Property Play: Related Group’s next generation on building South Florida

Summary

CNBC's Diana Olick interviews Jon Paul Pérez and Nick Pérez of Related Group about the South Florida real estate market. They discuss the shift from international to domestic buyers, branded residences, affordable housing, and emerging markets like Tampa and West Palm Beach. The conversation covers lessons from the 2008 crash, the role of AI and blockchain, and climate resilience.

• Miami has seen a second wave of business migration post-COVID, with billionaires like Larry Page and Sergey Brin moving in.
• Buyer demographics have shifted from 60% South American to 80% domestic (Northeast, Midwest, West Coast).
• Related Group now diversifies across condominiums, market-rate rentals, and workforce/affordable housing.
• Branded residences remain popular, with hospitality brands like St. Regis and Ritz Carlton driving demand.
• Tampa is highlighted as an underappreciated market with strong job growth and rising rents.
• West Palm Beach is the fastest selling market, with a new Ritz Carlton project 95% pre-sold.
• Climate risk has not impacted development; insurance rates are declining after several storm-free years.
• AI is used for marketing and market research but not yet for physical construction.