FLORIDA: An Introduction to Florida: South
Despite the cooling in our economy due to inflation, rising interest rates and the increased cost of materials and land, the real estate market in South Florida remains very hot. The cities of Miami and Miami Beach are bookends to one of the greatest inflows of capital, entrepreneurs and wealthy individuals that the South Florida area has ever witnessed. While there are many reasons for this influx to the Miami area, a recent change to the federal tax code served as the impetus for this migration from the states of California, New York and Illinois. It is ironic that over 80 years ago one of the most venerated environmentalists of the 20th century, Marjory Stoneman Douglas, accurately defined Miami’s current growth and arrival as one of the world’s greatest cities: “Miami has been building itself with all of the tough thirst of a tropic organism. I doubt if it will be complete, or the whirlpool slack, in a long time because its strength is that nothing human is foreign to it or will be.”
The Real Estate Market
Miami’s economy is booming as the business and wealth migration trend is fueling unprecedented levels of activity in our residential, office and logistics markets. For the past two years, new-to-market office tenant activity is double what we have seen in an average year. Some of the biggest names in finance and technology are looking to Miami as a core market, including Microsoft, Spotify, Apollo, Blackstone and CI Financial.
As a result of this capital inflow, the South Florida real estate market is experiencing strong demand for single-family and multi-family residential within urban areas in Miami, Miami Beach and Hialeah but also logistics and warehouse space in our suburban areas to serve the growing population. The public and private sectors are taking steps to sustain Miami as one of the country’s most desirable and livable urban cities, with several notable projects underway or coming soon due to new development opportunities arising from increased density and height allowances within Miami-Dade County’s Rapid Transit Zone (RTZ) and SMART Plan Corridors.
Co-Living
Co-living ordinances have also been proposed locally to recognize a growing residential typology in Miami catering to remote work lifestyles and like-minded young people. Co-living is gaining popularity as a community living concept among single young professionals looking for convenience, flexibility and community. The concept typically involves living units that share kitchens and certain amenities. The idea first emerged around 2015 and this year the City of Miami is recognizing the demand for this housing option by considering the adoption of an ordinance formally recognizing this new trend in urban living by including the use in the city’s Miami 21 Zoning Code.
The private sector has invested over USD40 billion in infrastructure within downtown Miami alone over the last decade, and more investment is on the way. The public sector is ushering in this activity with a series of capital improvements designed to improve quality of life, enhance the street-level experience, and attract more investment to our communities.
Miami-Dade County
Miami-Dade County itself has jumped on this bandwagon in several ways. It has extended its Rapid Transit Zone to select key downtown Miami parcels (in addition to imposing the RTZ countywide along five SMART Plan corridors), and has recently issued a competitive solicitation for a master developer who will guide the county through redevelopment of almost 17 acres of county-owned, under-developed downtown properties. The county anticipates that this transportation-oriented development will add up to 24 million square feet, with residential densities at 500 units/acre and heights up to 750 feet, to the downtown Miami Central Business District.
A complementary multi-modal pedestrian path, called The Underline, is beginning to take shape underneath and along the county’s main MetroRail system. It is transforming the underutilized land below Miami’s Metrorail – from the Miami River to Dadeland South Station – into a ten-mile linear park, urban trail and public art destination.
Notable Projects in Miami
It is worth highlighting a few of the additional exciting projects – public and private – that are planned or underway in Miami.
Flagler Street beautification project
This USD21 million initiative will completely transform the city’s historic main street from its current design into a pedestrian-friendly, festival-style boulevard oriented towards retail, outdoor dining and events. The first two phases, from Biscayne Blvd to NE 2nd Ave, are already under construction.
Miami Baywalk
The downtown waterfront is one of our city’s best assets. The Miami Downtown Development Authority (DDA) has taken the lead in advocating for public and private sector investment along the Baywalk, and last year the City Commission approved design guidelines – conceived by the DDA – that will bring greater uniformity to the way that our waterfront is developed in the future. The vision is a seamless, uninterrupted pedestrian right of way stretching from the Edgewater area south through downtown and to Brickell.
Block 85
Located within the city’s West Brickell neighborhood and within the Miami-Dade County Rapid Transit Zone Brickell Subzone, a mixed-use project conceived as a new urban gateway to the Brickell Metropolitan Urban Center and known as “1 Southside Park” will bring together market-defining office, event and wellness spaces; a world-class hotel with food and beverage outlets; City of Miami Fire Station No 4; and a reinvigorated Southside Park with a direct connection to The Underline’s Brickell Backyard and Brickell Metrorail Station.
Notable Projects in Miami Beach
The City of Miami Beach is experiencing the same amount of growth and development, and several notable projects are worth highlighting.
The Beach Walk
A linear path along the dunes from the southern tip of Miami Beach to the northern tip is now open and has become a favorite spot for tourists and local residents to exercise and walk, rivaling in popularity New York’s Highline, as well as its sister mainland path, The Underline. A new 50 story tower and three-acre park is taking shape at the southern entrance to Miami Beach from the mainland. This development will be further complemented by a bridge designed by noted artist Daniel Buren, extending the bay walk north over 5th Street.
Class A office buildings
The City of Miami Beach is amending its zoning code for select areas to allow a series of Class A office buildings, with ground floor retail and restaurant uses. The newly completed 2340 Collins Avenue, developed by Barry Sternlicht, is the first new Class A office building in over 30 years, and has close to 100% occupancy.
Co-living and co-working project
Miami Beach’s first co-living and co-working project will soon break ground in the Washington Avenue corridor. The project will also feature ground floor commercial units.