, these cuts could provoke a wave of investment across residential, commercial and industrial sectors. The timing is critical as developers, lenders and investors now see an opportunity to move from defense to offense.”

Rayni Williams

Co-founder, The Beverly Hills Estates

“Today’s quarter-point rate cut marks the beginning of a gradual process rather than a one-time shift. Even before the move, anticipation of lower rates had already fueled consumer confidence and spurred activity, with the market picking up noticeably in recent weeks. The impact is unfolding differently across price points, but overall momentum looks promising with growing optimism about where the market is headed.”

Noah Breakstone

CEO, BTI Partners

“This quarter-point rate cut represents an important first step toward addressing the housing affordability crisis that’s currently impacting both homebuilders and potential buyers. While this initial reduction is meaningful, continued cuts will be essential to truly unlock the financing environment needed to make housing more accessible. We’re optimistic this signals the beginning of a sustained effort to open the door to improved housing affordability across the market.”

Alexandra Hack

Partner, Cedar Street Partners

“A 25-basis-point cut won’t change underwriting overnight, but it should improve forward rate expectations. We expect bid-ask spreads to narrow and transaction volume to pick up — especially in multifamily — while construction lending remains selective amid elevated materials costs and persistent skilled-labor constraints. Cap rates are unlikely to reset immediately; the real catalyst is a clearer, less volatile rate path. If the Fed signals that path, rate and credit spreads should compress, and more projects will clear return hurdles into 2026.”

Tessa Hilton

Co-CEO, Hilton Hilton

“In Los Angeles’ upper-tier market, interest rate shifts shape more than financing. They influence confidence and negotiation power. While many luxury deals are cash, affluent buyers still weigh the cost of capital. Rising rates often bring caution and price pressure; when rates ease, urgency and competition return. With the Fed’s quarter-point cut, we anticipate renewed buyer engagement and optimism, which are both key drivers of momentum at the very top of the market.”

Ivan Sher and Brad Malkin

Founder, IS LUXURY; and owner, Noble Home Loans

“The Fed cut its discount rate on Wednesday. That directly affects HELOCs, credit cards and the $27 trillion Treasury market tied to short-term credit, but the impact on mortgage rates is less direct since they respond more to market sentiment than Fed policy.

“Employment has weakened, with one measure of unemployment at 8.1%. Inflation is less of a concern as tariff fears have faded, but if the Fed creates uncertainty around it, bonds could suffer and mortgage rates could rise even as equities gain. Rising equities boost confidence, especially among high-net-worth buyers, supporting more transactions. Rates should trend below 6% in the coming months, which will fuel demand and push home prices higher as limited supply collides with stronger buying activity.

“Reports of higher inventory are misleading since much of it reflects sellers holding back, and the months-of-supply metric is driven by weaker sales, not more listings. Lower rates will give prices an initial bump, and with even less inventory ahead, a second bump is likely. If you are considering buying, this is the moment. The price you pay is the one constant in real estate. The question is who captures the equity upside, you or the seller?”

Kyle Early

Managing director, residential, PEG

“Even before today’s quarter-point rate cut, we were seeing commercial real estate valuations stabilize, renewed optimism in the capital markets, and increased lending activity, particularly from banks. The Fed’s move is likely to accelerate that momentum, leading to reduced borrowing costs, greater capital flows, and more transaction activity, all of which will bolster commercial real estate values. The reduction should also help stimulate business expansion, hiring and consumer spending, driving increased demand for rental housing and hotels.”

Calixto “Cali” Garcia-Velez

President and CEO, Banesco USA

“Over the past few years, South Florida has outperformed national trends. Thanks to our strong regional footprint and deep market knowledge, Banesco has confidently doubled down, even as many other banks have scaled back their exposure in the region.

“With the Fed now delivering its most recent rate cut, I don’t expect an immediate surge in activity, but it does send a powerful signal that a soft landing is achievable, restoring confidence across both real estate and business lending markets. The rate cut reduces short-term borrowing costs, with multifamily and industrial sectors likely seeing the benefit immediately, aiding developers and investors in Miami-Dade, Broward and Palm Beach counties.

“The more meaningful impact will come if additional cuts take hold, creating conditions for previously shelved projects and business investments to re-enter the pipeline and become financially viable once again.”

Lisa Colon

Partner, Saul Ewing

“Contractors and developers welcome the Fed’s rate cuts. Commercial lending has slowed noticeably over the summer, stalling many projects. Lower borrowing costs could change that dynamic, allowing projects that have been on hold for financing or economic reasons to finally move forward.”

Alyssa Soto Brody

Co-founder, Powered by DMT

“As the market looks to the Federal Reserve’s next move, any rate cuts could provide welcomed momentum — but it’s still important to remember that real estate is driven by more than interest rates alone. In South Florida, while condo supply remains high and insurance premiums are creating some hurdles, buyers now have more options than ever and the ability to be selective. For new development, tariffs and broader policy shifts will play a role, but ultimately buyer confidence is the real driver. If the Fed signals stability, that could be the spark that brings more buyers off the sidelines and helps move inventory. With more choice in the market and the potential for improved conditions, it’s an exciting time for those looking to make a move.”

Keith Poliakoff

Managing partner, Government Law Group

“While the recent rate cut is the first in nearly a year, its immediate impact on the real estate market will be minimal. Lenders and developers are focused on long-term rates, particularly the 10-year treasury, not short-term federal rates. Although this rate cut will provide some relief for those with high-interest debt, it will take a full one-point reduction for it to make a real impact on the real estate market. Until then, it’s unlikely to make a significant difference for real estate transactions or construction projects, as it was already expected by the industry.”

Cary Cohen

Executive vice president, Blanca Commercial Real Estate

“With today’s Fed rate cut, and signals of more to come, we anticipate an immediate impact on the South Florida market. Lower financing costs are a factor, but it’s important to note that optimism here has remained strong regardless, as South Florida continues to buck national trends. The Fed’s commitment to supporting real estate investment will attract additional capital from local, national and international buyers. Coupled with Florida’s pro-business environment and significant infrastructure projects, the region stands out as one of the most compelling markets in the country. Investors are clearly taking notice, and we expect that momentum to accelerate as financing costs ease.”

Zack Simkins

Managing director, Vaster

“Today’s rate cut was widely anticipated, but it carries meaningful weight as it sets the stage for renewed demand in the coming quarter as buyers, investors and borrowers look to capitalize on a softening rate environment. Ultimately, this will eventually lead to more transactions, which is what will help rebound some slow real estate markets.”

Andrew Hellinger

Co-principal, Urban-X Group

“The Fed’s decision to begin cutting rates is a welcomed relief for the real estate market. Higher borrowing costs over the past year have slowed activity significantly, with many homebuyers and developers sitting on the sidelines waiting for conditions to improve. A sustained cycle of rate cuts should restore confidence, lower financing costs, and bring much-needed momentum back to acquisitions and development.”

Alan Hooper

Co-founder, Urban Street Development

“Rising interest rates, fast-rising construction costs, higher property insurance, and plateauing or even lowering rents had all contributed to a slowdown in residential development in downtowns. In Fort Lauderdale, Florida, alone, 30 to 40 entitled projects remained on the sidelines. The slowdown caused construction bids to come back down to reality, and policy moves by the state helped lower insurance rates.

“The Fed’s 0.25% rate cut and anticipated future cuts could help turn the tide, sparking a gradual and positive shift in the development cycle. We expect we will start to see the first wave of entitled projects in prime downtown locations over the next 12-18 months. Because large multifamily projects take two to four years to build and lease up, the impact of a renewal won’t be immediate, but at the same time, the lack of new supply and growing demand has helped stabilize existing inventory and strengthen the market.”

Article Link: Real Estate Pros React To Federal Interest Rate Cut
Author: Nathan Hale