Walter Duke, CEO, Walter Duke + Partners

In an interview with Invest:, Walter Duke, CEO of Walter Duke + Partners, shared how they have worked to secure $1.8 billion for ,45,000 units over the next 30 years in Broward County, why South Florida’s commercial real estate market remains robust, and how they are combine their “people-first” philosophy with AI for long-term relationship building.

What have been some significant milestones that your firm has achieved over the last year?

We recently celebrated a major milestone for the firm, marking years of commitment to our clients and community. There has been a strong demand for our services, which we are proud to deliver at a high level. In fact, over the past year, we have experienced the two busiest years in our firm’s 50-year history, which is exciting. 

A key area of focus has been affordable housing and for over 25 years, we have led state efforts in this sector. Personally, I became the chair of the Broward Workshop Housing Affordability Committee, which has led to significant progress in creating affordable units. Over the past four years, we have secured $158 million in county investments to support 3,500 new affordable housing units.

We recently passed Broward County’s first 10-year affordable housing master plan, which includes $1.8 billion in funding to build 45,000 affordable units over 30 years. We are poised to produce even more units, especially as this initiative addresses one of Florida’s critical issues, which is creating spaces where our workforce and service industry professionals can afford to live.

How have the shifts in interest rates and inflation challenges impacted commercial real estate, particularly office spaces?

There has definitely been a lack of transactions since the fall of 2022. However, in South Florida, we are fortunate to be outperforming the broader economy as there has been a tremendous amount of wealth migration into Florida. Between 2021 and 2023, we saw nearly $36 billion of wealth moving into the state, with an average household income of $123,000. This figure is approximately 60% higher than the typical average household income, so we are in a fortunate position.

That being said, there are headwinds, including inflation, controllable costs, construction expenses, and property insurance. Another challenge is that lenders, particularly banks, tend to take a general view of the office market’s performance rather than recognizing the specialized strength of locations like South Florida.

In places like San Francisco, New York, and Chicago, where higher taxes, burdensome regulations, and elevated costs prevail, the office market is struggling. However, in South Florida, office occupancy rates are strong, especially in premium locations commanding the best rents. While Broward County lags Palm Beach and Miami in terms of product availability, new developments like the Hines T3 Timber project, a $400 million low-carbon footprint office building, promise to address these gaps.

How are other real estate sectors performing in South Florida, and how do you see Florida’s position in 2025?

Multifamily properties are still performing well, although rent increases have softened. Cap rates have risen slightly, but transactions are still happening. Florida remains a favorable market where investors can sell properties without the steep discounts seen in underperforming areas like Los Angeles or Detroit.

Industrial real estate is another strong sector. Despite a slight oversupply, the limited availability of industrial land has driven land values to double in the past five years. Retail, particularly in South Florida, is thriving. The retail sector came out of the pandemic stronger, with higher rents and better-performing tenants. It is arguably the favorite property type for lenders and investors right now.

Despite economic challenges, Florida is in an excellent position. The state benefits from a low-tax environment, which continues to attract people and businesses. The election anxiety is now behind us, and Florida is poised to succeed regardless of political outcomes.

How does the firm’s “people-first” philosophy shape client relationships and company culture?

We have been in business for 50 years, and over that time, we have had the privilege of building deep relationships with our clients. In our field, especially in finance, trust, experience, and competence are critical. We are fortunate to have consistently demonstrated these qualities, which has allowed us to work with third-generation clients. For instance, we might see a grandfather and grandson coming in together, navigating a project. It is often a teaching moment where the older generation imparts wisdom to the younger one about interacting with appraisers or managing the process.

This approach reflects our belief in nurturing relationships like one would a garden as you cannot neglect them. Regular follow-ups and even something as simple as personal notes keep the connections fresh. This has helped us thrive while others in our field, who lack such long-term engagement strategies, have struggled. For example, during the past two years, while some firms were laying off staff, we had two of the busiest years in our history.

Additionally, we specialize in areas such as affordable housing in Florida, charter schools across the United States, and marinas and boatyards. These niche focuses further strengthen our client relationships because they rely on our expertise in these specialized fields.

How has your background in public service and politics shaped your approach to addressing urban challenges like affordable housing and sustainable development?

My 10 years in local government were transformative as they have helped me understand challenges and provide valuable insights. They made me a better person, taxpayer, citizen, and professional. When I joined the Broward Workshop four years ago, it was partly because of my experience in local government and my understanding of affordable housing. These experiences have helped me connect the dots effectively.

For instance, when I started in 2020, I spent four months listening to stakeholders, which in this case were local governments, private developers, nonprofits, and more. My background allowed me to know whom to contact and what to ask. This has been invaluable for tasks like presenting to local commissions, conducting workshops, or combating misconceptions about urban density and affordable housing.

For instance, affordable housing costs are nearly identical to those of market-rate housing, but subsidies make it accessible to better tenants who have more disposable income to spend locally. Educating elected officials on these issues has been vital since they often lack expertise in these areas.

What specific policies or legislative changes are you closely monitoring, and how might they impact the industry?

We are closely following the implementation of a 10-year affordable housing master plan, which includes funding and land-use policy recommendations. These policies address things like parking and density requirements, which can significantly impact costs. In Broward County, for example, half of our 1 million employees are service industry workers earning less than 60% of the area median income (AMI). With a median home price near $620,000, the math simply does not work for them.

To address this, we are reinvesting nearly $2 billion over 30 years from sunsetting Community Redevelopment Agency (CRA) funds into affordable housing projects. Additionally, we have revised local land-use policies to allow developers to pay into an affordable housing trust fund instead of setting aside 15% of their units for affordability. This fund already has $68 million, enough to support about 1,400 affordable units in downtown areas where demand is highest.

We are also engaging schools and hospitals to explore using their campuses for affordable housing. By bringing everyone to the table, we are encouraging joint action and participation in addressing housing challenges.

What role does education play in your strategy?

We have partnered with organizations like the Urban Land Institute (ULI) to educate city planners, officials, and other stakeholders. Many planners work on individual projects without understanding the broader housing crisis or their role in solving it. Through seminars and workshops, we help them see how they can contribute. Building a sense of ownership among stakeholders creates momentum for meaningful change. We still have a long way to go, but we are encouraged by the strides we have made.

What are the firm’s top priorities for the next two to three years?

Our primary focus is to continue delivering high-quality studies and evaluations that help our clients make sound financial decisions. Whether it is advising a city on a public-private partnership or assisting a client in buying out a ground lease in Miami, we aim to dig deeper into our clients’ businesses and provide long-term, tailored solutions to address key challenges.

After all, our success is tied to our clients’ success, and that is what we take the most pride in.