Laurie Andrews, President, Cotton & Company

Invest: sat down with Laurie Andrews, president of Cotton & Company, to discuss the evolving real estate market in South Florida and the Caribbean, focusing on key trends such as affordability challenges, luxury housing performance, marketing strategies, and sustainability-driven developments like Storie FL.

What have been the main highlights and key milestones for the companies you cover in the last year?
We’ve observed steady and consistent growth in the market, particularly in pre-construction real estate development. Business has increased by approximately 40% year over year, largely due to a surge in activity. This growth isn’t limited to Florida — it extends to the Bahamas as well. Interestingly, the Caribbean market is cyclical. For a while, activity had slowed there, but now it’s picking up again. This reopening has created significant opportunities alongside the robust market in Florida.
As Florida becomes increasingly expensive, we’re also seeing more buyers consider opportunities outside the U.S. The Caribbean, with its renewed activity, has emerged as a viable alternative for those seeking more affordable or diverse options. This shift is reshaping how we think about market dynamics and client needs, particularly in terms of geography and affordability.

What is your current assessment of the residential real estate market in Palm Beach and South Florida?
The residential real estate market in South Florida is experiencing a significant affordability crisis. With limited land available and coastal living in high demand, prices continue to rise. Florida remains a prime destination for people from across the country, particularly those leaving high-tax states like California and others in the northern U.S. While the tax advantages of Florida are a draw, many new arrivals are surprised by the escalating cost of living here.
Regulatory changes following the Surfside tragedy have had a considerable impact on the market. Condominium associations now face stricter requirements, including higher reserves and more robust insurance policies. These regulations, while essential for safety and structural integrity, have increased HOA fees and overall costs for condo owners. Many residents are finding it difficult to afford these expenses, and this has created challenges for the broader market, particularly for staff and essential workers seeking affordable housing.
This affordability issue is likely to become a key focus in the coming year. We may see government entities step in to address the lack of attainable housing. Without such intervention, the market will continue to tighten, and the affordability gap will widen.

Which cities or counties in South Florida do you think hold the most growth potential for Cotton & Company?
South Florida’s coastlines are presenting some of the most significant growth opportunities, but not in the traditional sense. Historically, developers sought out undeveloped parcels of land to build new projects. However, due to the rising costs associated with older condominiums — driven by regulatory changes, insurance, and HOA fees — many existing property owners are now opting to sell. Developers are stepping in with attractive buyout offers, often at above-market prices, to tear down older buildings and construct new developments.
This dynamic has opened up redevelopment opportunities in areas once considered fully built-out. Developers are finding value not in untouched land but in the ability to repurpose and modernize older properties. This trend is reshaping the real estate landscape and offering new avenues for growth in both urban and coastal areas.

How is the luxury housing market performing compared to other segments of the housing market?
The luxury housing market in Florida remains strong, particularly when compared to other segments. Nationwide, the housing market has seen some slowing due to rising interest rates, which have affected mortgage-dependent buyers. However, Florida’s luxury market is less impacted because it predominantly attracts cash buyers. This insulates the segment from fluctuations in interest rates and allows it to maintain stability even when other markets face downturns.
While transaction volumes in the luxury market have declined slightly, prices have held steady. Sellers in this segment are generally unwilling to lower their prices, even if it takes longer to sell their properties. This is in stark contrast to the primary housing market, where accessibility challenges have slowed activity and increased reliance on the rental market. In the luxury segment, the demand remains consistent, and interest from buyers continues to be strong. This stability is further reflected in the high levels of engagement we see on our real estate websites, which serve as a leading indicator of market trends.

Have you noticed any shifts in client demand or changes in how properties are marketed over the past year?
There has been a noticeable shift in client behavior and marketing strategies. Over the past few years, properties were selling rapidly, often sight unseen. However, the last six months have been slower, particularly with the stock market shakeup in March. Many potential buyers adopted a wait-and-see approach due to economic and political uncertainty.
The high-end luxury market has been less affected. For instance, a Ritz-Carlton property we work with in Sarasota had a strong summer, with six or seven significant sales despite the broader market slowdown. This demonstrates the resilience of the luxury segment, even when other parts of the market experience a pause.
In terms of marketing, we’ve adapted to these changes by focusing more on targeted efforts. Streaming media has become a key tool, allowing us to reach specific buyer demographics without casting too wide a net. Social media also remains essential, although fair housing regulations limit certain targeting options. By leveraging advanced strategies, we’ve been able to navigate these restrictions and continue reaching the right audiences effectively.

What impact, if any, has Florida’s hurricane season had on the luxury real estate market and your operations?
Hurricane seasons always have some impact, but Florida’s newer construction standards have significantly mitigated the risks. Modern buildings are designed to withstand storms better, with features like hurricane-rated glass and structural reinforcements. These advancements provide peace of mind to buyers and have actually become a selling point for new construction properties.
Areas like Sarasota, which were hit hard during the recent hurricane season, showed that newer buildings generally sustained minimal damage. In some cases, the storms highlighted the advantages of new construction over older properties. As a result, many buyers are now prioritizing new builds for their safety and durability. While older properties may face redevelopment, these storms ultimately reinforce the value of modern construction standards.

Can you share insights into the Storie FL development and its potential impact on the region?
Storie FL is an exciting and innovative development situated between Martin and Palm Beach counties. It represents a thoughtful approach to addressing both housing needs and environmental sustainability. The project is particularly notable for its emphasis on preserving green space — approximately 65% of the land will remain undeveloped and protected. This balance allows for community growth while maintaining the region’s natural beauty.
From an environmental perspective, Storie FL includes plans to filter water from the C-23 canal through wetlands before it reenters the St. Lucie River. This natural filtration system will improve water quality, benefiting the surrounding ecosystem. Economically, the development will expand housing options, including more attainable and affordable housing, which is desperately needed in the area.
Despite initial resistance to new development, projects like Storie FL have the potential to transform the region positively. By carefully planning residential, commercial, and green spaces, this initiative will provide new opportunities for residents while preserving the area’s character and addressing long-term sustainability goals.