“Wait and see” is an approach many developers, contractors and lenders are taking in response to President Trump’s Liberation Day tariffs, and the subsequent 90-day pause.
Still, a 10 percent universal tariff and a 25 percent tariff on imports of steel and aluminum remain in effect. Some builders and developers are pre-ordering materials, appliances and fixtures.
So what do South Florida’s billionaires have to say about it? A handful of the wealthiest people in the world call the region home, at least part-time, including No. 3 and 4: Jeff Bezos and Larry Ellison. I took a look at Forbes’ latest billionaire ranking and compiled some of the billionaires’ public comments on the president’s tariff policies:
While Ken Griffin isn’t a developer, he’s definitely one of the largest real estate investors and buyers in Miami Beach and Palm Beach in recent years. And Griffin tapped Related Companies, Steve Ross’ former firm, to develop the $1 billion-plus skyscraper in Miami that will serve as his companies’ new headquarters. Griffin said last week in Miami that Trump’s tariffs are a “huge policy mistake” that could hit middle-class and lower-income households the worst.
“Even if the dream of jobs coming back to America plays out, that’s a 20-year dream. It’s not 20 weeks. It’s not two years, it’s decades,” he said, according to the Wall Street Journal.
Ross, the biggest developer in West Palm Beach and majority owner of the Miami Dolphins, said at an event in March that while there may be some “short-term instability,” Palm Beach is “going to be a leader long-term,” according to the Palm Beach Post. Kenneth Himmel, president of Related Ross, said — before Liberation Day and the pause announcement — that Related Ross has locked in pricing for the majority of work at two office towers and the South Flagler House condo project, all in West Palm Beach. Himmel declared that Related Ross has “no tariff exposure,” though he acknowledged it would have an effect on some people.
Jorge Pérez, executive chairman of the Related Group, in which Ross used to have a minority stake, said in March that middle-market buyers were taking a more wait-and-see approach. On the construction side, he said that some subcontractors were inflating their prices by as much as 20 percent to try to cushion future tariffs. Pérez also said that the Trump administration’s immigration policies will have “an inflationary effect” on the construction industry.
Barry Sternlicht, chairman and CEO of Starwood Capital Group, expanded on the inflation thread. In March, he said “there’s one short-term conclusion, which is, [the tariffs are] definitely inflationary.” Sternlicht pointed to the fact that construction starts are already down across the board, putting pressure on rents in multifamily and industrial real estate.
“The windshield has never been murkier,” he said.
What we’re thinking about: We’ll have a story this week on what South Florida developers, lenders and contractors are doing to prepare. How has the pause affected your real estate strategy? Send me a note at [email protected].
CLOSING TIME
Residential: Laurie Moskowitz Hirsch sold her late parents’ house at 4744 North Bay Road in Miami Beach to a land trust for $22 million. The 7,800-square-foot house is next door to the waterfront spec mansion David and Victoria Beckham bought in October.
Commercial: A joint venture between David Martin and Edgardo Defortuna’s companies paid $205 million for the former Silver Sands Beach Resort motel at 301 Ocean Drive in Key Biscayne, a record for the village. Red Dragon’s Sands Ltd. sold the waterfront property, where the developers plan a 56-unit ultra-luxury condo building.
NEW TO THE MARKET
Bang Energy founder Jack Owoc and his wife, Meg Liz Owoc, are listing their waterfront Fort Lauderdale mansion for nearly $44 million. The embattled energy drink mogul, who is facing foreclosure of the property at 3052 North Atlantic Boulevard last year, paid $40 million for the 10,289-square-foot, seven-bedroom house in 2023. It’s on the market with Jon Mann of Coldwell Banker’s The Jills Zeder Group.
A thing we’ve learned
Highly destructive invasive termites are spreading in Florida thanks to private boats. University of Florida entomologists have identified three species of termites that can live, undetected, inside boats for years, spreading from marina to marina and slowly damaging or ruining the boats they infest, according to the Sun Sentinel.
Elsewhere in Florida
- Miami city commissioner Manolo Reyes died at the age of 80. Reyes, who was recently hospitalized, was first elected in 2017. He told the Miami Herald last year, “If you get into government, you get power to serve, and many people forget about this.”
- No bills related to property insurance have made it to the floor of the Florida’s House and Senate, suggesting it’s unlikely that lawmakers will pass legislation protecting or helping consumers, the Palm Beach Post reports.
- A Florida Fish and Wildlife Conservation Commission officer at the scene of the 2022 boat crash that killed a 17-year-old girl said in a deposition that commercial broker George Pino had “bloodshot eyes,” was disoriented, smelled of alcohol and had a “flustered demeanor” at the scene of the crash, according to the Miami Herald. Pino was charged with a felony homicide.
