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Since last year, median condo sales prices are up, and so are the number of sales, according to the Q1 Douglas Elliman report on the market released today. (You can find it in the non-fiction section of your local bookstore.) Douglas Elliman Florida brokerage CEO Jay Parker tells us why he thinks the momentum will last. 1) Miami condos offer value. If you're from a high-priced Latin American capital or that high-priced North American place called New York, Miami properties are relatively inexpensive, even considering price increases in recent years. Even at $345/SF, the current Miami average is a bargain compared to NY, where entry-level condos can start at $1,000/SF. (NY condos also require a down payment of your choice: your first born or your mother.) Even in the Miami luxury market (the top 10%), prices are lower than elsewhere. According to the report, the median luxury condo price is $1.3M, up 17.2% from last year. 2) The safe haven factor. There always something unsettling going on in the world—today Ukraine, tomorrow somewhere else—to remind investors that the US is still a safe place to put your money. (We do have alligators, but don't tell them.) Also, there's less risk of a local property collapse now than 10 years ago, largely because new condo sales now require high deposits. “You're a lot less likely to walk away from a 50% deposit than a 10% deposit,” Jay says. Another fact from the report: Cash market share still dominates, though it's down a bit. 71.4% of Miami condo deals are for cash. 3) It's South Florida, for crying out loud. Jay says South Florida hasn't lost its universal appeal. If anything, it's more appealing now than in previous decades, as it's become an international city with all the amenities—retail, cultural, culinary—that implies. Besides, this is the best place in the US to spend January and February; even hard-core New Yorkers agree with that. (Or with this year's weather in this country, November through April.) One more fact from today's report: Q1 '14 saw the highest number of Q1 Miami residential sales in the last eight years: 5,133. |
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Small Space Users Dream Big |
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 Avison Young principal Greg Martin (second from right, with South Florida colleagues Wayne Schuchts, Jonathan Satter, and Gary Gottlieb) tells us he's seeing a migration to quality among small companies looking for office space (slower than a race to quality, but still pretty intense). The current South Florida office market environment still provides some concessions to tenants in the way of free rent and TI dollars. Those might not be around later, he says, so small companies are biting while the getting is good. |
 Greg says smaller companies are also interested in the prestige value in making the move from Class-B to A. “It says they're confident about their future,” he explains. “And besides, who doesn't want to work in cool, brand-new office space? Like driving a new luxury car, it feels good.” Recently, NAIOP South Florida named Greg 2014 Office Broker of the Year, noting that during Avison Young's first year in South Florida, he oversaw $80M of leases totaling 670k SF. |
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A Green Hotel, Right Down to the Potatoes Just in time for Earth Day next week, TripAdvisor has named the top 10 green hotels in the nation. Coming in at No. 9 is the Hampton Inn & Suites Miami/Brickell-Downtown, which was the first hotel in Miami to be LEED certified. Among its numerous eco-friendly features: two EV charging stations, a 35,000-gallon cistern that collects rainwater, and cutlery made from potatoes (potato starch mixed with other plant products; it biodegrades in a few months). |
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Don't Miss Our National Student Housing Event!Bisnow's national Annual Student Housing Summit (BASH) is a must-attend event for anyone who touches student housing. Join top owners and developers from all over the US, including American Campus Communities, EDR Trust, Campus Crest, Campus Apartments, and The Preiss Company, as well as 400 of your peers on May 6 and 7 in Philly at the swank Rittenhouse Hotel. Topics will include trends in university life and housing, product design and development, and the environment for deals and new development. Sign up today! |
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