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South Florida Business Journal Editor-in-Chief Mel Meléndez recently spoke with Rex Kirby, founder and CEO of Verdex Construction, for the latest segment of the Florida Business Minds podcast.
Sponsored by TECO Peoples Gas, the audio series features candid conversations with business leaders from the South Florida, Orlando, Tampa Bay and Jacksonville regions.
Kirby is the latest South Florida executive to share key insights on their sector.
Click on the link above to access the free podcast, during which Kirby shares his thoughts on existing and developing economic trends, the overall strength of South Florida's business market, and the real estate segments likely to show the most growth this year.
The following is a brief excerpt from the conversation, edited for clarity and brevity:
Meléndez: Can you briefly chat about Vertex, its focus and your coverage areas?
Kirby: So, we just completed our ninth year in business and have grown fairly rapidly. We launched in West Palm Beach, where we have our headquarters. And we were fortunate enough to have a client from the East Coast take us into the Tampa area to build a large apartment complex, and we liked the market. We felt it was a market with many different types of industries. So, we opened an office there, as well. Flash forward to today, and on the East Coast we’re active from South Broward all the way up into Saint Lucie County and then on the west we’re active from Sarasota all the way up past Tampa to Wesley Chapel. We also have an office in Gainesville.
Meléndez: Now, 2023 was a challenging year due to record inflation, rising interest rates, skyrocketing insurance premiums and tighter financing conditions. And 2024 is an election year, which can be dicey for financial markets. So, what do you see as the big challenges the industry will face this year?
Kirby: All of the items that you mentioned have been challenging for the market. Also add to that rents that went up considerably, but I think they kind of reached a peak. And in some markets, we've actually seen rents drop back a little bit because people weren't able or willing to pay them. Other challenges coming forth this year [involve] office buildings. Because there are markets with office buildings where people aren’t fully back to work, [builders] they're in these 2 to 3% loans that all of a sudden are going to be faced with 7 to 8% loans. I think we're also going to see some more shake up in the financial markets, which again affects [lending] at all banking institutions.
Meléndez: As a 40-year veteran of the industry, what are your thoughts on how South Florida is positioned to weather a recession, especially compared to other metro areas?
Kirby: I think we are incredibly lucky to have a strong, established business market in South Florida… where there's still a big demand because we still have people moving into our state on a daily basis. So, it's just coming down to identifying the clients that the developers and such know have the cash and the relationships to move their jobs forward.
Tune into the Florida Business Minds episode above for the full conversation with Kirby. Then, find more Florida Business Minds podcasts here.
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