Franchisees Are Finding Prime Real Estate Opportunities in South Florida

While much of the real estate industry remains in a holding pattern, waiting for the economic effects of the coronavirus crisis to ripple out into residential and commercial markets, one segment has seen a flurry of activity recently, as franchise owners look to capitalize on a uniquely non-competitive marketplace.

According to a recent article in the Miami Herald, South Florida’s commercial real estate market has seen a significant increase in deals among franchisees in a range of segments, including “fast-food restaurants, spa brands and automotive chains.”

“Investors are on the sidelines. As in the Great Recession, prices didn’t drop in 2008. They dropped in 2009,” [Apex Capital Realty president and broker Miguel] Pinto said. Today, the only buyers he sees are owners and end users that searched prior to the pandemic but “were competing with investor offers and they couldn’t win the deal.”

According to Jaime Sturgis, chief executive officer of Fort Lauderdale-based commercial real estate agency Native Realty, franchisees are betting on a return to heightened consumer spending down the line and are looking to take advantage of favorable opportunities in advance of that recovery.

“Some companies are looking at nine to 12 months down the road. They know this can’t go on forever. They want to build out their space now and hit the ground running,” Sturgis said.

The open field for franchisees may not last long. Pinto says he expects to see more activity from real estate investors before the end of the year. “Once we start seeing cash offers, it’s going to be harder for buyers because sellers will not want to go with a deal with contingencies and have to deal with the banks,” he said.

Read the full article at miamiherald.com.