Is Florida’s Real Estate Market Back? It is in Palm Beach– What Trustees May Want to Know

Having lived in West Palm Beach for almost 20 years now, I am often asked by friends from Boston and the northeast if the real estate market is coming back.   As the senior trial lawyer for a West Palm Beach probate litigation law firm, I get to see my fair share of trust investments, and investment loss clients, some of which involved Palm Beach real estate.  Here are my thoughts on Palm Beach real estate, the market, and what Palm Beach Trustee may want to know.

Palm Beach vs. Palm Beach County

• Palm Beach (the island) represents the best of breed, along with places like Manhattan, Paris, and London
• The Palm Beach market is strong & going higher; demand is high
• Palm Beach County is still recovering, but the recovery is under way
• There is new construction near the Delray Beach Probate Court with more expected along the Atlantic Avenue corridor

West Palm Beach About to Take Off

• Our West Palm Beach probate law firm is located downtown
• We see that very little land or few buildings for sale downtown in West Palm Beach near the Probate Court
• A piece of land just sold for $63/sq ft near the West Palm Beach Probate Courthouse
• There are proposals for new condos and apartments (Alexander Lofts, Isis, http://www.isisdowntowncondos.com) and new hotels
• Nearby there is a luxury highrise and medical facility proposed for South Flagler Drive near the middle bridge, and new luxury high rise condos on the north end

For Trustees To Consider

• The bottom of the market was 8-18 months ago
• We hit bottom, survived and are starting to move up
• Inventory has declined, the best at the best prices are gone, but opportunities still exist: but they go fast
• Is the market white hot?  Definitely not.  One beautiful residential lot three houses from the intracoast in West Palm Beach is still on the market:  it’s over-priced and no one is biting.   Discipline is good and the market tells us the true worth of an asset at a particular time (right Palm Beach trustees?)
• A Palm Beach trustee may wish to consider real estate as an asset class for a Florida trust
• Consider more than just buying raw land: consider how you can invest trust assets in what many see as the long awaited turn around in the real estate market:  can you make money in real estate firms, homebuilders (not last week, but it’s a long term “game” when a trustee is prudent, right?), hotels, goods/materials, etc ?
• There are Real Estate Investment Trusts, real estate EFTs, and Barron Funds has a real estate fund: http://www.baronfunds.com/mutual-funds/baron-real-estate-fund/brefx/
• Whether real estate (raw land, a residence, or a commercial building) is a better “bet” than exchange traded investments in real estate is best left to your Florida trust investment advisors and trust lawyers (and maybe Palm Beach trust litigation law firm).  Ask them how to diversify under the Florida Trust Code (The Barron Real Estate Fund gives you diversification and access to a number of possibilities to make money in a real estate turnaround).
• Remember : comply with Florida’s Prudent Investor Rule whenver investing trust assets