T
odd Michael Glaser, a top South Florida spec mansion developer, has shifted his focus from building new homes to renovations due to skyrocketing land prices and construction costs. "We've had to rework our entire business approach," he said at The Real Deal South Florida Real Estate Forum. "Renovations are now our main priority." Glaser is concentrating on developing projects in the $8 million to $10 million range, as new construction above $30 million has slowed down.

    Land prices and construction costs have become unsustainable for spec mansions, with sellers and contractors demanding excessive amounts of money. "The prices don't make sense," Glaser said. "Everyone's trying to charge as much as they can." Liz Hogan, a Compass agent, noted that land prices are rising in waterfront residential areas outside of Miami Beach and Palm Beach, with some lots selling for $1,000 per square foot.

    Billionaires like Jeff Bezos and Ken Griffin are transforming former estates into massive bunkers. Griffin is redeveloping a 7.5-acre beachfront site in Palm Beach into a 50,000-square-foot palace, which will cost over $1 billion when completed. "He wants a big compound," Glaser said of Griffin's project.