DECEMBER 2014
AN IN-DEPTH ANALYSIS OF SOUTH FLORIDA’S NEW CONDOMINIUM MARKET
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ON CATI U E ED N T E R T L A A I N N M O RE I A E L N T E A S T N T A R T E E
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O Rise Of A Global City
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RENTAL TRENDS
International Report arts&culture ISG CITY WATCH Cover Credit: FROM THE ISG PRINCIPALS
Welcome to the ISG Miami Report, we are honored to present our current research on the state of the South Florida market. This edition is the most extensive and in-depth Miami Report to date.
The speed at which the South Florida Market is evolving is breathtaking.
Our intention these last five years has been to define the state of the market and to inform our fellow business associates how these dynamics affect our business environment and define our region.
In this report, we have once again assembled all of the recent data on our current market conditions. We have examined new and pre-construction developments sub market by sub market, studied MLS trends, and have included (for the first time) an analysis of the rental market, which is playing such a big part in our economic growth.
Our latest edition covers more than statistics. We have diligently charted the many influences that propel Miami’s emergence as a Global City. The future is both exciting and dynamic. In this issue we feature the various areas that demonstrate the evolution of Miami.
In this regard, we have also examined the subjective factors that are impacting the worldwide surge of interest in South Florida. In the course of our research, one theme begins to emerge “MIAMI IS THE REASON”. The rationale may vary and be as diverse as the people looking to settle here. It may be the politics, security, culture, economic stability, education, climate or simply the lifestyle, but it is MIAMI as a whole that is the star.
Has Miami already achieved the status of “Global City”? Perhaps, not yet. We have much to do in areas like infrastructure, transportation and education before we can rightly take our place as a Global City. However, no one can deny that we are certainly on the right track to distinction.
We, at ISG, invite you to follow us as we chronicle the journey of a city on the rise to global prominence.
We hope that you will find our material helpful in telling our story to a global audience and useful in promoting your business interests. ISG is committed to continuing to produce the high level of marketing information for which the Miami Report is known.
Sincerely,
Craig Studnicky & Philip Spiegelman Michael Ambrosio ISG Principals ISG President T A B L E O F C O N T E N T S 4. FEATURED STORY
6. WEALTH REPORT
8. FINANCIAL
12. NEW CONSTRUCTION
24. WORLD CLASS PENTHOUSES
26 . MLS RESALE INVENTORY
32. RENTAL TRENDS
40. POPULATION STATISTICS
42. INTERNATIONAL MARKET
48. TRANSPORTATION
54. CULTURAL AND ECONOMIC GROWTH
68. ISG CITY WATCH
70. SOUTH FLORIDA 2020
82. ON THE GROUND REPORT FEATURED STORY
“Generally speaking, the market has continued a slow and steady recovery that is markedly different from past down cycle recoveries. History would suggest a more vertical recovery especially given the severity of the economic decline. This recovery has been a decidedly different experience PERCEPTION as the slope of recovery has been shallow and the expected acceleration has not materialized.”
Stuart A. Miller Quote Chairman of Lennar Chairman REALITY Miami Herald, Monday October 13, 2014 Examining the Difference Between “Proposed” and “For Sale” in the South Florida New Condo Market Once again, buzz is difference between a brewing about the number condo project released to of proposed new condos set market (“For Sale”) versus a to hit the Miami / South proposed project that remains Florida market. Concern subject to the following: comparisons are even being - Land Use Approvals made to the bubble stories - Zoning Approvals of 2005. - Entitlement Approvals The Miami Herald published - Backing of Reputable an article in May of 2005, Developer “PROJECTING”, that 62,000 - Suitable Financing condos were planned for - Changing Business Plans development within the Currently, the estimated Brickell Ave. / Downtown number of new “Proposed” Miami corridor. In actuality, condos East of I-95, in just 17,502 of those proposed Miami-Dade, Broward, and 62,000 condos were Palm Beach is 38,000 developed...less than 40% of (according to the South what was projected. Florida Business Journal, October, 2014). In tracking the data of Miami / South Florida’s current Of those, 16,033 have been brought to market for sale, cycle, we found that the number of proposed new condos since the last business quarter of 2011 (42% of the 38,000 is, once again, different from the number of condos that “Proposed”). To date over 62% of this inventory has have actually been brought to market for sale thus far. been sold. Additionally, proposed condo projects may, eventually, be With less than 6,200 new condo units remaining to be sold, brought to market, once various governmental and South Florida currently has less than 18 months of new condo business issues get resolved. But it is critical to note the inventory for sale according to historical absorption patterns.
4 ISG MIAMI REPORT 2 0 0 5 2 0 1 4 PROPOSED PROPOSED 62,000 38,000 DOWNTOWN MIAMI MIAMI-DADE, BROWARD & AND BRICKELL ONLY PALM BEACH COUNTY EAST OF I-95 ACTUAL ACTUAL FOR SALE FOR SALE 17,502 16,033 SOLD 62% SOLD
2014 NEW CONSTRUCTION CONDO OVERVIEW South Florida Condominium Analysis East of Interstate 95
CONSTRUCTION TOTAL TOTAL TOTAL PERCENT TOTAL STATUS TOWERS UNITS SOLD SOLD UNSOLD
Delivered 8 1,133 1,046 93% 84
Under Construction 44 8,540 7,209 84% 1,331
Pre-Construction 35 6,360 1,745 27% 4,615
Totals 87 16,033 10,000 62% 6,030
sources: multiple listing service (mls), tax records and on-site sales
ISG MIAMI REPORT 5 WEALTH REPORT The Cities that matter to UHNWI’s - Global Survey MOST IMPORTANT NOW
2014 Miami Ranking: 7 7. Miami 1. London 2013 Miami Ranking: 8 $800 psf $6,000 psf 2011 Miami Ranking: 29 2009 Miami Ranking: 29 2. New York $4,000 psf (NYC / Manhattan) 10. Paris $4,400 psf
5. Geneva $3,000 psf
For the past eight years, Knight Frank distributes an annual Wealth Report - a collection of data about the Global “UHNWI” community (ultra high-net-worth individuals), defined as those with US $30 million or more in net assets.
Sources: Knight Frank Wealth Report Forbes, June 2014, Business Insider March 2014
6 ISG MIAMI REPORT TOP 5 CITIES NORTH AMERICA
When examining North American cities of importance to UHNWI, Miami comes in at #2 – second 6. Shanghai only to New York City. $2,000 psf 9. Beijing 1. New York 8. Dubai $1,500 psf 2. Miami $2,500 psf 4. Hong Kong $4,500 psf 3. Washington, D.C. 3. Singapore 4. San Francisco $1,500 psf 5. Toronto
ISG MIAMI REPORT 7 “ 53 banking offices hold $12 billion in domestic deposits and $6.7 billion in non-resident alien deposits on Brickell Avenue, and nearly $7 billion in foreign money sits on the balance sheets of Greater Miami banks.”
Miami Today, Dec. 11th, 2013
8 ISG MIAMI REPORT WALL STREET OF THE SOUTH
Miami is the second most popular America. As the gateway to the rest of banking hub in the U.S. after the country, Miami and its financial center New York City. Currently home to over on Brickell Ave. is at the center of Latin 60 international banks and nearly 100 American investments. alternative investment companies*, Mark Spitznagel, founder and CIO of Miami’s thriving financial district is Universal Investments – the largest Hedge attracting financial institutions from Fund to move to Miami in recent years, said around the world. to Florida.gov, “Florida and Miami Dade Additionally, many of the nation’s County’s business-friendly policies offer wealthy financial leaders are heading to the perfect environment for Universal as the Sunshine State – with their clients’ we expand.” funds - to semi-retire while they work, Even the financial tycoons who live, and play. So why are banks and aren’t bringing their actual businesses to hedge funds setting up shop in Miami Miami are bringing their money here and investors from around the world in a major way – through large real depositing their millions here? estate purchases. Goldman Sachs One major reason are the tax breaks– CEO Lloyd Blankfein and Apollo no individual state income tax or estate Global Management’s Leon Blac have tax exists in Florida. Another reason is both reportedly purchased eight-figure Miami’s obvious connection to Latin residences in Miami Beach.
*Miami Downtown Development Authority (DDA) “Miami Is Wall Street South” Business Insider, February, 2014
Rendering of proposed new Fairholme Capital HQ, designed by Arquitectonica
ISG MIAMI REPORT 9 “ Downtown Miami is home to the second largest concentration of international banks that manage $26 billion worth of international bank assets and finances $54 billion worth of trade.”
August, 2014
A SAMPLING OF HEDGE FUNDS & FINANCIAL INSTITUTIONS WITH HEADQUARTERS IN MIAMI
Banco Colpatria Red Multibanca Encore Housing Opportunity Fund Colpatria SA WE Family Offices Banco Davivenda SA Atyant Capital (Boca) Banco de Bogata SA FINSER International Group Banco de Credito del Peru Riverloft Capital Management Banco de Nacion Argentina Universa Banco de Brasil City National Bank Banco Industrial de Venezuela USB ESL Fund TotalBank Fairholme Capital US Century Bank Bayview Asset Management
10 ISG MIAMI REPORT MAJOR CORPORATIONS
In addition to the aforementioned and more than $209 million in capital banks and hedge funds that have investment. There are currently 16 added offices or relocated to Miami, the Fortune 500 companies located in state of Florida has seen quite a bit of Florida including the international rental corporate growth in a number of car conglomerate Hertz, which recently other areas as well. Once again moved their operations here. taking advantage of our tax breaks, Additionally, Miami serves as proximity to Latin America, and the international hub for many large ideal climate, numerous corporations corporations. Global Trade Magazine are relocating to the Sunshine State. points out that 1,400 multinational According to Enterprise Florida, corporations use Miami as their since 2013, 21 companies have Latin American headquarters including announced locations, relocations or Exxon, AIG, Microsoft, Visa, Walmart expansions of corporate headquarters in and many more. Florida, accounting for nearly 3,000 jobs
ISG MIAMI REPORT 11 12 ISG MIAMI REPORT NEW CONSTRUCTION
ISG MIAMI REPORT 13 Brickell
Total New Construction Condo Units Available for Sale since Jan. 2012
Developer Units Sold Developer Units Unsold
1100 Millecento 100% SOLD 382 Total Units
1010 Brickell 90% SOLD 352 Total Units
Brickell City Centre Tower I - Reach 70% SOLD 390 Total Units
Brickell City Centre Tower II - Rise COMING SOON 390 Total Units
Brickell Heights East 90% SOLD 358 Total Units
Brickell Heights West COMING SOON 332 Total Units
Brickell House 100% SOLD 374 Total Units
BrickellTen 60% SOLD 155 Total Units
BRICKELL Brickell Flatiron 30% SOLD 548 Total Units
Cassa Brickell 60% SOLD 81 Total Units
The Edge on Brickell 35% SOLD 130 Total Units
Echo Brickell 86% SOLD 180 Total Units
Le Parc 85% SOLD 128 Total Units
Nine at Mary Brickell Village 85% SOLD 390 Total Units
MyBrickell 100% SOLD 192 Total Units
SLS 100% SOLD 453 Total Units
SLS Lux 55% SOLD 450 Total Units
The Bond 86% SOLD 323 Total Units
5,608 Units total • 3,815 Units Sold • 1,793 Unsold Avg. Absorption: 1,900 Units Annually over the last 10 years
14 ISG MIAMI REPORT Biscayne Corridor Consists of Wynwood, Design District, Edgewater, Midtown & Downtown Miami Total New Construction Condo Units Available for Sale since Jan. 2012
Developer Units Sold Developer Units Unsold
WYNWOOD 250 Wynwood 82% SOLD 11 Total Units
DESIGN DISTRICT Baltus House 97% SOLD 167 Total Units
23 Biscayne Bay 100% SOLD 96 Total Units
Bay House 98% SOLD 164 Total Units
Biscayne Beach 82% SOLD 399 Total Units
The Crimson 72% SOLD 90 Total Units
EDGEWATER Icon on the Bay 100% SOLD 300 Total Units
Ion 25% SOLD 330 Total Units
One Paraiso 97% SOLD 276 Total Units
Paraiso Bayviews 55% SOLD 388 Total Units
Paraiso Bay Tower I 95% SOLD 368 Total Units
MIDTOWN Hyde Midtown COMING SOON 397 Total Units
1000 Museum 40% SOLD 83 Total Units
Aria 34% SOLD 647 Total Units
DOWNTOWN MIAMI Canvas 5% SOLD 513 Total Units
Centro 85% SOLD 350 Total Units
Krystal Towers COMING SOON 153 Total Units
Paramount, Miami Worldcenter COMING SOON 466 Total Units Signature Tower
5,198 Units total • 2,590 Units Sold • 2,608 Unsold Avg. Absorption: 1,300 Units Annually over the last 10 years
ISG MIAMI REPORT 15 The Beaches Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale and Hollywood Beach Total New Construction Condo Units Available for Sale since Jan. 2012
Developer Units Sold Developer Units Unsold
321 Ocean 95% SOLD 21 Total Units
The Bath Club Estates 15% SOLD 13 Total Units
Beach House 8 100% SOLD 8 Total Units
Edition Residences 88% SOLD 26 Total Units
Faena House 100% SOLD 47 Total Units
MIAMI BEACH / Glass SOUTH BEACH 90% SOLD 10 Total Units
Marea South Beach 93% SOLD 30 Total Units
One Ocean 100% SOLD 50 Total Units
Peloro On The Bay 100% SOLD 114 Total Units
Ritz-Carlton Residences 45% SOLD 111 Total Units
*1 Hotel and Homes 61% SOLD 159 Total Units
Fendi Chateau 45% SOLD 58 Total Units
SURFSIDE Surf Club Four Seasons 60% SOLD 150 Total Units Private Residences
BAL HARBOUR Oceana Bal Harbour 50% SOLD 239 Total Units
*New Construction Standing Inventory
2,970 Units total • 2,228 Units Sold • 742 Unsold Avg. Absorption: 1,300 Units Annually over the last 10 years
16 ISG MIAMI REPORT Developer Units Sold Developer Units Unsold
400 Sunny Isles 100% SOLD 230 Total Units
Armani Casa 80% SOLD 250 Total Units
Chateau Beach 98% SOLD 84 The Total Units
Jade Signature 80% SOLD 192 Total Units
SUNNY ISLES Muse BEACH 50% SOLD 68 Total Units
Parque Towers 80% SOLD 320 Total Units
Mansions At Acqualina 96% SOLD 79 Total Units
Porsche Design Tower 93% SOLD 139 Total Units
Regalia 90% SOLD 39 Total Units
Turnberry Ocean Club 10% SOLD 154 Total Units
* BeachWalk 100% SOLD 84 Total Units HALLANDALE BEACH Gulfstream Park Towers 80% SOLD 182 Total Units
Apogee Beach 100% SOLD 49 Total Units
*Hyde Resort and Residences 100% SOLD 40 Total Units HOLLYWOOD BEACH Sage Beach 71% SOLD 24 Total Units
*Condo Residences Only
ISG MIAMI REPORT 17 Aventura
Total New Construction Condo Units Available for Sale since Jan. 2012
Developer Units Sold Developer Units Unsold
Echo Aventura 85% SOLD 190 Total Units
AVENTURA Bellini 70% SOLD 70 Total Units
Prive 40% SOLD 160 Total Units
420 Units total • 274 Units Sold • 146 Unsold Avg. Absorption: 265 Units Annually over the last 10 years
North Miami Beach, Key Biscayne & Coconut Grove
Total New Construction Condo Units Available for Sale since Jan. 2012
Developer Units Sold Developer Units Unsold
he arbour NORTH T H 60% SOLD 330 Total Units MIAMI Beach Marina Palms Towers I & II 79% SOLD 468 Total Units
KEY BISCAYNE Oceana 100% SOLD 154 Total Units
Grove at Grand Bay 100% SOLD 97 Total Units
One Park Grove COMING SOON 40 Total Units COCONUT GROVE Two Park Grove 65% SOLD 73 Total Units
Park Grove Club Residences 50% SOLD 152 Total Units
1,314 Units total • 941 Units Sold • 373 Unsold Avg. Absorption: 200 Units Annually over the last 10 years
18 ISG MIAMI REPORT Fort Lauderdale
Total New Construction Condo Units Available for Sale since Jan. 2012
Developer Units Sold Developer Units Unsold
1800 Las Olas 75% SOLD 4 Total Units
Adagio On The Bay 83% SOLD 12 Total Units
AquaBlu Fort Lauderdale COMING SOON 45 Total Units
AquaLuna Las Olas 50% SOLD 16 Total Units
AquaMar Las Olas 90% SOLD 20 Total Units
FORT LAUDERDALE AquaVita Las Olas 100% SOLD 22 Total Units
Auberge COMING SOON 171 Total Units
BellaVita Las Olas COMING SOON 16 Total Units
Paramount Fort Lauderdale 50% SOLD 95 Total Units
Privage 7% SOLD 22 Total Units
Riva 40% SOLD 100 Total Units
523 Units total • 152 Units Sold • 371 Unsold Avg. Absorption: 470 Units Annually over the last 10 years New Construction Summary
Total New Construction Condo Units to be built, sold and currently available for sale in Brickell, Biscayne 16,033 Corridor (Downtown Miami, Edgewater, Wynwood, Midtown & Design District), the Beaches (South Beach, Total 6,003 Miami Beach, Surfside, Bal Harbour, Sunny Isles, Unsold Hallandale, Hollywood) Aventura, North Miami beach, Coconut Grove & Key Biscayne Since Jan. 2012.
10,000
Project Units Total Developer Units Sold 62% SOLD Developer Units Unsold AS OF OCT 2014
ISG MIAMI REPORT 19 1
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FORT LAUDERDALE
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AVENTURA
95 SUNNY ISLES BEACH
BAL HARBOUR
SURFSIDE
1 NORTH MIAMI BEACH
95
DESIGN DISTRICT MIDTOWN A1A EDGEWATER MIAMI BEACH / WYNWOOD BISCAYNE CORRIDOR SOUTH BEACH
DOWNTOWN MIAMI
BRICKELL
COCONUT GROVE
1
KEY BISCAYNE
20 ISG MIAMI REPORT
Fort Lauderdale 29% SOLD
Hollywood Beach 94% SOLD
Aventura 65% SOLD
Hallandale Beach 84% SOLD Sunny Isles Beach 80% SOLD New Construction Bal Harbour 50% SOLD % SOLD Summary Surfside 56% SOLD by Sub Markets
North Miami Beach 70% SOLD 100% SOLD
75% - 99% SOLD Miami Beach / South Beach 82% SOLD 50% - 74% SOLD UNDER 50% SOLD Biscayne Corridor 75% SOLD
Downtown Miami 40% SOLD
Brickell 80% SOLD
Coconut Grove 67% SOLD
Key Biscayne 100% SOLD
Based off of current buildings on the market for sale
ISG MIAMI REPORT 21 10 Year Annual Absorption Analysis
For Condos built from 2004 - 2014 Submarkets consist of Brickell, Biscayne Corridor (Downtown Miami, Edgewater, Midtown & Design District), The Beaches, (South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood Beach), Fort Lauderdale, Aventura, North Miami Beach, Coconut Grove & Key Biscayne.
Average Yearly Condo Inventory Absorption from 2004-2014
Brickell
Biscayne Corridor 1,300 PER YEAR
The Beaches 1,300 PER YEAR
North Miami Beach, Key Biscayne, Coconut Grove 200 PER YEAR
Aventura 265 PER YEAR
Fort Lauderdale 470 PER YEAR
Total
Sources: Integrated Realty Information System (Irsi); Miami-Dade & Broward County Property Appraiser and Multiple Listing Service (MLS)
22 ISG MIAMI REPORT 1,900 PER YEAR
4,700 PER YEAR
ISG MIAMI REPORT 23 Miami Penthouses. Stars Are Born.
As the ultra-luxury market continues to grow in South Florida, buyers are seeking spacious, one-of-a kind residences like never before, and nothing fills this prerequisite more than the unrivaled penthouses being brought to market. With sizes ranging from 8,000 to 16,000 square feet, fully equipped outdoor living spaces, expansive roof decks, and amenities such as personal fitness rooms, private spas & pools, in-residence parking, and advanced technology. With price points up to $60 million, these “mansions in the sky” are aligning themselves with the stars.
MANSIONS AT ACQUALINA Architect: Cohen, Freedman, Encinosa & Assoc. SUNNY ISLES BEACH AC Area: 15,219 Price: $55,000,000 Price PSF: $3,614
MUSE SUNNY ISLES Architect: Carlos Ott / Sieger + Suarez AC Area: 6,106 Price: $18,554,000 Price PSF: $3,039
BAL HARBOUR JADE SIGNATURE Architect: Herzog & de Meuron AC Area: 16,915 Price: $32,500,000 Price PSF: $1,921
SURFSIDE FENDI CHATEAU Architect: Bernardo Fort-Brescia AC Area: 6,861 Price: $24,500,000 Price PSF: $3,571
RITZ CARLTON RESIDENCES Architect: Piero Lissoni AC Area: 10,000 Price: $32,000,000 Price PSF: $3,200
THE BATH CLUB ESTATES MIAMI BEACH / Architect: Bernardo Fort-Brescia SOUTH BEACH AC Area: 9,044 Price: $50,000,000 Price PSF: $5,529
FAENA Architect: Norman Foster AC Area: 8,273 Price: $60,000,000 Price PSF: $7,252
ONE THOUSAND MUSEUM DOWNTOWN Architect: Zaha Hadid MIAMI AC Area: 15,738 Price: $45,000,000 Price PSF: $2,859
ECHO BRICKELL BRICKELL Architect: Carlos Ott AC Area: 10,305 Price: $37,500,000 Price PSF: $3,639
24 ISG MIAMI REPORT Mansions at Acqualina Muse Sunny Isles
Jade Signature Fendi Chateau
Ritz Carlton Residences
The Bath Club Estates Echo Brickell
One Thousand Museum Faena 26 ISG MIAMI REPORT MLS-RESALE INVENTORY
ISG MIAMI REPORT 27 Brickell
New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active
Active Listing Price PSF 1,200 $600 $510 $527 1,000 $470 $500 1,049 $425 800 804 $400
600 698 $300 556 400 $200
200 $100
18 Months Ago 12 Months Ago 6 Months Ago Currently Active
Source: Multiple Listing Service Biscayne Corridor Consists of Downtown Miami, Edgewater, Midtown & the Design District New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active
Active Listing Price PSF 1,200 $532 $564 $600
1,000 $488 $500 1,071 800 $437 814 $400
600 660 $300
400 420 $200
200 $100
18 Months Ago 12 Months Ago 6 Months Ago Currently Active
Source: Multiple Listing Service
28 ISG MIAMI REPORT Aventura
New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active
Active Listing Price PSF 600 $440
500 $427 $430
400 436 $417 $420 387 300 $409 $410
200 $402 255 $400 194
100 $390
18 Months Ago 12 Months Ago 6 Months Ago Currently Active
Source: Multiple Listing Service The Beaches Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood Beach New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active
Active Listing Price PSF 2,000 $1,011 $1,020
1,800 $1,000 1,600 1,717 $957 $980 1,400 $960 1,200 $933 1,332 $940 1,000 $920
800 $907 890 $900 600 623 $880 400 $860
18 Months Ago 12 Months Ago 6 Months Ago Currently Active
Source: Multiple Listing Service
ISG MIAMI REPORT 29 Greater Fort Lauderdale Consists of Sunrise, Plantation and East Fort Lauderdale New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active
Active Listing Price PSF 900 $500 $439 800 844 $405 $450 700 $379 $400
600 $353 $350 610 500 $300
400 $250
300 372 $200 200 240 $150 100 $100
18 Months Ago 12 Months Ago 6 Months Ago Currently Active
Source: Multiple Listing Service East Palm Beach Consists of Delray Beach, Boynton Beach and West Palm Beach New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active
Active Listing Price PSF 600 $270
$257 $260 500 485 $242 $250 400 $231 $240
$230 300 330 $220 200 $215 202 $210
100 161 $200
18 Months Ago 12 Months Ago 6 Months Ago Currently Active
Source: Multiple Listing Service
30 ISG MIAMI REPORT Days on the Market (DOM) 2012 vs 2014 MLS Analysis for Closed Sales New Condos built Since 2006
2012 Avg. DOM 2014 Avg. DOM
Brickell 120 32
Biscayne Corridor 160 30
Aventura 110 31
The Beaches 90 35
Greater Fort Lauderdale 160 37
East Palm Beach 147 35
Source: Multiple Listing Service
ISG MIAMI REPORT 31 32 ISG MIAMI REPORT RENTAL TRENDS
ISG MIAMI REPORT 33 Miami vacancy rates are still currently the third lowest in the nation. Source: Marcus & Millichap, 2014
34 ISG MIAMI REPORT Brickell Jan 2013 - Oct 2014 New Construction Condos Built since 2006
Avg. Price Avg. Price PSF
$3,000 $3.00 $2.73 $2.82 $2.68 $2.45 $2.55 $2.61 $2.38 $2.42 $2,700 $2,790 $2,500 $2.36 $2.36 $2,650 $2.50 $2.31 $2.33 $2,610 $2,638 $2,510 $2,590 $2,460 $2,475
$2,000 $2,370 $2.00 $2,140 $2,250
$1,500 $1.50
$1,000 $1.00
$500 $0.50
Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14
JAN 2006 - OCT 2014 2006 Vacancy Rate 2010 Vacancy Rate 2014 Vacancy Rate
18% 9% 1%
82% 91% 99%
Occupancy Rate Vacancy Rate Source: Multiple Listing Service
ISG MIAMI REPORT 35 Biscayne Corridor Jan 2013 - Oct 2014 Consists of Wynwood, Design District, Edgewater, Midtown & Downtown Miami New Construction Condos Built since 2006
Avg. Price Avg. Price PSF
$2,800 $2.78 $3.00 $2.69 $2,700 $2.45 $2.48 $2.40 $2.42 $2.41 $2.50 $2.29 $2675 $2,600 $2.20 $2.20 $2.25 $2.27 $2,628 $2,600 $2,578 $2.00 $2,500 $2,504
$2,400 $2,444 $1.50
$2,300 $2,341 $2,315 $2,298 $2,302 $1.00 $2,287 $2,200 $2,250
$0.50 $2,100
Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14
JAN 2006 - OCT 2014 2006 Vacancy Rate 2010 Vacancy Rate 2014 Vacancy Rate
13% 10% 3%
87% 90% 97%
Occupancy Rate Vacancy Rate Source: Multiple Listing Service
36 ISG MIAMI REPORT The Beaches Jan 2013 - Oct 2014 Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood Beach New Construction Condos Built since 2006
Avg. Price Avg. Price PSF
$7,000 $4.50 $4.21
$3.76 $4.00 $6,000 $3.59 $3.34 $3.35 $3.36 $5,813 $3.50 $3.12 $5,620 $5,000 $2.91 $3.06 $5,380 $2.76 $4,893 $3.00 $2.67 $2.72 $4,716 $4,611 $4,685 $4,709 $4,000 $4,327 $4,376 $2.50 $3,851 $3,927 $2.00 $3,000
$1.50
$2,000
$1.00
$1,000 $.50
Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14
JAN 2006 - OCT 2014 2006 Vacancy Rate 2010 Vacancy Rate 2014 Vacancy Rate
20% 14%14% 2%
80% 86%86% 98%
Occupancy Rate Vacancy Rate Source: Multiple Listing Service
ISG MIAMI REPORT 37 Aventura Jan 2013 - Oct 2014 New Construction Condos Built since 2006
Avg. Price Avg. Price PSF
$3,500 $2.50
$2.02 $3,000 $1.88 $1.98 $1.85 $1.76 $1.77 $1.80 $1.72 $1.74 $2.00 $1.70 $2,961 $2,500 $1.64 $1.69 $2,720 $2,750 $2,621 $2,679 $2,525 $2,617 $2,502 $2,517 $2,000 $2,415 $2,480 $1.50 $2,320
$1,500
$1.00
$1,000
$500 $0.50
Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14
JAN 2006 - OCT 2014 2006 Vacancy Rate 2010 Vacancy Rate 2014 Vacancy Rate
1% 1% 1%
99% 99% 99%
Occupancy Rate Vacancy Rate Source: Multiple Listing Service
38 ISG MIAMI REPORT Fort Lauderdale Jan 2013 - Oct 2014 New Construction Condos Built since 2006
Avg. Price Avg. Price PSF
$3,000 $2.50
$1.96 $1.96 $1.98 $1.92 $2,500 $1.76 $1.88 $1.75 $2.00 $1.73 $1.70 $1.66 $1.60 $2,720 $2,000 $2,656 $2,680 $1.54 $2,422 $2,484 $2,329 $2,363 $2,149 $2,234 $1.50 $2,035 $1,500 $1,920 $1,785
$1.00 $1,000
$500 $0.50
Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14
JAN 2006 - OCT 2014 2006 Vacancy Rate 2010 Vacancy Rate 2014 Vacancy Rate
13% 10% 6%
87% 90% 94%
Occupancy Rate Vacancy Rate Source: Multiple Listing Service
ISG MIAMI REPORT 39 Population
A great source of demand for South Florida real estate both now and in the future is the ever-increasing population of the state. In the last one hundred years, Florida’s population ranking in the U.S. has gone from 33rd to 4th. By 2015, Florida is projected to become third in population – overtaking New York.
United States Population Growth
= 10 MIL
2040* 400 MIL 2020* 336 MIL 2015* 321,360,000 MIL 2006 300 MIL 1967 200 MIL 1914 100 MIL
*Est. Projection
40 ISG MIAMI REPORT State Population Growth 1914 1967 2006 2015* 2020* 2040*
1. new York 1. new York 1. California 1. California 1. California 1. California 5. texas 2. california 2. texas 2. texas 2. texas 2. texas 12. California 6. texas 3. new York 3. Florida 3. Florida 3. Florida 33. Florida 15. Florida 4. Florida 4. new York 4. new York 4. new York
Florida Population Growth
= 1 MIL
2040* 26 MIL 2020* 21.2 MIL 2015* 20,297,000 MIL 2006 18 MIL 1967 6.6 MIL 1914 882K
Source: US Census Bureau
ISG MIAMI REPORT 41 42 ISG MIAMI REPORT INTERNATIONAL MARKET REPORT
ISG MIAMI REPORT 43 by Liliana Gomez - Director of International Sales South America Report & ISG’s International Division
In the 21 years that ISG has been selling South Within different regions of South America, Florida real estate, a constant shift in the patterns specific patterns are emerging that explain, and motivations of International buyers has become apparent. in better detail, motivating factors for South Florida In the early 1990’s, buyers consisted of real estate purchases: wealthy families looking for vacation homes, mainly from the large cities of São Paulo, Colombia Colombia has changed in recent years; the economy Brazil, and Buenos Aires, Argentina. By the is now soaring, and the country has almost doubled late 1990’s, the buyer profile shifted to Bogota, its population of millionaires in only five years. Colombia, Caracas, Venezuela, and Mexico Colombians are visiting South Florida in large numbers, City, Mexico. These buyers were not only looking buying homes for pleasure rather than just as an for vacation homes, but for investment properties as investment. Colombians are now looking to invest their well. wealth in a secure and enjoyable environment. Fast forward to 2014, and we see that buyers Source: Fundspeople.ci, October, 2013 from every South American country and most cities, are buying real estate in Miami and South Florida. ISG has witnessed two decades of South Brazil American real estate purchases in Miami, Brazilians have always been attracted to the U.S., creating a concentration of new residents and families particularly South Florida. One of the greatest appeals from these countries unlike any other city in the U.S. South Florida offers to Brazilians is the world-class This critical mass of South American property owners shopping - the prices are substantially lower than in now compares with property owners from the Brazil. Additionally, we are seeing a steady increase of Northeast US and Canada, making Miami the direct flights from Brazil to Miami, which is an absolute playground for families from both Americas. reflection of the influx of Brazilian visitors. According Today, the motivating factors behind the decision to CNN, Florida is the top U.S. vacation destination of many South Americans to buy in South Florida for Brazilians. include: Source: CNN.com February, 2012
• Tropical Weather • Security Peru With the emergence of an increasing segment of • Nightlife young and wealthy Peruvians with disposable income, • Growing Cultural Center interest in the South Florida lifestyle continues to grow. Additionally, Peruvian families are purchasing homes • Prestige here in order to enroll their children in well diversified universities. South Florida is more than a financial • World Class Shopping investment for this community, it a lifestyle investment.
44 ISG MIAMI REPORT ON THE GROUND
In response to the continually growing demand for South Florida Real Estate from our neighbors in South America, ISG has offices in most of South America’s major cities. São Paulo Rio Mexico Buenos Aires Bogotá Caracas Panama
Venezuela
Colombia Mexico South Florida has long been a “backyard playground” for wealthy Mexicans. Buying a second home in South Florida means enjoying all the amenities that the city has to offer, while investing in a nearby and secure area. Mexican buyers tend to select coastal waterfront communities and large apartments. Peru Brazil
Argentina Argentinians have had a long love affair with South Florida. Families who own property in Miami have witnessed an amazing cultural transformation firsthand. The Miami real estate market provides consistent long- term stability to this growing community.
Venezuela Venezuela has been characterized as a rich country due to its main source of income – petroleum. In the past decade, the changing political landscape of Argentina Venezuela has motivated many families to purchase both investment properties and second homes in South Florida (to be converted to permanent homes as part of a long-term strategy).
ISG MIAMI REPORT 45 China
A new market is emerging for South Florida real estate - 2014, Chinese buyers represented about 1.6 percent of China. According to the National Association of Realtors, properties sold in Miami-Dade County” according to the China has become the largest real estate buyer in the Miami Association of Realtors. US overall, and those buyers are now beginning to shift We will continue to see an increase in interest from their focus to Miami. “Until this year, Chinese investors China with the expansion of the Panama Canal underway were not among the top international buying groups in and the Port of Miami positioning itself to benefit from the the Miami market. But through the first six months of new trade opportunities.
MOTIVATING FACTORS FOR THE EMERGING CHINESE REAL ESTATE BUYERS:
1 2 3
CLIMATE, ENVIRONMENT & CHINA’S LIMITS ON REAL TRADE LIFESTYLE ESTATE INVESTMENTS The completion of the Panama Miami’s low pollution (our city was The real estate market in China Canal will make Miami aninternational named “America’s Cleanest has seen a golden decade of trading center, connecting North City” by Forbes Magazine), it’s fast growth. Today, the Chinese America, South America, and Asia. year-round air quality, vast green government has imposed a limit on Currently, China is Florida’s largest spaces, and clean drinking water. the number of properties allowed to importer, it’s third largest merchan- make it an attractive city to live be owned by a single household, dising partner, and the Port of in. The tropical climate is inviting inside China. This policy is driving Miami’s number one customer in for all types of outdoor lifestyle many wealthy people to look over- overall tonnage. Most experts agree, activities and events. seas for investment opportunities,. with the opening of the Panama In South Florida, pre-construction Canal, Chinese businesses will begin properties sell for less than 50% of opening regional offices throughout the equivalent in Beijing. South Florida, affecting all sectors of real estate (industrial, commercial, and residential).
46 ISG MIAMI REPORT Asian Capital into U.S. Multifamily 2014 TOP 5 METROS
4 Seattle
1 San Francisco
New York 2 Los Angeles 3
5 South Florida
2004 2010 2014
1. new York 1. new York 1. Los Angeles 2. washington, D.C. 2. washington, D.C. 2. san Francisco 3. los Angeles 3. Boston 3. new York 4. san Francisco 4. san Francisco 4. seattle 5. seattle 5. los Angeles 5. South Florida 10. South Florida 8. South Florida
Source: CBRE Capital Source: Business Wire, Source: CBRE Capital Markets, Markets, Assets, Real Estate January, 2011 Real Capital Analytics, Industry and Trends, October, 2014 December, 2004 survey
ISG MIAMI REPORT 47 48 ISG MIAMI REPORT TRANSPORTATION
ISG MIAMI REPORT 49 Miami International Airport (MIA) is one of the fastest growing airport hubs in the world. Last year (2013), MIA set a new all-time record for annual passenger AIR traffic with 40.5 million passengers, an increase of 2014 Total Passengers to/from 3% over 2012. Of the total passengers that traveled Latin America & Caribbean through MIA, 50% were international, which is one By U.S. Gateway of the highest international to domestic passenger percentages of any US airport. Miami (MIA) 15.1 MIL During 2013, MIA handled 49% of the U.S. to South New York (JFK) 7 MIL American passenger market, and was the largest Hartsfield Atlant (ATL) 3.8 MIL connecting point for flights between the Americas, Houston (IAH) 2.7 MIL and for flights between the Americas and Europe. Fort Lauderdale (FLL) 2.5 MIL MIA has recently completed a $6.4 billion Capital Newark (EWR) 1.8 MIL Improvements Program (CIP), the largest components of which are the new South and North Terminals. The 2014 WEEKLY TO/FROM Terminal expansion has increased gates by 23% and LATIN AMERICAN/CARIBBEAN FLIGHTS: 1,120 there are now 29 more gates with international and domestic capability.
Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014 / 2015 Miami Dade 20,200,000 Aviation Department MIA INTERNATIONAL PASSENGERS 2014
Ranking of Major US Airports - 2014 International Passengers
New York (JFK) 1 Miami (MIA) 20.2 MIL 2 Los Angeles (LAX) 3
Newark (EWR) 4
Hartsfield Atlanta (ATL) 5
Chicago O’Hare (ORD) 6
San Francisco (SFO) 7
Houston (IAH) 8
Washington Dulles (IAD) 9
Dallas Fort Worth - (DFW) 10 5 MIL 10 MIL 15 MIL 20 MIL 25 MIL
2014 Ranking: 2 20.2 MIL
2010 Ranking: 3 14.7 MIL Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014-2015 Report. 2004 Ranking: 4 9.8 MIL Miami-Dade Aviation Department
50 ISG MIAMI REPORT New Jersey San Francisco Chicago 392 New York 252 602 Washington 1,708 D.C Los Angeles 784 700 Atlanta Dallas 903 560 Houston 476 MIAMI
Mexico 296
Venezuela 66 Surinam Colombia Guyana 5 76 2 2014 Weekly Direct Flights Ecuador 35
Domestic Peru Latin America 35 Brazil 110 Bolivia 7
Paraguay 4
Uruguay Argentina 7 42 Chile 27
Source: Miami-Dade Aviation Department Marketing Division
*Caribbean Region Not Included
ISG MIAMI REPORT 51 All Aboard Florida is a high-quality, express intercity passenger rail that will connect Miami to Fort Lauderdale to West Palm Beach to Orlando. This rail service will provide Floridians
and visitors a viable transportation alternative and Orlando- Approx. 3 Hours will be the first privately owned, operated and maintained passenger rail system in the United States. West Palm Beach- Approx. 1 Hour ALL ABOARD FACTS Fort Lauderdale- Approx. 25 min. MiamiCentral, All Aboard Florida’s multimodal hub Miami station in Miami is set to break ground early 2015 and will serve as the flagship of the intercity passenger rail service operation. MiamiCentral will: LAND • Connect with existing public transit systems—MetroRail, “ All Aboard Florida has officially begun construction to MetroMover & MetroBus, through the new terminal the Fort Lauderdale station... the station is expected • Create approximately 3.5 million square feet of office, retail, residential and hospitality space to create about 800 construction jobs and have an • Feature a mix of premier and unique dining and shopping economic impact of $333 million through 2021.” options as well as entertainment venues Source: South Florida Business Journal - 10/14
UP $6 Billion Over 10,000 Jobs TO 3 Million IN DIRECT ECONOMIC IMPACT ON AVERAGE PER YEAR THROUGH VEHICLES REMOVED FROM THE TO FLORIDA’S ECONOMY OVER THE RAIL LINE CONSTRUCTION ROADS EACH YEAR THE NEXT 8 YEARS (FALL 2014-FALL 2015)
MiamiCentral Station
Source: All Aboard Florida
52 ISG MIAMI REPORT PANAMA CANAL / PORT OF MIAMI The $5.25 billion Panama Canal Expansion is now 80% complete. The expansion will allow the passage of bigger vessels – called Post-Panamax, which will double the canal’s capacity and change SEA the face of global marine transit. In response to this major event, PortMiami began their own $1.3 billion expansion – positioning itself to be the first port of call for the post-Panamax ships. The largest element of this undertaking - deepening PortMiami’s harbor from 44 feet to 50-52 feet and widening part of its shipping channel, is set to be complete in 2015, while other elements such as a new underwater tunnel and rail link are already up and running. The deepening of the PortMiami channel, could be the boost needed here to allow it to gain more Super Post Panamax: 176’ PortMiami Post Panamax: 136’ 50’ relative importance with China. China is PortMiami’s Panamax: 106’ No. 1 trade partner, more than doubling it’s numbers in a short time. A decade ago, China accounted “ The countdown is on! The Panama Canal for 11.44% of all PortMiami trade while today project is two-thirds completed. A wider and that market share is up to 26.43%, according to deeper canal means shippers will have new WorldCity analysis of U.S. Census Bureau. options for all water routes from Asia to markets on the East Coast, PortMiami, the first U.S. port PORTMIAMI / CHINA TRADE % of call from Panama, is well positioned to 2014: 26.43% benefit from the new trade opportunities.” 2004: 11.44% Bill Johnson, Director of PortMiami COMMERCE EXPANSION TRACKING FORECAST Florida East Coast Railway (FECR) $50 Million in upgrades to the 351 miles of track from Miami to Jacksonville COMPLETED
Port Tunnel opens for traffic COMPLETED
Government cut dredging SCHEDULED 2015
Panama Canal Expansion Completion SCHEDULED SUMMER 2016
Source: Miami Today, Panama Canal Authority
ISG MIAMI REPORT 53 FASHION
In the scope of our country and even more so the world, Miami is a very young city. Which is precisely why the explosive business and CUISINE cultural growth that has overtaken the Magic City in recent years has been so exciting to watch. From art to entertainment to business, every aspect of this rising city is being cultivated. film Education
HOSPITALITYcultureentertainment &SPORTS TECHNOLOGYarts
54 ISG MIAMI REPORT FASHION
CUISINE film Education CULTURAL & ECONOMIC GROWTH
HOSPITALITYcultureentertainment &SPORTS TECHNOLOGYarts
ISG MIAMI REPORT 55 “ Show me a city that does not promote the arts, and I will show you a city without an identity. It is the one piece of humanity that transcends time and ties us all together as the human race. Art is the soul and the spirit of each generation, to be passed along to the next and beyond. Through paintings, sculpture, books, architecture, music, dance, we show our creativity, our expression, who we are – it is how we remain alive. Art connects us to the past, and is a legacy we leave for the future.”
Former Miami Mayor Manny Diaz at the 2014 Mayor’s Ball in Sunny Isles
56 ISG MIAMI REPORT Miami and The Arts have never been more connected. The relationship has flourished in recent years, and is growing stronger by the day. With the Perez Art Museum (PAMM) officially open and breaking records (attendance levels hit over 150,000 visitors in its first four months, original estimates were for 200,000 visitors in its first year) and the Patricia and Phillip Frost Museum of Science well into construction (MiaSci), Museum Park in Downtown Miami is now a reality. Additionally, the progression of Miami’s local artists – from Wynwood to Coconut Grove to Design District – continues to gain immense international praise. “Every great city needs a great museum” Jorge Perez Chairman, President & CE0 - RelatedGroup Forbes 400 Summit On Philanthropy
4 DAYS
Estimated The world’s premier interna- fashion shows, dozens of ECONOMIC IMPACT tional art show, Art Basel, a additional art fairs such as $500 MIL Source: nbcmiami.com, 2013 four day event displays Scope, ArtMiami and the VISITORS an estimated $3 billion Brazilian Art Fair, major food 75,000 Each Year Source: artbasel.com, 2014 worth of paintings, and dining events, photographs and pop-up bars, sculptures. The music con- show has certs, film been break- premieres, ing records and stars since its at every inception in turn. The 2002. Last economic year, Art impact on Basel Miami Miami of this Beach – weeklong reported over $100 cultural event has million in sales. But Art Basel been estimated at $500 goes well beyond art. The million, with 75,000 attendees week leading up to and from around the world.
during the fair encompasses Sources: Los Angeles Times, 2002, Art Basel 2014
ISG MIAMI REPORT 57 ENTERTAINMENT MIAMI’S ENTERTAINMENT OFFERINGS ARE SOME OF THE BEST IN THE WORLD. FROM THEATER TO MUSIC TO SPORTS TO FILM, THE CURRENT OPTIONS ARE LIMITLESS, AND THE EVOLUTION OF THIS EXCITING INDUSTRY IS BOUNDLESS.
After a large renovation that was completed in 2006, the Adrienne Arsht Center for the Performing Arts of Miami-Dade County is now one of the largest performing arts centers in the world. “Second Each year, the Arsht Center presents new and exciting only to the programming in its 570,000 square feet of downtown performance space including Broadway musicals, World Music & Dance Series Lincoln Center” Comedy Planet, Florida Grand Opera, the Miami City Ballet, Travel and Leisure.com, Nov. 2011 the New World Symphony and more.
South Florida is host to dozens of additional performance centers, hosting the largest music acts in the world. From American Airlines Arena to Cruzan Amphitheater, Bank Atlantic Center, Jackie Gleason Theater, Revolution Ft. Lauderdale, and Seminole Hard Rock, our region offers amusements of all kinds for all tastes, every day and night of the year.
Adrienne Arsht Center for the Performing Arts
58 ISG MIAMI REPORT Marlins Park
South Florida plays host to some of the best sporting teams and venues in the world. With the world-champion Miami Heat playing at AAA, the brand new Marlins Park, the Florida Panthers at Bank Atlantic, and Sun Life Stadium now hosting the Dolphins as well as the Miami Hurricanes, sports enthusiasts have no shortage of options.
Miami has world championship football, basketball “ It can’t be that the most Latin and baseball, but one professional sport has been city in this country doesn’t missing for the city’s legions of fans – soccer. have a soccer team, my job is Enter David Beckham. He and his business group, Beckham Miami United, have announced plans to to make sure to change this.” start a Miami MLS soccer team and build a 20,000 David Beckham Despierta America Sept 2014 seat stadium using 100% private funding.
As if South Florida weren’t already bursting with things to do, 20th Century Fox just announced plans to build a theme park near Zoo Miami. The as-yet-approved plan for “Miami Wilds” would feature characters from 20th Century Fox Animation movies such as Rio in addition to a water park, a 400-room hotel, a performance space, a movie theater, a bowling alley, restaurants, and retail shops.
Miami Wilds - Proposed $2 Billion FILM & ENTERTAINMENT INDUSTRY For decades, Miami has served ANNUAL ECONOMIC IMPACT as the backdrop for a variety ON SOUTH FLORIDA of film and television productions. In recent years, Florida’s film industry has extended beyond the background and moved into the foreground of development, 70,000 attendees 3,000 promotion and exhibition. 2014 FESTIVAL LOCAL FILM & ENTERTAINMENT COMPANIES “ Miami offers a seasoned film community and Sources: MiamiWalkofFame.com experienced crew, the locations here are like no other in the country, and the Hollywood community is very aware of the assets Florida offers.”
Chris Cooney, EUE Screen Gems COO Miami Today, March 2014
EUE/Screen Gems Studios Film Complex - Opening Fall, 2015 Film studio EUE/Screen Gems Studios has just signed a ilm multi-million dollar lease for a large-scale production studio in f Downtown Miami. The company will build out and operate two sound stages of 15,000 square feet each. “Miami is so unique, it fits readily into our production portfolio,” said Chris Cooney, EUE Screen Gems chief operating officer. “All of Latin America wants to come here. India and China want to do business here, as well as countries in Europe, including Turkey and Spain.” Source: Miami Today, March, 2014
Luxury Dine-In Theaters High-end movie theaters are taking Miami head-on. From Swire Properties’ planned world-class theater at Brickell City Centre to the dine-in Silverspot at Met 3 Downtown to the luxury Ipic theater coming to North Miami Beach to the planned luxury theater for the Bal Harbor Shops expansion, seeing a flick in Miami is moving way past just popcorn and candy. 60 ISG MIAMI REPORT FASHION While South Florida has always been the capital of beautiful models and breathtaking photo shoots, the city has been establishing itself in the coveted world of high fashion for years. Thanks to a new crop of trendsetters receiving attention from the likes of Vogue’s Anna Wintour, this feat has finally been accomplished. One reason the city has received so much fashion attention of late is the birth of an impressive stable of fashion bloggers who have made themselves known around the world. These writers keep their thousands of followers engaged through inventive styles, witty anecdotes, front-row access, celebrity friendships, and robust social media outreach.
Elisea Holt of HOLT Swimwear, theholtstore.com
Miami plays host to three major fashion weeks: Mercedes- “Miami Beach Benz Fashion Week Swim, Miami Beach International International Fashion Week and Funkshion Fashion Week. The largest of the Fashion Week three, Mercedes-Benz Fashion Week Swim, is an international has become event on the calendar of every editor and fashionista, celebrating the largest latin the sexiest swimwear designs and resort wear of the year. american and international Mega-designer Tommy Hilfiger fashion festival recently named Miami his new home and will be working on a in the United large-scale design project here. States”.
Source: cnn.com, 2014 Source: Elite Traveler
Courtesy of Mara Hoffman ISG MIAMI REPORT 61 DON’T MESS WITH TECH 2014 Highest % Growth and Most New Positions Added in the Tech Industry
August 4, 2014 | Shravan Goli
1. TEXAS...... 5.99% 6. NEW YORK...... 3.08%
2. FLORIDA...... 5.64% 7. MASSACHUSETTS...... 2.91%
3. NORTH CAROLINA...... 3.80% 8. NEW JERSEY...... 2.84%
4. OREGON...... 3.57% 9. MICHIGAN...... 2.72%
5. WASHINGTON...... 3.53% 10. MISSOURI...... 2.10%
Source: Bureau of Labor Statistics 62 ISG MIAMI REPORT SILICON SOUTH
Miami has seen substantial recent growth in the MICROSOFT PICKS MIAMI FOR financial and corporate sectors, but almost nothing 1ST US INNOVATION CENTER can compare to the technology boom that has taken MICROSOFT VICE PRESIDENT SANET AKERKAR over South Florida. Now nicknamed “Silicon Beach,” TOLD THE ASSOCIATED PRESS THE COMPANY The Magic City has birthed over 1,000 startups in LOOKED AT MIAMI AS A GREAT HUB FOR TECH IN the last few years including rising stars STS, Open THE SOUTHERN UNITED STATES. English and Live Ninja. - Bringing Microsoft in is part of the broader The city has also established co-working spaces to goal of “bringing the world to Miami.” support tech growth such as The Lab Miami, Venture May 30, 2014 | Arian Campo-Flores Hive, Rokk3r Labs - a technology portfolio company, The Launch Pad Tech Accelerator at the University of Miami, Pipeline Brickell, the Micro Venture Capital Club, and the Miami Entrepreneurship Center. Many WOULD YOU BELIEVE IT? of these startups and tech support companies have MIAMI HAS A REAL TECH their own funding sources as well such as Endeavor’s SCENE NOW venture capital fund, Catalyst. TECH COMPANIES FLOCK TO MIAMI TO Additionally, organizations such as The Miami REACH LATIN AMERICA. Economic Development Council, Florida International University and the Knight Foundation are investing “ We are the logical point to be the technology major backing and funding in an effort to grow capital of Latin America,” said Manuel Medina, and support Miami’s tech boom. Most recently, the founder of Terremark, a Miami data-services mysterious South Florida tech firm Magic Leap company acquired by Verizon Communications received over $500 million in funding from Google to for $1.4 billion in 2011. develop their high-tech product. May 30, 2014 | Arian Campo-Flores In May of 2014, the Technology Foundation of the Americas hosted thousands of attendees at eMerge Americas - the pre-eminent technology conference of The Americas. The second annual eMerge Americas SQUARE CO-FOUNDER: HOW I PLAN event will take place in May 2015, where 10,000 TO BOOST MIAMI’S TECH TALENT attendees are expected. European-based Sime - JIM MCKELVEY, SQUARE FOUNDER (VALUED AT $6 BILLION) Northern Europe’s largest conference on Internet and digital opportunities, jumped on the Miami tech “...recently moved to Miami to expand his wagon last year with Sime MIA. This year, they’ll do it nonprofit LaunchCode, which helps train and again in December 2014. place programmers. “We’re particularly excited Besides the financial backing available to South about [Miami coding school] Wyncode”, Florida startups, the region is clearly the gateway to McKelvey told the South Florida Business South America – where the amount of Internet users Journal, and he even discussed working with has doubled in the past ten years*. This gateway is a team from Harvard here, saying, “My guess not simply a cultural perception, rather in tech terms, is that the Harvard team could be convinced it’s a matter of speed – the link from Miami to South to come to Miami, especially when the America is a matter of milliseconds, whereas it would temperature starts dropping in Boston next take much longer from other areas. month.” *Pingdom.com, 2012 Source: Business Journal, 2014
ISG MIAMI REPORT 63 HOTELS
SOUTH FLORIDA’S HOSPITALITY SCENE IS HOTTER AND MORE PROFITABLE THAN EVER. CELEBRATED HOTEL BRANDS ARE JOINING MIAMI’S ALREADY WORLD-CLASS OFFERINGS BY THE DAY, FURTHER CEMENTING OUR REGION’S ROLE AS ONE OF THE BEST TOURIST DESTINATIONS ON THE PLANET.
5-Star Hotel Analysis over the Past 20 Years Sampling of South Florida’s South Florida Hotels Located East of Interstate 95 5-Star Hotels 45 10,281
5,643
14 7 1,254 1994 2004 2014
Number of Hotel Rooms Number of Hotels
Source: GREATER MIAMI CONVENTION & VISITORS BUREAU 2,500 MORE HOTEL ROOMS DUE IN MIAMI IN 2015 Greater Miami Convention & Visitors Bureau
ANTICIPATED HOTEL OPENINGS
The Edition - Miami Beach Aloft South Beach The Thompson - Miami Beach
64 ISG MIAMI REPORT CUISINE
WHILE THE EXPLOSION OF NEW HOTELS NATURALLY BRINGS WITH IT A CROP OF TOP-NOTCH RESTAURANTS, SOUTH FLORIDA’S DINING SCENE TODAY IS MORE INVENTIVE, MORE THRILLING AND MORE LUCRATIVE THAN EVER BEFORE.
The always-hot Miami has These are in addition to introduced some exciting mainstays such as Prime newcomers recently such as 112, Joe’s Stone Crab, Tongue & Cheek, Il Mulino, Makoto, Cecconi’s at Soho Bar Crudo, Naked Taco, Beach House, Khong River 1826, Ceviche 105, Lure, House, the numerous a new chef at The Forge, delectable restaurants at the Traymore, and Top Chef’s Fontainebleau, Yardbird, the Fabio Viviani’s Siena Tavern. Pubbelly chain and many more.
A SAMPLING OF NEIGHBORHOOD EATERIES
DOWNTOWN DESIGN DISTRICT, EDGEWATER, CORAL GABLES & BRICKELL WYNWOOD & MIDTOWN SOUTH MIAMI
rant scene has exploded in the pa restau st few y iami’s isitors has brought an arra ears.. M ts and v y of sop . siden histic of re ated pot , tas ng ty c elti uis m ine The .”
ISG MIAMI REPORT 65 Landscape of the Future In any city, there are developments that serve a singular purpose such as housing, retail, hospitality, or office space, and then there are projects that change the landscape of the city as a whole. Three current examples of such grand undertakings in Miami are the Flagler Streetscape project, the Grand Pedestrian Promenade Plan along Biscayne Blvd., and the futuristic, thousand-foot tall observation deck that is Skyrise Miami.
Grand Pedestrian Promenade - Biscayne Blvd. • Replace median parking with a pedestrian oriented green median • Bicycle Lanes: Two Dedicated Bike Lanes • Original Sidewalk: Expanded • Total Cost from NE 8th St. to Biscayne Blvd. Way = $24 MIL Skyrise Miami Source: MiamiDDA, May 2014 • $430 MIL Project • 3 Observation Decks • Restaurant, Nightclub, Ballroom, East Flagler Street Meeting Room, Interactive Exhibit Redevelopment • Estimated 3.2 MIL visitors • $13 MIL Project per year • Portions of historic street to be Source: SkyriseMiami.com transformed into pedestrian-friendly promenade Source: Miami Today, October 2014
66 ISG MIAMI REPORT Education
In 2014, Miami-Dade County Public Schools Superintendent Alberto Carvalho was named National Superintendent of the Year thanks to his efforts in turning around the Miami-Dade Pubic School system. SUPERINTENDENT OF THE YEAR
University of Miami – one of the top private colleges in the country - hosts more than 15,000 students from around the world, almost 30% of which are Hispanic. Every year, approximately 3,000 international students (undergraduate and graduate) and scholars (professors and researchers) from 115 countries representing every region of the world study, teach, and conduct research at the University of Miami. Named one of the top 50 National Universities by U.S. News & World Report: Best Colleges Rankings 2014
Dr. Eduardo Padrón is the President of Miami Dade College, a national model of student achievement and the largest institution of higher education in America. In 2009, Time Magazine included him among the “10 Best College Presidents” in the United States. Dr. Padrón’s pace-setting work at Miami Dade College has been hailed as a model of innovation in higher education. He is credited with engineering a culture of success that has produced impressive results in student access, retention, graduation, and overall achievement. Time Magazine included President of Miami Dade College, Dr. Eduardo Padrón, among “10 Best College Presidents” in the United States
On the University front, Florida International University (FIU) is the largest school in South Florida and is #5 on the list of largest public universities by enrollment in the country, #11 among international business programs in the nation and #1 in the nation in awarding bachelor’s and master’s degrees to Hispanic students. Additionally, FIU has students from 142 countries, most notably Colombia, Venezuela, Jamaica, China, Peru, The Bahamas, and Trinidad & Tobago. # 1 IN NATION AWARDING BACHELOR’S AND MASTER’S DEGREES TO HISPANIC STUDENTS
ISG MIAMI REPORT 67 ISG CITY WATCH
Population Growth Overall Value Assessed Property $12 BIL* 50,000+* Doral 47,534 Nationally Ranked #2 50,000 $10 Billion $8.4 BIL “25 Best Cities in the 40,000 United States to 30,000 26,438 Live Well” $5 Billion $4.9 BIL 20,000
10,000 May, 2009
2003 2012 2014 2003 2012 2024-34 • Business Week ranked Doral as *Projected *Projected the number one city in Florida to Source: Miami Today, 2014 City Planning & Zoning Dept. start a business. • Amazon.com signs Doral distribution center lease, to create 500 jobs. Source: South Florida Business, November 21, 2014 Miami Downtown International Doral Miami Brickell Airport Design Trump National Doral 20 Min. 22 Min. 10 Min. District Blue Monster Course
68 ISG MIAMI REPORT “ Doral is a great place to live and work... with every school in the city – public, private, charter – rated A” Nathan Kogon Director of the City’s Planning & Zoning Department Miami Today, February, 2014
Downtown Doral Charter School
• Kindergarten to 12th Grade • School opens summer 2015 • English with additional Spanish and Portuguese language classes. • More than 50% of the registration is set aside for Downtown Doral Residents • First time a Public and Private sector partner to manage charter school • College preparatory focused, teaching high standards for academics and character • Faculty made up of committed and talented leaders and teachers
Trump National Doral Purchased by the Trump Organization in June 2012, the Doral Golf Resort & Spa has been undergoing a $250 million “Return to Grandeur.” Every aspect of the 800-acre resort has been or is being completely transformed including a completely re-designed clubhouse, new deluxe accommodations, luxurious event spaces, new restaurant concepts, redesigned championship golf courses, plus all new re-imagined recreational amenities and retail shops for guests and members to enjoy.
THE TRANSFORMATION • New Deluxe Guestrooms designed By Ivanka Trump • Resort Clubhouse (includes dining venues and retail shops) • Complete Redesign of Golf Course scheduled to be undergoing comprehensive makeover completed Fall 2014 • The New Royal Palm Pool featuring all new landscape and • New Meeting and Event spaces totaling over 100,000 sq. ft. patio design with expanded seating capacity • Addition of BLT Prime, a modern American Steakhouse • New State-Of-The-Art Fitness Center
ISG MIAMI REPORT 69 Photo Credit:
70 ISG MIAMI REPORT SOUTH FLORIDA 2020 With the extensive construction and expansion taking place in our region, what will Greater Miami actually look like by the end of this decade? The following pages illustrate a variety of “2020’s”, broken down by neighborhood.
ISG MIAMI REPORT 71 Downtown Miami 2020 DOWNTOWN MIAMI: $11 BILLION IN NEW DEVELOPMENT THROUGHOUT 20 BLOCKS
MET (MDM) One Bayfront Plaza Biscayne Boulevard Skyrise Miami Tower Flagler on the River CENTRO 300 Biscayne JW Marriott Hotel (FECR) Beautification (Berkowitz) (MELO) (Newgard) (PMG) Beaux Arts Hotel 4.2 million sq. ft. Grand Boulevard Landscaping & 1000 Ft. Observation Tower 32 Stories 37 Stories Residential and MET Square 72 Story Tower Baywalk Links Streets, Mixed Use Retail and 300 Condo Residences 350 Loft Style Condos Commercial 470 Hotel Rooms Mixed-use, Parks and Bay Hospitality $90 Million 1,700 Seat Theatre Office, Hotel, Retail $400 Million 4 Story Retail, $2 Billion 41,000 Sq. Ft. Restaurant Whole Foods All Aboard Florida Vizcayne Krystal Tower (Florida East Coast Two 49 Story Towers (Rodolfo Ishak) Industries) 849 Condos 35 Stories Mixed use 9 Acres 55,000 s.f. Retail 153 Condos 1.5 Million Sq. Ft. Office, $265 Million Residential, Retail , and Hotel
GUSMAN CENTER EPIC MET MIAMI DADE COLLEGE
VICEROY
MIAMI RIVER BAYFRONT PARK BAYSIDE MARINA
BISCAYNE BAY
CRUISE SHIP PORT
TO SOUTH BEACH
AMOUNTS ARE AN ESTIMATE 72 ISG MIAMI REPORT Port of Miami Tunnel Miami World Center 1000 Museum Museum Park Adrienne Arsht Center Resorts World Miami (Genting) Omni (Genting) Connects I-395 and (Falcone) (Covin) 29 acres. 48,000 sq. ft. 14 acres 1.5 million sq.ft. Watson Island to Port 12 million sq. ft., 63 Stories Perez Art Museum Miami Film Production Studio Destination Resort Hilton Hotel, $607 Million 27 Acres 83 Condos Patricia & Phillip Frost Museum $13.6 Million Hotels & Residences Office, Retail & Hotel, Retail, Design by of Science $3 Billion Potential Casino Civic Space, Zaha Hadid $500 Million Proposed $400 Million Office, Residential $300 Million $4 Billion 600 Biscayne Overtown Gateway (Peebles) Canvas TBD Paramount 2 Phases (NR Investments) Miami World Center 150 Staybridge Hotel Room Suites 37 Stories 749 Ft. Signature Tower 635 Apartment Units 513 Condos 466 Condos 60,000 Sq. Ft. Retail 100,000 Sq. Ft. Office $200 Million Proposed
MIAMI INTERNATIONAL AIRPORT
MIAMI RIVER MARLINS DISTRICT STADIUM
FREEDOM TOWER PERFORMING ARTS CENTER
AMERICAN I-395 AIRLINES ARENA
BISCAYNE BAY WATSON ISLAND MARINA
STAR ISLAND
ISG MIAMI REPORT 73 Brickell 2020 BRICKELL: $6 BILLION IN NEW DEVELOPMENT
Landscape Park Echo Brickell Le Parc Cassa Brickell Atton Hotel Brickell House SLS Brickell Panorama Tower 1100 Millecento Public (PMG & JDS) (ALTA & Strategic) (TSG) 270 Rooms (New Guard) (Related) (Florida East Coast) (Related) Bayfront Park 180 Luxury 128 Boutique 10 Stories 12 Stories 374 Condos 453 Condos 821 Condos 382 Condos Proposed Residences Condos 81 Condos Design by 46 Stories 120 Hotel Rooms 128 Hotel Rooms 42 Stories 57 Stories 12 Stories Luis Revuelta 52 Stories 81 Stories Design by Collaboration by Design by 82,000 Sq. Ft. Retail Carlos Ott + Carlos Ott + Phillipe Stark 38,000 Sq. Ft. Office Pininfarina yoo Studio
CORAL GABLES
BISCAYNE BAY
AMOUNTS ARE AN ESTIMATE 74 ISG MIAMI REPORT The Bond BrickellTen 1010 Brickell Brickell Flatiron NINE Brickell Heights Brickell City Centre My Brickell One Brickell (MDR) (IBGroup) (Key International) (Ugo Colombo) at Mary Brickell (Related) (Swire) (Related) (Related) 323 Condos 155 Condos 352 Condos 548 Condos (Starwood Capital 2 Towers 5.4 million Sq. Ft. 192 Condos 27 3 Towers 43 Stories 22 Stories 47 Stories 65 Stories & Lynd) 690 Condos 9 Acres Stories 80 Stories Design by Design 390 Condos 48 Stories 780 Condos 70 Stories Sieger Suarez By Luis Revuelta 48 Stories Design by Arquitectonica 93 Apartments 55 Stories Design by ADD 243 Hotel Rooms 1,200 Condos SLS Lux 520,000 Sq. Ft. Retail Edge on 200 Hotel Rooms (Related) 240,000 Sq. Ft. Office Brickell 200,000 Sq. Ft. Retail 450 Condos (Grupo Habitat) Proposed 85 Hotel Suites 130 Condos 57 Stories 58 Stories Design by Design by Arquitectonica Luis Revuelta
MARLIN’S STADIUM MIAMI RIVER DISTRICT
DOWNTOWN
BRICKELL KEY
BISCAYNE BAY
ISG MIAMI REPORT 75 Biscayne Corridor 2020 EDGEWATER, MIDTOWN AND DESIGN DISTRICT: $3.5 BILLION IN NEW DEVELOPMENT
Aria on the Bay The Filling Station National Young Arts Foundation Biscayne Line Wynwood Art 250 Wynwood Mbay (Melo) (FLS Development) Proposed New Campus Public Bay Walk District Walls (Fortis) (Hyperion) 647 Condos 81 Condos Designed by Frank Gehry Proposed from Venetian Cswy to Julia On-going 11 Condos 129 Condos 50 Stories Proposed at Historic Bacardi Building Tuttle Cswy Art Movement 6 Stories 39 Stories 40,000 SF Commercial Space Mixed-Use Retail Proposed
MIAMI INTERNATIONAL AIRPORT DOWNTOWN MIAMI MARLIN’S STADIUM MIAMI RIVER DISTRICT
ADRIENNE ARSHT PERFORMING ARTS CENTER AMERICAN AIRLINES ARENA PÉREZ ART MUSEUM
MACARTHUR CAUSEWAY TO MIAMI BEACH VENETIAN CAUSEWAY TO MIAMI BEACH
AMOUNTS ARE AN ESTIMATE 76 ISG MIAMI REPORT Bay House The Crimson Icon on the Bay Paraiso Bay New Public Hyde Midtown Dacra Project Baltus House (Melo) (Mckafka) (Related) (Related) & Private (Related) (Craig Robins) (Related) 164 Condos 90 Condos 300 Condos 2 Towers Bayfront 40 Hotel Units 540,000 Sq. Ft. 167 Condos 38 Stories 20 Stories 42 Stories 720 Condos Marina 397 Condos Luxury Retail 15 Stories 55 Stories and Park 31 Stories *Design District *Midtown Proposed
Ion Biscayne Paraiso Bayviews One Paraiso The District 36 (Sakor) Beach Club (Related) (Related) (Terra) 330 Condos (Eastview) 388 Condos 276 Condos 60,000 Sq. Ft. 36 Stories 399 Condos 44 Stories 53 Stories High-End Home Design by 51 Stories Furnishing Retail Arquitectonica Proposed
SHOPS AT WYNWOOD MIAMI MIDTOWN DESIGN DISTRICT
NEW PUBLIC LUXURY BAYFRONT & PRIVATE PARK RESTAURANT 1/2 ACRE JULIA TUTTLE CAUSEWAY
TO MIAMI BEACH
ISG MIAMI REPORT 77 Doral 2020 DORAL: $2 BILLION IN NEW DEVELOPMENT
Vintage Estates The IVI Doral Modern Doral Midtown Doral Isles at Grand Bay (Terra) 64 Condos (Terra) (Optimus) (Lennar) 28-acre gated community 12-acre development 3 Phases 3 Phases 672 Condos 110 Residences 316 Condos Phase I + II Luxury Single Family Single Family Luxury Single Family 509 Condos 27-acre development Phase III TBD 150,000 Retail Space 150,000 Sq. Ft. Retail 90-acres
DOWNTOWN MIAMI
MIAMI INTERNATIONAL AIRPORT
AMOUNTS ARE AN ESTIMATE 78 ISG MIAMI REPORT Downtown Doral Bel Air Doral City Place Doral Oasis Park Trump National Doral 5252 Paseo + 5300 Paseo (ZOM) (Related) (Optimus) $250 Million Renovation (Cordina) 249 Condos 48-acres 150 Condos 100,000 Sq. Ft. Event Space Mixed-use Community Luxury Rental Complex 22 Million Sq. Ft. Single Family New BLT Prime Restaurant 1 Million Sq. Ft. (Office) Groundbreaking Aug. 2013 300,000 Sq. Ft. Retail 180,000 Sq. Ft. (Retail) 4.2-acres Lakefront 280,000 Sq. Ft. Office 2,840 Condos 1,000 Residences
ISG MIAMI REPORT 79 Ft. Lauderdale 2020 FORT LAUDERDALE: $3 BILLION IN NEW DEVELOPMENT
Auberge Beach Elan 16Forty The Pearl at Flagler Village Adagio 2nd Street Residences Paramount Aquavita AquaLuna Residences (Greystar) (Morgan) On the Bay (Ellis Diversified) (Encore Housing and Las Olas Las Olas (Related) 10 Stories 7 Stories (Grupo Alco, Garcia 30 Stories Kodsi) (Roy & Eisinger) (Roy & Eisinger) Two Towers 261 Condos 331 Condos Stromberg + GS4 398 Condos 18 Stories Two Waterfront Buildings Two Waterfront 17 - 22 Stories 6,000 Sq. Ft. Gym Henry Square (Related) Studio Architects) 2,200 Sq. Ft. Retail 95 Condos 22 Condos Buildings 171 Condos 2,300 Sq.Ft. Retail 6 Stories 12 Condos Proposed 16 Condos Proposed 382 Residences Privage BellaVita 25,000 Sq. Ft. Retail (Roy & Eisinger) Las Olas AquaMar 22 Condos (Roy & Eisinger) Las Olas RIVA AquaBlue Gale Hotel & 16 Condos (Roy & Eisinger) (Premier) Ft. Lauderdale Residences Three Waterfront 14 Stories (Roy & Eisinger) (Neward W Hotel Buildings 100 Condos 45 Condos Development & & Residences 20 Condos Menin Hospitality) (Related NY) 128 Condos 171 Condos
DOWNTOWN FORT LAUDERDALE
BROWARD BOULEVARD
AMOUNTS ARE AN ESTIMATE MUSEUM OF DISCOVERY AND BROWARD CENTER FOR THE SCIENCE PERFORMING ARTS 80 ISG MIAMI REPORT Crocker Tower 8th Avenue Residences New River Marina Lofts New River Yacht Club South Andrews Tower Airport and I-595 (Crocker) (Rockefeller) Village III (Asi Cymbal) (Related) (Fred Kern) $42.5 Million 42 Stories 262 Condos (American Land Ventures) 2 Towers 26 Stories 37 Stories Expansion to I-595 395 Condos 2,500 Sq. Ft. Retail 15 Stories 28 - 30 Stories 249 Condos Office, Hotel & $791 Million Proposed 209 Condos 856 Condos $36 Million Residences runway renovation at 2,245 Sq. Ft. Restaurant 29,000 Sq. Ft. Retail Proposed Ft. Lauderdale Airport & Restaurant 1800 Designed by ICON Las Olas Las Olas Bjarke Ingles (Related) (Roy & Eisinger) Proposed 272 Residences 4 Condos Under
Construction LAS OLAS BOULEVARD OLAS LAS SOUTH FEDERAL HIGHWAY
RIVER FRONT
ISG MIAMI REPORT 81 ON THE GROUND REPORT
& Alex Vidal Q MANAGING DIRECTOR RelatedISG International Realty The State ofA South Florida General Realty Q: What kind of single-family homes are people Q: What neighborhoods are the hottest right now for buying in South Florida now? new properties?
A: We are now seeing a shift from people buying A: Brickell, Downtown, Edgewater, the Beaches, East less expensive homes and paying for private schools Fort Lauderdale and Doral area (the one “western” to people buying more expensive homes in areas with neighborhood drawing major interest) are all very active. stronger Public School systems. Interestingly enough, with the exception of Doral, these are all high-rise areas with little single-family home Q: What reasons are foreign buyers giving your activity. Actually, most of the new construction in single agents for buying in South Florida? family homes is concentrated in the western fringes of the tri-county area. A: I would have to say that the major reason foreign buyers are buying is for security - both personal Q: Given the current market dynamic, have you and financial presently. changed the type of agent you are currently recruiting?
Q: That addresses demand. What is the status of A: That is an interesting question. Our recruiting supply right now for single-family homes? philosophy at RelatedISG is probably somewhat different than the industry norm especially in this new A: As in the old cliche: Location, Location, Location. cycle. Our focus has been to recruit seasoned agents Seriously, the supply in the re-sale single family market, who specialize in pre-construction sales. The tightness especially in neighborhoods east of I-95 is very tight of the resale market coupled with the demand for new and there is very little inventory of homes in desirable Condominiums makes that type of agent the most neighborhoods. sought after. In addition, RelatedISG is the joining of two of the most prominent South Florida companies in Q: What do you see as the big differences between the new construction market. This certainly gives our the market now and the boom of 2005? agents a distinct advantage in competing in the new A: Night and Day. In 2005, the market was driven by construction sector, which is by far the most active and a predominantly speculative fever fueled by the “easy the most lucrative in terms of commissions paid. credit” provided by the financial community. In today’s market, the credit markets remain “tight”, eliminating speculation. Today, we have buyers who are looking for the financial security, stability or simply a second home in Miami.
82 ISG MIAMI REPORT Celebrating 5 Years of ISG’s Miami Report.
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