Hi I am looking to get into commercial real estate in Florida and looking at the Tampa and Miami areas. Tampa tends to have better cap rates on LoopNet and Miami tends to have more job postings on indeed, although there are opportunities in both. I am new to real estate so I still have a lot to learn but it definitely makes sense that the better the property the more likely there will be a buyer and Tampa tends to have better cap rates. However Miami has less barriers to entry which is a criteria that some investors look for. It's tough to choose between the two.
@Glenn Gayet this market is going to be tough to break into. I think both are viable options, personally as a Tampa native I think there is so much going on here and growth to be had that Tampa would be a better bet. Tampa is still an unknown gem compared to other bigger areas. We'd be interested in seeing if you are a fit as we are starting acquisitions of apartments and self storage facilities. Are you moving down here just to start a new career?
I’d be moving down there to essentially start my career period. I was playing hockey in Minnesota for a while and on my way back I took a road trip through quite a number of cities including Tampa and Tampa was by far my favorite. There’s the Bay on the one side and the Ocean on the other, plus the Tampa Bay Lightning there doesn’t hurt either. I have a position with a brokerage that does rentals, property management, and commercial down in Tampa when ever I get down there and am taking my Florida Real estate licensing requirements online. I already have my NJ license but I don’t see the point of starting in a place that I’m looking to leave. I’d be interested to learn more about your real estate investment firm!
@Jeremy Kloter Thanks for the reply. Looking like my tagging did not work in the previous post.
Awesome connect with me on Fbook.
@Glenn Gayet I think both cities (Miami and Tampa) have great opportunities (I am located near Miami,) but I think that Tampa might be better at this time for rentals. South Florida's rental market is definitely hot, but unless you are willing to buy highly distressed properties and fix them up, there is less profit to be made (if you look at the ROI or GRM.)
Miami has great opportunities for Fix and Flip though. So you could consider both markets: Tampa for Buy and Hold and Miami for Fix and Flip.
The rental market in south florida is extremely heated. I would caution new guys jumping into miami and buying randomly. Because you can have a nice rental are right next door to class d warzones. This is something that you can see just by taking a drive through miami. The property values down this side are also high compared to tampa and that due mostly to the population growth that miami is having. Yes they have a lot of opportunities for fix and flip in miami but the areas that have the great looking deals are usually the areas that have the most issues. I actually found a property that needed work on the intercoastal. It looked like a great deal. After check the numbers and speaking to people in the area I found out most of the people were moving out of this area because of crime and drugs.