Jorge Pérez, the billionaire developer often referred to as Miami’s “condo king,” has been making headlines recently with candid insights about family business succession and his unwavering confidence in South Florida’s real estate market. In a series of interviews with CNBC and other media outlets, Pérez offered a rare glimpse into how he’s preparing the next generation to take over his real estate empire while sharing his optimistic outlook for Miami’s property market.
The Unexpected Path to Leadership at Related Group
When Jon Paul Pérez graduated from the University of Miami, he naturally assumed he would join his father’s business, The Related Group, which boasts a $40 billion portfolio spanning condos, rentals, and commercial spaces throughout South Florida. After all, he had been learning the family business since childhood—visiting construction sites, spending summers working at the company.
During his graduation dinner, Jon Paul asked his father when he could start working at the company. Jorge’s response was unexpected and definitive: “You’re not going to work for me.”
It was shocking to Jon Paul, but this wasn’t a rejection. It was the beginning of a strategic, long-term succession plan that would ultimately lead to him being named CEO of Related Group this month, with his brother Nicholas serving as president of condominium development.
Jorge Pérez’s Three-Step Succession Blueprint
In his recent interviews, Jorge Pérez revealed three fundamental principles that guided his approach to passing down the family business:
1. Passion Must Come First
“I told them…just because I’ve been successful in real estate, don’t pick something you don’t have a passion for,” Pérez explained. You need this passion, because “…if you wake up every day and do something just for making money or that you don’t really like, it’s not going to work.”
2. Earn Your Place Through Outside Experience
Pérez established a strict rule: to work at Related Group, his children needed to earn a master’s degree from a prestigious business school and spend five years working in New York’s competitive real estate market. Without a master’s, they needed seven years of industry experience.
Following graduation, Jon Paul secured a position at Related Companies in New York, the development firm established by Stephen Ross, a close friend and former business partner of Jorge’s. Despite the family connection, Jon Paul found no special treatment: “You were either going to sink or swim. You were working 12-hour to 14-hour days, learning to ask the right questions.”
Even when Jon Paul finally joined Related Group in 2012 ,he gradually worked his way up to president and now CEO.
3. Values Matter More Than Wealth
Beyond skills and expertise, Jorge ensured his children embraced the core values that built Related Group’s reputation.
“You have one reputation,” Jon Paul emphasized. “The Pérez family, and Related, have a reputation of doing the right thing.”
Why Jorge Pérez Is Bullish on South Florida Real Estate
While Jorge’s succession planning offers valuable lessons for family businesses, his perspective on the South Florida real estate market should particularly interest potential investors and condo buyers. In a recent interview with CNBC’s Robert Frank, Pérez confidently stated: “If I had to put my money someplace over the next decade, you know it would absolutely be South Florida.”
After being in the real estate business for over 50 years, described Florida’s market as a “roller coaster.” However, he emphasized an important pattern he’s observed throughout his career: “When the roller coaster goes down, the next up has ever been higher.”
This optimistic outlook is fueled by Miami’s appeal to an increasingly diverse range of buyers. According to Jorge, it’s “not just Latin America, it’s not the North East, it’s not California, but lots of people from Europe” who are drawn to the city. He mentioned a recent dinner with “very wealthy British people that adore Miami,” highlighting the city’s international appeal.
What This Means for Miami Condo Buyers
Jorge Pérez’s Miami real estate insights reveal several important considerations for those interested in Miami’s condominium market:
- Long-term value: His confidence in South Florida real estate suggests that despite market fluctuations, the long-term trajectory points upward—potentially good news for those considering property investments.
- Developer quality and integrity: The emphasis on values and reputation within your chosen condo development group should indicate a commitment to quality development. It is important that prospective condo buyers prioritize this when evaluating developers.
- Growing international appeal: Miami’s growing attraction to wealthy buyers from across the globe suggests continued strong demand for luxury condominiums, potentially supporting property values.
The Future of Related Group and Miami Real Estate
As Jorge Pérez transitions to the role of executive chairman while his sons take on leadership positions, the future of Related Group appears bright. Jorge expressed his satisfaction with the succession process, saying, “The greatest thing for a father is to see his kids do better than he does.” Jon Paul, for his part, seems focused on continuing the company’s success.
For those considering Miami real estate investments, particularly in the condominium sector, the Pérez family’s confidence in South Florida’s future and their commitment to values-driven development offer compelling reasons for optimism. The Related Group’s condo development projects and other strong new branded condo developments have continued to attract strong buyer demand due to their high quality construction and commitment to integrity. I recently showed a breathtaking penthouse at the Casa Bella and the few remaining units are selling quickly.
A few of the recent branded condo development projects are unveiling some of the most innovative and beautiful living spaces I have ever seen. While the new developments may not be selling out as quickly as they were, there are long term drivers that continue to elevate prices steadily. As Jorge Pérez has demonstrated throughout his career, even in a market that resembles a roller coaster, the highs continue to reach new heights.
After decades of closely tracking the Miami real estate market, we are here to help and guide you through this rapidly evolving environment. What are your thoughts on the current and future real estate market in Miami? I’d love to hear your perspective – drop us a comment below or reach out directly at WhatsApp or andrea.spero@corcoran.com to discuss your real estate goals and opportunities in this dynamic market.
