Category: Miami Luxury Lifestyle

Pandemic office trends hold, creating a bifurcated market

More than three years since the start of the pandemic, the real estate industry professionals largely have accepted that the sector will not be returning to the way it was before, as work and commuting behavior patterns have been tough to change — even with corporate demands and incentives to return to the office. Office buildings have also lost their appeal to investors, with sales transactions down more than twice as much as the other major property types.

There’s currently a bifurcated market in the office sector of haves and have nots, with a few properties in big cities that remain attractive to corporate America. Those properties are typically the newest, safest, healthiest buildings with the top amenities in the most-sought-after locations. Such premier facilities are attracting a disproportionate share of leasing interest. Moreover, office markets in many smaller, growing cities are not only surviving, but thriving even beyond pre-pandemic levels.

In the years ahead, companies with business models that support remote work will keep reducing their office footprint to save on rent. Going fully remote also may help companies win in the battle for talent, as companies that offer remote positions have access to a wider talent pool, which allows them to recruit better workers at more affordable wages. Such economics may be too compelling for them to reverse course and lease office space like before.

So what should office owners and cities do with the empty properties? While some in the industry have been calling for the repurposing of high-vacancy office buildings, the industry leaders caution that not all office buildings can be economically converted — even with government subsidies. A better economic solution, they suggest, may be demolishing buildings and repurposing the land.

Despite the bleak forecasts, some industry leaders haven’t given up on the future of office buildings. They want to learn from how the retail sector adapted and ultimately rebounded from the competition it faced over the past few decades from e-commerce, which emerged as a viable alternative to in-store shopping.

Focus on rental housing – how international investors might be able to turn them to their advantage

Around the world, populations are facing a housing shortage. Rising construction costs, rapid urbanisation, population growth and scarcity of land – especially in and around cities – have all combined to create a market of short supply and high demand. In an environment with elevated house prices and rising interest rates, many first-time buyers will struggle to get a mortgage. Hence, residential demand is shifting away from owner-occupied housing towards the rental sector.

This makes the rental residential sector an increasingly attractive proposition for investors. Historic property market data shows that residential rental income has the potential to deliver attractive risk-adjusted returns and provides a strong hedge in times of higher inflation. With an annual transaction volume of over USD 200 billion, the US is by far the largest and most liquid rental housing market in the world. In Europe, Germany also offers a very liquid rental housing market, with almost USD 20 billion of annual transaction volume.

Specializing in high-end investment and support for international investors, the consultants of VIAC Luxury Real Estate Miami will guide you according to your request: second home, condo, villa rental investment with a guaranteed return, investment property, business investment, short and long term rental management…

Growing Importance of Alternative Investments and Diversification Across Non-Traditional Asset Classes

As traditional asset classes face challenges such as low interest rates and increased market volatility, investors are recognizing the growing importance of alternative investments and diversification across non-traditional asset classes.  

Private Equity and Venture Capital: Private equity and venture capital investments are gaining prominence as investors seek higher returns and access to innovative companies  These investments offer opportunities to participate in the growth potential of privately held firms and startups.

1. Real assets : Real estate, infrastructure, and natural resources are becoming increasingly attractive for asset allocation. These tangible assets provide diversification benefits, potential inflation hedging, and stable income streams making them appealing in uncertain market conditions.

2. Hedge funds and other alternative investment strategies are gaining attention as investors seek uncorrelated returns and downside protection. These strategies employ sophisticated techniques to generate alpha and manage risks.

Diversification across non-traditional asset classes can enhance portfolio resilience, reduce correlation to traditional markets, and potentially improve risk-adjusted returns. However, it is important to conduct thorough due diligence and understand the unique risks associated with alternative investments.

By embracing sustainable and ESG considerations, monitoring geopolitical events and regulatory changes, and diversifying across non-traditional asset classes, asset allocators can navigate the evolving investment landscape and optimize their portfolios for long-term success. These trends reflect a broader shift towards responsible and diversified investing practices, ensuring a more holistic and adaptive approach to asset allocation in the future.

November 2023

2024 National and Florida real estate outlook predicts turbulence, but no crash

As if the national real estate market wasn’t already shaky enough, a new national real estate report warns of “potential turbulence ahead” for 2024. But turbulence doesn’t mean a violent crash. Instead, economists at Bank of America say the housing market today is more reflective of the sky-high inflationary early 1980s than the financial house of cards collapse of 2008, with soaring mortgage interest rates expected to cool economic activity, but not necessarily lead to a housing crash.

Bank of America economists noted in the report that the similarities are striking between conditions today and the early 1980s when soaring inflation led the U.S. Federal Reserve to hike mortgage interest rates, hitting a peak of 18.6 percent in 1981. This significantly slowed the housing market but didn’t lead to a crash. Similarly, mortgage interest rates in Florida are the highest in 23 years standing at 7.8 percent for a 30 Years fixed mortgage.

Despite concerns at the national level, the Florida real estate market has been showing mixed signs, with sluggish sales at least partially offset by skyrocketing home values. The most recent data from the Florida Realtors Association indicates that average home sale prices in the state were up 3.7 percent year-over-year in August 2023, reaching $576,000 compared to $555,000 in August 2022. However, total home sales have dipped by 7.8 percent over the same period, leading to a $600 million decline in the total dollar volume of Florida real estate sales from $13.8 billion in 2022 to $13.2 billion this year—or a drop of 4.4 percent.

Local market experts in Florida have also observed a similar trend. The Orlando Regional Realtor Association (ORRA) reported a minor slowdown in sales and a slight decrease in median home prices in its State of the Market reports for July and August. Despite the seasonal lull typically expected in the fall and winter months, ORRA stated that those holding out for a crash are likely to be disappointed.

Adding to Florida’s market complexity, the state was recently reported by Zillow as the second hottest housing market in the U.S., unseating New York from its former position. This, combined with a housing shortage and persistently high interest rates, is expected to keep the market tight for the foreseeable future.

However, there is a silver lining. According to Bank of America’s report, the entry of millennials into their prime home-buying years and steady single-family building permits could offer some support to the market.

As analysts predict a quarter-point rate increase by the Federal Reserve in November and a subsequent rate cut in June of next year, the consensus remains that the housing market could be in for a bumpy ride ahead, but it’s not anticipated to crash and burn.

The FORT LAUDERDALE INTERNATIONAL BOAT SHOW (FLIBS) is recognized as the largest-in-water boat show in the world. The five-day show from 25th to 29th October will attract over 100,000 attendees and 1,000 exhibitors representing 52 countries with more than 1,300 Boats on display in 2023. Products range from superyachts to sunglasses and everything in between.

This is a unique occasion for VIAC CAPITAL’s team to interact with investors and partners.

The FORT LAUDERDALE INTERNATIONAL BOAT SHOW has favorable economic impact on the local economy and beyond.

$1.79 billion in economic output throughout the state of florida through show purchases and expenditures in 2022;
$ 709.7 million in estimated sales by florida in 2022;
$ 85,8 million in state and local taxes generated within Florida, with $24.5 million in Broward County alone
100,000+ visitors, with 49% outside Florida
$47.3 million in estimated total expenditures by non-local visitors and exhibitors

Boats in the harbor are safe but that is not what they are meant for. In 2022, the Mangusta Oceano 50 has won the prestigious « Best of Show » award, bestowed at the Fort Lauderdale International Boat Show, the number-one boat show in the United States, with over 1,300 boats showcased during the 63rd edition. A perfect blend of volume, liveability, design and technology.

The Jury’s attention was drawn to this yacht by her generous exterior and interior volumes, including the beach area that opens up to three connected terraces at the sea level. The most admired feature, though, was the huge forward area on the main deck, hosting a full-beam custom infinity pool. The judges were also fascinated by the master stateroom, located on the main deck with its refined, sophisticated interiors and the exclusive fully-automated balcony overlooking the sea.

VIAC CAPITAL is faced with unenviable task of choosing our personal favorite for the 2023 edition

More than 70,000 art lovers are expected to descend upon the Sunshine State of Florida in December as Art Basel Miami returns.

Scheduled to run from 7-9 December 2023, the event showcases the most exciting work of some of the hottest artists on the planet.

The event is one of the most established in the art world and has been pulling together some of the most influential works of art from North and South America, Europe, Asia and Africa since 1970. The hub of the event is the Miami Beach Convention Center, but the artwork spills out much further than that, donning the surrounding streets, beaches and parks during the show.

VIAC CAPITAL and major real estate players, who happen to be art enthusiaits, are also hosting events that aren’t real estate related.

About 76,000 people attended Art Basel Miami Beach last year but more than a million visitors attended Art Basel Miami Beach last year, but more a million visitors were estimated to have travelled through Miami International Airport for the week. Quentin Viac, CEO VIAC CAPITAL said « Art Basel has become a stop on the global social calendar and an opportunity for our investors to explore further opportunities. When you look back a few years ago, the affluent really spent their vacation time pursuing leisure, today they pursue access »

The case for the digital tokenisation of single real estate assets is that real estate is lumpy and illiquid, and that investors should be able to participate in the ownership of a broader universe of assets, hitherto confined to the wealthy and institutions, and to build diversified portfolios with modest sums of money.

The challenge for proponents of the digital tokenisation of single real estate assets is that two radical developments have to be simultaneously accepted. First, there needs to be an expressed demand for the fractionalisation of single real estate assets. Evidence of this is at best sketchy, both through history and in the current period. Second, market participants need to be comfortable with blockchain, the digital underpinning of tokenisation.

Connected to this is the cost of fractionalisation and the cost of tokenisation. In many land markets, fractionalisation requires an intermediate structure to be established because the direct ownership of land cannot be split into many pieces. Even where this is not the case, agreement needs to be reached regarding the control of fractionalised assets. For certainty and risk control, not to mention regulatory compliance, it makes sense to reproduce existing structures which have been proven to govern fractionalised investments. Globally, these appear to be limited companies or LLCs, partnerships, trusts or dedicated contractual systems.

Given that an intermediate structure is likely to be both necessary and convenient, it seems clear that tokenisation has the greatest chance of making immediate progress in the world of funds, where that structure is already in place and there is already an expressed demand for fractionalisation.

In conclusion, tokenisation offers exciting possibilities for the real estate investment market. It is, however, at an early stage of its development, and real estate applications will take time to develop and become accepted. There is a clear danger that innovation will be set back by years and possibly decades if attention is focussed solely on the digital fractionalisation of single assets, for which the demand may be limited, the economics unconvincing and the obstacles significant. Funds and debt offer immediate opportunities to establish the credibility of tokenised real estate applications; utility tokens for building http://13.217.56.157/wp-content/uploads/2025/02/modern_interior-1920w.webps and hybrid tokens for residential co- ownership and community assets may well follow; and, in time, there may be some successful trophy asset tokenisations. The mass market for the tokenisation of single commercial real estate assets, however, may be some way down the road.

PropTech solutions can take many forms, including virtual and augmented reality tools that allow buyers to tour properties remotely, online platforms for property listings and transactions, property management software, and data analytics tools that provide insights into market trends and consumer behavior.

Over the next three to five years, investments are expected to reach $69 trillion by 2030. While the number and scope of emerging proptech trends are only rising, some have already been singled out as trends that will go the distance. Here are just a few of them.0

    1.Focus on better commercial strategies with proptech that emphasizes AI algorithms assistance

Currently considered one of the most powerful weapons in real estate marketing operations, artificial intelligence algorithm-backed assistance is expected to quickly become the norm, offering a wide range of capabilities, including :

-Better recommendations (providing more customers with more relevant options to choose from)

-Property management (working closely alongside mobile app technology that caters to property and lease listings, buyers and even maintenance requests etc)

-Superior data analysis (algorithms would help owners improve data aspects in order to provide better services, more transparency and increased accessibility.

    2. Increase of real estate crowdfunding platforms

Today, with over 80% of the world’s population using a smartphone, investing is no longer reserved for the wealthiest, and anyone with a smartphone and WiFi is able to become an investor. With Europe soon allowing regulation of crowdfunding across all European states, and proptech simplifying the search, rent, purchase and sale processes of buildings, it is expected that the trend of real estate crowdfunding platforms will continue to rise over the next few years.

This is especially the case as studies of 2020 and 2021 have clearly shown that investors want to participate in and support even smaller businesses involved in this sector. The appeal of such crowdfunding technologies is also evidenced by the heightened equal opportunities created for both issuers and investors, with last year seeing more investors who were Black, women or people of color than in previous years.

   3. Increased need for customer-focused support

With such wide-scale technology adoption in the property sector through these proptech solutions, it is evident that real estate owners, developers and other related parties will also need to consider fully-integrated tech solutions that truly cater to end http://13.217.56.157/wp-content/uploads/2025/02/modern_interior-1920w.webps’ expectations, making sure to guide them along the rapidly-changing face of such a time-honored industry.

That means additional digital solutions and tools that will focus on post-implementation, customer-focused ‘hyper-care’ support to ensure customer satisfaction as they adapt to these new platforms and apps.

Some of the biggest celebrities, athletes and richest people in the country call Miami home, or at least own a home here. So naturally, the city wants to cater to these high net worth clientele, which is why Miami is one of the premier shopping destinations in the country, and even the world. Whatever your budget may be, Miami has something to offer every level of shopper!

Here’s a list of where the best shopping in Miami is.

Sawgrass Mills– located just a bit north of Miami; Sawgrass Mills is the largest outlet mall in the United States, hosting over 350 name brand and off-price retail stores. Shoppers of all budget levels love this place because their money goes even further here. Don’t let the word “outlet” fool you; Sawgrass Mills still has some of the biggest brands in luxury like Jimmy Choo and Gucci.

Miracle Mile– this gorgeous outdoor shopping center can be found just south of Miami. Miracle Mile is home to numerous locally owned boutiques and bridal salons. Stroll down the tree-lined streets and you’ll be sure to find something you can’t live without!

Bal Harbour– this indoor/outdoor mall is where the celebrities go. Bal Harbour is perhaps the classiest of all the shopping centers in Miami and truly a luxury shoppers dream and home to Chanel, Gucci, Alexander McQueen, and many more. Keep your eyes open for celebrities too!

Design District– this up and coming swanky neighborhood features an outdoor mall filled with some of the biggest names in luxury like Louis Vuitton, Cartier and Hermes.

The Falls– this picturesque mall has quite a scenic feel to it as you walk through numerous waterfalls along a winding path. The Falls offers shopping to more of a mid-range budget, but just strolling through the property is pleasant enough on its own.

Whatever your shopping tastes may be, you can find plenty in Miami. And if you’re in the market for condo shopping, the professionals at Viac Luxury Real Estate can find you the perfect place. From condos in South Beach to Downtown Miami condos for sale, let Viac Luxury Real Estate do the work for you and visit them at www.viac-miami.com.