Compromise. Anything But My Desires.

I've recently heard about two local condo associations trying to change rental restrictions via rule changes. As we found out in an outrageous incident a few years ago, an association can't merely add a new rule to change property use. That particular incident was a Cocoa Beach association that attempted to limit how many units a person could own by burying a new rule in the existing rules and regulations. It doesn't work that way. Property use can only be changed by a properly announced and voted amendment to the condo docs. Any properly administrated new amendment that changes property usage does not apply to owners who vote no or abstain from voting on the new rental restriction. The condo docs determine the process and majority required for such changes. As always, I am not a lawyer and unit owners should seek qualified legal counsel if they think their Board is operating outside the law. Rogue Boards are not an uncommon occurrence in the Sunshine State.

From the Florida Statutes:
The Florida Condominium Act, in Section 718.110(13), Florida Statutes, limits the ability of a condominium association to amend its documents to impose new rental restrictions. The statute states that “an amendment prohibiting unit owners from renting their units or altering the duration of the rental term or specifying or limiting the number of times unit owners are entitled to rent their units during a specified period applies only to unit owners who consent to the amendment and unit owners who acquire title to their units after the effective date of that amendment.”

I'm always interested to hear stories of condo association shenanigans. Feel free to send me an anonymous email of shady goings-on at your association. I can share them or not, your call.

All beach parking in Cocoa Beach is open and beaches are open for all activities with social distancing being enforced and alcohol is banned on the beach. An unexpected thing happened during the time that beach parking was closed. Litter disappeared from the streets of downtown. On a typical Monday morning, our streets are covered in food containers, broken styro coolers, piles of beer cans and bottles, dirty diapers and all the other crap that beach-goers feel compelled to throw on the ground rather than look for a trash container. Apparently it wasn't the locals doing the littering. Shocker. Because of extent of the problem prior to shutdown, CB Police have cracked down on littering and are aggressively enforcing a zero-tolerance policy with $250 tickets for littering. Over on the west coast Naples just re-closed their beaches after beach-goers refused to practice the mandated distancing rules when their beaches reopened.

Only 37 condo and townhome sellers found a buyer in the month of April in Cocoa Beach and Cape Canaveral. Single family home activity remained strong with eleven contracts in the month. A total of 64 residential properties closed in the month boosted by some pre-shutdown contracts. Rental inventory remains high at 207 properties offered for rent. At the same time rental activity is moderate with 45 properties rented in the month of April.

Cocoa Beach and Cape Canaveral have had no new confirmed cases of coronavirus in four weeks now. Hopefully that will hold steady as visitors from more highly infected areas begin returning to the beach.

Before anyone asks, the post title is from the Rush song, Resist.

"I feel like you're running out of all the things I liked you for." __Matty

What Do You Have To Lose?

The first weekend in May was gorgeous and crowds of stir-crazy Floridians took to the beaches. Downtown Cocoa Beach was swarmed with people, probably inland Floridians considering that vacation rentals and motels are virtually empty. From casual observation it appeared the majority were practicing some version of distancing. Dat B Good BBQ food truck at the south fork was doing a brisk business with a long line of appropriately spaced customers when I passed by. I am encouraged by what I'm seeing that we can safely resume our lives with minor behavior changes. Might be a long time before I'm willing to go to a concert or ball game but I can live with that.

I have been wondering about the future of rentals locally since the shutdown began. Many of the renters who lost their job in March have now missed two rent payments. The suspension of evictions on most property types will expire in our county on May 17. Tenants in some properties with federally backed mortgages are protected from eviction notice until July 25. Whether landlords will begin booting renters who are past due remains to be seen. With a drastically reduced pool of gainfully-employed renters and a higher supply of rentals, landlords are in a tough spot. There are 206 rentals offered on the Cocoa Beach and Cape Canaveral MLS this morning.There are probably several dozen others that aren't listed. Some of the MLS listings are former weekly rentals being newly offered long term. Median rent of the listed properties is $1800 a month. Will the new dynamic force rents down? It's too early to tell but increased supply and reduced demand is usually negative for prices.

Local restaurants began reopening yesterday. I haven't visited any yet but I know of at least two Cocoa Beach restaurants that are not requiring workers to wear masks. Political considerations aside, requiring food workers and servers to wear masks is a reassuring sign to customers that the restaurant is taking safety seriously. Hand washing policy is already in place for customer safety. Food safety goes way beyond coronavirus concerns and masks on servers at this time in history signals an aware management's attempt to mitigate customers' risk. If I've overlooked some obvious reason for not wearing a mask while handling a customer's food I'd enjoy being schooled. Otherwise I'd encourage restaurant owners to review their mask policy. I realize this has become a political issue but my reluctance to expose myself to possible infection knows no ideology. Hey, I don't want to catch a cold if I can avoid it. I'm for wearing masks forever but that's me. I wear one for sun protection when I'm on the water. Doesn't make me a bad guy.

"Now, having sown the wind, we are reaping the whirlwind."  __a mashup of several Old Testament verses

Towards the Light

Last day of April and sea turtle nesting is off to robust early start in south Cocoa Beach. I counted thirteen new nests on my morning walk yesterday. I took the photo above a couple of years ago on a morning walk when a late-hatching nest was being blitzed by a group of crows. Most hatching happens during darkness when birds can't see the vulnerable young turtles as they make their way from the nest to the ocean. Those that don't make it to the water before sunrise are at the mercy of birds who fly along the beach looking for an easy meal. This particular hatchling was among several dozen that were being attacked by a group of aggressive crows. I and another walker who was passing by were able to keep the crows shooed away long enough for most of the little ones to make it into the ocean safely.

Florida governor Ron DeSantis has announced a reopening plan that will allow restaurants and retail stores, except for three counties in southeast Florida, to open Monday, May 4 at reduced capacity. He mentioned no requirements for masks.  Indoor seating at restaurants and retail stores will be limited to 25% capacity. Local governments may continue to enforce more stringent policies. The Brevard County Commission is meeting today to discuss whether to move forward with allowing vacation rentals to begin accepting new guests on Monday as planned.

There have been no new confirmed coronavirus cases in Cocoa Beach or Cape Canaveral in over a week. We are standing at nine confirmed cases, combined, as of yesterdays report.

Real estate activity in Cocoa Beach and Cape Canaveral picked up this past week with fifteen condo units contracted in seven days bringing April's total so far to 46 accepted contracts. Those hoping for virus-related bargain prices have so far been disappointed. There are still no new vacation rental condo listings.

As we get back out in public and around one another again it would be reassuring if everyone wore masks and maintained their distance. Despite not being mandated as part of Florida's reopening, masks are a polite reminder to others that you're probably being attentive to and practicing safe behavior. Not wearing a mask suggests that you're probably not. Not to mention, masks are kinda fun. It's Halloween everyday. Enjoy it.

"I cannot say whether things will get better if we change; what I can say is they must change if they are to get better." __Georg C. Lichtenberg

Liberate Sunbathers

Jigsaw puzzles have probably seen a resurgence in popularity everywhere if my house is any indication. This one by former Cocoa Beachling David Hale has been a mind-bender.

There was an interesting swerve in real estate sales in Cocoa Beach and Cape Canaveral this week. The slowdown in condo contracts continued but single family homes had an unusually strong week despite the shutdown. There were only seven new condo contracts since last Saturday but five single family homes were contracted in the same period. One week is not long enough to call a trend change but surprising nonetheless.

We've had 34 residential properties go under contract since April Fools Day, nine of those single family homes. Compare that to 65 contracts during the same 25 day period last year. Closings are just now starting to reflect the impact of the shutdown as the closings so far this month were, all but one, contracted in previous months. So far in April, 45 residential properties of all types  have closed in Cocoa Beach and Cape Canaveral, 31% of those for cash. Five of those sales happened without being offered to the public and all but eight sold within two months.

Inventory is steady with 209 existing condo and townhome units and 53 single family homes offered for sale on the MLS. About a quarter of these listings have been offered for five months or longer signaling overpricing. Perhaps the slowdown will encourage some of these sellers to dip an exploratory toe into the reality pond. Maybe not. Reducing an asking price is a difficult step to take for most sellers even when the initial price was crazy high. If you're reading this and your property has been listed since last year without a contract maybe this is a good time to reevaluate your asking price. Why wasn't your property among the 251 that have already closed this year? With very few exceptions, the answer is because it's priced too high. With the reduced demand we're seeing right now, chances of finding a buyer willing to overpay have gotten even closer to zero.

In addition to walkers, fishermen and surfers who have been allowed all along, our beach has reopened to those who want to sit or sunbathe as long as they maintain distancing and gather in groups of no more than five. Beach parking is still closed. I was happy to hear this week that Publix has begun buying surplus produce and milk that farmers can't sell and donating it to food banks. In a time of massive grift it's encouraging to hear stories of corporate benevolence. Good on ya, Publix.

The Cocoa Beach Community Food Drive is providing food and supplies for local citizens in need at two locations. They are:

Lutheran Resurrection Church at 525 Minutemen Cswy. Food Pantry is open Saturday 10 -12

Society of St. Vincent De Paul Food Pantry (through Our Savior’s Catholic Church) is open Monday, Wednesday, Fridays 9:30 am- 1:00 pm. Site pick up is different than the church so please call ahead 321-799-3677 for pick up. The location is 130 Cleveland, Unit C.

There were no new confirmed cases of coronavirus in Cocoa Beach (7) or Cape Canaveral (2) this week. Testing has loosened up somewhat and free tests are available to those with symptoms (see above) and antibody test are available to anyone for $100 from Omni in Melbourne (321.802.5515) or covid@omnihealthcare.com.

"You can't reason someone out of a position they didn't reason themselves into."  __anonymous

Now the ISS. Then Mars and Beyond.

The 1067 foot Norwegian Breakaway anchored five miles offshore Cocoa Beach. This ship would normally be carrying over 4000 paying passengers but for now it is anchored outside the Port along with several others waiting out the virus shutdown.

As of yesterday's report, our number of confirmed Covid-19 cases are unchanged with seven in Cocoa Beach and two in Cape Canaveral. Only 41 people have been hospitalized so far in our entire county due to coronavirus. Our governor is straining at his leash to reopen businesses and reports are we could see outdoor dining and elective surgery resumed by next week. I guess professional wrestling isn't generating the kind of tax revenues he'd been hoping for. The Brevard County Office of Tourism will shortly be launching a big marketing campaign targeting the "drive market" of visitors that are within a short drive of the Space Coast. They are hoping to curb the estimated loss of over $7,000,000 in tourist tax revenue in our county from the shutdown.

American astronauts are scheduled to be launching from American soil  late next month for the first time since 2011 aboard a SpaceX Crew Dragon capsule on a mission to the International Space Station. This is a long-awaited event and locals are excited to see the resumption of Human Spaceflight from the Cape.

Real estate inventory and sales in Cocoa Beach and Cape Canaveral are little changed since my last post. Activity is slow but far from stopped. Video walk-throughs have become the standard for property showings and are safe for everyone involved. Most agents are happy to Facetime or otherwise video properties that their clients may be interested in. Ask them.

As of yesterday more than 1.5 million Floridians had applied for unemployment benefits since March 15. Of those one and a half million jobless people, only 40,193 have received any benefits and about 90% of the applications have not even been reviewed. The system is working exactly as designed.

I commented in my last post that customers considering ordering takeout would probably appreciate and respond positively to knowing what coronavirus protective measures a restaurant is taking. A picture of the staff with all wearing masks would probably do more for takeout business than a 15% off coupon. The day after my post a local restaurant posted a short video to Instagram showing an employee dispensing food into a large container while not wearing a mask. Seems tone-deaf to go to the trouble of posting something intended to spur business that instead shares an unmasked food handler standing over the food they're hoping to sell. Better to be silent and assumed to be practicing safety than to post and prove that you're not. I was a germophobe before all this started so my opinion is probably too extreme. Be safe all and wear your masks in public. Even if you don't think masks are effective wear it as a show of solidarity with everyone who wants to get back to normal, whatever that is now. Thanks in advance from the germophobe community.

Happy 61st Birthday to Robert Smith of The Cure.

"Clusters anywhere are a threat to people everywhere." MM Fill, MD

Essential Wrestling

Scene from the Ft. Lauderdale airport on March 15.

Suggestion: Restaurants that are taking measures to ensure that employees are healthy should be sharing their efforts with the public. Instead of a free roll of toilet paper with my pizza I'd be more inclined to order takeout if I knew that all employees were wearing masks and none reported for work with a temperature above 100°. Beneficial for the owner and the other employees and very reassuring for the customers. Cost? Minimal. Porque no?

April 16 Covid-19 report shows no new cases in Cocoa Beach or Cape Canaveral. Confirmed cases still stand at six and one respectively.

Inventory of homes and condos for sale in the two cities has contracted slightly with a total of 206 existing condo units and 55 single family homes for sale this morning. There are another 26 units and homes offered as pre-construction reservations.

Sales activity as measured by new contracts is declining rapidly with a 40% decline in new contracts in the last 30 days compared to the same period in 2019 and is off by more than 50% in the month of April so far; 32 contracts in 2019 from April 1 through April 17 versus 17 this year. Even though real estate has been designated an "essential" service by the Florida governor, buyers are reticent during uncertain times. For what it's worth, Governor DeSantis also included professional wrestling on the essential services list. Florida Man's reputation reconfirmed in the minds of the world.

The vacation rental market is at a full halt but, surprisingly, there hasn't been a new listing of one for sale in over four months. With over 1000 weekly rental units in our two cities, the collective lost rent during the shutdown is over $1,000,000 a week. The vast majority of these units don't carry a mortgage so the pressure to sell isn't as urgent for these owners even though rent is currently zero. I expect to see new listings of vacation rental units if the no-rent order persists. People will vacation again after the coronavirus shutdown so those with resources (and courage) who have wanted to purchase a short-term unit may have opportunities during the coming months. Note that mortgages are difficult if not impossible to obtain on most of these properties in the best of times.

There is a lot of discussion and disagreement going on in condo associations about whether pools and other common amenities should be closed during the shutdown. I would advise Boards to seek legal advice before relying on what the neighboring building may be doing or what may have been reported on Facebook. Coronavirus may be seen as a "known hazard" and actions taken or not taken relating to it may be judged on that basis. If there is disagreement within your association about this, seek guidance from your association's attorney.

Stay safe, wear a mask in public and please stand at least six feet from me. I appreciate it.

"If we are victorious in one more battle with the Romans, we shall be utterly ruined." _______King Pyrrhus of Epirus

What Comes Next?

Other than the shutdown of vacation rentals until April 30 (could be extended again) and slowed buyer activity the impact of the pandemic on real estate in Cocoa Beach is yet to be revealed. There have been some significant changes with mortgage requirements but I have not heard of a local sale that has been affected by those changes, yet. There has been no surge in new listings and no noticeable movement in prices as the economy has ground to a halt. Perhaps the effects on our little market will be minimal. As of the April 13 report there are still just six cases of Covid-19 in Cocoa Beach and one in Cape Canaveral.

How about long-term rentals? What happens to the newly unemployed renters of Cocoa Beach and their landlords as the coronavirus shutdown lingers? On April 2, Gov. Ron DeSantis signed an executive order suspending evictions and foreclosures for 45 days amid the coronavirus pandemic. What happens afterwards?

Being a tourist destination Cocoa Beach has a large number of restaurants and bars and a significant number of the renters here are employed in those businesses. We are past Easter and it appears the shutdown will be extending for several more weeks at a minimum and possibly into summer. Whether the public will be willing to crowd into restaurants and bars when they reopen is unknown but it's probably safe to assume the fear of close contact will remain with a lot of us beyond the reopening. Best case scenario is that the virus goes away quickly, all our establishments survive the shutdown and reopen with their full staffs to packed houses. The more likely scenario is that some don't survive and close permanently and those that do reopen do so with limited staffing until something like normality returns. That scenario leaves a large number of servers, bussers, bartenders and back of house workers with reduced hours or without a job in a beach town without a lot of alternative jobs.

Who will rent these condos and apartments if a substantial number of these workers are forced to move elsewhere seeking employment? What happens to rents and the value of the properties that these workers have been renting? Smaller, inexpensive condo and apartment units are the primary property type these workers are renting. For the record, maximum unemployment compensation in Florida for those who qualify and can wade through the excruciating application process is $275 a week. The CARES legislation promises additional compensation but we'll have to see how that plays out as it is administrated through Florida's broken and overloaded system. Average rent for a one bedroom condo in Cocoa Beach and Cape Canaveral is $1200 a month and average selling price of these units is around $130,000. I have no idea how this will resolve as most everyone is still frozen in place with fingers crossed hoping for a miracle. I don't know if the number of affected renters will be enough to matter but at first glance it appears to be a possibility.

I would be interested in readers' thoughts and stories related to our coronavirus reality. Feel free to comment to this post or email me directly. All input contributes to our understanding.

"When times are good, investors tend to forget about risk and focus on opportunity. When times are bad, investors tend to forget about opportunity and focus on risk."  __unknown

I'd Love It If We Made It

Lots of clam shells on the beach recently.

The latest report indicates there are now six Covid-19 cases in Cocoa Beach and one in Cape Canaveral. There are six cruise ships either anchored or drifting offshore at the moment with one at dock inside the Port. Officials at Port Canaveral have said that in the first three months of the "no-sail" order from the CDC they expect to lose $22.5 million in docking, passenger and parking fees. They are still taking in $1.5 to $2 million a month in fees from the short dockings when the ships take on supplies before returning to anchorage offshore. The lost revenue to associated local businesses from the tens of thousands of missing cruise passengers is much more difficult to estimate but it's safe to assume it's quite large.

Hearing reports of wildlife taking advantage of abandoned cities including photos of coyotes walking  down empty city streets in San Francisco and Chicago did not prepare me for the sight of a wild turkey strolling across my yard yesterday. This hen was last seen heading north on the beach side of A1A in south Cocoa Beach. Best of luck to her and I hope she doesn't cross paths with our bobcat.

Real estate activity continues to decelerate with only seven residential properties going under contract in our two cities in the last seven days. We've managed to close 15 in the same seven days but I expect that number to ramp down as the pipeline of new contracts dwindles. There are 219 existing condo units for sale this morning and another 21 offered as pre-construction reservations. I have not heard if the new oceanfront project in downtown that represents the bulk of those 21 pre-construction units has decided to delay ground-breaking but I imagine there have been discussions. I will report as I hear of developments.

Florida's online unemployment compensation system has crashed and the only way to apply now is with a paper form. For locals who need to file, paper forms are available at the front of the Cocoa Beach Library which is closed for other business. Best of luck to those trying to navigate this morass that was designed to fail which it has just done in magnificent form. The politicians must be proud.

A happy and healthy Easter to all.

"And I'd love it if we made it."  __Matty Healy - The 1975