MIAMI—There are still cranes in the sky, but construction growth is leveling off—and even slowing. Indeed, the dollar value of new construction contracts in August 2016 dropped by 22% compared to the same month last year, according to a recent report from Dodge Data & Analytics.

GlobeSt.com caught up with Rey Melendi, COO of 13th Floor Investments, to get his take what types of projects are coming to market in this cycle and how it compares to past cycles in part two of this exclusive interview. You can still read part one: Why Construction Slowdown Creates Opportunity for Savvy Developers.

GlobeSt.com: What are the types of projects that are coming to market during this cycle?

Melendi: While large scale projects may be what dominate South Florida headlines, many of the developments we are seeing delivered this cycle are mid-rise product. Low-rise apartment buildings, 150-key and under hotels and high-end, boutique residential communities have all been hitting the market this cycle.

GlobeSt.com: How does the amount of available equity compare to past cycles?

Melendi: Capital markets may have tightened, but the right projects led by developers with a strong track record for success are still attracting high quality equity. Much of the equity has shifted towards multifamily development, but as rentals begin to flood the market it has grown increasingly important that these projects be either located in or have immediate access to “A” locations. As a concern over future volatility grows, strategic relationships will be key for those who wish to continue building this cycle.

GlobeSt.com: What are the types of projects that are coming to market during this cycle?

GlobeSt.com: How does the amount of available equity compare to past cycles?

Instant Insights /

What Sets Developers Apart as Construction Cycle Slows

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