Franklin Street’s Javier Herrera, Senior Director of Capital Advisory, recently served as an expert panelist at Bisnow’s Money Conference in Miami on Tuesday, November 15. If you missed it, read a recap of the event from Bisnow below:
Dark clouds are forming over the global economy, and while South Florida isn’t immune to the effects of rapid inflation and interest rate hikes, the capital that continues to pour into the region is providing it protection from the storm.
“I think everybody here understands and recognizes we are in a recession,” Franklin Street Senior Director Javier Herrera said at Bisnow’s Money Conference held at The Current in Westchester, Miami. “I say that and people cringe, they’re like, ‘No, no, we’re not.’ No, we are.”
“Doesn’t necessarily mean we’re going into a depression, right? It’s not all doom and gloom, or particularly for us down here in South Florida, I think there’s still growth to be had.”
But it isn’t all rosy in Miami, and it can’t entirely avoid the pain of the rest of the U.S. The Federal Reserve’s continued increase in interest rates to bring inflation down from its 40-year high is rapidly changing the business model of investment, CRE experts said.
That can include a longer hold time on investments to make deals pencil.
“The projections need to have a longer runway,” Herrera said.