South Florida by the numbers: Miami developers stay nimble
“South Florida by the numbers” is a web feature that catalogs the most notable, quirky and surprising real estate statistics.
Much of Miami’s recent real estate success has been attributed only to the pandemic, and the various shifts in mainstream behavior that resulted from it. But the full reality is much bigger and more complex, and involved many years of careful, patient planning to implement. “Miami is a 10-year overnight success story,” Mayor Francis Suarez recently said. “This Miami moment that we’ve converted to a movement was very intentional, very comprehensive. And there were many people involved.” Business development professionals throughout South Florida are now seeing this dream of the region as a technology and financial services capital come to light, and local real estate developers have been remarkably quick to pivot and capitalize on new lifestyle, demographic, and population trends that are changing the way people live. We examine the opportunities and challenges facing the region’s top developers in this edition of “South Florida by the numbers.”
Over $1 billion
Total land sales in Miami’s urban core (including Edgewater, Wynwood, the Arts and Entertainment District, downtown and Brickell) over the past two years; demonstrating the extraordinarily high demand, costs, pace, and volume of deals for development sites. [TheRealDeal]
10 to 15 percent
Monthly increase in construction costs as of March, according to Jon Paul Pérez, president of the Related Group. These rising costs, in addition to supply chain breakdowns and labor shortages, represent the biggest headwinds for developers, who must balance enormous demand with the ability to meet buyer expectations. [TheRealDeal]
Number of feet a tower must reach to claim “supertall” status (or above 300 meters). Nine of these projects are being planned in Miami, with only one (the Waldorf Astoria Hotel & Residences) currently under construction. [TheNextMiami]
Number of months it took to reserve all of the fully-furnished units planned for District 225, a West Brickell condo development designed and promoted in collaboration with Airbnb, where owners are free to rent their units. Speedy pre-construction sellouts of these niche “home-sharing” developments suggest the market for rental-ready condos remains underbuilt in Miami, and foreshadow an urban core defined by this new style of living. [CommercialObserver]
Total price recently offered by the Related Group and 13th Floor Investments to purchase the Castle Beach Club Condo in Miami Beach, with 576 linear feet of ocean frontage. With 570 units in the building currently valued at less than $200,000 apiece, owners could receive close to five times the value of their condos, depending on the offers. (A large enough percentage of unit owners would need to accept the sale for the developers to buy out the condo and terminate the association.) This potential deal would continue the trend of condo terminations in South Florida, where the value of underlying land is often worth more than reselling the units. [TheRealDeal]
This column is produced by the Master Brokers Forum, a network of South Florida’s elite real estate professionals where membership is by invitation only and based on outstanding production, as well as ethical and professional behavior.