Industry News

Speculation in condo conversions: South Florida’s cautionary tale

Future-Proof: Navigate Threats, Seize Opportunities at ICNY 2018 | Jan 22-26 at the Marriott Marquis, Times Square, New York

Editor's note: In this three-part special report, Inman News examines the challenges and rewards of pursuing property conversions in today's market, a case study of conversion-frenzy-gone-wrong, and marketing techniques developers and agents use to sell these properties. (Read Part 1, "Changing building's use presents challenges and rewards," and Part 3, "Marketing converted properties as stylish and practical.") Renters in South Florida have seen hard times lately, as one apartment building after another has been snapped up for condo conversion. In the three southeastern-most counties -- Palm Beach, Broward and Miami/Dade -- almost 250 major complexes have been taken out of the inventory since 2004, totaling almost 63,000 units. Their developers were no doubt hoping to continue capturing the large profits they'd recently enjoyed from similar conversions, creating condos in a high-stakes, high-demand market. While regions around the country have suffered in varying amounts from specula...