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