Tomas Cabrerizo is the CEO of CFH Group, which owns, develops, and manages residential and commercial properties in South Florida. He advises that affordable luxury in the rental market is now a reality.
Two years after Florida topped the Wall Street 2011 list of ‘Housing Markets that will Collapse This Year’—which saw housing prices drop a staggering 55% from 2006 and predicted another drop of just over 16% in the first quarter of 2012—the market is now gaining ground and bringing with it an influx of investors and renters looking for luxury.
The collapse of the housing bubble, which was enjoyed until 2006, effectively decimated the construction-based economy. The market saw a staggering number of homeowners lose their properties to foreclosure. Those same Wall Street experts predicted the collapse would result in Florida experiencing the greatest depreciation of property values in the country.
Some viewed the collapse as an opportune time to invest in real estate, benefiting from the unprecedented low property prices. Tomas Cabrerizo and CFH Group is one such company, acquiring and operating 18,000-plus residential units and more than 2 million square feet of commercial real estate throughout the Southeast.
With the state unemployment rate at a staggering 11.4%, many others felt that opportunity was overwhelmed by the possibility of job loss in an unpredictable job market. In 2010, there were 1,040,578 Floridians without employment, but needing housing.
The rental market offered housing flexibility to many Floridians unable or unwilling to commit to a mortgage. While the real estate and construction industries suffered, the Florida rental market blossomed. It welcomed uprooted home owners and gun shy potential owners deciding instead to renew rental agreements and leases.
The sudden and massive influx of renters into the market forced individual landlords to re-evaluate their previous expectations for new renters. Whereas in the past, landlords could realistically ask for first and last month’s rent, in addition to a security deposit, the available inventory of renters were just not financially in a position to front that much money. Landlords started looking less at credit history and more at accommodating renters with an immediate ability to pay and a reasonable expectation of continued employment.
As the rental market continued to surge into 2013, availability of moderate rentals began to dwindle, spurring an upswing in the construction industry. In addition to local residents getting into or staying in the rental market, out of town investors started turning their eye to the appealing sun, sand and cultural offerings of Florida coastal cities.
Tomas Cabrerizo Notes High Demand for Luxury Rentals
Demand for luxury condos in Miami has steadily increased. Many Canadians have made Florida their snowbird destination to escape the chilly, long winters. Between 2010 and 2011, Canadians represented the single largest investor in Florida garnering 10 per cent of sales during that period.
Following the real estate collapse, there was no shortage of luxury homes and condos for rent in popular Florida destinations in coastal cities like Miami, Naples and West Palm Beach. Although Canadians top the list for visitors to Florida with 3.56 million, the top five sun seekers also hail from Brazil (1.6 million), the UK (1.58 million), Argentina (603,000) and Venezuela (451,000).
Florida vacation homes are easily accessible online through rental agencies or private offerings. Once visitors start factoring the cost of hotel stays, meals and entertainment, a private luxury home becomes a tempting choice for vacationing families.
Luxury rental condos are highly sought after by families and couples of all ages. There is no shortage of luxury rentals offering high-end décor and amenities along with central locations to popular nightlife and luxury shops.
Tomas Cabrerizo knows that residential properties are more than profit centers. His company, CFH Group, which manages some of the most affordable upscale residential properties in Miami, know the day-to-day management can make or break a rental community. Dedication to excellence truly makes a difference. They know rental communities are where people are building their lives