DECEMBER 2014
A N I N - D E PT H A N A LY S I S O F SO U T H F L O R I DA’ S N E W CO N D O M I N I U M M A R K E T
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MIAMI
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Rise Of A Global City
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PERCEPTION vs. REALITY RENTAL TRENDS
International Report
arts&culture ISG CITY WATCH
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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 ISG Principals
Michael Ambrosio 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
PERCEPTION REALITY
“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 as the slope of recovery has been shallow and the expected acceleration has not materialized.” Stuart A. Miller Quote Chairman of Lennar Chairman 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 brewing about the number of proposed new condos set to hit the Miami / South Florida market. Concern comparisons are even being made to the bubble stories of 2005. The Miami Herald published an article in May of 2005, “PROJECTING”, that 62,000 condos were planned for development within the Brickell Ave. / Downtown Miami corridor. In actuality, just 17,502 of those proposed 62,000 condos were developed...less than 40% of what was projected. In tracking the data of Miami / South Florida’s current cycle, we found that the number of proposed new condos is, once again, different from the number of condos that have actually been brought to market for sale thus far. Additionally, proposed condo projects may, eventually, be brought to market, once various governmental and business issues get resolved. But it is critical to note the 4
ISG MIAMI REPORT
difference between a condo project released to market (“For Sale”) versus a proposed project that remains subject to the following: - Land Use Approvals - Zoning Approvals - Entitlement Approvals - Backing of Reputable Developer - Suitable Financing - Changing Business Plans Currently, the estimated number of new “Proposed” condos East of I-95, in Miami-Dade, Broward, and Palm Beach is 38,000 (according to the South Florida Business Journal, October, 2014). Of those, 16,033 have been brought to market for sale, since the last business quarter of 2011 (42% of the 38,000 “Proposed”). To date over 62% of this inventory has been sold. With less than 6,200 new condo units remaining to be sold, South Florida currently has less than 18 months of new condo inventory for sale according to historical absorption patterns.
2 0 0 5
PROPOSED
2 0 1 4
PROPOSED
62,000 38,000 DOWNTOWN MIAMI AND BRICKELL ONLY
A C T U A L FOR SALE
MIAMI-DADE, BROWARD & PALM BEACH COUNTY EAST OF I-95
A C T U A L FOR SALE
17,502 16,033 SOLD
62% SOLD
2014 NEW CONSTRUCTION CONDO OVERVIEW South Florida Condominium Analysis East of Interstate 95
CONSTRUCTION STATUS
TOTAL TOWERS
TOTAL UNITS
TOTAL SOLD
PERCENT SOLD
TOTAL 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 2013 Miami Ranking: 8 2011 Miami Ranking: 29 2009 Miami Ranking: 29
7. Miami
1. London
$800 psf
$6,000 psf
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
6. Shanghai $2,000 psf
9. Beijing 8. Dubai $2,500 psf
$1,500 psf
4. Hong Kong $4,500 psf
3. Singapore $1,500 psf
AMERICA
When examining North American cities of importance to UHNWI, Miami comes in at #2 – second only to New York City.
1. New York 2. Miami 3. Washington, D.C. 4. San Francisco 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 banking hub in the U.S. after New York City. Currently home to over 60 international banks and nearly 100 alternative investment companies*, Miami’s thriving financial district is attracting financial institutions from around the world. Additionally, many of the nation’s wealthy financial leaders are heading to the Sunshine State – with their clients’ funds - to semi-retire while they work, live, and play. So why are banks and hedge funds setting up shop in Miami and investors from around the world depositing their millions here? One major reason are the tax breaks– no individual state income tax or estate tax exists in Florida. Another reason is Miami’s obvious connection to Latin
America. As the gateway to the rest of the country, Miami and its financial center on Brickell Ave. is at the center of Latin American investments. Mark Spitznagel, founder and CIO of Universal Investments – the largest Hedge Fund to move to Miami in recent years, said to Florida.gov, “Florida and Miami Dade County’s business-friendly policies offer the perfect environment for Universal as we expand.” Even the financial tycoons who aren’t bringing their actual businesses to Miami are bringing their money here in a major way – through large real estate purchases. Goldman Sachs CEO Lloyd Blankfein and Apollo Global Management’s Leon Blac have both reportedly purchased eight-figure 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 W I T H H E A D Q UA RT E R S I N M I A M I 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
added offices or relocated to Miami, the
Fortune 500 companies located in
banks and hedge funds that have state of Florida has seen quite a bit of
corporate growth in a number of other
areas
as
well.
Once
again
taking advantage of our tax breaks, proximity
to
Latin
America,
and
ideal climate, numerous corporations are relocating to the Sunshine State. According since
2013,
to
Enterprise
21
Florida,
companies
have
announced locations, relocations or expansions of corporate headquarters in Florida, accounting for nearly 3,000 jobs
investment. There are currently 16
Florida including the international rental
car conglomerate Hertz, which recently moved their operations here. Additionally,
Miami
serves
as
the international hub for many large corporations. Global Trade Magazine
points out that 1,400 multinational corporations
use
Miami
as
their
Latin American headquarters including
Exxon, AIG, Microsoft, Visa, Walmart and many more.
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
1100 Millecento
Developer Units Unsold
100% SOLD
382 Total Units
1010 Brickell
90% SOLD
Brickell City Centre Tower I - Reach
70% SOLD
390 Total Units
COMING SOON
390 Total Units
Brickell City Centre Tower II - Rise Brickell Heights East Brickell Heights West Brickell House
BRICKELL
90% SOLD
358 Total Units
COMING SOON
332 Total Units
100% SOLD
BrickellTen
60% SOLD
Brickell Flatiron
30% SOLD
Cassa Brickell
352 Total Units
374 Total Units 155 Total Units 548 Total Units
60% SOLD
The Edge on Brickell
35% SOLD
Echo Brickell
86% SOLD
Le Parc
85% SOLD
Nine at Mary Brickell Village
85% SOLD
81 Total Units
130 Total Units 180 Total Units 128 Total Units 390 Total Units
MyBrickell
100% SOLD
SLS
100% SOLD
453 Total Units
SLS Lux
55% SOLD
450 Total Units
The Bond
86% SOLD
192 Total Units
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
250 Wynwood
W YNWOOD
Baltus House
DESIGN DISTRICT
23 Biscayne Bay
Biscayne Beach
82% SOLD
One Paraiso
97% SOLD
Paraiso Bayviews
55% SOLD
Paraiso Bay Tower I
95% SOLD
388 Total Units 368 Total Units
1000 Museum
40% SOLD
397 Total Units 83 Total Units
34% SOLD
Canvas
5% SOLD
Centro
85% SOLD
Paramount, Miami Worldcenter Signature Tower
300 Total Units
276 Total Units
COMING SOON
Krystal Towers
90 Total Units
330 Total Units
Hyde Midtown
Aria DOWNTOWN MIAMI
399 Total Units
100% SOLD 25% SOLD
96 Total Units
164 Total Units
72% SOLD
Ion
MIDTOWN
167 Total Units
100% SOLD 98% SOLD
Icon on the Bay
11 Total Units
97% SOLD
Bay House
The Crimson EDGEWATER
82% SOLD
Developer Units Unsold
647 Total Units 513 Total Units 350 Total Units COMING SOON
COMING SOON
153 Total Units 466 Total Units
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
321 Ocean
95% SOLD 15% SOLD
13 Total Units
Beach House 8
100% SOLD
8 Total Units
88% SOLD
MIAMI BEACH / SOUTH BEACH
Glass
26 Total Units
100% SOLD
Faena House
90% SOLD
30 Total Units
100% SOLD
One Ocean
47 Total Units
10 Total Units
93% SOLD
Marea South Beach
50 Total Units
100% SOLD
114 Total Units
Ritz-Carlton Residences
45% SOLD
111 Total Units
1 Hotel and Homes
61% SOLD
Peloro On The Bay
*
45% SOLD
Fendi Chateau Surf Club Four Seasons Private Residences
60% SOLD
Oceana Bal Harbour
50% SOLD
BAL HARBOUR
*
21 Total Units
The Bath Club Estates
Edition Residences
SURFSIDE
Developer Units Unsold
159 Total Units 58 Total Units 150 Total Units 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
400 Sunny Isles
100% SOLD
Armani Casa
80% SOLD
Chateau Beach
98% SOLD
Jade Signature
80% SOLD
SUNNY ISLES BEACH
Parque Towers
80% SOLD
Mansions At Acqualina
96% SOLD
Porsche Design Tower
93% SOLD
Turnberry Ocean Club
84 The Total Units 192 Total Units
79 Total Units 139 Total Units 39 Total Units 154 Total Units 100% SOLD
80% SOLD 100% SOLD
Hyde Resort and Residences
100% SOLD
HOLLYWOOD BEACH
Sage Beach
71% SOLD
84 Total Units 182 Total Units
Apogee Beach *
68 Total Units 320 Total Units
10% SOLD
BeachWalk
Park Towers
250 Total Units
90% SOLD
*
HALLANDALE BEACH Gulfstream
230 Total Units
50% SOLD
Muse
Regalia
Developer Units Unsold
49 Total Units 40 Total Units
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
AVENTURA
Echo Aventura
85% SOLD
Bellini
70% SOLD
Prive
40% SOLD
Developer Units Unsold
190 Total Units 70 Total Units 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
NORTH MIAMI Beach
The Harbour
60% SOLD
Marina Palms Towers I & II
79% SOLD
KEY BISCAYNE
Oceana
Grove at Grand Bay COCONUT GROVE
One Park Grove Two Park Grove
Park Grove Club Residences
Developer Units Unsold
330 Total Units 468 Total Units
100% SOLD
154 Total Units
100% SOLD 97 Total Units COMING SOON 65% SOLD
50% SOLD
40 Total Units
73 Total Units
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
1800 Las Olas Adagio On The Bay
75% SOLD 83% SOLD
4 Total Units 12 Total Units
COMING SOON
AquaBlu Fort Lauderdale
FORT LAUDERDALE
Developer Units Unsold
45 Total Units
AquaLuna Las Olas
50% SOLD
16 Total Units
AquaMar Las Olas
90% SOLD
20 Total Units
AquaVita Las Olas
100% SOLD
22 Total Units COMING SOON
Auberge BellaVita Las Olas Paramount Fort Lauderdale Privage Riva
COMING SOON 50% SOLD 7% SOLD 40% SOLD
171 Total Units
16 Total Units
95 Total Units 22 Total Units 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 Corridor (Downtown Miami, Edgewater, Wynwood, Midtown & Design District), the Beaches (South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale, Hollywood) Aventura, North Miami beach, Coconut Grove & Key Biscayne Since Jan. 2012.
16,033 Total
6,003 Unsold
10,000 Project Units Total Developer Units Sold Developer Units Unsold
62% SOLD AS OF OCT 2014
ISG MIAMI REPORT
19
A1A
75
FORT LAUDERDALE
PIKE FLORIDA’S TURN
595
HOLLYWOOD BEACH
1
A1A
HALLANDALE BEACH
AVENTURA
95
SUNNY ISLES BEACH
BAL HARBOUR SURFSIDE 1
NORTH MIAMI BEACH
95
DESIGN DISTRICT MIDTOWN BISCAYNE CORRIDOR
A1A
MIAMI BEACH /
EDGEWATER
WYNWOOD
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 Bal Harbour 50% SOLD Surfside 56% SOLD North Miami Beach 70% SOLD Miami Beach / South Beach 82% SOLD
New Construction % SOLD Summary by Sub Markets 100% SOLD 75% - 99% 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 Aventura Fort Lauderdale
200 PER YEAR 265 PER YEAR 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 SUNNY ISLES BEACH
Architect: Cohen, Freedman, Encinosa & Assoc. 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
SURFSIDE
JADE SIGNATURE
Architect: Herzog & de Meuron AC Area: 16,915 Price: $32,500,000 Price PSF: $1,921
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 / SOUTH BEACH
Architect: Bernardo Fort-Brescia 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 MIAMI
BRICKELL
24
ISG MIAMI REPORT
Architect: Zaha Hadid AC Area: 15,738 Price: $45,000,000 Price PSF: $2,859
ECHO BRICKELL
Architect: Carlos Ott AC Area: 10,305 Price: $37,500,000 Price PSF: $3,639
Muse Sunny Isles
Mansions at Acqualina
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 1,000 800
$425
1,049
$510
$470
$527
$600 $500 $400
804 698
600
$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 1,000 800
$437
1,071
$488
$532
$564
$500 $400
814 660
600 400
$600
$300
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
$427
500
436
400
$409
300 200
387
$402
$417
$430 $420 $410
255
194
100
$400 $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
$1,011
2,000 1,800
$1,000
1,717
1,600
$980
$957
1,400
$960
$933 1,332
1,200 1,000 800
$1,020
$907
600
$940 $920
890
$900
623
400
18 Months Ago 12 Months Ago
$880 $860
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
900 800 700 600
844
$353
$379
$405
$439
$450 $400 $350
610
500
$500
$300
400
$250
372
300 200
$200
240
100
$150 $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
$257
500
485
400
100
$215
$260 $250 $240 $230
330
300 200
$231
$242
$270
$220
202
$210
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
120 160
Biscayne Corridor
30
110
Aventura The Beaches
32
31
90
35 160
Greater Fort Lauderdale
147
East Palm Beach
37 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
$2,500
$2,000
$2.73 $2.82
$2.68 $2.55 $2.61 $2.45 $2.38 $2.42 $2,700 $2,650 $2.31 $2.33 $2.36 $2.36 $2,610 $2,638
$2,140
$2,250
$2,370
$2,460
$2,475
$2,790
$3.00
$2.50
$2,590
$2,510
$2.00
$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
18%
2010 Vacancy Rate
9%
82%
2014 Vacancy Rate
1%
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
$2.69 $2,700
$2,600
$2.20 $2.20 $2.25 $2.27 $2.29
$2.78
$2.45 $2.48 $2.42 $2.41 $2.40
$3.00
$2.50
$2675 $2,578
$2,600
$2,628 $2.00
$2,500
$2,504 $2,444
$2,400
$2,300
$2,200
$2,250
$2,287
$2,298
$2,302
$2,315
$1.50
$2,341 $1.00
$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
13%
2010 Vacancy Rate
10%
87%
2014 Vacancy Rate
3%
90%
97%
Occupancy Rate Vacancy Rate 36
ISG MIAMI REPORT
Source: Multiple Listing Service
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
$4.21 $3.76
$6,000
$5,000
$2.76 $2.67 $2.72
$4,000
$4,327 $3,851
$3.12 $2.91 $3.06 $4,611
$4,716
$3.34 $3.35 $3.36 $4,685
$4,893
$4,709
$3.59 $5,380
$5,620
$4.50
$4.00
$5,813
$3.50
$3.00
$4,376
$2.50
$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
14%14%
20%
80%
2014 Vacancy Rate
2%
86%86%
98%
Occupancy Rate Vacancy Rate
Source: Multiple Listing Service
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Aventura Jan 2013 - Oct 2014 New Construction Condos Built since 2006
Avg. Price
Avg. Price PSF
$3,500
$3,000
$2,500
$2.50
$1.88 $1.98 $2.02 $1.85 $1.77 $1.80 $1.76 $1.72 $1.74 $1.70 $2,961 $1.64 $1.69 $2,720 $2,750 $2,679
$2,000
$2,320
$2,415
$2,480
$2,502
$2,517
$2,525
$2,617
$2.00
$2,621
$1.50
$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
1%
1%
99%
2014 Vacancy Rate
1%
99%
99%
Occupancy Rate Vacancy Rate 38
ISG MIAMI REPORT
Source: Multiple Listing Service
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 $1.76 $1.88 $1.92
$2,500
$2,000
$1,500
$1.66
$1.70
$1.73
$1.75 $1.60
$1.54 $1,785
$1,920
$2,035
$2,149
$2,234
$2,329
$2,363
$2,422
$2,484
$2.00
$2,656
$2,680
$2,720 $1.50
$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
13%
2010 Vacancy Rate
6%
10%
87%
2014 Vacancy Rate
90%
94%
Occupancy Rate Vacancy Rate
Source: Multiple Listing Service
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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 321,360,000 MIL
2015*
300 MIL
2006
200 MIL
1967 1914 *Est. Projection
40
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100 MIL
State Population Growth
1914
1967
2006
2015*
2020*
2040*
1. New York 5. Texas 12. California 33. Florida
1. New York 2. California 6. Texas 15. Florida
1. California 2. Texas 3. New York 4. Florida
1. California 2. Texas 3. Florida 4. New York
1. California 2. Texas 3. Florida 4. New York
1. California 2. Texas 3. Florida 4. New York
Florida Population Growth = 1 MIL
2040*
26 MIL
2020*
21.2 MIL
2015*
20,297,000 MIL 18 MIL
2006
6.6 MIL
1967 1914
882K Source: US Census Bureau
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INTERNATIONAL MARKET REPORT
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South America Report
by Liliana Gomez - Director of International Sales & ISG’s International Division
In the 21 years that ISG has been selling South Florida real estate, a constant shift in the patterns and motivations of International buyers has become apparent. In the early 1990’s, buyers consisted of wealthy families looking for vacation homes, mainly from the large cities of São Paulo, Brazil, and Buenos Aires, Argentina. By the late 1990’s, the buyer profile shifted to Bogota, Colombia, Caracas, Venezuela, and Mexico City, Mexico. These buyers were not only looking for vacation homes, but for investment properties as well. Fast forward to 2014, and we see that buyers from every South American country and most cities, are buying real estate in Miami and South Florida. ISG has witnessed two decades of South American real estate purchases in Miami, creating a concentration of new residents and families from these countries unlike any other city in the U.S. This critical mass of South American property owners now compares with property owners from the Northeast US and Canada, making Miami the playground for families from both Americas. Today, the motivating factors behind the decision of many South Americans to buy in South Florida include: • Tropical Weather • Security • Nightlife • Growing Cultural Center • Prestige • World Class Shopping
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Within different regions of South America, specific patterns are emerging that explain, in better detail, motivating factors for South Florida real estate purchases: Colombia
Colombia has changed in recent years; the economy is now soaring, and the country has almost doubled its population of millionaires in only five years. Colombians are visiting South Florida in large numbers, buying homes for pleasure rather than just as an investment. Colombians are now looking to invest their wealth in a secure and enjoyable environment. Source: Fundspeople.ci, October, 2013
Brazil
Brazilians have always been attracted to the U.S., particularly South Florida. One of the greatest appeals South Florida offers to Brazilians is the world-class shopping - the prices are substantially lower than in Brazil. Additionally, we are seeing a steady increase of direct flights from Brazil to Miami, which is an absolute reflection of the influx of Brazilian visitors. According to CNN, Florida is the top U.S. vacation destination for Brazilians. Source: CNN.com February, 2012
Peru
With the emergence of an increasing segment of young and wealthy Peruvians with disposable income, interest in the South Florida lifestyle continues to grow. Additionally, Peruvian families are purchasing homes here in order to enroll their children in well diversified universities. South Florida is more than a financial investment for this community, it a lifestyle investment.
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.
Mexico
São Paulo
Rio
Buenos Aires
Bogotá
Caracas
Panama
Venezuela 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.
Colombia
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 longterm 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 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).
Argentina
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China A new market is emerging for South Florida real estate China. According to the National Association of Realtors, China has become the largest real estate buyer in the US overall, and those buyers are now beginning to shift their focus to Miami. “Until this year, Chinese investors were not among the top international buying groups in the Miami market. But through the first six months of
2014, Chinese buyers represented about 1.6 percent of properties sold in Miami-Dade County” according to the Miami Association of Realtors. We will continue to see an increase in interest from China with the expansion of the Panama Canal underway and the Port of Miami positioning itself to benefit from the new trade opportunities.
MOTIVATING FACTORS FOR THE EMERGING CHINESE REAL ESTATE BUYERS:
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1
2
3
CLIMATE, ENVIRONMENT & LIFESTYLE Miami’s low pollution (our city was named “America’s Cleanest City” by Forbes Magazine), it’s year-round air quality, vast green spaces, and clean drinking water. make it an attractive city to live in. The tropical climate is inviting for all types of outdoor lifestyle activities and events.
CHINA’S LIMITS ON REAL ESTATE INVESTMENTS The real estate market in China has seen a golden decade of fast growth. Today, the Chinese government has imposed a limit on the number of properties allowed to be owned by a single household, inside China. This policy is driving many wealthy people to look overseas for investment opportunities,. In South Florida, pre-construction properties sell for less than 50% of the equivalent in Beijing.
TRADE The completion of the Panama Canal will make Miami aninternational trading center, connecting North America, South America, and Asia. Currently, China is Florida’s largest importer, it’s third largest merchandising partner, and the Port of Miami’s number one customer in overall tonnage. Most experts agree, with the opening of the Panama Canal, Chinese businesses will begin opening regional offices throughout South Florida, affecting all sectors of real estate (industrial, commercial, and residential).
ISG MIAMI REPORT
Asian Capital into U.S. Multifamily 2014 TOP 5 METROS
4 Seattle
1 San Francisco
New York 3
2 Los Angeles
5
South Florida
2004
2010
2014
1. New York 2. Washington, D.C. 3. Los Angeles 4. San Francisco 5. Seattle 10. South Florida
1. New York 2. Washington, D.C. 3. Boston 4. San Francisco 5. Los Angeles 8. South Florida
1. Los Angeles 2. San Francisco 3. New York 4. Seattle 5. South Florida
Source: CBRE Capital Markets, Assets, Real Estate Industry and Trends, December, 2004 survey
Source: Business Wire, January, 2011
Source: CBRE Capital Markets, Real Capital Analytics, October, 2014
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TRANSPORTATION
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AIR
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 traffic with 40.5 million passengers, an increase of 3% over 2012. Of the total passengers that traveled through MIA, 50% were international, which is one of the highest international to domestic passenger percentages of any US airport. During 2013, MIA handled 49% of the U.S. to South American passenger market, and was the largest connecting point for flights between the Americas, and for flights between the Americas and Europe. MIA has recently completed a $6.4 billion Capital Improvements Program (CIP), the largest components of which are the new South and North Terminals. The Terminal expansion has increased gates by 23% and there are now 29 more gates with international and domestic capability.
2014 Total Passengers to/from Latin America & Caribbean By U.S. Gateway
Miami (MIA)
15.1 MIL
New York (JFK)
7 MIL
Hartsfield Atlant (ATL)
3.8 MIL
Houston (IAH)
2.7 MIL
Fort Lauderdale (FLL)
2.5 MIL
Newark (EWR)
1.8 MIL
2014 WEEKLY TO/FROM LATIN AMERICAN/CARIBBEAN FLIGHTS:
20,200,000
Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014 / 2015 Miami Dade Aviation Department
1,120
MIA INTERNATIONAL PASSENGERS 2014
Ranking of Major US Airports - 2014 International Passengers 1
New York (JFK)
Miami (MIA)
20.2 MIL 3
Los Angeles (LAX) Newark (EWR)
4 5
Hartsfield Atlanta (ATL)
6
Chicago O’Hare (ORD) 7
San Francisco (SFO) 8
Houston (IAH) 9
Washington Dulles (IAD) Dallas Fort Worth - (DFW)
10 5 MIL
50
2014 Ranking:
2
20.2 MIL
2010 Ranking:
3
14.7 MIL
2004 Ranking:
4
9.8 MIL
ISG MIAMI REPORT
2
10 MIL
15 MIL
20 MIL
25 MIL
Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014-2015 Report. Miami-Dade Aviation Department
San Francisco
New Jersey
Chicago
252
392
602
Los Angeles
700
New York
1,708
Washington D.C Atlanta
784
903
Dallas
560
Houston
476
MIAMI
Mexico
296
Venezuela
66
Colombia
76
2014 Weekly Direct Flights
Surinam
5
Guyana
2
Ecuador
35
Domestic Latin America
Peru
35
Brazil
110
Bolivia
7
Paraguay
4
Argentina
42
Uruguay
7
Chile
27
Source: Miami-Dade Aviation Department Marketing Division *Caribbean Region Not Included
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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 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
MiamiCentral, All Aboard Florida’s multimodal hub 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: • Connect with existing public transit systems—MetroRail, MetroMover & MetroBus, through the new terminal • Create approximately 3.5 million square feet of office, retail, residential and hospitality space • Feature a mix of premier and unique dining and shopping options as well as entertainment venues
$6 Billion
IN DIRECT ECONOMIC IMPACT TO FLORIDA’S ECONOMY OVER THE NEXT 8 YEARS MiamiCentral Station
Source: All Aboard Florida
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Orlando- Approx. 3 Hours
LAND
Fort Lauderdale- Approx. 25 min. Miami
“ All Aboard Florida has officially begun construction to the Fort Lauderdale station... the station is expected to create about 800 construction jobs and have an economic impact of $333 million through 2021.” Source: South Florida Business Journal - 10/14
Over 10,000 Jobs ON AVERAGE PER YEAR THROUGH THE RAIL LINE CONSTRUCTION (FALL 2014-FALL 2015)
UP TO
3 Million
VEHICLES REMOVED FROM THE ROADS EACH YEAR
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 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 relative importance with China. China is PortMiami’s No. 1 trade partner, more than doubling it’s numbers in a short time. A decade ago, China accounted for 11.44% of all PortMiami trade while today that market share is up to 26.43%, according to WorldCity analysis of U.S. Census Bureau. PORTMIAMI / CHINA TRADE %
2014: 26.43% 2004: 11.44%
SEA
PortMiami
Super Post Panamax: 176’
Post Panamax: 136’
Panamax: 106’
50’
“ The countdown is on! The Panama Canal project is two-thirds completed. A wider and deeper canal means shippers will have new options for all water routes from Asia to markets on the East Coast, PortMiami, the first U.S. port of call from Panama, is well positioned to benefit from the new trade opportunities.” 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 Panama Canal Expansion Completion
SCHEDULED 2015 SCHEDULED SUMMER 2016 Source: Miami Today, Panama Canal Authority
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INE CUIS ION
H FAS
so ore m n eve ch and Whi . y y r t t i g c coun nd youn our ss a f y e o r n i e ope a v bus ic i is e sc Mag sive m o e l a i h p t In th ex o en d, M the rtak ng t worl e y v h e o xciti w h t e s y a l o h e s, en s ines recis that s e p u b h t b s i has row t to d. ral g vate men ears i u t y n t l i l u a t u t c cen ing c nter in re to e is be t y y r t t i i a C ing c rom is ris h. F h c t t f a o w pect y as r e v e
fi
u t l u c & s t r a
n i a t r e t en
SPO
LITY PITA HOSR T S
Y G O L O N H C T E
Edu
n o i t ca
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ilm e
r u
t n e m n
CULTURAL & ECONOMIC GROWTH
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“ 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
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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 $500 MIL ECONOMIC IMPACT 75,000 VISITORS Estimated
Source: nbcmiami.com, 2013
Each Year
Source: artbasel.com, 2014
The world’s premier international art show, Art Basel, a four day event displays an estimated $3 billion worth of paintings, photographs and sculptures. The show has been breaking records since its inception in 2002. Last year, Art Basel Miami Beach – reported over $100 million in sales. But Art Basel goes well beyond art. The week leading up to and during the fair encompasses
fashion shows, dozens of additional art fairs such as Scope, ArtMiami and the Brazilian Art Fair, major food and dining events, pop-up bars, music concerts, film premieres, and stars at every turn. The economic impact on Miami of this weeklong cultural event has been estimated at $500 million, with 75,000 attendees from around the world. Sources: Los Angeles Times, 2002, Art Basel 2014
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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.
“Second only to the Lincoln Center” Travel and Leisure.com, Nov. 2011
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. Each year, the Arsht Center presents new and exciting programming in its 570,000 square feet of downtown performance space including Broadway musicals, World Music & Dance Series Comedy Planet, Florida Grand Opera, the Miami City Ballet, 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
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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 and baseball, but one professional sport has been missing for the city’s legions of fans – soccer. Enter David Beckham. He and his business group, Beckham Miami United, have announced plans to start a Miami MLS soccer team and build a 20,000 seat stadium using 100% private funding.
“ It can’t be that the most Latin city in this country doesn’t have a soccer team, my job is to make sure to change this.” David Beckham Despierta America Sept 2014
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 Bil ion 3,000
FILM & ENTERTAINMENT INDUSTRY ANNUAL ECONOMIC IMPACT ON SOUTH FLORIDA
LOCAL FILM & ENTERTAINMENT COMPANIES
Sources: MiamiWalkofFame.com
film
For decades, Miami has served as the backdrop for a variety of film and television productions. In recent years, Florida’s film industry has extended beyond the background and moved into the foreground of development, promotion and exhibition.
70,000 attendees 2014 FESTIVAL
“ Miami offers a seasoned film community and 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 multi-million dollar lease for a large-scale production studio in 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: MercedesBenz Fashion Week Swim, Miami Beach International Fashion Week and Funkshion Fashion Week. The largest of the three, Mercedes-Benz Fashion Week Swim, is an international event on the calendar of every editor and fashionista, celebrating the sexiest swimwear designs and resort wear of the year.
Mega-designer Tommy Hilfiger recently named Miami his new home and will be working on a large-scale design project here. Source: cnn.com, 2014
“Miami Beach International Fashion Week has become the largest latin american and international fashion festival in the United States”. Source: Elite Traveler
Courtesy of Mara Hoffman
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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
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S I L I C O N S O U T H Miami has seen substantial recent growth in the financial and corporate sectors, but almost nothing can compare to the technology boom that has taken over South Florida. Now nicknamed “Silicon Beach,” The Magic City has birthed over 1,000 startups in the last few years including rising stars STS, Open English and Live Ninja. The city has also established co-working spaces to support tech growth such as The Lab Miami, Venture 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 of these startups and tech support companies have their own funding sources as well such as Endeavor’s venture capital fund, Catalyst. Additionally, organizations such as The Miami Economic Development Council, Florida International University and the Knight Foundation are investing major backing and funding in an effort to grow and support Miami’s tech boom. Most recently, the mysterious South Florida tech firm Magic Leap received over $500 million in funding from Google to develop their high-tech product. 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 event will take place in May 2015, where 10,000 attendees are expected. European-based Sime Northern Europe’s largest conference on Internet and digital opportunities, jumped on the Miami tech wagon last year with Sime MIA. This year, they’ll do it again in December 2014. Besides the financial backing available to South Florida startups, the region is clearly the gateway to South America – where the amount of Internet users has doubled in the past ten years*. This gateway is not simply a cultural perception, rather in tech terms, it’s a matter of speed – the link from Miami to South America is a matter of milliseconds, whereas it would take much longer from other areas. *Pingdom.com, 2012
MICROSOFT PICKS MIAMI FOR 1ST US INNOVATION CENTER
MICROSOFT VICE PRESIDENT SANET AKERKAR TOLD THE ASSOCIATED PRESS THE COMPANY LOOKED AT MIAMI AS A GREAT HUB FOR TECH IN THE SOUTHERN UNITED STATES.
- Bringing Microsoft in is part of the broader goal of “bringing the world to Miami.” May 30, 2014 | Arian Campo-Flores
WOULD YOU BELIEVE IT? MIAMI HAS A REAL TECH SCENE NOW
TECH COMPANIES FLOCK TO MIAMI TO REACH LATIN AMERICA.
“ We are the logical point to be the technology capital of Latin America,” said Manuel Medina, founder of Terremark, a Miami data-services company acquired by Verizon Communications for $1.4 billion in 2011. May 30, 2014 | Arian Campo-Flores
SQUARE CO-FOUNDER: HOW I PLAN TO BOOST MIAMI’S TECH TALENT JIM MCKELVEY, SQUARE FOUNDER (VALUED AT $6 BILLION)
“...recently moved to Miami to expand his nonprofit LaunchCode, which helps train and place programmers. “We’re particularly excited about [Miami coding school] Wyncode”, McKelvey told the South Florida Business Journal, and he even discussed working with a team from Harvard here, saying, “My guess is that the Harvard team could be convinced to come to Miami, especially when the temperature starts dropping in Boston next month.” Source: Business Journal, 2014
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H OT E L S 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 South Florida Hotels Located East of Interstate 95
Sampling of South Florida’s 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
A N T I C I P AT E D H O T E L O P E N I N G S
The Edition - Miami Beach
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Aloft South Beach
The Thompson - Miami Beach
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 introduced some exciting newcomers recently such as Tongue & Cheek, Il Mulino, Bar Crudo, Naked Taco, 1826, Ceviche 105, Lure, a new chef at The Forge, Traymore, and Top Chef’s Fabio Viviani’s Siena Tavern.
These are in addition to mainstays such as Prime 112, Joe’s Stone Crab, Makoto, Cecconi’s at Soho Beach House, Khong River House, the numerous delectable restaurants at the Fontainebleau, Yardbird, the Pubbelly chain and many more.
A S A M P L I N G O F N E I G H B O R H O O D E AT E R I E S DOWNTOWN BRICKELL
T he
tin m el
g po
DESIGN DISTRICT, EDGEWATER, WYNWOOD & MIDTOWN
rant scene has exploded in the past few y u a t s e r e i’s Miam nts and visitors has brought an array of sophi ars... stica t esi de ed , t t of r
CORAL GABLES & SOUTH MIAMI
a sty
cui s
in e. ” ISG MIAMI REPORT
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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. • • • •
Skyrise Miami
• $430 MIL Project • 3 Observation Decks • Restaurant, Nightclub, Ballroom, Meeting Room, Interactive Exhibit • Estimated 3.2 MIL visitors per year Source: SkyriseMiami.com
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 Source: MiamiDDA, May 2014
East Flagler Street Redevelopment
• $13 MIL Project • Portions of historic street to be transformed into pedestrian-friendly promenade Source: Miami Today, October 2014
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E du c a ti o n 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
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ISG CITY WATCH
Doral Nationally Ranked #2 “25 Best Cities in the United States to Live Well”
Population Growth 47,534
50,000
Overall Value Assessed Property $12 BIL*
50,000+
*
$10 Billion
$8.4 BIL
40,000 30,000
26,438
$5 Billion
$4.9 BIL
20,000 10,000
May, 2009
• Business Week ranked Doral as the number one city in Florida to start a business.
2003
2012
2014
2003
*Projected
2012
2024-34
*Projected
Source: Miami Today, 2014 City Planning & Zoning Dept.
• Amazon.com signs Doral distribution center lease, to create 500 jobs.
Source: South Florida Business, November 21, 2014
Downtown Miami Brickell 20 Min. 22 Min.
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Miami International Airport 10 Min.
Doral Design District
Trump National Doral Blue Monster Course
“ 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 • Complete Redesign of Golf Course scheduled to be completed Fall 2014 • New Meeting and Event spaces totaling over 100,000 sq. ft. • Addition of BLT Prime, a modern American Steakhouse
• Resort Clubhouse (includes dining venues and retail shops) undergoing comprehensive makeover • The New Royal Palm Pool featuring all new landscape and patio design with expanded seating capacity • New State-Of-The-Art Fitness Center
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Photo Credit:
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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.
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Downtown Miami 2020
DOWNTOWN MIAMI: $11 BILLION IN NEW DEVELOPMENT THROUGHOUT 20 BLOCKS One Bayfront Plaza Skyrise Miami Tower Biscayne Boulevard (FECR) (Berkowitz) Beautification 4.2 million sq. ft. Grand Boulevard Landscaping & 1000 Ft. Observation Tower 72 Story Tower Mixed Use Retail and Baywalk Links Streets, Mixed-use, Hospitality Parks and Bay Office, Hotel, Retail $400 Million $2 Billion
MET (MDM) JW Marriott Hotel Beaux Arts Hotel MET Square 470 Hotel Rooms 1,700 Seat Theatre 4 Story Retail, 41,000 Sq. Ft. Restaurant Whole Foods
Flagler on the River (MELO) 32 Stories 300 Condo Residences
All Aboard Florida (Florida East Coast Industries) Mixed use 9 Acres 1.5 Million Sq. Ft. Office, Residential, Retail , and Hotel
EPIC
CENTRO (Newgard) 37 Stories 350 Loft Style Condos $90 Million
Vizcayne Two 49 Story Towers 849 Condos 55,000 s.f. Retail $265 Million
300 Biscayne (PMG) Residential and Commercial
Krystal Tower (Rodolfo Ishak) 35 Stories 153 Condos
GUSMAN CENTER MET
MIAMI DADE COLLEGE
VICEROY
MIAMI RIVER
BAYFRONT PARK
BAYSIDE MARINA
BISCAYNE BAY
CRUISE SHIP PORT
TO SOUTH BEACH
AMOUNTS ARE AN ESTIMATE
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Port of Miami Tunnel Connects I-395 and Watson Island to Port $607 Million
600 Biscayne TBD
Miami World Center (Falcone) 12 million sq. ft., 27 Acres Hotel, Retail, Civic Space, Office, Residential $4 Billion
1000 Museum (Covin) 63 Stories 83 Condos Design by Zaha Hadid $300 Million
Museum Park 29 acres. Perez Art Museum Miami Patricia & Phillip Frost Museum of Science $500 Million
Adrienne Arsht Center 48,000 sq. ft. Film Production Studio $13.6 Million
Resorts World Miami (Genting) 14 acres Destination Resort Hotels & Residences $3 Billion Proposed
Canvas (NR Investments) 37 Stories 513 Condos
Overtown Gateway (Peebles) 2 Phases 150 Staybridge Hotel Room Suites 635 Apartment Units 60,000 Sq. Ft. Retail 100,000 Sq. Ft. Office $200 Million Proposed
Paramount Miami World Center 749 Ft. Signature Tower 466 Condos
Omni (Genting) 1.5 million sq.ft. Hilton Hotel, Office, Retail & Potential Casino $400 Million
MIAMI INTERNATIONAL AIRPORT
MIAMI RIVER DISTRICT
MARLINS STADIUM
FREEDOM TOWER
PERFORMING ARTS CENTER
AMERICAN AIRLINES ARENA
I-395 BISCAYNE BAY WATSON ISLAND MARINA
STAR ISLAND
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Brickell 2020
BRICKELL: $6 BILLION IN NEW DEVELOPMENT Landscape Park Public Bayfront Park Proposed
Echo Brickell (PMG & JDS) 180 Luxury Residences 57 Stories Collaboration by Carlos Ott + yoo Studio
Le Parc (ALTA & Strategic) 128 Boutique Condos 12 Stories
CORAL GABLES
BISCAYNE BAY
AMOUNTS ARE AN ESTIMATE
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Cassa Brickell (TSG) 10 Stories 81 Condos
Atton Hotel 270 Rooms 12 Stories Design by Luis Revuelta
Brickell House (New Guard) 374 Condos 46 Stories
SLS Brickell (Related) 453 Condos 120 Hotel Rooms 52 Stories Design by Phillipe Stark
Panorama Tower (Florida East Coast) 821 Condos 128 Hotel Rooms 81 Stories 82,000 Sq. Ft. Retail 38,000 Sq. Ft. Office
1100 Millecento (Related) 382 Condos 42 Stories Design by Carlos Ott + Pininfarina
The Bond (MDR) 323 Condos 43 Stories
BrickellTen (IBGroup) 155 Condos 22 Stories
1010 Brickell (Key International) 352 Condos 47 Stories Design by Sieger Suarez
Brickell Flatiron (Ugo Colombo) 548 Condos 65 Stories Design By Luis Revuelta
NINE at Mary Brickell (Starwood Capital & Lynd) 390 Condos 48 Stories Design by ADD
Brickell Heights (Related) 2 Towers 690 Condos 48 Stories Design by Arquitectonica SLS Lux (Related) 450 Condos 85 Hotel Suites 57 Stories Design by Arquitectonica
MARLIN’S STADIUM
Brickell City Centre (Swire) 5.4 million Sq. Ft. 9 Acres 780 Condos 93 Apartments 243 Hotel Rooms 520,000 Sq. Ft. Retail 240,000 Sq. Ft. Office
My Brickell (Related) 192 Condos 27 Stories
Edge on Brickell (Grupo Habitat) 130 Condos 58 Stories Design by Luis Revuelta
One Brickell (Related) 3 Towers 80 Stories 70 Stories 55 Stories 1,200 Condos 200 Hotel Rooms 200,000 Sq. Ft. Retail Proposed
MIAMI RIVER DISTRICT
DOWNTOWN
BRICKELL KEY BISCAYNE BAY
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Biscayne Corridor 2020
EDGEWATER, MIDTOWN AND DESIGN DISTRICT: $3.5 BILLION IN NEW DEVELOPMENT Aria on the Bay (Melo) 647 Condos 50 Stories 40,000 SF Commercial Space
The Filling Station (FLS Development) 81 Condos Proposed
DOWNTOWN MIAMI
National Young Arts Foundation Proposed New Campus Designed by Frank Gehry at Historic Bacardi Building
Biscayne Line Public Bay Walk Proposed from Venetian Cswy to Julia Tuttle Cswy
MARLIN’S STADIUM
ADRIENNE ARSHT PERFORMING ARTS CENTER PÉREZ ART MUSEUM
AY EW AUS H C R C THU I BEA M CAR MA O MIA T
AMOUNTS ARE AN ESTIMATE
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District Walls On-going Art Movement
250 Wynwood (Fortis) 11 Condos 6 Stories Mixed-Use Retail
Mbay (Hyperion) 129 Condos 39 Stories Proposed
MIAMI INTERNATIONAL AIRPORT
MIAMI RIVER DISTRICT
AMERICAN AIRLINES ARENA
Wynwood Art
AY EW US CH A C EA IAN I B ET IAM N VE O M T
Bay House (Melo) 164 Condos 38 Stories
The Crimson (Mckafka) 90 Condos 20 Stories
Ion (Sakor) 330 Condos 36 Stories Design by Arquitectonica
Icon on the Bay (Related) 300 Condos 42 Stories
Biscayne Beach Club (Eastview) 399 Condos 51 Stories
WYNWOOD
NEW PUBLIC & PRIVATE PARK 1/2 ACRE
Paraiso Bay (Related) 2 Towers 720 Condos 55 Stories
Paraiso Bayviews (Related) 388 Condos 44 Stories
New Public & Private Bayfront Marina and Park
One Paraiso (Related) 276 Condos 53 Stories
SHOPS AT MIDTOWN
Hyde Midtown (Related) 40 Hotel Units 397 Condos 31 Stories *Midtown
Dacra Project (Craig Robins) 540,000 Sq. Ft. Luxury Retail *Design District Proposed
Baltus House (Related) 167 Condos 15 Stories
The District 36 (Terra) 60,000 Sq. Ft. High-End Home Furnishing Retail Proposed
MIAMI DESIGN DISTRICT
LUXURY BAYFRONT RESTAURANT JU
LIA T TO UTT MI LE AM CA I B US EA EW CH AY
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Doral 2020
DORAL: $2 BILLION IN NEW DEVELOPMENT Vintage Estates (Terra) 28-acre gated community 110 Residences Single Family
The IVI Doral 64 Condos 12-acre development
Modern Doral (Terra) 3 Phases 316 Condos Luxury Single Family 27-acre development 150,000 Retail Space
Midtown Doral (Optimus) 3 Phases Phase I + II 509 Condos Phase III TBD 150,000 Sq. Ft. Retail 90-acres
DOWNTOWN MIAMI
MIAMI INTERNATIONAL AIRPORT
AMOUNTS ARE AN ESTIMATE
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Isles at Grand Bay (Lennar) 672 Condos Luxury Single Family
Downtown Doral 5252 Paseo + 5300 Paseo (Cordina) Mixed-use Community 1 Million Sq. Ft. (Office) 180,000 Sq. Ft. (Retail) 2,840 Condos
Bel Air Doral (ZOM) 249 Condos Luxury Rental Complex Groundbreaking Aug. 2013 4.2-acres Lakefront
City Place Doral (Related) 48-acres 22 Million Sq. Ft. 300,000 Sq. Ft. Retail 280,000 Sq. Ft. Office 1,000 Residences
Oasis Park (Optimus) 150 Condos Single Family
Trump National Doral $250 Million Renovation 100,000 Sq. Ft. Event Space New BLT Prime Restaurant
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Ft. Lauderdale 2020
FORT LAUDERDALE: $3 BILLION IN NEW DEVELOPMENT Auberge Beach Residences (Related) Two Towers 17 - 22 Stories 171 Condos
Elan 16Forty (Greystar) 10 Stories 261 Condos 6,000 Sq. Ft. Gym 2,300 Sq.Ft. Retail Proposed
RIVA (Premier) 14 Stories 100 Condos
The Pearl at Flagler Village (Morgan) 7 Stories 331 Condos Henry Square (Related) 6 Stories 382 Residences 25,000 Sq. Ft. Retail
Adagio 2nd Street Residences On the Bay (Ellis Diversified) (Grupo Alco, Garcia 30 Stories Stromberg + GS4 398 Condos Studio Architects) 2,200 Sq. Ft. Retail 12 Condos Proposed
AquaBlue Ft. Lauderdale (Roy & Eisinger) 45 Condos
Paramount (Encore Housing and Kodsi) 18 Stories 95 Condos Privage (Roy & Eisinger) 22 Condos Gale Hotel & Residences (Neward Development & Menin Hospitality) 128 Condos
Aquavita Las Olas (Roy & Eisinger) Two Waterfront Buildings 22 Condos BellaVita Las Olas (Roy & Eisinger) 16 Condos W Hotel & Residences (Related NY) 171 Condos
AquaLuna Las Olas (Roy & Eisinger) Two Waterfront Buildings 16 Condos AquaMar Las Olas (Roy & Eisinger) Three Waterfront Buildings 20 Condos
BR
OW AR
D
BO
UL
EV AR
D
DOWNTOWN FORT LAUDERDALE
AMOUNTS ARE AN ESTIMATE
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MUSEUM OF DISCOVERY AND SCIENCE
BROWARD CENTER FOR THE PERFORMING ARTS
Crocker Tower (Crocker) 42 Stories 395 Condos Proposed
New River Village III (American Land Ventures) 15 Stories 209 Condos 2,245 Sq. Ft. Restaurant
Marina Lofts (Asi Cymbal) 2 Towers 28 - 30 Stories 856 Condos 29,000 Sq. Ft. Retail & Restaurant Designed by Bjarke Ingles Proposed
New River Yacht Club (Related) 26 Stories 249 Condos $36 Million
South Andrews Tower (Fred Kern) 37 Stories Office, Hotel & Residences Proposed
Airport and I-595 $42.5 Million Expansion to I-595 $791 Million runway renovation at Ft. Lauderdale Airport
ICON Las Olas (Related) 272 Residences Under Construction
LAS OLAS BOULEVARD
1800 Las Olas (Roy & Eisinger) 4 Condos
8th Avenue Residences (Rockefeller) 262 Condos 2,500 Sq. Ft. Retail
SOUTH FEDERAL HIGHWAY
RIVER FRONT
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ON THE GROUND REPORT
QA &
Alex Vidal
MANAGING DIRECTOR
RelatedISG International Realty
The State of South Florida General Realty
Q: What kind of single-family homes are people buying in South Florida now?
Q: What neighborhoods are the hottest right now for new properties?
A: We are now seeing a shift from people buying less expensive homes and paying for private schools to people buying more expensive homes in areas with stronger Public School systems.
A: Brickell, Downtown, Edgewater, the Beaches, East Fort Lauderdale and Doral area (the one “western” neighborhood drawing major interest) are all very active. Interestingly enough, with the exception of Doral, these are all high-rise areas with little single-family home activity. Actually, most of the new construction in single family homes is concentrated in the western fringes of the tri-county area.
Q: What reasons are foreign buyers giving your agents for buying in South Florida? A: I would have to say that the major reason foreign buyers are buying is for security - both personal and financial presently. Q: That addresses demand. What is the status of supply right now for single-family homes? A: As in the old cliche: Location, Location, Location. Seriously, the supply in the re-sale single family market, especially in neighborhoods east of I-95 is very tight and there is very little inventory of homes in desirable neighborhoods. Q: What do you see as the big differences between the market now and the boom of 2005? A: Night and Day. In 2005, the market was driven by a predominantly speculative fever fueled by the “easy 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.
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Q: Given the current market dynamic, have you changed the type of agent you are currently recruiting? A: That is an interesting question. Our recruiting philosophy at RelatedISG is probably somewhat different than the industry norm especially in this new cycle. Our focus has been to recruit seasoned agents who specialize in pre-construction sales. The tightness of the resale market coupled with the demand for new Condominiums makes that type of agent the most sought after. In addition, RelatedISG is the joining of two of the most prominent South Florida companies in the new construction market. This certainly gives our agents a distinct advantage in competing in the new construction sector, which is by far the most active and the most lucrative in terms of commissions paid.
V C e l e b r a t i n g 5 Year s of IS G ’s M iami R epor t.
The Miami Report is produced for general interest only; it is not definitive and is not intended to give advice. It must not be relied upon in any way. Although high standards have been used in the preparation of the information, analysis and views presented in The Miami Report, no responsibility or liability whatsoever can be accepted by ISGWorld for the contents. We make no express or implied warranty or guarantee of the accuracy of any of the contents. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents. The Miami Report does not necessarily reflect the view of ISGWorld in any respect. Readers should not take or omit to take any action as a result of information in The Miami Report.
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