Southeast Regional Managing Partner Michael Balter was quoted in South Florida Business Journal on surging commercial property insurance rates
South Florida Business Journal
By Brian Bandell
A dramatic increase in property insurance rates this year has helped spur a slowdown in real estate sales and development in South Florida – and it’s a situation that’s not expected to improve anytime soon.
According to industry experts, commercial property insurance rates have spiked from 25% to 100% over the past year, depending on the property type and location. Deductibles are also higher in most cases. Combined with rising interest rates, that has greatly increased the carrying cost of buying commercial real estate. For developers, the triple whammy of expensive builder’s risk insurance, higher interest rates and elevated construction prices can make some projects too costly to pursue.