Construction looks strong in 2019; Bristol set to be done in 2Q

What does the future hold for commercial real estate in Palm Beach County? At the moment, the light still flashes green, according to one prominent construction company.

Suffolk Construction Co. is wrapping up construction of The Bristol, the most expensive condominium ever built in the county. The West Palm Beach tower, which rises 25 stories along the Intracoastal, is set to be completed by the second quarter, said Christopher Kennedy, vice president of Suffolk Construction in West Palm Beach.

Bristol, most expensive in Palm Beach County, races to completion

“We’re finishing up the interiors and putting the finishing touches on all the amenities,” Kennedy said. “We’re in the homestretch.” The Bristol is at 1112 S. Flagler Drive, just south of downtown along the Intracoastal Waterway.

Despite stock market gyrations and rising interest rates, Kennedy expects 2019 to be a strong year for construction, in part because so many jobs already are in the pipeline, either under construction now or planned to start soon.

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They include a new hotel under construction at the Seminole Hard Rock Hotel & Casino in Hollywood. The giant guitar-shaped tower is just off the Turnpike in Broward County. The hotel is set to be completed in October. Suffolk also is building residential towers at the Brightline train station in Miami.

Of course, the good times won’t last, and the real estate community knows it. “Florida is boom or bust in the construction industry,” Kennedy said.

But he’s also not worried about recent trends, including rising interest rates.  “I don’t think half a point of interest is going to kill any deals.”

As for tariffs on steel and aluminum, Kennedy said the affect on commodities hasn’t been as bad as he thought it would be, and there's no shortage of product, he said. 

Looking ahead, several trends bode well for continued construction jobs.

In particular, Kennedy cited the trend toward building senior living facilities for retirees, especially Baby Boomers who want new, active and modern places to live. Suffolk plans to start building three new facilities in Palm Beach County, he said.

Although a number of apartment complexes were built during this recent up cycle, Kennedy said apartments and condominiums continue to be hot in selected markets.

Alexandra Clough writes about real estate, law and the economy. aclough@pbpost.com @acloughpbp.