Brickell / Downtown Miami / Midtown Miami is a dynamic and changing landscape with a vibrant retail and restaurant corridor, world class office buildings and gorgeous condominiums designed for the South Florida professional. New changes have made way for an even more impressive live/work environment attracting professionals from all over the world to live, work and enjoy the South Florida lifestyle.
Last Thursday, I had the pleasure of attending a panel hosted by the Realtor Commercial Alliance at Miami’s Chop House. The panel was comprised of Ronald A. Shuffield (President of Esslinger Wooten Maxwell), Jack Lowell (Vice President of Flagler Development), Tony Puente (Senior Vice President at Fairchild Partners), Sergio Rok (Head of Rok Enterprises) with Alice Robertson (Executive Director of the DDA Miami) as Special Presenter and Leo Zabezhinsky (Manager, Business Development & Real Estate DDA Miami) as moderator.
It was a very informative session with each panel member bringing his expertise to bear and helping all of us in attendance paint a more complete picture of Brickell / Downtown Miami. Below are a couple of notes and stats that I was able to capture of this wide ranging discussion.
Quick Office Stats:
Class A – Existing 7,923,724 SF Occupancy: 87.2%
Class B – Existing 8,173,994 SF Occupancy: 81.3%
Class A – Under Construction 1,200,000 SF
Average Rental Rate (Class A): $38.32
Daytime Population: 194,000
The class A office buildings under construction are Met 2 Miami (part of the Metropolitan Miami family) with 753,200-square-feet of office space and 1450 Brickell which will consist of 576,379-square-feet, both of which are scheduled for completion by first quarter of next year.
Both buildings have significant new tenants signed to long term deals with the law firm Bilzin Sumberg Baena Price & Axelrod LLP signing the last lease at 1450 Brickell just a few weeks ago.
At first glance, and given current market conditions, one may wonder why are these companies making long term investments in Brickell / Downtown Miami?
Besides the amazing view corridors of Biscayne Bay, the proximity to the airport and mass transportation, companies are preparing themselves for the 21st century. They are using technology and advances in construction techniques to make more efficient use of their space and they are fixing their costs by taking advantage of a generational rent situation.
The question is: why isn’t your company doing the same thing?
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Quick Residential Stats:
Residential Units (Total): 34,475
Population (Current): 45,000
Median Age: 40
Average Household Income: $72,100
Per Capita Income: $33,875
College Educated: 50%
Source: ESRI
Current facts and trends indicate that about 500 new occupants a month are moving into the downtown area. About 15% of these new occupants are buyers. The other 85% are tenants that are taking opportunity of the the great deals being offered by developers and owners. Please note that these are numbers based on the Multiple Listing Service and doesn’t include occupants that dealt directly with the developer or For Sale By Owners. If we were to account for those, the 500 number would be higher. At this current rate, we are filling up a building or two a month.
This means that if you are interested in buying for yourself or for investment, the time to do so will be now because median prices haven’t been this low in years and as the facts and trends above show, available inventory is decreasing by the day.
If you are looking to rent a condo in the Brickell / Downtown Miami, the time to take advantage of rental rates and incentives from the developer is now. Current inventory shows a 3-month supply, well below of what constitutes a healthy market. Pretty soon, the deals being offered by the developers will go the way of the dodo meaning you will be losing your chance to rent in a gorgeous condominium a stone’s throw away from your job as well as great attractions and venues.
Whether buying, selling or leasing, don’t let opportunity pass you by!!!
Oh, by the way…if you know of someone who is thinking of buying, selling or leasing space whether residential or commercial who would appreciate the kind of service I offer, I’d love to help them. So, when you think of these people, drop me a line or just give me a call with their name and number. I’ll be happy to follow up and tend to their real estate needs. Thank you for trusting me and Esslinger-Wooten-Maxwell Realtors with your real estate needs.