South Florida Real Estate Market Matures in 2026 According to Experts

As the South Florida real estate market strides into 2026, the narrative is shifting—from a frenzied post-pandemic boom to a more deliberate, disciplined, and strategically grounded phase of growth. Industry leaders across development, brokerage, law, and finance agree: this is a region leaning into its long-term strengths, while recalibrating around substance, sustainability, and selective opportunity.

“South Florida is entering a more productive phase for disciplined multifamily investors,” said Joe Lubeck, CEO of American Landmark Apartments. “Recent dispositions locally and nationwide have created meaningful opportunities to redeploy capital into quality assets in proven submarkets.” For Lubeck, the key to navigating the current cycle lies in focus and fundamentals—backing assets that can perform through shifting market conditions.

Branded Residences: Beyond the Logo

Nowhere is the evolution more visible than in the branded residence space. Mikael Hamaoui, founder and CEO of Riviera Horizons, the firm behind Pagani Residences noted, “The next evolution of branded residences will be defined less by logos and more by substance, authenticity, and long-term value.” He pointed to a new generation of buyers who are not dazzled by sheer scale, but instead are drawn to thoughtfully curated, boutique projects where the brand genuinely informs the architecture, services, and lifestyle.

This vision is echoed by Vertical Developments CEO Fernando de Nuñez y Lugones, who emphasizes the demand for branded properties that “translate the brand into tangible, day-to-day value, with design integrity, hospitality-level service, and long-term livability.” In 2026, it’s not about the name alone—it’s about what the name delivers.

Office and Urban Momentum

Commercial real estate is also finding its rhythm. Tere Blanca, Chairwoman and CEO of Blanca Commercial Real Estate, described 2026 as a year marked by a clear “flight to quality.” With projects like T3 at FAT Village in Fort Lauderdale and 1401 Brickell in Miami set to deliver, she anticipates strong demand for modern, sustainable office space in vibrant, walkable neighborhoods. “Corporate relocations, infrastructure investments, and the global spotlight around the World Cup are all tailwinds for the region’s office market,” she added.

Urban-X Group’s Andrew Hellinger, the ones behind River Landing Shops & Residences sees policy and macroeconomic forces playing a major role. “Interest rates, immigration, and trade policy will shape the year ahead, but South Florida remains a resilient and diverse economy,” he said. That resilience continues to attract capital and people—especially from the Northeast, a trend many believe will remain steady regardless of political outcomes.

The Legal Landscape: Local Nuance Matters

With opportunity comes complexity, particularly on the legal front. Jeffrey Bass, Founding Member of Bass Law, a real estate law firm, underscored the importance of understanding Florida’s evolving land use dynamics. “Florida offers compelling real estate opportunities in 2026, but navigating land use and zoning risk will require a sharper local focus than ever,” he warned, citing the ongoing tug-of-war between state preemption and local control.

Keith Poliakoff, a local government attorney, emphasized the growing influence of the Live Local Act, which he expects will start bearing fruit in 2026. “Many projects that have been navigating the permitting process will finally break ground,” he said, opening new pathways for affordable housing and pushing municipalities toward greater compliance.

Capital Markets and the Return of Transaction Velocity

“2026 feels like a ‘markets moving again’ year,” said Danny Diaz Leyva, attorney at Day Pitney, capturing the broader sentiment among capital market players. As interest rates ease, he anticipates renewed transaction activity, beginning with refinancings and extensions and eventually moving into acquisitions and true price discovery. The demographic trends remain favorable too, with South Florida still drawing affluent residents and employers, bolstering demand.

That demand, increasingly, is grounded in staying power. “The international buyer market is expected to remain steady and resilient in 2026,” said Sergio Pintos, President of Sales at PMG. Foreign capital, long a foundational element of the Miami market, continues to view the region as a safe harbor amid global volatility.

Global Appeal with Long-Term Roots

“Miami is not a speculative market—it’s a global city,” said Peggy Olin, CEO of OneWorld Properties. She points to a new generation of international entrepreneurs and family offices not just investing, but establishing a presence. “Many are living here full-time, others are anchoring themselves in Miami as a primary or secondary base,” she said. This depth of commitment underscores Miami’s enduring global appeal and market maturity.

Juan Carlos Tassara of North Development added that foreign buyers remain pivotal. “Miami’s appeal to Latin America is significant,” he said, with the region accounting for more than 50% of new construction sales. The capital inflow, particularly from Latin America, remains a stabilizing force.

Luxury’s New Rules: Discipline Over Flash

For ultra-luxury and branded product, the bar is higher than ever. “2026 will reward disciplined buyers focused on true scarcity, prime waterfront locations, and exceptional execution,” said Isaac Toledano, Founder & CEO of BH Group. He sees today’s Northeast buyers as serious players—not chasing headlines, but making long-term moves backed by real capital.

His projects—from Six Fisher Island to The Ritz-Carlton Residences, West Palm Beach—are defined by irreplaceable locations and high design standards. It’s a strategy that reflects the entire region’s pivot toward intentional, enduring value.

A Market Coming of Age

Amid this more disciplined environment, the opportunity for visionary development remains strong — especially for those willing to align product quality with long-term demand drivers.

“As we move into early 2026, Florida’s real estate landscape is setting up for a dynamic year driven by population growth, global demand, and a deepening pool of institutional capital,” said Jay Roberts, CEO of Prosper Group. “The anticipated interest rate cut will help renew momentum, but the bigger story is the maturation of markets like Miami and Tampa, where buyers are prioritizing wellness, hospitality-driven living, and thoughtful design.”

In 2026, South Florida is no longer just a market of momentum—it’s a market of meaning. From multifamily to branded residences, from office towers to boutique luxury, the region is entering a phase where authenticity, quality, and resilience define success. The frenzy may have faded, but what remains is arguably stronger: a global real estate hub grounded in long-term fundamentals and poised for a sophisticated new chapter.

Article Link: South Florida Real Estate Market Matures in 2026 According to Experts
Author: Traded Media

Public outcry in Hollywood doesn’t stop proposed beachfront condo from clearing another hurdle

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

AI and other tech advances are invigorating real estate firms with a variety of digital tools that provide instant access to troves of information about properties and their potential.

The real estate business is as old as dirt itself. But now, technology is revamping the industry as agents and developers focus not only on dirt but also on digital data. One local example of the emergent property technology industry is Open House Wizard. The Fort Lauderdale-based company sells apps that automate open houses with QR-code convenience and a text registration chatbot as your guide, if needed. Dave Frank, owner of Open House Wizard, says his company helps agents “hold open houses in kind of an effortless way, instead of doing a lot of work. Our app does a lot of that in the background for them,” including open-house visitor registration.

Open House Wizard is a rare local enterprise not part of a vast Fort Lauderdale community of property technology, or “prop tech,” companies. “I don’t know of any companies here in that arena,” Frank says. “They’re all in other places like Boston, New York and places like that.” Frank, who moved to South Florida from the D.C. area in northern Virginia, drew inspiration from his wife’s career when he launched his open-house automation company in 2017. “My wife was a realtor at that time. And it just seemed like the open house process was very clunky,” he says. “My background is in IT, since the early ’80s.”

Tech experts like Frank are modernizing real estate sales one agent at a time. Meanwhile, “smart” buildings that automate maintenance are getting smarter. And the emergence of artificial intelligence through ChatGPT and other AI platforms is rippling through real estate and just about every other industry. As Bianca Ford, the CEO and founder of Property Technology Magazine, said: “Prop tech is now embedded in every phase of the property life cycle—from AI-driven underwriting to IoT [Internet of Things]-enabled building operations.”

For many real estate companies, the bottom line is greater energy and efficiency. “Technological change is having a very large positive impact on our business,” Jeff Burns, CEO of Fort Lauderdale-based residential builder Affiliated Development, says. “Technology has improved the way we market and lease our units. On the development side, we use a prop tech software that streamlines workflows, tracks milestones and dates and manages data. Recently, we have started integrating the use of AI into our company. AI will transform the way real estate development companies function, which will increase efficiency and output while utilizing fewer resources.”

Ken Stiles admitted that he is not a virtuoso when it comes to artificial intelligence. However, he has surrounded himself with talent as the CEO of Stiles, a diversified real estate company based in Fort Lauderdale. The company has built downtown landmarks such as the 110 Tower, formerly known as AutoNation Tower, and The Main Las Olas, an office building in a complex that includes a residential high-rise.

“I’m not real good at AI. But the team and the asset managers use it all the time,” Stiles told an audience as a panelist in a panel discussion at the Urban Land Institute’s Fort Lauderdale Forum conference in September. “We’re seeing it a lot on the development side. But we’re really integrating it now on the construction side,” for tasks such as pre-construction planning and compliance reviews.

AI is also integrated into the company’s property management, featuring a data-driven preventive maintenance program that responds to trouble detectors such as condensers and water sensors. “The insurance companies are starting to look at that,” he noted. Some older employees resist AI’s intrusion into their work lives, Stiles said. “But younger people, younger generations, are really buying into it and pushing it forward.”

One real estate pro pushing it forward is Jaime Sturgis, founder and CEO of Native Realty, a Fort Lauderdale-based real estate agency. “We’re working on a back-of-house tech stack that is proprietary, so I can’t get into all the details,” Sturgis says. With AI, one person is expected to finish this project in six months. He credits the use of AI for shortening a project that once would have involved multiple engineers and could have taken a year or more to complete.

Native Realty tested the limits of artificial intelligence when the agency replaced its human receptionist with an AI-driven chatbot, before switching back. “We had tested a ‘receptionist’ we had built out [of] the AI, the data and all that stuff. And it did not work. People did not like it,” Sturgis says. “I listened to some of the responses, and people were like: ‘Am I talking to a robot?’ So, we rolled that back and went back to a human receptionist.” Eventually, however, Sturgis expects the AI-generated receptionist to become more refined. “I think probably Version 2.0, 3.0 and 4.0 with those is probably going to become the mainstream,” he says.

Sturgis and other real estate leaders agree that technological advances have made retrieving all kinds of data easier. Municipal zoning boundaries and rules, for example, were grueling before AI redefined internet searches. “Researching zoning codes—we do that a lot,” Sturgis says. “We’re operating across all these different cities, and you’ve got to find a [code] subsection … Now, with a keystroke, I am able to find the paragraph in a matter of seconds.”

Fort Lauderdale-based real estate attorney Keith Poliakoff agrees that technologically enhanced zoning research is a transformative tool for property owners and developers. “The biggest thing that we’re seeing is the emergence of products that try to create interactive zoning maps for each municipality for developers and buyers to go on, with AI-driven images of what could be built on the property,” says Poliakoff, who runs Government Law Group with his partner Neil Schiller. For example, he explains, “the actual [allowable] tower heights, when you click on them, are block graphs that are AI-driven to show you how tall your project can be.” The lure of that AI-enhanced technology stems from “being able to show a client what a potential design would look like on a piece of property,” Poliakoff says. “They can see what the view would look like from multiple angles, without engaging someone for thousands of dollars to render it.”

While the appeal of such technology in real estate is undeniable, users are advised to verify the results. “It’s a tool, and a very useful tool, but I don’t think anyone can be sure that the information they’re getting back is always 100% accurate,” the real estate attorney says. “Hence, you have to do your due diligence.”

Rapid changes in technology also have made newer commercial structures so sophisticated that buildings constructed near the turn of the century appear dowdy by comparison, says Charlie B. Ladd Jr., president of Fort Lauderdale-based Barron Real Estate, citing the office component of The Main Las Olas mixed-use development. “The reason it’s such a big success is because technology has moved so far that these other buildings are obsolete,” Ladd says. “They used to put in all this hard-wire stuff. Now, it’s all WiFi. People look at these old buildings, and there’s wires every place.”

In the hotel segment of the real estate industry, advances in technology support a frictionless guest experience, says Ladd, who is developing The Whitfield, a luxury boutique hotel and condominium in Fort Lauderdale, with Steve Hudson, CEO of locally based Hudson Capital Group. At many hotels, “you can do everything on your phone,” he says. “You can register, get your key and you can bypass everything and go straight to your room.” But at The Whitfield, guests will get the human front-office presence that a luxury hotel demands. “That will be a concierge,” Ladd says.

For developer Dev Motwani, the emergence of precise digital advertising has made an impact on his real estate business, surpassing other technological advances. “The biggest thing we’ve seen so far is on the marketing side. Digital has added a completely new dimension, because the feedback is so immediate and so targeted. That’s really complementing what we do with our more traditional media,” says Motwani, who serves as co-managing partner of Fort Lauderdale-based Merrimac Ventures together with his brother Nitin Motwani. “I can target CEOs that are in town for a conference that I want to sell condos to. … I also get feedback about who’s looking and where, so I can target digital [advertising] spends at different geographies, if there is a market I wasn’t expecting to resonate with our developments.”

AI and other technological advances in the first quarter of the 21st century have made the real estate business more efficient and effective. But these advances have not replaced the human touch, according to Jimmy Tate, who operates North Miami-based Tate Capital with his brother, Kenny Tate. Their company is working with Miami-based Related Group to redevelop the Bahia Mar property on Fort Lauderdale’s beach as a St. Regis-branded resort and residential enclave.

“You have technologies now where plans are three-dimensional, so you can basically pre-build a building in a computer,” Tate says. This 21st century tool minimizes unforeseen construction delays due to planning errors. “Twenty-five years ago,” he says, “you’d be building and you’d realize, uh-oh, we’ve got a disconnect.” AI-driven technologies also help Tate and his cohorts in managing construction and pricing condos.

“But at the end of the day, real estate and sales are about people,” he says. “To be successful, you need the one-on-one. You need to look someone in the eye, talk to them. Because they’re buying me. They’re not buying a building. They’re buying my reputation, my history. So, technology has its place, but it’s only going to go so far.”

Real Estate Pros React To Federal Interest Rate Cut

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

Charting Florida Housing Affordability Stressors In Hollywood And Beyond

Throughout Florida, cities and counties are struggling with achieving a balance between the development pressures that accompany growth and the need to retain housing affordability. Few municipalities from Key West to Tallahassee better reflect that tug-of-war than Hollywood. The city of 150,000 between Fort Lauderdale and Miami celebrates its centennial this year while staging a half-billion-dollar downtown revival.

The redevelopment at the city’s downtown circle will see BTI Partners replace a long-shuttered bread factory built more that 60 years ago with a new 362-unit multifamily tower and more than 16,000 square feet of retail space.

In a second phase, twin towers linked by a dramatic skywalk will rise on a parcel formerly occupied by a strip shopping center.

At the same time, local developer Pinnacle has faced an issue in developing its affordable housing community Pinnacle 441. Demand for housing affordability is so intense the company drew tens of thousands of interested renters for its limited units.

“Demand for affordable housing is off the charts, in ways not previously seen in my four decades in the industry,” says Timothy Wheat, partner in Pinnacle Partners. “We have had to implement a lottery system just to manage the volume . . . We resorted to using a lottery and received 21,000 registrants for 113 units. Since then, we’ve had to conduct lotteries for three additional communities because the demand continues to outpace supply at every turn. It is unprecedented and alarming. Solving this crisis will take sustained public-private collaboration, serious investment and the political will to clear roadblocks that prevent developments like this from being completed at a faster rate.”

Continued shortfall

While acute in Hollywood, the affordability crisis has impacted a great many other cities across the Sunshine State. So reports University of Florida News. According to the outlet, a dearth of affordable housing for the state’s workforce and fixed-income seniors is ongoing despite increasing multifamily and single-family home building. UF News reported the affordable rental housing shortage is severe for renters whose incomes fall below 80% of area median income (AMI), and especially severe for those below 60%.

Across the state an estimated 862,000 renter households whose incomes fall below 60% AMI are shelling out for monthly rent more than 40% of their incomes. One of the most worrisome harbingers of future affordability is that Florida added more than 700,000 units with gross rents higher than $1,200 monthly between 2012 and 2022. But over the same period it lost nearly 292,000 units renting for $1,200 or less.

The Live Local Act, a Florida state law in effect since July 2023, was intended to generate more rental housing by incentivizing developers and constraining the ability of municipalities to restrict height and density of qualifying affordable developments.

“Florida’s housing crisis is severe, driven by rapid population growth and a limited housing supply,” says Keith Poliakoff, a Florida government and municipal law expert. “The Live Local Act was a strong first step, but it hasn’t had the intended impact largely because of municipalities [that] have found loopholes to block new developments.

“To get the full benefits of this legislation, the state must tighten these regulations, strengthen incentives and hold governments accountable. Without these changes, the workers who keep our communities running will continue to be priced out of the neighborhoods they serve.”

Outdated zoning

Steven J. Wernick, partner at East Coast law firm Day Pitney, agrees that the Live Local Act will prove only as effective as local governments’ response. “Most cities and counties are still operating under outdated zoning frameworks that weren’t designed to accommodate today’s housing needs,” he says. “If we want to create real, lasting impact, we need to rethink how we use land, embracing mixed-use, higher-density development in areas that can support it and reducing minimum parking requirements that drive up costs. That requires not only updating local zoning codes but also shifting the mindset around what smart growth looks like in Florida’s urban and suburban communities.”

Article Link: Charting Florida Housing Affordability Stressors In Hollywood And Beyond
Author: Jeffrey Steele

Developer of twin condo towers wants lawsuit filed by neighboring building dismissed

A developer building twin condo towers on Fort Lauderdale beach has requested the dismissal of a lawsuit filed by a nearby condo claiming breach of contract.

Selene’s twin towers will be the tallest on the beach, rising 300 feet above sea level at 3000 Alhambra St. The towers are situated to the east of Alhambra Place, a 16-story condo on Fort Lauderdale’s barrier island located at 209 N. Birch Road. The twin towers are expected to open this year.

The project’s design was substantially altered despite a development agreement the builder made with Alhambra’s condo association in July 2020, according to a lawsuit filed on May 28 in Broward Circuit Court.

The developer dramatically altered the project’s exterior design without alerting Alhambra, the lawsuit claims.

The lawsuit seeks more than $10 million in damages.

Three defendants are named in the lawsuit: KT Seabreeze Atlantic GP, KT Seabreeze Atlantic LP and The Kolter Group.

KT Seabreeze Atlantic is no longer in business, according to the lawsuit.

Jack Seiler, attorney for the defendants, filed a motion last week urging the court to dismiss the case.

“The plaintiff does not state what the specific plan revisions are, or what provision in the agreement has been breached as a result of those plan revisions,” Seiler stated in the motion. “The notice of default does not state what provision of the agreement has been breached. Rather, it only provides a list of alleged deviations.”

The case has been assigned to Judge Keathan B. Frink. A hearing has not yet been set.

“We find absolutely no merit in the frivolous motion filed,” said Keith Poliakoff, attorney for Alhambra Place. “We have no doubt that after the judge reviews their motion that it will be dismissed and they will be forced to answer the complaint.”

Article Link: Developer of twin condo towers wants lawsuit filed by neighboring building dismissed
Author: Susannah Bryan

Local Restrictions In New Fla. Hurricane Law Cause Friction

The Florida Senate hailed the signing late last week of a wide-ranging bill aimed at bolstering the state’s handling of hurricanes, but a legal battle could lie ahead, as Gov. Ron DeSantis provided his signature over objections that portions will trample on local governments’ authority to regulate land use and development in their own communities.

Senate Bill 180, which carries the title “Emergencies,” implements a multitude of new requirements intended to bring clearer and more streamlined processes in terms of how the state prepares, responds and recovers from the annual scourge of hurricanes.

But critics, including several local governments and advocacy organizations, called for the governor to veto the bill, arguing portions aimed at facilitating rebuilding include vague and overbroad language that would “effectively halt” local governments from pursuing any planning efforts that could be viewed as more restrictive or burdensome.

“It’s not just development regulations related to hurricane recovery. It’s anything. So it just kind of opens the complete door to development,” said Jamie A. Cole, a partner at Weiss Serota Helfman Cole + Bierman PL who has specialized in home rule matters. “It’s an unbelievable intrusion into home rule authority for cities, because cities basically can no longer pass things that they think are in the best interest of their community.”

In a statement issued after the bill’s signing, its sponsor, Sen. Nick DiCeglie, R-Indian Rocks Beach, said lawmakers were fighting to help homeowners and other property owners rebuild without added bureaucratic delay or burdens. The Legislature mandated that counties and municipalities develop plans to expedite post-storm permitting and inspections while preventing them from increasing certain fees during these periods.

But the new law, now enrolled as Section 2525-190 of the Florida Statutes, also went beyond that, stating that for one year after a hurricane makes landfall, certain “impacted local governments” are prohibited from adopting a moratorium on “construction, reconstruction or redevelopment of any property,” as well as new land-use and development regulations that are “more restrictive or burdensome.” It also provides a path for private parties to bring civil suits for alleged violations.

Another section applies similar prohibitions retroactively to Aug. 1, 2024, and through Oct. 1, 2027, for all counties and municipalities within them that were covered by federal emergency declarations related to Hurricanes Debby, Helene or Milton, which struck the state last year.

Since the declarations for those three storms collectively covered every county in the state, that three-year window appears to restrict local land-use planning for every inch of the state for the near future, multiple sources said.

Cole’s fellow Weiss Serota partner Susan Trevarthen said it appears these provisions will result in a “loss of home rule or local government authority over land use and zoning that’s contemplated by the 1968 Florida Constitution.”

And while some parts reference damaged or destroyed properties, others are “completely detached from damage or impact,” Cole said. Given the annual cycle of the hurricane threat, the city of Winter Haven noted in its veto request letter that if storms continue to make landfall each year, that could effect a “rolling ban on local land-use authority.”

Cole and Trevarthen said they are advising clients to review all land-use and development regulations adopted since Aug. 1, 2024, but they also said they have been contacted by several cities about potentially filing lawsuits and are analyzing the situation and considering which legal theories they would use.

“There’s always potential legislative fixes a year from now, but that’s a year from now. That doesn’t really do much good for a year,” Cole said. “Since the governor ignored the veto letters and then signed it, cities are in a tough spot right now. And they’re going to have to decide whether to just abide by it or try to challenge it.”

In their veto request letters, cities and organizations cited a variety of concerns.

Several brought up the threat to measures they spent considerable time and money — including state grants — to develop and enact within the retroactive reach of the new law. Many of these were implemented with broad public support or in response to public demands, they said.

Winter Haven cited a new forestry plan it said it adopted with broad community support in September, and New Smyrna Beach brought up new stormwater master plans aimed at addressing chronic flood risks resulting from the city’s bowl-shaped topography. Lake Alfred in Polk County noted it had made substantive changes to its land development code, mostly including elements aimed at clarifying and streamlining processes but also some compromises that in isolation could be viewed as more burdensome.

“[M]any of these balanced provisions within our code may need to be repealed to revert to an earlier version of the code,” Lake Alfred’s city manager wrote. “This could put pending residential developments that are already in the planning process back into custom zoning processes which on net may be more burdensome to development.”

Cutler Bay, in Miami-Dade County, and the Florida Floodplain Managers Association both expressed concerns that the prohibitions could undermine municipalities’ efforts to implement floodplain management policies that have helped improve their ratings in the federal National Flood Insurance Program’s Community Rating System and saved resident policyholders hundreds of dollars in policy costs each year.

Winter Haven’s city leaders said the lack of definition of the terms “more restrictive” and “burdensome,” coupled with a one-way attorney fee provision for plaintiffs filing legal challenges to local government regulations, could lead to more speculative lawsuits. And they suggested the prohibition on any development moratorium is “short-sighted” and “irresponsible” for not considering critical situations such as a local water supply being at risk after a storm.

They also pointed out that given the annual cycle of hurricane season, the law may be “essentially creating a rolling ban on local land-use authority,” as any storm that passes within 100 miles of a county could trigger a year-long prohibition even if the community experiences no actual damage.

Making a similar point, Weiss Serota’s Trevarthen noted these kinds of regulations take time to go through the process of identifying an issue in the community, writing legislation, publishing notices, and holding public hearings and multiple readings at government meetings.

“So what that creates is a perpetual situation where it’s chaotic and unpredictable when local governments will ever have the local land-use powers again,” she said. “It just doesn’t work to try to use your government when it’s like some kind of child’s game where you’re running for a minute, and then you have to stop, and then you run.”

How this will play out and what the exact impact of the law will be on development across the state remains to be seen, several attorneys said. Several of the objecting cities did not immediately respond to requests for comment, nor did the governor’s office or the bill sponsor DiCeglie.

As Trevarthen noted, the cities and counties that already have tighter regulatory regimes will have fewer reasons to adopt more restrictive or burdensome policies, so the law is likely to have a more dramatic impact on areas that have not been as affected by hurricanes in the past and with local governments that are still learning what they need to do to mitigate risk and better protect their communities.

Barbara Blake Boy, executive director of the Broward County Planning Council, said that because of S.B. 180, the council paused meetings for the summer to review updates being drafted for the county’s land-use plan, which they revise every seven years, to see what might potentially be more restrictive or burdensome and need modifying.

She said most of the proposals so far are incentive-based and, she thinks, should not run afoul of those provisions. The council’s review of everything adopted since Aug. 1, 2024, reached similar conclusions, she said, while adding there’s always a chance an attorney might claim any provision is more burdensome.

Rebecca Wilson, co-chair of the land-use, zoning and environmental group at Lowndes, said how various local governments choose to handle the situation could depend on their particular regulations or processes.

“For those local governments which adopted moratoriums after the hurricanes, it is clear those are void,” she said. “For other regulations, such as changes to a land development code, there may be some argument about the definition of ‘burdensome.’ It may also be the case that a new regulation as applied to one property is not more burdensome, but when the same regulation is applied to another property, it is more burdensome. In that instance, the property may be able to claim that while the entire regulation is not void, it is void as applied to their parcel.”

Keith Poliakoff of the Government Law Group said he thinks the legislation — similar to the comparable Senate Bill 250 that was passed in 2023 in the wake of Hurricane Ian — is aimed more at the actions of a few governments along the state’s west coast, which has suffered the most severe damage from hurricanes over the past several years.

Poliakoff said he disagrees with statements made by the Florida Chapter of the American Planning Association and others that the law eliminates the ability of the state and its communities to learn from storms and make changes to protect against future ones.

While several critics pointed to the example of how the Florida Building Code and several local building regulations were revamped after the devastation of 1992’s Hurricane Andrew — changes that have been credited for the strong performance of newer buildings in recent storms — Poliakoff said those codes are regularly reviewed and considered among the strongest in the country.

He also suggested this new law is in line with a clear priority the Florida Legislature has set to protect private property rights, adding he thinks it will hold up in court.

“This is not the first time in the modern era that the Florida Legislature has imposed mandates and has clawed power from local governments who they believe to be overreaching,” he said. “So while a local government could attempt to challenge the law based on constitutional grounds, after practicing for nearly 30 years, I believe the law as written has merit in that the Florida Legislature’s bill, as written, will prevail.”

But Poliakoff also acknowledged the language in the law is “written incredibly broad[ly]” and said that while everything is written under the guise of hurricane recovery, local governments may be founded in their concerns that the language and retroactive application can apply to properties that have not been impacted by storms and “a whole slew of redevelopment, which, quite honestly, is probably what the Florida Legislature wanted.”

With fundamental issues and real life impacts at stake, these issues bear watching, Weiss Serota’s Trevarthen suggested.

“You don’t have power if you can only use it to say yes,” she said. “So it’s that fundamental — it’s that big of an impact on local government power and on the power of communities to decide for themselves the kinds of communities they want to be.”

Article Link: Local Restrictions In New Fla. Hurricane Law Cause Friction
Author: Nathan Hale

Affordable housing vs. local control: Suits test state plan’s strength

Palm Beach Post USA TODAY NETWORK

Will Live Local survive legal challenges?

All eyes are on two South Florida lawsuits, one in Hollywood (Broward County) and another in Bal Harbour (Miami-Dade County). Both towns have been sued by developers that argue that they are now entitled to build their mega-developments despite what local zoning codes say.

The lawsuits represent initial challenges to the new law. The outcomes could determine how municipalities and counties balance local zoning codes against Live Local, designed to make it easier to build affordable and workforce housing. Live Local projects can be approved administratively, with no public input from elected officials or local residents.

The Bal Harbour case is the more contentious of the two.

For the past 50 years, the Whitman family has operated the Bal Harbour Shops on a parcel in the village’s only commercial district. Its efforts to expand the high-end shopping plaza have been rejected several times, including in a 2021 referendum, when 90% of voters rebuffed a proposal that would have allowed the mall to exceed current height limits.

The family’s latest effort, invoking the Live Local Act, calls for a development of four 25-story towers that would house 528 residential units; 40% of them would be restricted for affordable and workforce housing. Also planned is a 70-room upscale hotel.

At issue, though, is the size of the proposed expansion, as the towers would be five times taller than existing

height limits. Lawyers for the Whitmans argue the project’s height and density are consistent with the highest height and the greatest density of projects within a mile of the Bal Harbour Shops, which means it can be built under the Live Local law.

So how close is the project to another high-rise development? It is across the street from the St. Regis Bal Harbour Resort, a beachfront condo-hotel built in 2011. It would be a few inches shorter in height than the St. Regis, according to land-use lawyer John Shubin, who represents the Whitmans.

The lawsuit argues that the village is simply trying to prevent low- and moderate- income residents from moving in. It cites a staff memo that says the construction of workforce housing should be viewed as anathema to its “quality of life,” and a risk to:

  • Their “standing as a unique and elegant community.”
  • Their “role as a luxury destination.”
  • “The safety and security of our residents and neighborhood.”

Village Manager Jorge Gonzalez, in a post on the village website, angrily accused the Whitman family of believing that the new law allows them to build whatever they want without respect for local ordinances. In the post, he said the Whitmans have vilified Bal Harbour by alleging that it is an inherently anti-Semitic and racist community, and that this antisemitism and racism has led to an unspoken policy of opposing affordable housing at all costs. He called on the Whitmans in his post to refrain from further accusations and provocations.

The median income for two-person households in Bal Harbour is $270,000, more than double the countywide figure, according to the most recent U.S. Census Bureau figures. Of the 3,093 residents, 33, or 1%, are Black and 81% are White.

Shubin said the Gonzalez post on the village website “exposes some very delicate sensitivities that are being felt in the village. One can draw their own conclusions as to why they are so sensitive to these issues, especially when they they have done everything in their power to thwart this project.”

Hollywood project also being closely watched

A developer has sued the city of Hollywood, accusing it of blocking a proposed 17-story, $80 million beachside project that would include workforce housing.

Beachfront buildings are limited in height to six stories. Condra Property Group argues it is entitled, under the new law, to build a 17-story, $80 million development with 282 units, 114 of them affordable, because other buildings of comparable height are within the mile required by Live Local. The project would include more than 35,000 square feet of commercial space, a two-story beach club, a sixstory parking garage and a rooftop pool.

The city’s position is that the local zoning code does not permit a project of that size.

Keith Poliakoff of the Government Law Group, who represents Condra, noted the height of the Margaritaville Hollywood Beach Resort is eight inches taller than his client’s project. And, more importantly, it is located within a mile of it.

Unlike the Bal Harbour case, Poliakoff said there is no allegation that Hollywood is trying to keep affordable housing residents out of the city. Hollywood, he acknowledged, has historically supported affordable housing initiatives.

“This is a height issue,” he said. “Based on the law, my client is entitled to build to the same height as Margaritaville.”

Both sides are expected to prepare legal motions calling for a judge to rule in their favor without the need for a trial.

Author: Mike Diamond

Condo next door sues developer building tallest twin towers on Fort Lauderdale beach

Can you sue over a view?

Alhambra Place, a condo tower in Fort Lauderdale with a view of the beach, is doing just that — alleging breach of contract and seeking more than $10 million in damages.

For 24 years, residents of the 16-story condo tower at 209 N. Birch Road have enjoyed an unfettered view of the ocean.

Then along came Selene, twin 26-story condo towers going up to the east of Alhambra Place.

The project’s design was substantially altered despite a development agreement the builder made with Alhambra’s condo association in July 2020, according to a lawsuit recently filed in Broward Circuit Court.

The lawsuit lists The Kolter Group and KT Seabreeze Atlantic as defendants, claiming they submitted a slew of plan revisions “aimed at cutting costs and increasing profits” without the knowledge or consent of Alhambra’s condo association. The revisions dramatically altered the exterior design of the project and were “solely made to enhance (the developer’s) bottom line,” according to the suit.

“It’s a totally different project,” said Keith Poliakoff, one of the attorneys representing Alhambra Place. “Alhambra had no idea. Some of those changes affect the view corridor for Alhambra.”

The Kolter Group has not yet filed a formal response to the lawsuit. KT Seabreeze Atlantic is no longer in business, according to the lawsuit as well as state records.

Bob Vail, a high-ranking official at Kolter, referred questions to Stephanie Toothaker, attorney for the developer.

Toothaker told the South Florida Sun Sentinel on Friday: “From its inception, and all throughout the development of the iconic Selene project, Kolter has enjoyed a very positive and collaborative relationship with its neighbors and we look forward to continuing discussions to resolve any issues, particularly as we have a previously scheduled meeting with their counsel next week.”

‘Things didn’t seem right’

Jim Novick lives on the 11th floor of Alhambra Place, where he serves as president of the condo association.

In March, Novick said he noticed the towers going up across the street didn’t quite look like the renderings he and his neighbors had been shown before construction began nearly four years ago.

“It was pretty far along when we noticed things didn’t seem right,” Novick said. “There was equipment in the way. When the cranes came down, I was like, ‘Oh my God, that’s not supposed to be there.’ They took out the glass. They added more stucco to save money. They made the one balcony on the sixth floor bigger.”

Novick says he contacted the developer with his concerns.

“I was telling them to take the balcony down,” he said. “I told them my board’s not going to be happy with this. See what you can do to fix these things. They said they’d get back to me on all these changes. And they never got back to me.”

That’s when the condo board decided to sue, Novick said.

‘The end of our universe’

Selene’s twin towers will be the tallest on the beach, rising 300 feet above sea level at 3000 Alhambra St.

Residential projects built on that part of the beach have a height cap of 200 feet.

But in late 2020, Fort Lauderdale commissioners signed off on special zoning that allowed the builder to go higher.

An earlier design called for a shorter and blockier set of towers that would have stood 200 feet high, with nearly 100 more condos and three times the space for restaurants and shops.

But residents at Alhambra Place preferred the developer build taller, thinner towers to help preserve their views.

“If they build a big giant box in front of us, it’s the end of our universe,” Novick told commissioners at the time. “We had one unit owner say, ‘We’ll never see the sun if they build this.’”

The project won commission approval in October 2020.

Less than two years later, the developer returned to the commission to request approval for what it called an administrative amendment to the approved site plan.

Alarmed by the proposed changes, Novick said he flew down from his second home in Boston to speak at the July 2022 meeting and voice his objection.

During the meeting, Toothaker told the commission her client was requesting changes to the project’s dimensional standards and architecture.

‘Approved behind closed doors’

That night, the developer withdrew the request for changes related to dimensional standards and architecture, the lawsuit states. The only changes requested — and approved — involved a reduction in the number of condo units from 215 to 196; an increase in the restaurant and retail space by 500 square feet; and a corresponding reduction in private parking spaces from 497 to 480.

“I came back on July 4 from Boston, left my family, got on the plane and went down to City Hall to testify,” Novick said. “And they withdrew the proposal. And I thanked them.”

But the developer came back later on to ask city staff to sign off on several modifications identical to those that had been withdrawn at the commission meeting, the lawsuit alleges.

“They submitted changes and got them administratively approved by city staff with no one knowing,” Poliakoff said. “City staff said they were minor modifications. These were not minor modifications.”

On April 23, 2025, Alhambra’s condo association sent the developer a notice accusing them of breach of contract.

The notice claims several design changes were made in violation of the development agreement the developer made with Alhambra Place. Among them:

East tower deviations

1. The elegant, round columns that floated outside of the façade at the L-shaped indented building corners were eliminated and replaced with a 90-degree building corner and integral corner edge column. The elimination of this feature detracts from its appearance and makes the building look wider.

2. The north façade of the east tower, level 5, was constructed with a balcony that extends well beyond the balcony line of the tower to the edge of the amenities deck.

3. West-facing level 4 of the east tower is constructed with large expanses of concrete, inconsistent with renderings that depict all glass and an open, unobstructed balcony.

Amenities deck deviations

1. The one-story spa extending from the west tower was reduced on the second administrative revision, adding about 30 feet more north-south open area.

2. The portion of the dog park west of the stair tower was eliminated and walled off from the reconfigured dog park. This is inconsistent with unit-view renderings.

3. The fourth level of the east tower is only partially glass, inconsistent with unit-view renderings that show an all-glass façade.

West podium façade deviations

1. On the unit-view renderings, glass comprises between 65% and 70% of the west-facing podium façade’s vertical section of levels 1.5, 2 and 3, but only about 47% as constructed.

2. The unit-view renderings show no exposed columns other than at the corners, whereas an exposed middle column was added to the constructed product.

3. The agreement calls for frosted glass on the west face of the parking structure. The actual construction appears to show tinted glass.

The towers are expected to open later this year.

“Plaintiff believes that there are additional violations and defaults of the terms of the agreement and shall, hereafter, seek a complete inspection of the property,” the lawsuit says.

Article Link: Condo next door sues developer building tallest twin towers on Fort Lauderdale beach
Author: Susannah Bryan

Trouble in Florida’s real estate paradise

The Sunshine State has a grim warning for America’s homebuyers

Zach Janik had all the makings of a Florida lifer. Born and raised in West Palm Beach, he spent most of his adult years in St. Augustine, a small beach town on the state’s northeast coast. In 2018, just shy of 30, he purchased a tidy three-bedroom house for $195,000. Life was good.

A few years into the COVID-19 pandemic, though, he no longer recognized the place he had long called home. The area around St. Augustine was bursting with new arrivals and vast expanses of cookie-cutter homes to meet the growing demand for housing. All those new residents clogged the roads, forcing Janik, who worked in sales, to spend long hours sitting in traffic to visit clients. Even if he wanted to move to another place in Florida, he couldn’t afford it — real estate prices had climbed so much that even a humble starter home like his was most likely out of reach.

Such tales of trouble in paradise are common these days. An undisputed winner of the pandemic relocation boom, the Sunshine State lured millions of movers with its siren song of beaches, balmy weather, and absence of a state income tax. Now it’s nursing a hangover. Residents across the state are experiencing an affordability crisis, hurricane-fueled insurance nightmares, and eye-watering property tax bills. Net migration to Florida has plummeted from the heady days of 2022. Owners of aging condos can’t find willing buyers. Home prices just dropped by their biggest percentage in more than a decade, with economists and analysts projecting a prolonged slide in property values.

It’d be easy to dismiss these challenges as unique to the curious appendage on the continental US, but the state is actually a solid bellwether for the rest of the country. Other markets, like the Southwest and the rest of the Southeast, show similar signs of softening. Climate risks are no longer solely a concern for the coasts. And of course, no place is immune to the broad trends quashing homebuyers’ dreams: mortgage rates that refuse to drop, prices that remain well above their pre-pandemic level, and general hand-wringing over the economy. Florida isn’t some anomaly. In fact, it’s as if all the forces driving the country’s real estate market converged there and got cranked up to max volume.

Most people I spoke with for this story were still bullish on Florida in the long run — the state’s natural appeal hasn’t gone anywhere. But the comedown from the pandemic-era highs will be messy, and some may choose to dodge it altogether. That includes Janik, who in 2023 moved out of his home state to Hershey, Pennsylvania. He was happy to trade what he described as the “overdevelopment” of St. Augustine for cheaper real estate and mountain views. Even though he eventually got fed up with Florida, his financial windfall is a testament to the state’s wild arc over the past few years: He sold his property for $345,000, a stunning gain of 77% in less than a five-year span.

“I miss the beach. I miss my friends,” Janik tells me. But at the end of the day, he says, “It just doesn’t feel like home anymore.”

The recent turn in Florida’s housing market may sound complex, but it boils down to principles straight out of Econ 101: supply and demand.

First came the demand. With white-collar workers liberated from their office desks, baby boomers cruising into retirement, and a general desire for easy living sweeping over the country, Florida made for an obvious destination. Plus, it was pretty cheap, especially for city slickers tired of their shoebox apartments or cramped homes sitting on million-dollar lots. Between April 2020 and July 2024, Florida saw a net gain of roughly 1.8 million residents, according to Census Bureau estimates, consistently jockeying for the title of fastest-growing US state. Florida continued to welcome plenty of snowbirds, sure, but it also lured venture capitalistscrypto speculators, and pretty much anyone who was sick of COVID restrictions or was just chasing that “vacation” feel. As one Business Insider headline read in late 2023: “Young people are flocking to Florida.”

All those transplants needed places to live. The lower half of the US, otherwise known as the Sun Belt, has traditionally been a hotbed of home construction, helping keep prices in check despite the region’s population growth. But even by the Sun Belt’s development-friendly standards, builders in Florida were busy. They completed more than 760,000 new homes between April 2020 and July 2024, the census estimates, a nearly 8% increase in the state’s housing stock. Only five states saw bigger building booms on a percentage basis, though with the exception of Texas, all have far fewer residents than Florida. The Sunshine State is home to about 6.8% of the nation’s population, but it accounted for nearly 12% of new home construction permits issued last year, an analysis by Realtor.com found. In both Texas and Florida, homebuilding activity “got close to or exceeded subprime, crazy construction days,” Rick Palacios Jr., the director of research at John Burns Research and Consulting, tells me, referring to the heady times just before the 2008 collapse. But even the most ambitious builders couldn’t keep up with the influx of transplants, investors, and vacation-home buyers in Florida. As more people angled for homes, prices soared. According to data from the real estate search portal Redfin, the median home price in Florida peaked at $423,000 in April 2024, up 61% from the onset of the pandemic.Many of those fresh arrivals eventually soured on paradise, though: too hot, too expensive, or just not home. Even a vacation, it turns out, can get a little old. And when lots of new housing supply hits just as buyer demand is waning, the stage is set for prices to drop — just ask builders in Texas. Last year, I wrote about the cooling of the Austin market, where home prices are now down about 14% from their peak, per Redfin. In many ways, the story there is repeating itself in Florida: A bunch of people moved in, home prices shot up, and builders responded by putting tons of shovels in the ground. Then interest rates jumped, home loans got more expensive, and buyer demand hit the skids. Cue the price cuts.

“It just doesn’t feel like home anymore.

Zach Janik, former Florida resident

There are, of course, some more Florida-specific factors at play. Back-to-back hurricanes tore through its western coast late last year, adding to the existing home insurance quagmire. Premiums have skyrocketed in the past few years, and multiple home insurers have abandoned the state entirely. The average cost of home insurance in Florida climbed 45% from 2017 to 2022, according to an analysis by the Florida Policy Project. Steep HOA fees, along with the hefty insurance outlays, have made it difficult for owners of aging condo units to offload their properties. Florida has also lost some of its luster among US movers. Four of its biggest metros — Tampa, Miami, Orlando, and Fort Lauderdale — were among the 10 areas around the country that saw the steepest dropoff in net domestic migration from 2023 to 2024, Redfin found.

So far, the about-face in Florida’s housing market has put only a small dent in headline property values. Sales prices in Florida are down roughly 3% from their high point in spring 2024, per Redfin — hardly even “correction” territory, let alone a bust. But Florida could still have a ways to fall. Builders and agents in Texas — where the pandemic frenzy has cooled off considerably — seem to have found an equilibrium, Cara Lavender, a senior research manager at John Burns, tells me. Sure, they’re selling fewer homes each month, but they’ve slashed prices enough that they’re able to keep things moving.

“It doesn’t feel like we’ve hit that point in Florida,” Lavender tells me. “They haven’t found the bottom.”

Parcl Labs, a real estate analytics firm, recently looked at the supply and demand dynamics in 42 metros around the country to deliver a “bullish” or “bearish” rating for each one — basically, whether they think prices will rise or fall over the next year. Miami and Jacksonville got positive ratings, but Orlando, Tampa, Lakeland, Deltona, North Port, and Cape Coral all got slapped with the bearish tag. The key in those places, Parcl’s CEO, Trevor Bacon, tells me, is the number of homes sitting on the market.

“There is a ton of supply,” Bacon tells me. “Like, a ridiculous amount of supply.”

Homebuilders are an optimistic bunch by nature, but even the ones in Florida are now saying they expect to end the year down slightly on their prices. “For a builder to even report in a survey that they’re going to be negative year over year on pricing is incredibly meaningful,” Lavender says. During a call with analysts in late March, Jon Jaffe, the president and co-CEO of Lennar, one of the country’s largest builders, said buyers in Florida and Texas generally needed more help than those in most other places around the country. Builders in the state are dropping prices, lending a hand on closing costs, and chipping in thousands of dollars to help buyers get lower mortgage rates, all in an effort to keep sales moving. Even then, Jaffe said, the company didn’t see the typical pickup in nationwide sales that usually comes with the start of the spring selling season.

I’ve found that real estate agents, like builders, tend to see the sunny side of things — after all, it’s pretty much their job to preach the gospel of homeownership even when the market is less than accommodating. But when I talked to Laurie Rose, a real estate agent and longtime resident of Naples, in southwest Florida, she was clear-eyed about the challenges facing buyers in her chosen state. Rose and her husband moved down from New Jersey in 2003, mostly for the weather. For a while, it felt like the move was paying off: Gas was cheaper, and groceries didn’t stretch their budget. The lack of a state income tax kept more dollars in their pockets. Now everything is more expensive, she says, including everyday items like food and clothing. On the plus side, home values are way up since she and her husband bought their place. But even if they sold, she says, there’s no way she could buy back into the area in which she’s now living. Rose still says Florida is a “great place to live,” but the state’s natural draws aren’t always enough to keep people there. She tells me several of her friends have recently moved to Tennessee, Georgia, and the Carolinas in search of the cheaper living that Florida once promised.

Sellers have been caught up in this thing of, ‘I can put whatever price I want on my home, and someone’s going to buy it. Now all of a sudden they’re going: ‘Oh, crap.’

Rose’s work as a real estate agent has also given her a front-row seat to the mounting challenges for both sellers and buyers in Florida. Buyers are leery of all the costs that come with homeownership — not just the higher mortgage rates and steep sticker prices that have eaten into affordability, but also the insurance premiums, property taxes, and HOA fees. With more homes sitting on the market and prices starting to drop from last year, there’s no rush among buyers to get in on the action. Sellers, meanwhile, will have to come to grips with this new state of play if they want to get their properties sold.

“Sellers have been caught up in this thing of, ‘I can put whatever price I want on my home, and someone’s going to buy it,'” Rose said, “Now all of a sudden they’re going: ‘Oh, crap. People aren’t buying, and people aren’t even looking.'”

his isn’t just a Florida story. Large-scale housing trends often obscure the quirks that make each local market unique, Jake Krimmel, a senior economist at Realtor.com, tells me, but Florida offers a neat microcosm of the national numbers. Around the country, supply is back up to levels we haven’t seen since the start of the pandemic, handing more power to buyers who now have the luxury of choice (provided they can afford it). Homes are sitting on the market longer, and sellers are coming around to the fact that they’ll have to cut asking prices if they want to see some offers. The softness in Florida’s market appears to be spreading to the rest of the Southeast and Southwest, where metros such as Phoenix, Denver, Atlanta, and Raleigh now show negative prices year over year in John Burns’ data.

“The Southeast and the Southwest aren’t as weak as Texas and Florida right now, but they could very well be on their way there if supply continues to increase and buyer demand stays where it is,” Lavender tells me.

I want to be clear that the sky isn’t falling here. The pandemic-era frenzy couldn’t last forever, and a pullback in demand was to be expected given just how many people bought and sold homes before rates went up in 2022. If builders hadn’t delivered all that supply to Florida over the past few years, the affordability picture there would be all the more dire. Just look at the Midwest and the Northeast, where fewer homes were built and the supply remains tight. They may not be seeing a drop in prices now, but that means buyers aren’t getting any relief, either.

Florida’s growth during the pandemic was “unsustainable,” Nelson Stabile, a principal and cofounder of the Miami-based development firm Integra Investments, tells me. But he’s still a staunch believer in the state’s future.

“I think we’re at a healthy pace now, and I think the whole country has woken up to the fact that Florida is not just a retirement destination,” Stabile tells me. “It’s a place where folks can raise their families, where they can have an incredible quality of life. Is it perfect? No. But is it better than most areas? Probably, yes.”Keith Poliakoff, a real estate attorney in Florida, is similarly bullish on his state. But he also says other states should learn lessons from Florida’s saga — to cut red tape that gets in the way of building affordable housing, as the state legislature recently did through the Live Local Act, and strengthen building codes to withstand climate disasters.

“Florida generally hits the wave before the rest of the country,” Poliakoff tells me. “It’s a good indicator of what’s to come.”

Article Link: Trouble in Florida’s real estate paradise
Author: James Rodriguez