The Real Deal Miami

Industry leader sees Miami rent surge

Developer Harvey Hernandez predicts rents will soon rise by $1 per square foot
October 13, 2014 01:30PM

Harvey Hernandez, managing director of Newgard Development Group.

Harvey Hernandez, managing director of Newgard Development Group.

Rents in Miami are set to soar, according to developer Harvey Hernandez, who is banking on $3,150 a month for a smallish two-bedroom apartment in downtown Miami becoming the new normal.

“We’re not going to have enough product to cover the demand,” Hernandez said, citing predictions for a population influx in the area. “I think we’re going to touch $3.50 a foot at least.”

Currently, rents range from about $2.25 to $2.50 per square foot, according to the Daily Business Review.

As a result, Hernandez suggested at an industry panel discussion sponsored by CBRE that developers start thinking smaller. A 900-square-foot, two-bedroom would be a good size going forward, Hernandez said.

Hernandez is in charge of two large projects under construction: the 37-story loft-style Centro tower in downtown Miami and the 46-story BrickellHouse in the financial district. [Daily Business Review] – Christopher Cameron