Luxury PR Group
Penn-Florida Companies and Douglas Elliman Development host panel event discussing tax migration and the surge of South Florida residency
May 22 was an eventful day at The Residences at Mandarin Oriental’s condominium sales gallery in Boca Raton, where Penn-Florida Companies, a full-service owner and developer of luxury real estate, and Douglas Elliman Development Marketing, hosted a panel event highlighting tax migration to South Florida and the transformation of Boca Raton.
The event featured key-note speakers Jay Phillip Parker, CEO of Douglas Elliman’s Florida Brokerage, Rochelle LeCavalier, vice president of sales at The Residences at Mandarin Oriental, Boca Raton, Jessica Del Vecchio, economic development manager for the city of Boca Raton, and Michael Kravitz, a tax manager at Engineered Tax Services.
Jonathan J. Miller, president and CEO of Miller Samuel Inc., hosted the panel.
The main topic of discussion focused on an impressive migration trend from New York and other high-tax states to South Florida. According to the experts on the panel, this trend is only beginning and will remain long-term.
“This migration is just getting started,” said Jonathan Miller, shortly after an introduction by Frank Weed, Penn-Florida’s vice president for development and construction.
The rest of the panel seemed to agree.“We think of this as the tip of the iceberg,” said Jay Phillip Parker. “Our company has a division dedicated to relocating residents, and our phone is ringing off the hook.”
The experts cited a 17-month-old tax overhaul law that limited federal deductions for state and local taxes, also known as the SALT tax, as a crucial element to the cause of this migration pattern.
Residents of high-SALT tax states like New York are witnessing the impact of this law for the first time on their 2018 federal tax returns.
“If we compare a luxury product in New York City to a luxury product in Florida, it is easily one-third of the cost here,” said Parker.
According to Michael Kravitz, SALT deductions will only increase pre-existing tax migration trends supported by the United States Census Bureau. According to its annual state-by-state population estimates for 2018 in late December, Florida is among the most population gains, with a 322,000 increase in residents.
Among the net losers? New York, which lost close to 49,000 residents.Other trends recognized by the expert panel with those migrating to South Florida cities like Boca Raton for luxury real estate are the demands for top-rated, deluxe residences in booming locations near restaurants, shopping centers, and other amenities. Parker named The Residences at Mandarin Oriental as an example of this demand.
Rochelle LeCavalier had more to add. Along with the tax incentives, residents are looking to live where there’s action and easy-to-no no commuting. “People are far less preoccupied with parking themselves on the beach,” she said. “They are more interested in walkable areas.”
“We’re seeing a shift now to telecommuting,” noted Del Vecchio.
All of the panelists agreed that in Boca Raton, the demand is apparent and that luxury real estate is “ramping up” to meet it, with no sign of slowing.
About Penn-Florida Companies
Founded in 1987, Penn-Florida Companies is a respected owner and full-service developer of luxury, high-profile real estate. With headquarters in Boca Raton and regional offices in Orlando, Florida, Penn-Florida specializes in creating ultra-luxury, one-of-a-kind residential and commercial projects throughout the state. By limiting the company’s portfolio to unique properties in select locations and upholding its long-standing commitment to delivering exceptional experiences and lifestyles, Penn-Florida has distinguished itself as a market leader in luxury and quality.
About Douglas Elliman Development Marketing
Douglas Elliman Development Marketing, a division of Douglas Elliman Real Estate, offers unmatched expertise in sales, leasing, and marketing for new developments internationally and throughout the United States, in New York City, Long Island, The Hamptons, Westchester, New Jersey, South Florida, California, and Massachusetts. The firm ranks amongst New York City’s most prominent sales and marketing firms with over 100 in-house development professionals and an over $87 billion global new development portfolio. Our hybrid platform of matching experienced new development experts with our skilled brokerage professionals provides unparalleled expertise and real-time market intelligence.
Drawing upon decades of experience and market-specific knowledge, Douglas Elliman Development Marketing offers a multidisciplinary approach that includes comprehensive in-house research, planning and design, marketing, and sales. Through a strategic global alliance with Knight Frank Residential, the world’s largest privately-owned property consultancy, the company markets properties to audiences in 60 countries.
