FLORIDA REAL ESTATE NEWS - AUGUST 2006

Trump Says South Florida Market is Excellent

In a recent article in Las Olas Magazine, Donald Trump was  quoted as saying the South Florida market was “excellent, amazing and I have no complaints”.  He further commented that the future of South Florida real estate was “bullish” to say the least.  In answer to the question of “Where is South Florida going to be in 10 years?, the dynamic developer, who has several successful projects in South Florida, noted that “Florida has the best weather of any state.  The beaches are the best and the water views are beyond compare.”  Recently Trump has combined with South Florida’s Jorge Perez to build and develop Trump Hollywood, a luxury all glass condominium which has over 60 per cent reserved at this time.  Units are going for over $1,000 per square foot and start at $2,000,000.  So much for a weak market.

Florida Has Four of the Top Ten Hottest Markets for Job Creation

A recent Inc. Magazine study showed why Florida remains and will remain at the top of job creation cycle by placing four cities in the top ten list, led by Ft. Lauderdale which came in second to Las Vegas in the large city category.  Orlando was ranked third and West Palm Beach-Boca Raton came in fourth.  Tampa-St. Petersburg was ninth on the survey.  Jacksonville narrowly missed the top ten by ranking 11th,  while Miami-Miami Beach rounded out the top twenty by coming in 18th.  According to the highly respected survey Ft. Lauderdale growth was attributed to several high-tech businesses relocating there due to the low tax climate.  Technology, bio-med, and health services top the list of growth industries.  West Palm Beach was spurred by a 20% increase in business and professional services jobs since 2002.  Also driving the increase in the region’s economy is the dramatic growth in bio-med and life-sciences with the prestigious Scripps Institute forming a nucleus for further expansion in these high paying arenas.  Miami’s surging economy is enhanced by Latin American and South American trade and the area is starting to attract more and more trade with China and Europe.

45 Trillion Dollars to be Handed Down in the Near Future

A news article in Fortune Magazine noted that the largest intergenerational transfer of wealth ever is now underway, measuring $45 trillion (the low estimate from Center on Wealth and Philanthropy at Boston College).  This astounding dollar amount will be transferred over a 55-year period ending in 2052.  About a third of the funds will pass to baby-boomers; the rest will flow mainly to their kids.  By way of comparison the total value of shares trading on world stock exchanges in 2005 was $51 trillion.  This not so subtle “windfall” will have a substantial positive effect on the boomers economic status throughout the next couple of decades.  The economic opportunity could foster a long term boost in many industries that appeal to the baby boomers and their heirs.  Boomers may be able to retire earlier than originally thought and further accelerate the southward migration with another positive bump to the real estate markets in the coastal areas of the southern United States.

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