Downtown Miami Rental Market
March 15, 2011 by Lucas Lechuga
Downtown Miami Rental Market as of March 15, 2011
Downtown Miami Rental Market as of March 15, 2011
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Just wanted to make everyone aware that we added comment threading yesterday. You can now reply directly to a comment rather than adding your reply to the bottom.
Lucas,
After living in the Downtown Miami area for the last 5 years, I have noticed what I believe to be an interesting trend. I have observed the “ask” RENT prices of condos in the Arts/Wynwood/Brickell/Downtown area(s) to be creeping upward to a point maybe exceeding 2007 levels. At the same time, I see decidedly few rentals listed in buildings that I drive by every evening, and know are 70%+ empty. I am left to assume that there is infact many months or years worth of inventory to sell or rent, that is simply unavailable…. I think the reasons for this are many: Unfinished units that were delivered “designer ready” (hard to rent without flooring or lights), units stuck in forclosure or preforeclosure, units that are quasi-abandoned or neglected by foreign investors, etc. I believe the short supply of inventory is artificially low. — Can you shed some light on this either way?
DowntownRenter,
Could you give us specific buildings that you believe to be 70%+ empty. I rent and live in the same area and I definitely don’t get the same impression.
Downtownrenter,
One year back the Downtown development agency said the downtown buildings are 75% occupied (and probably close to 85% or higher now). Where does the 70% empty figure come from?
In short reply, I take the 70% number… (even if its 1/2 of that.. lets say 35% empty, which I believe it to be more)– You’d only need to take a drive in a convertible or motorcycle through Downtown and Brickell at night. Better yet, drive west over the Rickenbacker causeway from Key Biscayne at 9pm at night, and see just how much of each building is completely dark.
A smart investor doesn’t just rely on reports and numbers, he gets a feel for the area himself.
Talking about dark condos reminds me of a funny story …
Back around 2005 or ’06, at the height of the r.e. boom, I asked a real estate agent why, if sales were so hot, 99% of the condos downtown were dark at 9:00 p.m. on any given weekday night. The reply: “That’s because the owners are all partying in South Beach!”
Ha ha ha … Shameless bastards.
When I lived in Met1, The developer would put a new condos on the rental market when others rented. Say they won’t allow >20 rentals to be listed and there are 60 units to rent out, then it will take a while for all 60 of those units to be put on the market. In the meantime there is attrition. When I lived there, my floor had 6 units that were not built out and about every 6 months they would work on a unit.
I would guess this is common in other developments as well.
Infinity at brickell and Wind on the river seem pretty empty to me (by the “lack of lights at night” measure)
The same thing with Icon although maybe geared towards a different target.
Not sure if 70% but close to that!