JP Perez Takes the Helm at Related Group: A Vision for Tampa and Beyond

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On the heels of his father’s remarkable legacy, JP Perez has stepped into the role of CEO at the Related Group, marking a new chapter for the global real estate powerhouse founded by the renowned "condo king," Jorge Pérez, over 40 years ago. Under Jorge’s stewardship, Related evolved into the largest affordable housing developer in Florida, notable for its luxury condos, hotels, and mixed-use developments stretching from Raleigh, North Carolina, to São Paulo, Brazil.

Tampa: A Growing Market with New Challenges

Related Group made its mark early on in Tampa, a city that once struggled to catch the attention of developers. However, a significant population surge during the COVID-19 pandemic has shifted the landscape, putting Tampa in the spotlight. Yet, with increased competition, higher interest rates, and rising construction costs, navigating the development scene has become increasingly complex.

Key Projects in Tampa

Related Group is not backing down in Tampa, with four major projects in development that will introduce 1,654 housing units, ranging from low-income apartments to luxury condos. This is in addition to the more than 2,000 units already completed.

In an interview with the Tampa Bay Times, JP shared insights regarding the company’s commitment and challenges:

"I believe that Tampa has solid growth potential. We want to continue to enhance neighborhoods and give back to the community."

JP Perez’s Vision for Related Group

• Legacy of Excellence: "It’s about carrying on and building on the foundation of Related’s 45-year legacy."
• Community Engagement: A commitment to arts and community contributions remains a priority.
• Broad Housing Focus: Developments span across all income levels, from affordable to luxury housing.

Challenges in the Current Market

In the face of economic fluctuations—from high interest rates to tariffs—JP outlined several challenges affecting development:

• High Interest Rates: More impactful on rental development, increasing cap rates and creating financing hurdles.
• Tariffs: Lead to rising material costs, consequently inflating development budgets.

Despite these hurdles, JP expressed confidence:

"It’s not great for business, but we’ve faced challenges before. We’ve learned to plug financial gaps with additional subsidies or our own investment."

The Future of Development in Tampa

With the recent surge in growth in Tampa, JP anticipates a slowdown in new housing construction in the coming years, mainly due to financial challenges:

• Decrease in Market-Rate Rentals: Necessitated by labor and financing costs.
• Rental Rates: Likely to rise due to the supply-demand imbalance.

"Starting projects now could position us well in a strong rental market in two years," said JP.

The Importance of Affordable Housing

While many developers are leaning towards luxury options, Related Group stays committed to affordable housing, noting:

• Diverse Workforce Needs: A city’s strength depends on providing housing for various income levels.
• Environmental Benefits: Reducing commutes alleviates traffic congestion and environmental impact.

"You can’t have a thriving city that caters only to high-income individuals," emphasized JP.

Exploring New Opportunities

Related Group is earnestly seeking new development opportunities in the Tampa Bay area, with several projects already underway, including:

• Ritz Carlton Development: Under construction.
• Canopy at West River: Five buildings completed with ongoing leasing.
• Gallery at Rome Yards: A major 18-acre project planned for launch.

Approval Challenges: The Rodeph Sholom Project

Related Group has faced setbacks in securing approval for a condo project on valuable land owned by the Rodeph Sholom Synagogue:

• Council Decisions: Three proposals have been turned down, but JP remains optimistic.

"City councils change, and we continue to engage with the synagogue to find a workable solution."

The Bigger Picture: Sustainability Post-Hurricane

Rebuilding after hurricanes has fostered resilience in Tampa’s construction standards. JP noted:

"New buildings are designed to withstand severe weather. Historically, Florida doesn’t see population flight after storms."

Future Outlook for Tampa

As the city evolves, JP sees a bright future:

• Cultural Investment: Continued focus on the arts and community life.
• Outdoor Lifestyle: Active and engaged residents enjoying spaces like the Tampa Riverwalk.

"Tampa is a fantastic place to live. The city is reinvesting to maintain its quality of life."

As JP Perez leads Related Group into its next era, the commitment to affordable housing and community enhancement remains a guiding principle amidst the evolving real estate landscape. With a keen eye on new projects and a focus on supporting Tampa’s growth, JP is poised to carry forth his father’s legacy while navigating emerging challenges.

About Related Group

Founded over 40 years ago, Related Group is a household name in real estate development, known for its innovation and commitment to quality across diverse communities.

With JP at the helm, the future of Related Group looks promising, ensuring that the company continues to thrive while contributing to the broader community’s needs.