By Sunny Isles Real Estate Expert on September 2nd, 2011
As the signs that the Miami real estate market remains stable
many investors and residents are interested in what future Miami condo developments may be in store. While developments may take years to complete, they show promise as growth for the area, something recent investors and current residents are interested in monitoring.
previously earmarked for commercial towers in the downtown Miami area, many of which are now in financial distress, has attracted the interest of investors seeking to construct future condo developments. Year-to-date, investment groups have purchased at least 10 condo sites for nearly $300 million according to the Miami-Dade Country records.
2011 Significant Land Deals In Miami
Some of this year’s largest land deals include:
· $236 million for the waterfront Miami Herald land at 1 Herald Plaza
· $14.8 million for the Coral Station at Brickell Way
· $14 million for the land currently occupied by the Brickell Tennis Club
· Acquisition of a 78,200 square foot development site located on the north bank of the Miami River, once slated to become the Cima condo development
These significant land deals represent only a small fraction of the available land within a focused area of Greater Downtown Miami. The prime real estate attracting attention currently consists of the 60 block stretch spanning the Julia Tuttle Causeway to the Rickenbacker Causeway.
Driving Forces Behind Increasing Developer Miami Land Interest
Developer and investment interest has picked up throughout this year as rental and lease activity, resale and new sale activity has picked up.
More and more Miami residents are choosing to lease Miami condos, offering an attractive income stream for investors, both on an individual and group investor basis. The average rental rate for the areas, as of June 30th this year, is approximately $1.82 per square foot, or $1,500 per month for a small, 800 square foot condo unit.
Another contributing factor is the decline in developer condo inventory. This decline in inventory has freed up investor capital. The current sales pace for the area indicates that the developer inventory will sustain only 12 more months of sales activity. This activity has enabled current developers to turn their attention away from moving already constructed properties toward what’s next.
While new projects have yet to be announced, speculation backed by the aforementioned land deals points to a wealth of new projects to be announced and constructed in the Greater Downtown Miami area over the next 3-5 years.