J
orge Perez, founder of Miami-based real estate developer Related Group, believes interest rate cuts are urgently needed to help builders cope with rising costs. Borrowing expenses have increased in recent weeks due to stronger-than-expected economic data. While some developers had hoped for more significant rate reductions from the Federal Reserve, Perez now expects smaller but still beneficial cuts next year.

    Developers like Perez rely on floating-rate financing for many projects, and a sudden increase in interest rates can be devastating. For instance, if a project is financed at 3% and then jumps to 8%, it's clear how much of an impact that would have. Many developers are holding out for lower interest rates, which they believe will boost demand as more people can afford real estate.

    Related Group has secured significant financing in recent months, including a $527 million loan for luxury condos in Miami's South Brickell neighborhood and a $400 million loan for high-end condos on Fisher Island. However, Perez also expressed concerns about President-elect Donald Trump's comments on immigration, stating that it's essential to address the issue and recognize the crucial role immigration plays in the country's development, particularly in the real estate industry.