Institutional Ally

The way Jason Isaacson sees it, if a pension fund or other institutional buyer has $1 billion — give or take — to invest in Florida commercial real estate, it'll likely need some help.

That's because most institutional players tend to gravitate to so-called gateway markets in the U.S. when deploying capital into commercial properties. It's just easier to spend money — especially large amounts of money -- in major cities like New York, Chicago, Los Angeles or Boston. As a result, institutions tend to
understand those markets pretty well.

The converse to that is, however, when cap rates get compressed and those same buyers look to alternative markets to buy into to generate yield, or want to gain entry into the Sunshine State's burgeoning economy, they're often unaware of nuances or underpinnings that could cost them dearly.