The key for developers looking for property along Miami Beach’s crowded beachfront is to look for older buildings that can be “recycled,” instead of land to construct new projects.
“Any condo can be recycled in Florida,” said CraneSpotters.com’s Peter Zalewski to Mansion Global.
The problem is recycling is a slow, costly process. Buying an older building means cutting deals with unit owners before any significant transformation can occur and the disparities in cost post-renovation are stark: an average unit listing price is about $770 per square foot for an older unit, while a new unit will list for up to $3,000.
But, even if you build, will buyers come? It’s a real question in Miami Beach’s saturated market where, since 2011, more than 40 renovations projects either stalled, revised their plans or were cancelled.
[Mansion Global] — E.K. Hudson