“South Florida by the numbers” is a web feature that lists the most notable, original, and surprising real estate statistics.
Much of Miami’s recent real estate success has been attributed solely to the pandemic and the various behavioral changes that have resulted from it. But the reality is much larger and more complex, and has involved many years of careful and patient planning to implement. “Miami is a 10-year overnight success story,” Mayor Francis Suarez said recently. “That Miami moment that we converted into motion was very intentional, very comprehensive. And there were a lot of people involved. Business development professionals across South Florida are now seeing this dream of the area as a tech and financial services capital is emerging, 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. let’s examine the opportunities and challenges facing the region’s top developers in this edition of “South Florida by the numbers.”
Over a billion dollars
Total land sales in Miami’s urban core (including Edgewater, Wynwood, Arts and Entertainment District, Downtown, and Brickell) over the past two years; demonstrating the extraordinarily high demand, cost, pace and volume of transactions for development sites. [TheRealDeal]
10 to 15 percent
Monthly increase in construction costs starting in March, according to Jon Paul Pérez, president of the Related Group. These rising costs, in addition to supply chain disruptions and labor shortages, represent the biggest headwinds for developers, who must balance huge demand with the ability to meet buyer expectations. [TheRealDeal]
969
Number of feet a tower must reach to claim supertall status (or above 300 meters). Nine of these projects are planned in Miami, of which only one (the Waldorf Astoria Hotel & Residences) is currently under construction. [TheNextMiami]
5
Number of months it took to book all of the fully furnished units slated for District 225, a West Brickell condo development designed and promoted in conjunction with Airbnb, where owners are free to rent their units. The rapid pre-construction sales of these niche “home-sharing” developments suggest that the ready-to-let condo market remains underbuilt in Miami and foreshadows an urban core defined by this new lifestyle. [CommercialObserver]
$500 million
Total price recently offered by the Related Group and 13th Floor Investments for the purchase of 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 each, owners could receive almost five times the value of their condos, depending on the offers. (A large enough percentage of unit owners would have to agree to the sale for developers to buy out the condo and end the association.) This potential deal would continue the trend of condo terminations in South Florida, where the value of the underlying land is often worth more than reselling the units. [TheRealDeal]
This column is produced by the Master Brokers Forum, a network of elite South Florida real estate professionals where membership is by invitation only and based on outstanding production, ethical and professional behavior.
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