An influx of affordable housing is coming to Orlando

An influx of affordable housing is coming to Orlando

By: Beatrice Silva 

2 min read September 2020  — Affordable housing has been a major cause for concern in Florida for decades. Homes in the sunshine state are overpriced by almost 20%, the highest level in eight years, according to a study done by Florida Atlantic University. The pandemic has served as a reminder of just how fragile the line between having a place to live and experiencing homelessness is for families. This past year, Central Florida added seven affordable rental options for low-income households, which has raised the total count to 20, in an effort to subdue this crisis.  

On Dec. 17, 2019, Orange County commissioners signed off on a 10-year plan to create new affordable housing projects, injecting $160 million into a fund with a goal to build 30,300 units by 2029. Among other grants and strategies, developers and nonprofits can seek financial help to build or upgrade low-income properties. “In the end, all those things are going to help, but they are going to have to have dedicated resources,” Shannon Nazworth, CEO of Jacksonville-based Ability Housing, previously told Orlando Business Journal. “There have been communities like Los Angeles that have gotten permission from their populous to do a bond issue to develop affordable housing and meet the need, and if Orange County were to do that, I think the return on investment would be demonstrative.”

Residential Communities LLC and New South Residential LLC are the most recent developments to undertake an affordable apartment complex. Construction on the 77,473-square-foot senior housing facility is set to begin in early September at 5800 S. Rio Grande Ave, according to Orlando Business Journal. This project is one of the many that are needed to help bring more affordable housing options to the region. Families are struggling, perhaps now more than ever, to simply pay rent. To put things into perspective, a minimum-wage worker in Florida makes around $445 per month while the average one bedroom apartment costs around $1,027 per month, according to the National Low Income Housing Coalition. Rent at that price point is simply out of reach even for median-waged workers like nursing assistants, janitors and cashiers. 

While paying rent is difficult, for some people owning a home may seem unfathomable. However, renting a single-family home provides the experience of owning without the costly fees and obligations associated with purchasing a property. As a result, the single-family rental sector is booming in Orlando. “If you can find single-family housing that you can rent that’s within close proximity of multifamily housing, the single-family housing is going to beat it out every time,”  Brad Hunter, managing director of real estate consulting firm RCLCO, told Orlando Business Journal

The rise of rentals could be another form of relief for low-income families. The increase in occupancy will eventually lead to more single-family rental communities being built that then provide more affordable housing options. However, when it comes down to it, the majority of the responsibility to help reduce the burdens of housing costs and minimum wages falls on elected officials. Without the support of the local and state government, deploying a plan to promote affordable housing is left in the hands of developers and the community. 

Face Off: Adaptability is par for the course for these development leaders

Face Off: Adaptability is par for the course for these development leaders

By: Max Crampton Thomas

Patrick Lee

Andrew Burnett

3 min read August 2020 Although there have been major roadblocks stemming from the pandemic that have created some slowdown, development in South Florida has continued to show a steadfast resilience and adaptability as projects around the region have remained on a path toward completion. For companies within the construction and development sectors, there is an understanding that being adaptable to the communities’ changing needs is just par for the course. While the future may be uncertain, it’s important to keep a cautiously optimistic attitude. Invest: spoke with both Shorecrest Construction President Patrick Lee and Senior Principal for Stantec Andrew Burnett about their companies’ major developmental successes over the last year, the constantly shifting industry landscape and their best estimations of what the future may hold. 

What are some recent landmarks for your business in the Miami-Dade region? 

Patrick Lee: The main markets Shorecrest Construction focuses on are hospitality, boutique commercial and luxury residential. In the last few years, all of these markets have been extremely strong. We just completed the renovation of the Soho Beach House in Miami Beach, which included the refreshment of guestrooms and suites, bar areas and gym to keep guests engaged and coming back. In luxury residential, a mainstay market for us, we build high-end homes on the water and complete condo interiors in some of the most prominent South Florida neighborhoods. Shorecrest works closely with well-known architects and designers to bring their concepts to life. We just finished the penthouse at the Four Seasons Surf Club designed by Holly Hunt. In the last few years, we have gotten a stronger foothold in those markets.

Andrew Burnett: Recent landmark projects in full swing include Wynwood Square, a 12-story mixed-use facility that includes apartments and retail space; the 30-story YotelPAD Miami condo and hotel project under construction; and a 43-story Luma tower in Miami’s Worldcenter. And there are a lot of new projects to be announced soon and currently coming on board. Each asset within our portfolio contributes to our growth in the creative services space, beyond architecture and interior design, but also engineering and resilience. We think beyond traditional physical traits and focus on how our vast team builds our communities and what we create so there is continuity in our lives and the spaces we inhabit and to ensure that we protect diversity and creative thinking. We call it cultural resilience. 

Have you seen more cognizant efforts toward building for the future with sustainability in mind? 

Lee:  From a climate change perspective, we have been building at a higher elevation, which has been mostly code-driven. Having said that, we have worked on projects where our client has voluntarily built higher than the codes require. Miami Beach has been extremely aggressive in its efforts to raise sea walls to deal with issues stemming from sea level rise. As far as our clients, everybody is technologically savvy, so a lot of the smart home amenities that were reserved for the elite level of homes are becoming a more common feature in homes. We find a lot of our younger clients, in particular, prefer that kind of addition.

Burnett: There is a significant level of agreement across the industry related to what we are facing and where we need to go. It is only a matter of how and there are varying perspectives to harness. Our government agencies, utilities, partners, clients, insurance agencies and lenders all commonly understand the need to mitigate prevalent risks and maintain our quality of life. There is power in the collective movement and I am optimistic about our future and path. 

What does the rest of the year look like for your company?

Lee: Shorecrest has a couple of projects that will still happen as well as some ongoing projects that are still running, including a condominium at the Continuum South Beach and several single-family residences in South Florida. We have two luxury clubs and restaurants right on Miami Beach and the owners of those projects are still very bullish on the construction. I think there will be more of an influx of people who have been coming into Miami from the Northeast because they no longer want to live in such dense cities and prefer to live in a place like Florida. I predict that there will be a recovery in Miami relatively quickly. 

Burnett: We have been quite busy, which is a reflection of the busy private development market. Projects are moving forward and the entire development community is gearing up for when the play button is pressed. In 2009, during the H1N1 outbreak, we established a pandemic committee, granting us an effective way to respond quickly to the pandemic and set up a remote work setting. Fast forward to today: Our productivity levels have allowed us to meet established deadlines and keep projects moving forward, continuing business as usual. Our current outlook for 2021 does not project significant levels of interruption. We want to continue to support that in any way we can. 

To learn more about our interviewees, visit:

https://www.stantec.com/en

https://shorecrestgc.com/

 

 

Charlotte provides relief now while thinking about the future

Charlotte provides relief now while thinking about the future

By: Felipe Rivas

2 min read August  2020 From a census count, to civil unrest, to the health and economic fallout from the COVID-19 pandemic, 2020 has proved to be a pivotal year for the nation. And though uncertainty has remained constant throughout the year so far, the Queen City’s infrastructure investments, diverse business climate and access to talent continue to draw interest from companies and new residents. As the pandemic continues to change the way Charlotteans live, work and play, however, city leaders are juggling the precarious task of providing relief for residents now, while contemplating the future development and growth expected in the Queen City. 

 

From workforce development efforts to small business relief, state, municipal and banking leaders are working to mitigate the pandemic’s immediate economic impact. In August, in an effort to continue to help embattled renters and homeowners, the Charlotte City Council approved an additional $8 million of federal stimulus funding to expand the existing Rental and Mortgage Assistance Program (RAMP CLT). Since April, more than 1,500 households have received $1.4 million in mortgage, rent, hotel and utilities relief and upfront housing assistance due to COVID-19, the city reported. Individuals earning 80% or below the average median income who face COVID-19 hardships and cannot make housing payments may apply for rent or mortgage assistance.

Though the pandemic-infused economic contraction has hit the Charlotte metro area, the region continues to be a favorable destination for new residents. The Charlotte metro continued to be a major draw for new residents coming from the East Coast and as far as California, global property investment giant Jones Lang LaSalle reported in August. “New residents have been drawn by a robust job market, lower cost of living and more pleasant climate,” JLL wrote in its “Tracking population migration in Charlotte” snapshot report. “Year over year migration from the Miami-Fort Lauderdale metro increased by 450%,” while “in-migration from California has increased by 500% year over year as the California diaspora moves further east,” JLL found. 

Charlotte’s appeal to new residents, business owners and companies will likely drive commercial and residential development demand as the region moves past the pandemic. In an effort to maximize the value of development projects expected to come to the city, Charlotte city leaders are considering implementing impact fees on property developers to cover public services for new developments, including any new infrastructure needed. These fees can also help create public green space, support schools and parks, as well as fund public transportation projects. 

Leading the effort on the impact fees proposal is Taiwo Jaiyeoba, assistant city manager and director of Planning, Design and Development, who is expected to present a proposal to the city manager in the coming months, as reported by the Charlotte Observer. Impact fees are vehemently opposed by developers who say the fees can potentially stifle development projects. Additionally, to move forward with impact fees, the city will have to receive permission from the state legislature, which has traditionally opposed the measure. 

During these uncertain times, sound insights and collaboration between the public and private sectors will be pivotal in ensuring financial recovery for both businesses and residents. To learn more about the future of development in Charlotte, register now for the Invest:Charlotte 2020 Virtual Launch Conference. The conference takes place on Sept. 10 at 11:30 a.m. The virtual conference will feature two robust panels, including “The future of development in the Charlotte region,” moderated by Taiwo Jaiyeoba, assistant city manager and director of Planning, Design and Development, and featuring Zach Pannier, business unit leader, DPR Construction; Marcie Williams, president, RKW Residential; Clay Grubb, CEO, Grubb Properties; and Lawrence Shaw, managing partner, Colliers International.

 

To learn more, visit:

https://www.us.jll.com/en/views/snapshots/charlotte-snapshot-8-3-2020

https://events.r20.constantcontact.com/register/eventReg?oeidk=a07eh85c9d965e383fa&oseq=&c=&ch=

 

Delray Beach: a city in transition

Delray Beach: a city in transition

By: Felipe Rivas

2 min read August  2020 Months into the coronavirus landscape, the pandemic continues to accelerate change across the world. In Palm Beach County, the city of Delray Beach already had its eyes set on the future even before Covid-19 began changing the local environment. And though the city has not been immune to the squeezing and contracting of the economy resulting from the pandemic, key construction projects and infrastructure improvements, as well as recent vulnerability studies, have Delray Beach ready to come out of this crisis better than before. 

“2019 was a transition year for the city. We moved from one city manager to an interim manager and finally, we hired a second one.” Delray Beach Mayor Shelly Petrolia told Invest: Palm Beach. “We remained in good hands though and we are in good shape,” she said. 

Through its leadership transition, the city concluded a couple of city studies, a vulnerability study and a sea wall study, that will be “instrumental for us going forward,” Petrolia said. 

“Tides are rising around us and water is becoming a real issue. We also undertook several infrastructure studies to get a sense of the state of our pipes, our seawalls and the stormwater drainage system throughout the city. These critical works shed light over where our vulnerabilities lie, which we are addressing.” The city is looking at a $400-million investment to address the vulnerabilities highlighted by these studies. “The water issue we are dealing with is not expected to come as a tidal wave. Rather, it is a slow but progressive issue. It is rising and invading our well systems, pushing further west underground in the aquifers. The more we know, the more we can deal with the issues over time,” she said. 

Known for its tourism, hospitality, and service industries, the local economy has taken major blows due to the coronavirus pandemic. However, construction projects are ongoing, highlighting consumer and developer confidence in the city. “We have been blessed to have so much building going on, with people interested in coming into our city and developing,” Petrolia said. “We are under construction in several areas of our city. One of the largest areas currently under construction is the Atlantic Crossing building. The building industry is keeping a lot of people afloat and in business at a time when most people are unable to continue doing business. We are in tremendously good shape, and primed to come out of the post-COVID-19 starting blocks in a great way.”

Along with city leadership, the Delray Beach Community Redevelopment Agency (CRA) has led efforts to beautify and redevelop parts of the city while providing support to the local business community and residents. A focus of the CRA is the Northwest-Southwest neighborhood, which lies in a federally-designated Opportunity Zone.”We have the land and are open to working with a third party to develop it,” Executive Director Renee A. Jadusingh told Invest: Palm Beach.

“In this area, we want to have a continuation of Downtown from I-95 all the way to the beachfront. That is a shared goal between the Chamber of Commerce, the city commissioners and the CRA. We provide resources to help small businesses grow, including funding, help with business plans, research, investment guidance and grant and federal funding applications,” she said.

To help local businesses during the pandemic, especially those in the service industry, the city has allowed more spaces to be geared specifically toward food pick-up, loosened strict signage standards, and waived parking meter charges. Similarly, the CRA set up its COVID-19 Resource Programs page that details help for both businesses and residents, including access to different loan programs, rent support and food and nutrition services.

For the rest of the year, the priority for the city is to get through COVID-19 and “see how much retention rate we can hold onto,” Petrolia said. “It is critical to look at the businesses that we have and figure out how we can help them survive. It is also important to continue to attract businesses looking to relocate to Delray Beach. As we move further down the road, we will surely see new businesses springing up, and new ways of doing business too.” 

For more information, visit:

https://delraycra.org/covid19/#1586292030990-8feb8057-18da 

https://www.delraybeachfl.gov/

 

Tourism in Orlando pushing forward despite rise in COVID-19 cases

Tourism in Orlando pushing forward despite rise in COVID-19 cases

By: Beatrice Silva

2 min read July 2020 — It has been almost six months since the World Health Organization declared the novel coronavirus a pandemic. Within days, each sector of the economy had to discover new ways to keep businesses afloat despite being forced to close their doors. Unlike banking and technology, tourism relies on almost every aspect of life that is now restricted, like travel and face-to-face interaction. For cities like Orlando, tourism is a major factor in the economy, to the tune of $75 billion a year.

 

 Tourism supports an estimated 41% of Orlando’s workforce. Around 463,000 jobs have been affected and millions of dollars worth of wages are being lost each day during the area’s local tourism shut down. Tourism also accounts for $5.8 billion in state and local taxes, finances which go to support local schools, roads and other crucial services, according to Visit Orlando. The city’s resilience, however, is proving that it is not going to let a microscopic organism bring it down as tourism continues to push forward.

Although the hotel industry has been wrestling with obstacles caused by COVID-19, activity in that area is starting to gain traction again. One example is the development of a five-star convention hotel that was recently announced. Summa Development Group LLC has proposed a 33-story project in Thornton Park and the construction is expected to begin sometime next year, according to Orlando Business Journal. As for the big players like Walt Disney World, SeaWorld and Universal Studios, they too have begun to jump-start their operations. Disney’s Hollywood Studios and Epcot officially opened on July 15. Universal Studios welcomed guests back to its park on June 5, after almost two and a half months of closure. Of course, the theme parks will each have their own updated operational guidelines, including mandatory face coverings, temperature checks and social distancing regulations.  

When we first made the decision in March 2020 to close Universal Orlando Resort in response to the coronavirus pandemic, we didn’t know how long it would be for. We didn’t know what the future held or what a reopening would entail … Getting us here has been an in-depth process, and I am incredibly proud of the ways our Team Members have listened to experts and implemented new operational guidelines for the safety of our guests. At Universal Orlando Resort, we are following what we’re calling the three Ss. That’s screening, meaning we’re taking everybody’s temperature before they enter; sanitization, because we are constantly sanitizing areas and high-touch surfaces in the parks; and spacing, providing markings and reminders throughout our resort so guests can socially distance themselves from other parties,” said Bill Davis, president of Universal Orlando Resort, in a welcome back letter. 

It’s safe to say that tourism is the bloodline of Orlando’s economy. While there is hope for a new beginning and a new normal after the pandemic, the city isn’t in the clear just yet. Despite every attempt by public officials to stop the spread of the novel coronavirus, cases continue to surge and hospitals are starting to fill up. On July 19, Florida reported 10,328 new positive COVID-19 cases and 90 Florida resident deaths related to COVID-19. Orlando has been listed as the second highest city, behind Miami, with the most confirmed number of COVID-19 cases, according to The Florida Department of Health

 

Real estate development is booming in Fort Lauderdale

Real estate development is booming in Fort Lauderdale

By: Beatrice Silva 

2 min read –  Real estate development in Fort Lauderdale is getting a jolt of confidence despite the lingering impact of COVID-19. On March 24, a majority of businesses were forced to shut down after Gov. Ron DeSantis announced a statewide shelter-in-place order. However, construction companies, hospitals, grocery stores, gas stations and other essential businesses were allowed to carry on with work as usual.

 

Florida is just one of several states that allowed construction to continue despite nationwide shutdowns. Similar to many other regions in the area, development is a vital part of Fort Lauderdale’s economy. The construction industry is projected to have the largest industry increase in employment from 2014 to 2024, according to the U.S. Bureau of Labor Statistics. 

A strong signal of the confidence in the market is a recent move by Oko Group, an international real estate development firm founded by Vladislav Doronin. It is the first company to close a large deal since the beginning of COVID-19. The firm recently purchased 6.68 acres of land east of the county courthouse in Downtown Fort Lauderdale for $62.59 million. “Oko Group is excited to expand its portfolio of South Florida real estate with the acquisition of a mixed-use development site in the heart of Fort Lauderdale’s urban core,” the developer said in a statement reported by South Florida Business Journal. “The Oko Group team, led by Doronin, now looks forward to working with the city of Fort Lauderdale to finalize plans for an exceptional development that will help to further transform the Downtown district while adding significant amenities for nearby residents and businesses.”

The majority of developments in the pipeline for Fort Lauderdale will most likely be residential. Retail and office real estate have proven themselves to be the weakest sectors in the market during the pandemic. “Prior to COVID-19, South Florida’s real estate sector was very strong, propelled by the demand and low interest rates. I think the commercial office market may see a bit of a correction. So many people are working from home and I imagine that most of them are going to continue to do that the rest of the year. I think business owners are getting more comfortable allowing their employees to work remotely. So far, the industrial and residential markets have proven themselves to be the strongest sectors in the real estate industry during the pandemic. I don’t think we’ll see any correction there. Currently, at Touchstone Webb Realty Company, we are watching retail and commercial as we move forward. We think it is going to take a good year before we see this sector begin to correct. We are still purchasing industrial and flex spaces for our clients,” Susan Thomas, president of Touchstone Webb Realty Company, told Invest: Palm Beach.

As Thomas mentioned, CDC regulations like social distancing have compelled more people to want to work from home. As a result, business owners could require less office space. Fairfield Cypress Creek is just one example of this trend. The new mixed-use project is currently underway between 6500 and 6520 N. Andrews Ave. The land which was originally occupied by office buildings will now hold 295 residential units, shops and restaurants. A new downtown could be another exciting project on the horizon for Broward County. Broward is recruiting a large company to relocate to the 140 acres next to the Everglades in Sunrise. “It’s one of the last few pieces you could make a statement. We really want to market this site internationally, not just nationally,” County Manager Bertha told the Sun Sentinel. 

 

 

The Post-Pandemic City

The Post-Pandemic City

By: Abby Melone, President & CEO, Capital Analytics

It’s a truism in today’s hyper-connected world that people go where the jobs are, more so now than ever before. But what happens when your job suddenly can be done from anywhere?

 

The 19th century ushered in the first and second Industrial Revolutions that saw more and more people move to urban environments, precisely because that’s where the jobs were. In the United States, the rise of manufacturing opened a new world of employment possibilities, pushing people from the farm to the factory. It’s a push that in one way or another continued into the 20th and 21st centuries. The result is seen today in the population densities that cram big cities from coast to coast, border to border.

According to the United Nations’ World Urbanization Prospects report and the website Our World in Data, the world crossed over in 2007. That’s the fist year the number of people living in urban areas rose above the number living in rural areas (3.35 billion versus 3.33 billion). In the United States, around 82.3% of the population lives in urban areas, according to the World Bank. Growth trajectories project a steady increase in urbanization as far out as 2050. 

Today, the millennial generation is changing the character of urbanization by spearheading the live-work-play ethos. This generation prefers to skirt the traffic jams and live and play near where they work. The goal to have it all close by has given rise to the mixed-use building concept that puts everything – your living options, your entertainment choices and your shopping – all in one convenient location, which preferably, is near your workplace. 

It also means we are all living closer to each other in smaller and smaller spaces. That seemed to suit a lot of people just fine. Then the COVID-19 pandemic happened, and all of sudden, none of that seemed fine at all.

The pandemic resulted in shelter-in-place orders that forced people to live 24 hours a day in their homes while also working from their home offices, if they had one, or their kitchen tables if they didn’t. The very idea of needing to go somewhere else to do your job turned out to be not so much of a necessity after all. In just a few months, priorities appear to have shifted. Now, many of us seem to crave space, the great outdoors, and we seem to be split 50-50 on whether we want to continue working from home, wherever we choose that to be, or prefer an official office setting, mostly for the socializing.

There is little doubt that the world has changed as a result of the pandemic. Most experts are puzzling on whether that change will last and just what our cities will look like as a result. The fact is, though, that change was already in play before COVID-19 hit.

My company focuses on nine major U.S. markets like Orlando, Miami, Atlanta and Philadelphia. We talk to industry and political leaders to understand the issues their communities face to gauge the direction in which they are moving. Today, everyone is talking about the pandemic’s impact on the retail sector, for example. Yet, e-commerce was already a thing before COVID-19. In 2019, a record 9,800 stores were shuttered, according to a Bloomberg report, with 25,000 closures expected in 2020 due to the coronavirus impact, the report said, citing Coresight Research. Yes, that’s a devastating impact, but the pandemic really has only accelerated the pace of implementation. It pushed more people online immediately, but those people were likely headed there anyway.

Many of the leaders we have spoken with during the pandemic agree that retail and commercial real estate was already undergoing a slowdown as industrial space to accommodate last-mile delivery for the Amazons of the world was booming. Many expect this trend will continue.

More importantly, what the pandemic has done has caused a rethink of priorities among individuals and it is this impact that will likely shape the post-pandemic city. Living in lockdown awakened people to the “smallness” of their space, forced on them by a combination of convenience and higher and higher housing prices in big cities. The median listing price for a home in Miami-Dade, for example, was $465,050 in May compared to the average U.S. listing price of $329,950, according to the Federal Reserve Bank of St. Louis. Interestingly, population growth in Miami-Dade was already slowing as more people moved out, with escalating living costs among the factors. With the pandemic highlighting the risks of living so close together, will more people decide that farther away is not only cheaper, but safer?

Big city living will change in the post-pandemic world as social distancing forces “people places” like gyms and restaurants to accommodate lingering fears from the virus. Tens of thousands of small businesses have already closed down for good, clearly altering the very unique characteristics of cities that attracted people in the first place.

The biggest impact, however, will be on how – and where – jobs are done. Remote working is hear to stay in some form or another. Like the industrial revolutions of the 18th and 19th centuries, people will always go where the jobs are. For many, those jobs will now be done from home, which means that home can be virtually anywhere. It creates choice like never before, and this will dramatically alter the character, although not likely the course, of urbanization. That’s an important difference. 

Big cities have seen the ebbs and flows of population growth before and will likely see them again. Through it all, they have more often thrived than not. The post-pandemic city may look and feel a bit different – the way condo units are built, for example, may change to accommodate working from home, while adding elements like air filters to battle any future virus outbreak – and there may even be a greater push to the suburbs in the short term. Overall, however, continued urbanization likely will remain on the cards. If we’re lucky, there may just be a little more distance between all of us.

 

Spotlight On: Mary Beth Tarter, Principal, Frankel, Loughran, Starr & Vallone

Spotlight On: Mary Beth Tarter, Principal, Frankel, Loughran, Starr & Vallone

By: Felipe Rivas

2 min read June 2020 Many of the nation’s largest capital operators are increasingly moving headquarters and operations to South Florida to take advantage of the business and tax advantages available in the Sunshine State. As a result, the region is starting to transform its reputation as a playground to be recognized as an environment for serious business, Mary Beth Tarter, the regional head of tax advisory and accounting services firm Frankel, Loughran, Starr & Vallone, told Invest: Palm Beach.

 

What main services does the firm provide in the Florida market?

We are a tax advisory and accounting firm. Our clients are primarily in the financial services industry, such as hedge funds, venture capital, private equity and distressed debt. We also do a lot of commercial real estate. 

 

I work on the individual side of the practice, so I work with fund principals and fund managers, helping with compliance and advisory. We look at their estate planning, trust, gifts, private foundations, all those tools that the high-net-worth group uses.

 

We’ve been here for three years, and we expect to continue growing, to continue expanding our staff within the next six to eight months.

 

What are the particular opportunities that South Florida offers for the kind of clients your firm specializes in?

 

Our firm has always had connectivity to South Florida, because the ultra-high-net-worth community will have vacation homes here. But it really started in 2017, with the Tax Cuts and Jobs Act, which was the most sweeping tax law change we’ve had since 1986. Hedge funds and private equity funds could stand to lose millions because of the deductions that were not allowed at the individual level, even at the partnership level. It got to the point where some of them looked at it very analytically, and recognized that moving to Florida could save them $1 million a year because of the tax situation, and so they moved.

 

Over the course of 2018 and 2019, I think our firm handled more residency planning for our clients than we did in the previous 24 years. Many of them did it from an analytical standpoint, while for others, it was just the impetus that they needed: they decided that now was the time.

 

The wonderful part of already having connectivity is that it was seamless for our clients. Now we are here, boots on the ground, and that’s very important for us. They expect a certain level of service and we did not want any disruption to that.

 

People are also starting to recognize that Florida is not just a playground. This is a very serious business area as well. The median age of people moving down here is younger, and that speaks tremendously to the local commerce, the lifestyles that people want for their families, for their businesses. There are so many companies relocating or expanding down here, and of course, taking advantage of the fact that it is, in a lot of cases, tax driven.

 

Has that recognition created a new environment for investors in Florida?

 

It has. New York is rebalancing its budget because Carl Icahn is moving to Miami. New Jersey is rebalancing its budget because David Tepper left. They are coming to Miami to be part of the hedge fund community there, which is amazing.

 

We’ve actually just created another division, with a gentleman who has been in the hedge fund community for the last 25 years. He is Latin by birth and is looking to expand and help those startup funds, even those that are coming from Latin America as well. A big part of our clientele also has international connectivity.

 

How do you see the reactivation of the commercial real estate industry after COVID-19 is left in the rear-view mirror?

 

I think the real estate industry is going to be a little stalled until people can get outside again. Then they are going to start taking advantage of the opportunities they have been denied over the last couple of months. I truly believe that for anybody who has the available cash, for the most part, our clients among them, we will see an increase of activity in both commercial and residential real estate because you weren’t allowed to do it. 

 

All companies, not just those in commercial real estate, need to be really thoughtful about what they do in the future, especially those people who have taken the stimulus loans, such as the PPP loans. You have certain requirements that you have to certify in order to go through the application process, but I also believe there’s going to be heavy oversight to limit the potential of fraud.

 

This has forced a lot of people to pivot their business model, and I think that some of the things that people have come up with are amazing, and a true credit to the ingenuity of the entrepreneur. I see nothing but positives after this is done. I really don’t see any negatives.

 

To learn more about our interviewee, visit: http://www.flsv.com/

Spotlight On: David Dymecki, Managing Director, Perkins and Will

Spotlight On: David Dymecki, Managing Director, Perkins and Will

By: Felipe Rivas

2 min read June 2020Architectural design studio Perkins and Will’s Atlanta office is keeping busy with work in the city’s many Opportunity Zones, and sees a growing tendency toward mixed-use facilities combining pre–COVID 19 entertainment and hospitality, retail, commercial and sports and recreation/fitness, Managing Director David Dymecki said in an interview with Focus: Atlanta. 

 

How would you describe your smart development approach to your products?

The way we approach development in the city and the region is through four major focus areas. A focus on the local context in each of our projects. Whether it’s Downtown, Westside or Buckhead, place and context is always at the forefront of our minds. A focus on people and experience: human-centered design with deliberate strategies and solutions focused on program, scale, and materials. A focus on living design: work that is inclusive, sustainable, resilient, regenerative, and addresses the well-being of the community. A focus on partnership: we are first and foremost partners with our clients and the cities in which we work; we are strategic thinkers, designers, and implementers. 

 

Focusing on these four areas has served us well before and during this COVID 19 environment, where our approach as always has been one of renewal and regeneration. This focus has served our clients, our communities, and our cities well. With a simplified language and visual communications tools, our approach makes these complex, interdependent issues easier to understand and implement.

 

Furthermore, our experience on a range of project types and design scales allows us to bring together diverse points of view to bring forth the appropriate big ideas, special details and long-range solutions. Our systems thinking has allowed us to be agile to address the design or the process that needs to change based on the impacts of the COVID-19 pandemic. 

 

Our work includes community-enhancing projects of adaptive re-use and mixed use, which incorporate residential, office, retail, hospitality, transportation and even learning, health, sports and recreation. We are still seeing growth in Atlanta in these community-focused projects. 

 

What is the studio’s approach to sports architecture?

We’ve been fortunate to grow a thriving national sports practice. My background has always been in sports architecture, focused primarily on the collegiate marketplace. We started the practice 10 years ago and have grown our sports and recreation practice nationally and internationally. We consistently rank among the Top10 sports/recreation/entertainment firms in the country.

 

Regionally, our Atlanta and Denver studios are working with the city of Savannah to design a new mixed-use entertainment venue. In addition to the arena, we’re working with city leadership to master plan Savannah’s Canal District, an exciting opportunity to re-vitalize an historic part of the city. Closer to Atlanta, we’ve recently completed a new wellness center for Piedmont Healthcare System. 

 

One trend we’re experiencing in the marketplace locally, regionally and nationally is the integration of healthcare, recreation, collegiate and professional sports, and well-being;  partnerships between healthcare, professional sports, colleges and universities, and cities. We see this as a growing market, a trend that will continue in the future.

 

What development advantages come from Opportunity Zones in the area?

 

Established in 2017, Opportunity Zones are a community and economic development tool that aim to drive long-term private investment into underserved communities throughout the country. The program works to encourage developers to invest in local business, real estate and development projects in exchange for a reduction in their tax obligations. Atlanta has more than 25 Opportunity Zones, many of them are in the south and western portions of the city. As strategists and designers, we’re active in a few of the zones across the city, helping our clients realize positive impacts for our local communities and developer clients. We’ve also created partnership opportunities for our university and developer clients to achieve multidimensional impacts that benefit both “town and gown.” These areas of the city are poised for investment, long-term growth, community engagement, and will be catalysts for change.

 

After the COVID-19 crisis is over, do you see changes to the way you do your work in terms of hygiene measures, social distancing and the like?

 

I believe we will learn a lot about flexibility, agility, working from home and work-life balance in the upcoming months. We are going to evaluate the needs related to workspace, learning environments, retail, hospitality, transportation, and public infrastructure and amenities. How people get to and from work, in and out of our urban centers or attend sporting events will change in the short term and long term. I believe we’ll see a renewed entrepreneurial spirit, and new business ventures as a result of social distancing and COVID-19. We’re excited about the future impact design and our profession will have on new ideas and initiatives. 

 

COVID-19 is not the first global pandemic, it’s the just the first of modern society. We’ve packed rapid transformational ideas into the past 10 weeks that in the past has taken 10 years. A few transformations rising are to the top of our business: flexibility and overlay planning. Large sporting venues and events have been addressing flexibility and overlay for years. When you design the overlay, you’re designing the venue for everyday use, but you’re also planning for the two to four weeks of overlay features and program to accommodate the media, a larger influx of fans, expanded retail and hospitality, and back of house service. You’re designing flexibility and agility for everyday, gameday, and special events. I believe we’ll see a similar approach to other buildings, such as learning environments, retail, cultural venues and commercial real estate.

 

I doubt we’ll redesign every building, it’s not feasible or affordable, nor entirely relevant to how people will use and occupy space in the long term. I think we are going to look at the overlay scenario. What we’re hearing from clients in several markets is to not over-correct based on the current health situation.

To learn more about our interviewee, visit: https://perkinswill.com/person/david-dymecki/