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Six New Projects Reshaping the Future of West Palm Beach

West Palm Beach, often dubbed “Wall Street South,” is rapidly becoming a key destination for finance and urban living. With multiple new downtown districts in development and a surge of high-rise buildings, the city’s skyline is transforming into a vibrant hub for residents, businesses, and investors alike. Here’s a closer look at six exciting projects leading this evolution:

  1. Nora District
    The Nora District is set to become a 40-acre hospitality haven in Downtown West Palm Beach. Groundbreaking for Phase I took place in June 2023, with a completion target of early 2025. This vibrant area will feature over 150,000 square feet of retail, dining, and office space, reimagining historic railway warehouses into modern venues. Notable retailers include Loco Taqueria, H&H Bagels, and Juliana’s Pizza, alongside a brand-new boutique hotel.
  2. CityPlace
    Undergoing a major redevelopment, CityPlace will introduce two impressive office towers designed to attract leading financial firms. The East Tower is poised to be the tallest office building in the county, complemented by a luxurious residential tower called “The Laurel.” Enhancements to public spaces will create a more welcoming atmosphere, making it a premier destination for all.
  3. The District at Northwood
    This 4.6-acre site in Northwood Village is transforming into a vibrant community hub, featuring a multifamily residential complex with 382 units, including workforce housing. The project will offer 63,000 square feet for commercial use, enhancing the local dining and retail scene, along with 12,000 square feet of public open space for community gatherings.
  4. West Palm Point
    A new landmark office tower is on the way at 801 South Dixie Highway, designed by renowned firm Pelli Clarke Pelli. The 24-story West Palm Point will include 447,484 square feet of office space, ground-floor retail, and a 10-story parking garage. With plans for a
    pedestrian-friendly Paseo and ample green spaces, it aims to integrate seamlessly into the urban landscape.
  5. South Flagler House
    Led by billionaire Stephen M. Ross, this luxury condominium project is making waves in West Palm Beach. Featuring two 28-story towers with 108 units, the South Flagler House will offer high-end living along the Intracoastal Waterway. Ranging from 2,000 to over 13,000 square feet, these residences come with premium amenities and stunning views, targeting an affluent clientele transitioning to high-rise living.
  6. Mr C. Residences
    Set to debut in late 2026, Mr. C. Residences promises to blend upscale living with exceptional hospitality. This 27-story development will feature 110 hotel rooms and 146 branded residences, all designed with luxurious finishes and private terraces. Residents can enjoy a rooftop restaurant, a chic café, and an exclusive members’ lounge, creating a vibrant social atmosphere.
    As West Palm Beach continues to grow and attract new investment, these projects are not just reshaping the skyline but also enhancing the quality of life in this thriving city. Stay tuned for more updates on this exciting urban transformation!
    Nicholas, J. (2024, July 15). Six new projects are reshaping the future of West Palm Beach. Florida Tomorrow. https://www.floridaoftomorrow.com/post/six-new-projects-that-are-reshaping-the-future-of-west-palm-beach
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Commercial Real Estate Investing: A Beginner’s Guide to Getting Started

A Beginner's Guide to Getting Started in Commercial Real Estate Investing

Commercial real estate (CRE) encompasses properties used for business purposes, ranging from office spaces to retail storefronts, medical facilities, and industrial warehouses. Contrary to popular belief, CRE isn’t limited to just business buildings; it also includes land used for profit and large residential rental properties like apartment complexes.

Types of Commercial Real Estate

CRE covers a variety of property types:

  • Office Spaces: Buildings used for business operations.
  • Industrial Spaces: Warehouses and manufacturing sites.
  • Retail Spaces: Storefronts and shopping centers.
  • Medical Buildings: Hospitals and healthcare facilities.
  • Storage Facilities: Spaces for storing goods.
  • Apartment Buildings: Structures with five or more units.
  • Restaurants, Hotels, and Resorts: Properties for dining and accommodation.

How Commercial Leases Work

When a business leases a space, they enter into a lease agreement with the property owner. There are three main types of commercial leases:

  1. Gross Lease: The landlord covers all property expenses, including taxes and maintenance.
  2. Net Lease: The tenant pays rent plus additional expenses like taxes and insurance. Variants include single, double, and triple net leases.
  3. Modified Gross/Net Lease: Offers flexibility in expense negotiations, with a fixed monthly rent.

Triple net leases are common, where tenants cover all operating expenses, leaving the landlord with only mortgage and tax responsibilities.

Investing in Commercial Real Estate

Investors can choose between direct and indirect investment options:

  • Direct Investment: Buying and managing a property personally or through a partnership. This method offers control and potential tax benefits but requires substantial capital and is less liquid.
  • Indirect Investment: Purchasing shares in a real estate investment trust (REIT) or through crowdfunding platforms. This approach allows for smaller investments and offers diversification without hands-on management.

Key CRE Terms to Know

Familiarize yourself with essential CRE vocabulary:

  • Net Operating Income (NOI): Income after operating expenses.
  • Cap Rate: NOI divided by the property’s purchase price.
  • Debt Coverage Ratio (DCR): NOI divided by annual debt payments.
  • Zoning: Regulations on property use and construction.
  • Triple Net Lease: Tenant pays all building expenses beyond rent.

Building Your CRE Network

To succeed in CRE, build relationships with:

  • Commercial Real Estate Agents: Assist with property searches and market trends.
  • Property Managers: Handle tenant interactions and maintenance.
  • Lenders/Mortgage Brokers: Facilitate property financing.
  • Insurance Agents: Provide property and liability coverage.
  • Contractors/Handymen: Manage repairs and renovations.
  • Attorneys: Handle legal matters and contract reviews.

Is CRE Investing Right for You?

CRE investing offers diversification and potential profitability, particularly for those with substantial capital or those who can start with smaller investments through modern platforms like REITs and ETFs. Evaluate if CRE fits your goals by considering:

  • Initial investment size.
  • Competition and market demand.
  • Lease stability and income consistency.
  • Professional assistance needs.

In summary, commercial real estate presents diverse opportunities and requires a solid understanding of property types, lease structures, and investment strategies. Whether starting with small investments or diving into larger deals, having the right knowledge and team is crucial for success.

Works Cite

Lee Huffman                                                                                                                                                                  Edited by : Becca Borawski Jenkins. “Commercial Real Estate Investing: A Beginner’s Guide to Getting Started [2024].” FinanceBuzz, 13 May 2024, financebuzz.com/commercial-real-estate-investing. Accessed 26 Aug. 2024.

https://financebuzz.com/commercial-real-estate-investing