Everywhere you look in South Florida, developers are partnering with hospitality brands, automotive companies, lifestyle brands and more.
But are luxury labels exhausted in Miami? It depends, according to top developers Gil Dezer and Nick Pérez and brokerage chief Alicia Cervera Lamadrid, who spoke at The Real Deal South Florida Real Estate Forum during a panel discussion moderated by TRD South Florida Managing Editor Ina Cordle.
The market only competes with Dubai in terms of branded residential towers in the pipeline, Dezer said, though Cervera disagreed.
“I just think we’re the epicenter, period, right now. If you’re in real estate, this is the place to be,” she said, drawing applause from the crowd.
Because so many branded condo projects exist and are in the works, Dezer said it’s leveled the playing field in terms of how much added value one project may have compared to its competitor. Now, a branded condo may only add 5 to 10 percent value.
“What the brand really gets you is notoriety and press,” Dezer said.
Cervera added that branded condo projects sell more quickly. “That’s a big shot in the arm,” she said.
Buyers need to have a connection with the brand, the speakers said. Though they were all complimentary of each other’s projects, Cervera said, “Not all brands are created equal.”
“The allure for buyers is knowing the comfort of knowing the brand,” she added. Her firm led sales and marketing for the recently completed Aston Martin Residences. “You don’t have to start explaining what something is. Everyone knows what Aston Martin is. They understand the quality the brand brings, so that gives them comfort. They’re attracted to the aesthetic.”
Pérez and Dezer agreed.
“People like to resonate with experiences they have in these hotels when they travel,” said Pérez, who is developing St. Regis Residences, Miami and a Baccarat-branded condo tower, both in Brickell. “People now have the ability to experience that in their home. The buyer knows they are getting the best of everything.”
Dezer, who is developing the Bentley Residences in Sunny Isles Beach and built Porsche Design Tower in 2017, said working with a brand costs “a few bucks.” He declined to say how much, exactly. But because of the brand, he has access to Bentley buyers.
“The more luxurious and more expensive the product, the better it sells,” Pérez said. On Fisher Island, where Related and its partners are developing Six Fisher Island, they are preselling units for close to $4,000 per square foot. “That price point, that new buyer coming in from the Northeast, wanting to live in a home, that market is still extremely strong.”
Dezer joked that Bentley Residences is “cheap” compared to that, with sales at about $2,800 a foot.
And Cervera had the last word on that. “We have some interesting [condo product] below $2,000 per square foot.
Cervera, Dezer and Pérez all said their projects are reporting strong presales with many developments already under construction. Presales have normalized, a bit, and they expect now that the election is over, buyers will have more clarity.
“We’re all fortunate to be up here,” Pérez said. The last four years was incredible but unsustainable,” he said. “Having that certainty [around the election] whether you like it or not… there’s clarity.”
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