MIAMI—The rising US dollar is making headlines around the world. There's no lack of speculation about how it's impacting everything from manufacturing to auto sales to commercial real estate.
Indeed, the Federal Reserve is even considering raising interest rates for the first time since 2006. A strong dollar is one likely reason for the notion.
We know that the Miami condo market is seeing a healthy correction thanks to, in part, a strengthening US dollar. Fewer investors from Latin America are snapping up condos these days due to exchange rates.
But what about office leasing? With the US dollar becoming stronger and the perception of high rental rates in Miami, what is the effect on international businesses expanding into the market?
Donald Cartwright, senior vice president of JLL, tells GlobeSt.com it's hard to say
what impact the stronger dollar will have on international business. Still, he suspects both domestic companies as well as international companies will keep coming to Miami because of the fundamentals and global connectivity that have historically appealed to businesses.
“As far as international rental rates are concerned, Miami is less expensive than other major global cities,” Cartwright says. “Also, the stronger dollar may dampen the appetite of individual investors looking for a safe haven to park some assets. It has been very interesting to watch Miami go from being a Gateway to the Americas to a Gateway to the World.”
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