If you’re working in commercial real estate, you may find of interest that one of the most notable developments in recent Tampa news, is New York commercial real estate development firm Bromley Cos. The firm is now in agreement to move forward with the four mixed-use towers with a height of 260 feet or more than 20 stories located off of Interstate 275, near the intersection of Dale Mabry Highway and West Cypress Street, according to the authority’s May 2 agenda. The site would be a mix of residential, office, retail, and hotel tenants.
The development would bring a fresh office and retail space located near the Westshore business district. Foreclosures have been a trigger to bringing hotness back to the flipping market in Tampa Bay. It was thanks to the Great Recession which affected the entire nation’s residential real estate market. With Condo projects being closed down, many empty units where what remained, and it left real estate development in limbo, later falling into foreclosure. Presently, the retail vacancy rate in the district 3 percent with rental rates highest in the Tampa Bay area. There have been nearly 3,000 foreclosures in the area alone.
“As confidence in the housing recovery spreads, more real estate investors and would-be real estate investors are hopping on the home flipping bandwagon,” said Daren Blomquist, RealtyTrac’s senior vice president. “Not only is the share of home flips on the rise again, but we also see the flipping trend trickling down to smaller investors who are completing fewer flips per year.”
By definition, flipping is a property which is sold at an armslength sale for the second time in a 12-month period. In Tampa Bay, there had been 4,561 flips. For Tampa Bay flips last year, the average gross return on investment was 66.5 percent and the average gross profit was $51,900.
According to RealtyTrac, 5.5 percent of all single-family home sales last year were flips, up from 5.3 percent the previous year. The year 2015 has been the first annual increase in four years. The flipping market has been hot in Tampa Bay, thanks to millennials who are seeking out convenient area neighborhoods where commuting to work is short and they can be minutes away from leisure.
Blomquist of RealtyTrac also stated that Recent data, though, “indicates that flippers in 2015 (operated) within relatively conservative margins.” “Homes flipped in 2015 were on average purchased at a 26 percent discount below estimated market value and resold by the flipper at a 5 percent premium above estimated market value.”