Archives for posts with tag: recovery

We’ve been discussing it for months, if not years, and now it seems to all be coming to fruition. The Miami-Dade real estate market is well on it’s way to soaring past pre-recession peaks and setting it’s eyes on historic highs. It is certainly a very exciting time to be living this city, and an incredibly opportunistic time to be working in the development, construction, or real-estate sectors.

Leading the way in this boom is the downtown area, as we have discussed previously. The Real Deal South Florida reports that out of the 23,000 condos built in the area from 2003 to 2012, 93 percent have been sold. This has led to a dramatic increase in assessed property values (6.4 percent) and asking prices, but also an inventory crunch. Not to worry, developers have gracefully accepted the challenge. There are currently 5,500 condo units planned for development in downtown Miami.

However, other areas have assisted in making Miami-Dade one of the most attractive counties for real-estate investment in the country. Jade Signature in Sunny Isles, from our very own Fortune International, is one of the most breathtaking developments in South Florida. Designed by the famed architecture team, Herzog & de Meuron, the latest Jade project has already surpassed $300 million in sales. Miami Today also recently sang praises for the Coconut Grove area, where condos and single-family residences are primed to reach new peaks. The luxurious Grove at Grand Bay is the most appealing of many new preconstruction projects in the area.

This has all, of course, led to an increase in economic activity and tax revenue for the city of Miami. The Miami Herald recently reported that property-tax rolls have increased by 3.39 percent in 2013, marking the second consecutive year of growth. With a higher tax base, the city can expect government downsizing to slow down and taxpayers will in-turn see more bang for their buck.

However, one must always account for negative indicators, as well. This boom is not being felt, for example, in Florida City, where taxable value has decreased by 5.58 percent. Hialeah has also seen their rolls decrease by 3.5 percent, though that could be attributed to a new homestead exemption for low-income seniors. Even areas such as downtown, where values are skyrocketing, run the risk of growing too quickly and pricing too many people out of the market.

Overall, the news is too optimistic to end on a negative note. So, in that case, let’s enjoy this awe-inspiring preview video of Fortune International’s Jade Signature:

Jade Signature Sneak Peek Video from Jade Signature on Vimeo.

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One of the major advantages in favor of the South Florida area is the vast nightlife that comes with the territory. Over time, the hotel scene has become one of the greatest boons for establishing this one-of-a-kind selling point. It has done this not only by providing a first-class experience to those searching for a vacation (or staycation), but in cases like Club 50 at The Viceroy, by becoming a key fixture in the nightlife itself.

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b2 Miami Hotel in Downtown

The downtown area, according to the Greater Miami & The Beaches Hotel Association, supports 31 of these properties. This gives the area an approximately 7,000 room capacity for businesspeople and partygoers alike. Those numbers were calculated including the new b2 Miami downtown resort and the Aloft Miami opening on July 11th, however it did not take into account the several unannounced hotel deals that are also in the works.

That’s right! A development boom is taking place for hotels, too. The popular and much hyped SLS Hotel in South Beach is planning to open a new location in Brickell. Atton Hotels from Chile has also decided to open up their first North American outpost in the downtown Miami area. However, the best doesn’t only lie ahead for the Miami hotel scene. Arguably the most important hotels in downtown Miami have already been up and running, each doing their part to set the bar. The Intercontinental with their breathtaking views of Biscayne Bay, The Viceroy with Club 50, and The EPIC with Area 31 all add a spice of life to the area.

It’s no wonder that Smith Travel Research ranked Miami as the top hotel destination in the country. The research company also found the city to have an occupancy rate that was 20 percent higher than the rest of the U.S. at around 80 percent, and ranked Miami at the top in revenue per available room and average daily rate. Statistics such as these will only lead to more development, more hotels, and a nightlife beyond our imagination.

For more on hotels in South Florida, check out Curbed Miami’s list of The 38 Essential South Florida Hotels.

After the economic downturn that began in 2006, about 30 percent of the South Florida economy was eaten up due to poor real estate investments. Speculative buyers inflated prices, creating the necessity for other buyers to take out risky loans. Since the bust, South Florida has been waiting for the moment that real estate would make a grand comeback. 2013 seems to be the year they have been looking for.

It seems these days there is finally nothing but good news everywhere you turn in the South Florida real estate market. Figures recently came in from CoreLogic, a California-based data firm, that home prices in the greater Miami area are up 8.6 percent in March from a year ago. Adding to this outstanding development is the fact that prices rose 0.3 percent from February to March alone.

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  The gorgeous Downtown Miami skyline, 1100 Millecento highlighted to the left

Miami-Dade, Palm Beach, and Broward have approximately 15,000 condo units in the preconstruction stage. Nowhere is the recovery more prevalent than in Downtown Miami, where locals seemingly cannot walk one block without running into a new development being built to meet the increasing demand.

The poster-child for these developments being the Related Group’s new 1100 Millecento development in Brickell. After breaking ground just a few months ago, 1100 Millecento is already 99 percent sold. While buyers in the last South Florida boom were posting deposits around 20 percent, preconstruction buyers are putting down close to 50 percent this time around. Signs such as these display true confidence in a real estate boom that is just beginning to take flight.

A recent article in The New York Times praises Downtown Miami for boosting the recovery in South Florida. Developers have responded to an influx of foreign buyers by attempting to get new plans off the ground. In the past two years, the area has announced 25 new condo projects to begin development.

So far, of the 22,000 downtown condos created during the boom years, less than 4 percent have yet to be sold. The recovery in residential real estate being seen in Miami is ahead of the curve, even for an overall strong rebound in the national real estate market.

In February of 2013, national home prices were 9.3% higher than they were in February of 2012. This rate of growth was the highest that the nation had seen since May of 2006. In addition, over that same span of time the growth rate in Miami added up to 10.4 percent, well ahead of the national average.

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Rendering of Brickell CityCentre

No project is a greater representation of this progress than the highly-anticipated Brickell CityCentre. The $1.05 billion project is set to span four blocks in West Brickell, measuring in at 5.4 million-square-feet. Brickell CityCentre will consist of four stories dedicated to retail and entertainment, including a luxury movie theater and restaurants. It will also feature six other towers that will add 800 condos, a hotel, business district, and wellness tower to the Downtown Miami area.

One could argue that the Brickell CityCentre has already brought a noticeable economic boost to the city, not just by it’s own construction, but by the construction of the 1,600-car underground parking lot that will accompany it. The 8th Street exit of the Miami Metromover will also be seeing renovations in order to incentivize citizens to use public transportation in their commute to the CityCentre.

These projects, along with the many other developments in Downtown Miami, will undoubtedly continue to be a boost to South Florida and assist in the robust recovery for the area.

iconThe ultimate recovery for the South Florida real estate market may end up coming in the form of entrepreneurs from the east. Chinese investors have been extremely active in the South Florida area, taking advantage of prices that are still relatively low due to the market crash in 2008.

Increasingly, the Chinese have passed on cities where real estate prices have made a stronger recovery due to the great deals on the sunny shores of South Florida. This trend, which has been unique to this particular real estate cycle, has created the opportunity for many brokers to create strong and lasting relationships with Chinese investors.

Our very own Fabio Faerman has forged some of these relationships himself. Faerman claims that the Chinese tend to be very meticulous when searching for property, making sure to invest their funds with extreme care.

Faerman represented FX South Miami, led by Jeffrey and Corey Chen, in their acquisition of a $5 million development site in Brickell during late 2011. Faerman claims that somewhere around 70 percent of Chinese investors that he has worked with have no plans to rent out the properties they purchase, instead using them as a part-time residence or as homes for their young-adult kids.

Given that the real estate market is in the process of recovery, it is important for buyers to come from any and all markets. Investments such as these make the South Florida area the ultimate melting pot in the United States. Whatever the cause, rent or part-time residence, the South Florida markets appreciate the investment from the east.