'You've Got Our Name, Use It Wisely': Developers On How Brands Influence Their Projects
As more luxury brands of all stripes lend their images to Miami condo and hotel projects, developers are learning that not all brands operate the same way. Some take the reins, others just cash the check.
Developers leveraging high-end names like Armani, Fendi, Porsche and Bentley has become a staple in Miami's luxury condo market in recent years, but the level of collaboration between builder and brand varies, developers said at Bisnow’s Architecture, Design and Interiors event on Wednesday.
Some insist on input on branded interiors, signature design elements or niche amenities. Others have a more hands-off approach, said T.J. Sabo, chief creative officer of developer Royal Palm Cos.
“‘Just pay us the money you’ve got, you’ve got our name, use it wisely, we’re going to make sure you don’t screw us up,’” he said onstage at the Hotel Colonnade in Coral Gables.
While the level of a brand's involvement varies, the price to use a name can cost anywhere between 2% and 3.5% of a building's sellout, he added.
Many developers have found the cost is worth it. In mid-2023, Miami ranked second globally, behind Dubai, with 38 branded residential properties, CoStar reported, and while most are hospitality brands, the sector is expanding.
In Miami-Dade alone, 13 branded condos — from luxury cars and fashion to hospitality names — launched sales or broke ground in 2024, according to CoStar.
Bentley Residences Miami by Dezer Development broke ground in 2024 in Sunny Isles Beach. The automobile-branded tower features private pools, terraces and a patented car elevator in each unit.
Even one of Miami’s biggest nightclubs, E11even, is cashing in on the trend. The brand is working with PMG to develop E11even Residences Beyond, a condo project just outside the club, offering exclusive access to its nightlife scene. The project is expected to finish construction this year, according to its website.
Other luxury brands like Mercedes-Benz, Fendi, Dolce & Gabbana, Viceroy and Cipriani are also lending their names to luxury towers.
Dayssi Olarte de Kanavos, co-founder, president and chief operating officer of Flag Luxury Group — known for its work with Ritz-Carlton — said hospitality brands in particular bring in personal architectural and design teams, setting minimum requirements that developers must meet.
“They're going to be prescribed something a lot more that they have to manage,” Olarte de Kanavos said. “They're not going to be able to skimp on things.”
This creates a level of trust with potential consumers and makes it easier to presell, which is a key to success in markets like South Florida where it is a vital part of the development process, Newgard Development Group President and CEO Harvey Hernandez said.
Developers said they use the brand to shape the perception of what the project will provide to consumers when it is completed.
“The brand allows us to sort of lean on what they represent, to lure that buyer, that potential buyer, and to sort of demonstrate, showcase, provide that perception of what the end result will look like and will feel like,” Hernandez said. “So, it's super helpful for us. This is why you see so many brands in our space, in our market.”
And it's worth the payout. Olarte de Kanavos said branded properties can sell up to 30% to 40% more than their unbranded counterparts.
In Miami Beach and Barrier Islands, unbranded luxury condos had a median sale price of nearly $5M, according to a fourth-quarter report by Douglas Elliman. Branded condos on the market can start at $5.5M and reach upward of $37M for a penthouse, like at the Bentley Residences in Sunny Isles Beach.
“Nobody can argue the value of brands,” Sabo said.
