NAR’s annual conference was held in Boston earlier this week, and there were several takeaways for those of us who buy, sell and own commercial real estate. Like the light shining forth to the Prudential building pictured above, Florida’s economy is strong and the future for bright.
Florida was the top state in the country for job growth rates for the 12 months ending September 2018. The 4.83% in job growth will result in more real estate sales across the board. Florida is well over a full % point ahead of the second state.
Opportunity Zones (OZ) are still the talk among investors. With two distinct tax advantages, deferral of capital gain tax with a portion (10% or 15%) escaping the tax depending on how long (5 years or 7 years) investment is held, and no tax on the appreciation if the asset is held for 10 years or more, there will be a lot of money flowing into these areas. Clarification from the Treasury is needed on a variety of the nuances of investing in these zones. If you are considering investing in one of the funds, remember that the fact that a property is in an OZ won’t make a bad project good or even better, but it will make a good project very good.