Archive: January 2018

Even three months later, Hurricane Irma and corresponding hurricane insurance claim denials here in Florida are affecting businesses and negatively impacting tourism. While the Florida Keys in particular typically attract more than three million visitors a year—especially right around after Christmas is over—many of the big resorts remain closed after Hurricane Irma. And when hotels are closed, subsequent businesses—such as restaurants—also suffer.

Irma was Florida’s first major hurricane since 2004-2005, and left millions of Floridians without electricity; causing widespread damage; especially in the agricultural industry.

Hurricane Irma’s Cost to Florida

Hurricane Irma left its financial mark on the state of Florida: The category four hurricane caused more than $500 million in damages and destroyed more than 1,100 homes. Many of the properties that were damaged but not entirely destroyed are projected to remain closed until at least next fall, and many business owners have projected that it could take a full year or more to recover their losses.

There are several important real estate cases coming up in 2018 which property owners, landlords, and business owners should keep their eyes on. Below, we discuss these in more detail:

Tenants Must Serve Out Remainder of Leases

In a December legal dispute between Starbucks and Simon Property Group LP, a judge sided with the property group in deciding that Starbucks paying out the remainder of its leases with Simon Property was not enough, and the company also had to keep its stores open even after paying off the leases. This is a new precedent, as there are millions of contracts between landlords and “tenants” (or businesses) with these exact terms in them; terms which have historically been interpreted to mean that monetary damages were sufficient for businesses like Starbucks to get out of their leases.

Office Space Models

In another big case, one ground lessor company (Siegel Family Associates LLC) has objected to the decision made by the landlord company (Cohen Brothers Realty & Development)  to lease a separate office space to a company called WeWork, arguing that the lease would violate their own lease agreement because WeWork would not be occupying the space, but rather, subleasing it (due to the type of business WeWork runs, specifically, too many people would be “coming and going”). The question posed in the case is a unique one—indeed, it is a case of first impression—and one that will be watched closely, given the growing popularity of this type of office space model around the country.

Florida, like Texas and Puerto Rico, has been through a busy hurricane season that has been extremely difficult on residents: just as of September, there were five major hurricanes ranked at category three or higher in strength, 13 named storms, and eight hurricanes total in the Atlantic.

Hurricane Irma caused multi-billion-dollar losses, which includes approximately $20 billion in wind damage in Florida alone. Estimates for flood damage still have not been estimated, although the Office of Insurance Regulation documented more than $5 billion in private insurance claims for flooding and wind. A whopping 47 out of 67 of Florida’s counties were part of the disaster declaration.

Higher Rates, Permanently

Due to insurance deductibles, it is still unclear just how much Florida property owners will have to shoulder on their own. In addition, there is no question that impacts from this year’s storms will have an effect on private insurance rates. The last estimate indicated that 773,000 private insurance claims were filed due to Irma alone; this includes close to 99,000 for Miami-Dade, more than 63,000 in Broward County, close to 63,000 in Orange County, and almost 60,000 in Lee County.

January 8^th is reportedly the beginning of “divorce week,” where the highest number of couples decide to initiate divorce proceedings. To that end, we have provided some recommendations below on how to make it through, as well as important things to keep in mind.

Some of the most common topics that partners argue about include: in-laws and other relatives, drinking, sex, children, money, and housework. What can often throw a couple into a heated argument is bringing up the subject at an inopportune time as opposed to planning a time to sit down together and discuss something as a group in order to put a plan of action together to prevent the same issue from coming up again.

Plan, Plan, Plan

One piece of advice that some experts offer is to ask yourself about the specifics: what is it about this specific issue or behavior that concerns you? Does it involve how you are treated, how your partner treats themselves, etc.? Preparing for the discussion ahead of time can help ensure that your partner better understands why something bothers you instead of feeling attacked. Once you’ve identified the cause of the problem, it can often become easier to find a simple solution that can turn the issue around.