Month: May 2024

An In-Depth Discussion on the Future of the Office Market: Insights from Phil Mobley, National Director of Office Analytics at CoStar

Introduction

In a recent conversation with Phil Mobley, the National Director of Office Analytics at CoStar, the host of America’s Commercial Real Estate Show delved into the complexities and current state of the office market. The discussion covered various aspects, including market performance, geographical trends, lease dynamics, and future opportunities. Phil Mobley provided a comprehensive analysis of the office market as it stands at the end of the first quarter of 2024, offering valuable insights into what the future might hold.

Conversation is About Office Property Nationally

Note that the conversation was national in scope, thus observations can apply less or even not at all to Miami and other South Florida markets. Most notably, the significant stress in office properties felt in major markets like New York and San Francisco has not been felt in Miami.

Current State of the Office Market Nationally

Phil Mobley began by addressing the overall performance of the office market. He noted that the headline statistics still appear troubling, with vacancy rates continuing to rise. The first quarter of 2024 saw nearly 20 million square feet of negative absorption, pushing the overall vacancy rate to 13.8%, a record high. Mobley emphasized that the challenges are not uniform across the market, as location, quality, and the type of business occupying the space significantly impact performance.

Geographical Trends

Geographically, major markets are experiencing the most strain, primarily due to the nature of the companies occupying these spaces—large Fortune 500 and Fortune 1000 companies with extensive footprints and multiple locations. Central Business Districts (CBDs) have been hit particularly hard, although suburban areas are also feeling the pressure due to a slowdown in employment growth, especially in professional services, banking, finance, and technology sectors.

Lease Dynamics

One of the notable trends Mobley highlighted was the reduction in average lease sizes. Over the past year and a half, new leases have been approximately 15-20% smaller than those in the late 2010s. This reduction reflects companies’ efforts to rationalize their footprints in response to the hybrid work environment. Companies are consolidating into pre-existing locations or moving into owned spaces, driven by the flexibility offered by new technologies that support remote and hybrid work.

Tenant Activity and Market Fragmentation

Despite the overall gloomy picture, tenant activity has shown some signs of recovery. The number of leases signed has remained relatively stable compared to pre-pandemic levels, albeit with smaller space requirements. Mobley pointed out that this increase in activity is encouraging but can be misleading, as many leases are for shorter terms and smaller spaces.

The market is highly fragmented, with significant differences in occupancy rates and tenant behaviors across different types of properties. Smaller suites in less premium buildings often have higher occupancy rates, while larger, more prestigious properties struggle with underutilization.

Opportunities for Investors and Occupiers

Phil Mobley sees several opportunities in the current market conditions. For owner-occupiers, there are favorable conditions to purchase office buildings at attractive prices. The significant reduction in new supply, which Mobley predicts will fall off a cliff in the next 18-24 months, presents a unique opportunity for developers and investors who can identify underserved markets or submarkets with a dearth of premium space.

He also highlighted the potential for distressed asset acquisition. The downward pressure on rents, particularly in markets like San Francisco, San Jose, and Seattle, where early signs of rental market resets are already visible, could offer attractive entry points for investors willing to navigate the complexities of distressed properties.

Office Property Cap Rates and Value Trends

Discussing cap rates, Mobley noted a significant divergence in market behavior. While medical office buildings and single-tenant net lease offices have seen moderate increases in cap rates, institutional-grade properties, particularly those facing distress, are experiencing more pronounced value declines. This divergence underscores the importance of evaluating each property on its merits, considering factors such as future income stream risk and tenant stability.

Final Thoughts

In conclusion, Phil Mobley emphasized the importance of understanding the nuances of the office market. While challenges remain, especially for large multi-tenanted buildings in major markets, there are also significant opportunities for savvy investors and occupiers. The key is to navigate the market with a clear understanding of the specific dynamics at play, whether it’s the potential for owner-occupied acquisitions, the strategic development of new supply, or the careful selection of distressed assets.

The post Video: Costar National Director of Office Analytics Phil Mobley Provides Office Real Estate Forecast, Discusses Performance & Cap Rates appeared first on Hawkins Commercial Realty.

Terreno Realty Completes 186 KSF Industrial Facility in Hialeah

Among Terreno Realty Corp.’s recent additions to its industrial portfolio is this 112,000-square-foot facility in Redondo Beach, Calif., which it acquired last year for $45.7 million. Image courtesy of CommercialEdge Terreno Realty Corp. has completed Countyline Corporate Park Phase IV Building 40, a 186,000-square-foot facility in Hialeah, Fla., a Miami submarket.

Art + Tec, partner pick up Edgewater assemblage, as South Florida dev site purchases continue

Developers picked up a 0.7-acre assemblage in Miami’s Edgewater, as South Florida development site purchases continue, despite elevated interest rates and macroeconomic headwinds. Bay Harbor Islands-based Art + Tec Development, led by Gabriel Boano, and partner Silvio Caprino bought the five adjacent lots at 2650 Biscayne Boulevard and 250 Northeast 27th Street…

‘Century Park Villas Place’ to Yield Homes by Year’s End at SW 332nd Street and Krome Avenue in Homestead

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Miami Multifamily Market Holds Steady Despite Challenging Market Conditions

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Wynwood’s Tallest Ever Tower Planned Under Live Local Act

Plan’s for Wynwood’s tallest-ever tower have been filed with Miami’s Planning & Zoning reviewers. For now, the development is known by its address, 2101 NW Miami Ct. It is proposed to rise 48 stories, or 490 feet above ground and 506 feet above sea level, and include: 544 residential units two floors of amenities on levels 9 and 10 19,292 square feet of ground floor retail 621 on-site…

Bazbaz proposes 48-story Wynwood project –– area’s tallest –– under Live Local Act

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Developers launch Elle-branded condo tower in Miami’s Edgewater

Elle Residences Miami would be built on the half-acre site at 3618 Northeast Fifth Avenue, which also fronts Northeast 36th Street and I-195. Urban Network is led by CEO Robert Thorne and Vertical is led by CEO Fernando de Nuñez y Lugones, a former development sales executive at One Sotheby’s International Realty and Fortune International Group. The 25-story, 180-unit…

Biscayne Boulevard hotel-residential tower advances

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Miami Beach hunts for ways to resurrect Roosevelt Theater

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Coastline-Nakash Capital Group Revises Plans for ‘the Eden’ at 3550 NW S River Drive in Miami

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Coral Gables City Commission Approves Ponce Park Residences At 3000 Ponce De Leon Boulevard

The Allen Morris Company, led by Allen and Spencer Morris, has received commission approval for their luxury condominium project, Ponce Park Residences, slated for development in Coral Gables. Located at 3000 Ponce de Leon Boulevard, at the intersection with University Drive, this development is poised to become a significant architectural addition to the city.

Miami An Appealing Apartment Market Despite Challenges

As an apartment investment market, Miami has its pros and cons. Strict building codes, high insurance premiums, and the threat of natural disasters are among the latter. However, a new report from Freddie Mac on the area concludes that many residents and investors believe that the potential after-effects of climate-related disasters are well mitigated to justify that uncertainty…

Taurus Development Proposes 15-Story ‘Valencia Tower’ for 11888 SW 220th St in SW Miami-Dade’s Goulds Neighborhood

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Miami Worldcenter scores $120M refi, as South Florida still bucks nationwide lending slump

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60-Story ‘Summit Brickell’ Gets FAA Clearance To Rise 765 Feet Above Ground

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Lease roundup: West Palm’s Nora District scores tenants, Coral Gables’ Zucca restaurant moving

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CGI Merchant’s Gabriel hotels in Miami, South Beach head to UCC foreclosure sales

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Blue Suede kicks it up, buys second Miami Beach hotel this month

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31-Story Midtown Miami Apartment Tower Gets FAA Approval, Advances In Permitting

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Census: City Of Miami Population Grew Last Year By 1.3%

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Manoucheri Brothers boosts South Florida multifamily portfolio

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Downtown Miami could use more businesses. $1 million in grant money is up for grabs

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Can South Florida Condo Demand Endure? Related Group’s Nick Pérez Weighs In

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Self-checkout: Publix expands South Florida portfolio with $59M purchase of retail site anchored by its store

Publix pumped up its South Florida retail holdings by acquiring a shopping center anchored by one of its supermarkets. The Lakeland, Florida-based grocery chain paid $58.5 million for Ramblewood Square Shopping Center at 1201-1327 North University Drive in Coral Springs, records and real estate database Vizzda show. The seller, an affiliate of New York-based…

Margate solicits bids for downtown-style development with new city hall

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Joint Venture Plans Mixed-Use Redevelopment of The Quay Shopping Center in Fort Lauderdale

A joint venture between BH Group, PEBB Enterprises and Related Group is set to begin the mixed-use redevelopment of The Quay shopping center in the Harbordale neighborhood of Fort Lauderdale.  The joint venture recently acquired the 73,000-square-foot center for $48.5 million. Located at 1515 SE 17th St., the property currently features restaurants, retail space, a marina…

Related, BH, Pebb continue South Florida commercial shopping spree with Fort Lauderdale Waterfront  MXU Purchase

Continuing their commercial shopping spree that began last year, a partnership between three South Florida firms acquired a waterfront mixed-use property in Fort Lauderdale that is primed for redevelopment. Coconut Grove-based Related Group, Aventura-based BH Group and Boca Raton-based Pebb Enterprises paid $48.5 million for The Quay at 17th Street, a 7-acre site…

Plans Filed For Low-Rise Mixed-Use Development At 1102 NW 6th Street In Dorsey Riverbend, Fort Lauderdale

Fort Lauderdale’s Development Review Committee is scheduled to review a new proposal by ILFC Corp, led by Gonzalo Sanchez, for a mixed-use development named DL-Design, located at 1102 NW 6th Street in the Dorsey Riverbend area, on May 28. The project, designed to rise four stories to a height of 49 feet, aims to transform a currently vacant 6,342-square-foot lot into…

Broward City Courts Developers To Remake 50 Acres Of Its Downtown

Cale Curtis left tropical Florida this week to head to the Las Vegas desert. The Margate city manager is on official business, showing up with a pitch to developers at the ICSC conference: remake the downtown core of the city of 58,712 people. Local officials in Margate, located in central Broward County, have put out a request for proposals to redevelop as many as 50…

New York Developer Proposes Cantilevering 22-Story Condo Tower At 2317 N Ocean Boulevard In Fort Lauderdale

Fort Lauderdale’s Development Review Committee is set to review a Site Plan Level III application for The Amalfi, a 22-story luxury condominium tower designed by Kobi Karp Architecture and proposed by Baldwin, New York-based Moore Group Corporation. Located at 2317 North Ocean Boulevard, the project will offer 38 residential units and amenities within a 0.84-acre…

Erickson pays $54M for senior living dev site at Ag Reserve, amid nationwide expansion

Erickson Senior Living paid $53.5 million for a development site at the Agricultural Reserve, where it plans to build a large facility amid the firm’s nationwide expansion. The Baltimore, Maryland-based firm bought the 92.5-acre tract at 8344 Boynton Beach Boulevard in unincorporated Palm Beach County from the William Mazzoni Revocable Trust, led by Patricia Mazzoni…

Office Submarkets Around the Country Bucking the Trend

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Survey finds tighter credit policies, weaker loan demand among banks

Banks reported tighter standards and a downtick in demand for real estate loans over the past three months in the Federal Reserve’s April 2024 Senior Loan Officer Opinion Survey (SLOOS) on Bank Lending Practices. Participating institutions generally indicated a reduced tolerance for risk across the board, broadly impacting both residential and commercial real estate lending…

April figures point to return of sustainable apartment rent growth nationally

April marked the second straight month of solid apartment rent gains, Yardi Matrix’s latest Multifamily National Report revealed. Per the real estate analytics company’s data, the average asking rent nationwide grew 0.3%, or $6, to $1,725 month over month in April. The increase moved rents just $2 below the all-time high set last summer. Year-over-year growth was flat from…

The hospitality industry’s new normal with business travelers

It’s no secret that hotels as an asset class have had a bumpy recovery post-COVID. A large part of the lag has been due to the uneven return of business travel, which has long been a lifeblood of the hospitality sector. The post-pandemic evolution of interactions within and among workplaces, including the universalization of video calls and virtual meetings, has reduced in-person…

New Data and Regulation Show an Insurance Industry in Flux

The Latest Data on Rising Insurance Premiums Insurance premiums have been on the rise in recent years, presenting challenges for borrowers and lenders alike. We assessed rising insurance premiums in detail in a report last summer and have been updating the analysis as 2023 expense data was finalized. Figure 1 shows that average premiums for multifamily…

Is the Distribution Bubble About to Burst? Or Will Industrial Price Gains Nationally Endure?

Industrial property prices and rental rates have experienced substantial increases over the last decade. The onset of the pandemic, which propelled the world into lockdown, shifted consumer habits towards increased online shopping and strained supply chains, thereby elevating the demand for warehousing and, in turn, boosting industrial property and rental values.

Not So Roaring Inflation

Highlights: Tuesday’s PPI report seemed like what would be a continuation of the hotter-than-expected economic trend from the first quarter of the year and while the report did come in above consensus, markets overlooked the report buoyed by downward revisions from the previous month and perhaps along with some help from posterchild meme investor, Roaring Kitty.

Video: Moody’s Analytics Senior Economist Ermengarde Jabir Provides Self-Storage Real Estate Update

A Deep-Dive Discussion into the Resilient Self-Storage Market In a recent episode of America’s Commercial Real Estate Show the spotlight was on the self-storage sector. The discussion featured Ermengarde Jabir from Moody’s Analytics, who provided valuable insights into the current trends, challenges, and future projections for the self-storage industry.

Video: Head of Real Estate Strategy & Research at Cohen & Steers Rich Hill on Current State of Commercial Real Estate

The Discussion: Real Estate Trust’s Signal; The Worst Behind in the US? In a recent interview with Bloomberg Television, Rich Hill, Head of Real Estate Strategy & Research at Cohen & Steers, discussed the current state of commercial real estate and the future of office buildings nationally (observations can apply less in Miami). This conversation took place as the Dow Jones…

Video: Morgan Stanley’s Real Estate Investing Co-CEO Lauren Hochfelder discusses firm’s top real estate investing ‘megatrends’

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Video: RealPage Director of Research & Analysis, Market Analytics Presents Multifamily Market Updates & Insights

The Discussion: Navigating the Dynamics of America’s Multifamily Real Estate Market In the realm of real estate, few sectors have captured investor interest and market attention quite like multifamily properties. Offering a blend of stability, demand, and potential for growth, multifamily real estate has been a favored asset class for many investors, particularly in the…

Top 3 commercial real estate valuation methods

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Amazon Plans To Sublet Up To 30 MSF Of Warehouse Space After Over-Expanding

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“We have to live in the real world”: Lawmaker, experts debate Florida’s condo crisis, looming association deadlines

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Citi analyst slams stock of leading new construction lender Bank OZK with double downgrade

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As Lending Lags, Residential Developers Add More Layers To The Capital Stack

Not even South Florida’s reputation as a beacon of pandemic-era growth and booming population can keep residential development bustling in the region. Developers searching for financing in South Florida today are facing a decline in institutional lending as market fundamentals soften, pushing down new construction starts. That has sent builders in search of creative solutions…

The post Miami Commercial Real Estate News May 29, 2024: Wynwood Tallest Ever Planned Under Live Local Act; Elle-Branded Tower Launched in Edgewater; More… appeared first on Hawkins Commercial Realty.

A Deep-Dive Discussion into the Resilient Self-Storage Market

In a recent episode of America’s Commercial Real Estate Show the spotlight was on the self-storage sector. The discussion featured Ermengarde Jabir from Moody’s Analytics, who provided valuable insights into the current trends, challenges, and future projections for the self-storage industry. Moody’s Analytics provides financial intelligence and analytical tools, including for commercial real estate.

Self-Storage: A Sector in Transition

The self-storage industry has shown remarkable resilience, particularly during the early 2020s. It was one of the few property types that thrived during the COVID-19 pandemic, maintaining high occupancy rates and strong demand. However, as the market adjusts to post-pandemic realities, some shifts are becoming evident.

Occupancy Trends: Historically, self-storage exhibits significant seasonality. The first and fourth quarters typically see higher vacancy rates due to lower moving activity during these periods. In the first quarter of 2024, the national vacancy rate for self-storage stood at 13.3%. While this is slightly elevated, it is expected to stabilize around 12.7% by the end of the year, aligning with 2023 figures. Looking ahead, vacancy rates are projected to decrease to the low 12s and high 11s by 2025 and 2026, respectively.

Rental Rates: Both climate-controlled and non-climate-controlled units have experienced a decline in rental rates. The trend started in 2023, with a 3.4% drop in climate-controlled unit rents. This decline continued into the first quarter of 2024 but at a slower pace, indicating that the worst of the rate drops may be behind us. Projections suggest a slight decline of 6% for climate-controlled units by the end of 2024, followed by modest growth in subsequent years.

Supply and Demand Dynamics

One of the critical factors influencing the self-storage market is the supply pipeline. Jabir highlighted a noticeable slowdown in new supply, driven by higher construction costs, labor shortages, and rising interest rates. The number of new units coming online has decreased significantly from previous years. For instance, while 125,000 units were completed in 2023, only 20,000 units were added in the first quarter of 2024. This trend is expected to continue, with completions slowing down to just over 100,000 units by 2025.

Self-Storage Investment and Cap Rates

Despite the challenges, investor demand for self-storage remains robust. Cap rates, although slightly elevated, continue to be attractive, particularly for high-performing properties. The sector’s ability to maintain comparatively low cap rates underscores its perceived stability and long-term viability.

Future Outlook

The future of the self-storage industry appears positive, albeit with moderated growth. As new supply diminishes and demand stabilizes, both occupancy rates and rental rates are expected to improve gradually. The industry’s performance will also benefit from ongoing domestic migration trends, particularly to the Sun Belt regions, and a steady influx of foreign immigrants.

Conclusion

The self-storage sector has demonstrated its resilience and adaptability in the face of economic fluctuations. While the market is currently experiencing a period of recalibration, the long-term outlook remains optimistic. Investors and stakeholders can expect steady, sustainable growth as the sector continues to adapt to changing market conditions.

The post Video: Moody’s Analytics Senior Economist Ermengarde Jabir Provides Self-Storage Real Estate Update appeared first on Hawkins Commercial Realty.

The Discussion: Real Estate Trust’s Signal; The Worst Behind in the US?

In a recent interview with Bloomberg Television, Rich Hill, Head of Real Estate Strategy & Research at Cohen & Steers, discussed the current state of commercial real estate and the future of office buildings nationally (observations can apply less in Miami). This conversation took place as the Dow Jones historically surpassed 40,000.

Current State of Office Spaces

Nationwide office vacancies are at a staggering 20%, with expectations of further increases. Hill noted a disparity in performance among different office categories. New, clean, and green office spaces, especially in prime locations like New York City, are doing exceptionally well. For instance, Hudson Yards and One Vanderbilt have seen high occupancy rates. In contrast, Class B and C properties, typically built in the 1970s and 1980s and lacking significant capital expenditure, are struggling. Hill emphasized that while office spaces are facing challenges, they only constitute 20% of the commercial real estate market and 3% of the US listed real estate market.

Lending Environment and Property Valuations

The lending environment for real estate investors is a critical issue. Commercial real estate is a heavily leveraged asset class, with most properties purchased with substantial debt. This leverage has led to significant pressure on property valuations. Hill pointed out that property valuations have generally declined by around 20%, with office valuations down by about 35%. This decline is driven not by poor fundamentals but by higher financing costs and reduced availability of debt.

The Role of Lenders and Borrowers

Hill explained the complex dynamics between lenders and borrowers, likening it to a “prisoner’s dilemma.” Banks are not keen on owning office spaces, as regulatory capital charges for owning property on balance sheets are higher than modifying loans at a high loan-to-value (LTV) ratio. This has led to modifications and extensions of loans, a practice some might see as “kicking the can down the road,” but Hill views it as a necessary adjustment in a challenging environment.

Private Credit in Real Estate

The growth of private credit in the real estate market has been notable. In 2015, private credit accounted for about 10% of total lending, peaking at around 20%. Although this market share has slightly decreased, private credit remains a significant player. Hill noted that private credit can fill gaps left by traditional banks, particularly in underwriting and working out loans.

Future Outlook

Despite the challenges, Hill suggested that the feared collapse in commercial real estate lending has not materialized. Instead, the market is experiencing a slow adjustment. While property valuations are expected to drop further, reaching a peak-to-trough decline of 25-30%, this might signal a bottoming out. Sellers capitulating and buyers stepping in could indicate a healthy contrarian signal for the market.

In conclusion, while the commercial real estate market, particularly office spaces, faces significant hurdles, there are signs of stabilization. The strategic modifications in lending practices and the role of private credit provide a framework for navigating these challenges. The market’s slow adjustment, rather than a sudden collapse, offers a cautiously optimistic outlook for the future.

The post Video: Head of Real Estate Strategy & Research at Cohen & Steers Rich Hill on Current State of Commercial Real Estate appeared first on Hawkins Commercial Realty.

Co-Living Community ‘i5 Wynwood’ Reaches Completion At 51 NW 28th Street In Wynwood

i5 Wynwood, a newly completed co-living community in Miami’s Wynwood neighborhood, is now welcoming its first residents. Located at 51 Northwest 28th Street, between North Miami Avenue and Northwest 1st Avenue, this 9-story residential building was designed by Arquitectonica and has interiors by Michael Wolk. Developed by Related Group and W5 Group, i5 Wynwood…

i5 Wynwood Co-Living Community Reaches Completion With 215 Suites

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35-Story Domus Brickell Center Announced, With Sales Now Underway

Developers have announced plans and launched sales for a new 35-story tower called Domus Brickell Center. Domus Brickell Center is planned to include 579 fully finished and furnished units allowing short term rentals. Prices range from the $500,000’s to $1.5 million. Brickell’s Metrorail and Metromover stations are a block away from the project site. The Domus concept…

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Three Proposers Shortlisted For Downtown Miami 24-Hour Metrocenter Project

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51-Story Downtown Miami Tower Gale Miami Hotel & Residences Opens Next Week, After 3 Years Of Construction

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Refinancing for 352-Room EAST Miami Hotel Arranged

Colliers’ Hospitality Practice Group has arranged the refinancing for EAST Miami Hotel, a 352-room hotel located in Miami’s Brickell district. The property is part of Swire Properties’ $1 billion Brickell City Centre development, which features more than 500,000 square feet of shops and restaurants. EAST Miami Hotel opened in 2016 and features meeting rooms, a fitness center…

Wynwood’s tech office boom hits a short circuit

New York-based R&B Realty wrapped a large vinyl sign around the ground-floor windows of Gateway at Wynwood recently. The advertisement is meant to draw the attention of prospective tenants to the 13-story mixed-use building’s 3,500 square feet to 30,000 square feet spaces that are available for lease. Some suites are move-in ready, and an entire floor is available…

Integral Group Breaks Ground on 99-Unit Affordable Seniors Housing Community in Opa-Locka

The Integral Group has broken ground on Wellspring Apartments, an affordable seniors housing community in the Miami suburb of Opa-Locka. Wellspring Apartments will feature 99 units, 67 of which are reserved for residents earning below 50 percent of the area median income (AMI), and the remaining 32 units are for residents earning below 60 percent AMI. The 81,350-square…

Resia nabs $71M construction loan for Golden Glades apartments, as South Florida defies financing slump

Resia scored a $71 million construction loan for a 420-unit apartment complex in Golden Glades, as South Florida continues to defy the nationwide financing slump. The development firm plans four five-story buildings and a 705-space garage on a 7.1-acre site between Northwest 159th Street and Northwest 161st Street, immediately east of I-95 in unincorporated Miami-Dade County…

PortMiami Increases Economic Impact

PortMiami’s economic impact has increased by 48% to US$61.4bn in eight years, according to a study conducted by Martin Associates, which accounts for 4% of the state of Florida’s US$1.6tn Gross Domestic Product (GDP). The study used the same methodology that was carried out in the 2016 report and measured PortMiami’s impact in terms of jobs, business revenue…

Fisher Island potential dev site hits market, bids starting at $200M

Just when it seemed like Fisher Island was tapped out of development sites, a nearly 10-acre fuel depot on the exclusive enclave is now in play. TransMontaigne Partners, a Denver-based energy company that operates fossil fuel storage terminals, is putting its facility at 1 Fisher Island Drive on the market, according to an offering memorandum obtained by The Real Deal. The asking…

MetroCenter development of 17 downtown acres advancing

Miami-Dade County’s $10 billion downtown utopian vision, MetroCenter, had a little more money thrown at it last week. The project, Mayor Daniella Levine Cava said in a presentation last August, is a “transformative redevelopment of the … government center campus.” The county’s Infrastructure, Operations and Innovations Committee voted unanimously to send a resolution…

Miami Downtown Development Authority adds to expansion incentives

Miami’s Downtown Development Authority (DDA) is offering $1.1 million in incentives for businesses to expand operations in the area, stimulate the economy and attract high-quality jobs for local talent. The grant program expands previous incentives and includes funding for ground floor retail, start-up operations and mid-size businesses seeking to move or grow in downtown’s…

South Florida price rises slowing, but still outpace nation

South Florida’s cost of living as measured by the Consumer Price Index is still rising faster than in the nation’s urban areas as a whole, but that pace continues to decline from the soaring inflation of recent years, new federal data reveal. While urban inflation across the nation was 3.4% in April, South Florida inflation grew faster, a 4.5% annual pace, data from the US Bureau of Labor…

FAA Approves Summit at Brickell Tower To be Built At 765 Feet Above Ground

The Federal Aviation Administration has approved construction of the Summit At Brickell tower after a relatively short review process. The project height was filed with the FAA on April 5, with an approval letter issued this morning. Summit At Brickell is planned to rise 765 feet above ground, or 769 feet above sea level at its highest point, according to the approval letter. The 60-story…

Photo: Nearly Completed Arch At Downtown Miami’s Signature Bridge

A photo shows a nearly completed arch at the Signature Bridge under construction in Downtown Miami. The Florida Department of Transportation is spending $840m on a rebuild of the I-95 highway interchange, where it crosses I-395 and the 836 expressway. As part of the project, six arches are being built as a design feature next to the overpasses passing through Miami’s…

Urban Development Review Board Votes In Favor Of Massive 1.8M sf Mixed-Use Development In Overtown

The Urban Development Review Board (UDRB) has voted in favor of a mixed-use development project at 650 Northwest 8th Street and 678 Northwest 7th Street in Overtown, Miami. The planned project, a collaboration between 0101 Miami Properties, LLC, led by Jorge and Jose Mas, and 8th Street Connections Holdings, LLC, an affiliate of Terra, will encompass over 1.8…

1,219-Unit Overtown Development Approved, Construction Timeline Announced

Miami’s Urban Development Review Board has voted in favor of a massive Overtown development, and a construction timeline has been announced by the developer. The UDRB vote 4-0 last week to recommend approval as presented. Developer Terra is working in partnership with an entity controlled by the Mas family on the new community. Three phases are planned.

Miami board green-lights plans for Overtown, Midtown and downtown Miami towers

Developers David Martin, the Más family, Michael Simkins and Gil Blutrich received the green light from Miami’s Urban Development Review Board last week for planned residential projects from Overtown to Midtown Miami. Board members called the three projects “beautiful.” The UDRB unanimously recommended approval of all three developments at its meeting last…

Space Availability in Large Industrial Properties Continues To Rise in South Florida

The slump in industrial leasing continues into 2024, with all South Florida markets seeing slight upticks in vacancy and slowing rent gains. Annual leasing activity has dropped between roughly 20% and 35% below levels achieved during the peak of the pandemic, and except for Fort Lauderdale, leasing activity also remains depressed relative to pre-pandemic average trends.

Vantage Capital pays $21M for 108-unit Hialeah rental complex amid investment sales slowdown

Vantage Capital Partners scooped up a 108-unit apartment complex in Hialeah for $20.6 million, marking one of the few multifamily investment sales this year. Coconut Grove-based Vantage bought the San Sherri Apartments at 1310–1345 West 29th Street from a pair of affiliates tied to Brooklyn-based Freshwater Group, according to records and real estate database Vizzda..

Miami A Launch Market For Uber’s New Shuttle Service

Uber has announced plans for a new shuttle service, and Miami will be the first to experience the new service. Uber said it is partnering with Hard Rock Stadium to launch the new service for concerts this summer. Miami is one of four launch cities named for Uber Shuttle, and the only one with a confirmed destination announced. Exact routes to and from the stadium haven’t…

28-Story Kendall Apartment Tower Shoma 88 Announced Under Live Local Act

Miami-based developer Shoma Group is planning a 28-story apartment tower in Kendall, thanks to Florida’s Live Local Act. The Live Local Act overrides many local zoning rules statewide, if developers commit to building 40% of units as workforce housing. The new Kendall project is known as Shoma 88. “Kendall holds a special place in our hearts,” says Masoud Shojaee…

Construction Progress: Airstream Trailer Amenity Installed At Wynhouse Miami

Construction continues progressing on Wynhouse Miami, an 8-story mixed-use building at 2200 Northwest 1st Avenue in the heart of Miami’s Wynwood neighborhood. Designed by Nichols Architects with interiors by ID & Design International (IDDI) and developed by Fisher Brothers, the recently topped-off, approximately 115-foot-tall structure will deliver 308 rental residences…

Tenant rumble at Robert Rivani’s Wynwood Jungle in Miami

Robert Rivani’s Black Lion is in a legal tussle with a tenant that allegedly backed out of opening a restaurant at Wynwood Jungle in Miami. An affiliate of Columbus, Ohio-based restaurateur Brian Swanson last week sued an affiliate of Miami-based Black Lion Investment Group that owns the 23,000-square-foot retail and restaurant building at 50 Northwest 24th…

Atlantic Pacific, nonprofit partner plan 124-unit apartment project for disabled adults in Kendall

Atlantic Pacific Companies and nonprofit Casa Familia will develop a 124-unit apartment complex in Kendall for tenants with intellectual and developmental disabilities. The Village at Casa Familia will be developed in three phases on 9 acres at 11025 Southwest 84th Street in unincorporated Miami-Dade County, according to a project filing submitted to the county last week. The first phase…

Alta Development Plans ‘SoMi Walk’ for 5959 SW 71st Street in Miami

Alta Development, led by Henry Pino, has plans for a 15-story complex. Upon completion, the proposed SoMi Walk condo would feature 310 units, measuring 490 to 800 square feet each, with prices from $500,000 to $860,000. The development, designed by Miami-based Architecture Form Group, includes a host of communal amenities, such as indoor pickleball courts…

Retail Rents Rise in South Florida as Demand Continues to Outpace Supply

The retail sector in South Florida is undergoing adjustments that reflect the region’s dynamic economic landscape and evolving consumer preferences. One notable trend is evident in the restaurant sector, where owners increasingly aim to expand by opening new locations and entering lucrative markets.  This trend is primarily driven by consumer spending, particularly the continual…

Plans Filed For 8-Story Mediterranean-Style Mixed-Use Development At 33 Alhambra Circle In Coral Gables

33 Alhambra ProCo, LLC, an affiliate of a joint venture partnership between local developer MG Developer and Peru-based VYV, has submitted plans for an 8-story mixed-use development known as Alhambra Parc, also referred to as 33 Alhambra, in Coral Gables. The project aims to develop the 1.12-acre site at 33 Alhambra Circle, which was acquired in 2022 for $19,250,000.

CP Group, DRA Advisors Execute 40,000 SF of Office Leases at Miami Tower

CP Group and DRA Advisors have executed nearly 40,000 square feet of office lease transactions at Miami Tower, a 47-story, Class A office tower located at 100 S.E. 2nd St. in downtown Miami. The executed deals include two lease renewals (H&R Block and Transwestern), one expansion (law firm Assouline & Berlowe) and seven new leases, all of which were for Miami…

850-Foot Residences At Mandarin Oriental on Brickell Key To Break Ground In 2025

Swire Properties has launched sales for The Residences at Mandarin Oriental, Miami and released additional details on the development. Two towers are planned, connected by a landscaped podium. The South Tower will rise 66 stories, or 850 feet, while the North Tower will rise 426 feet. Both are being designed by Kohn Pedersen Fox. The South Tower will have 228 condos…

1,000-Foot Cranes Approved At Cipriani Construction Site In Brickell

The Federal Aviation Administration has approved the heights of several tower cranes planned at the 80-story Cipriani Residences construction site in Brickell. The first crane is now approved to reach a height of 1000 feet above ground, or 1003 feet above sea level. The second crane is approved to reach a height of 980 feet above ground, or 983 feet above sea level. The permanent…

Deal For Brightline To Build Commuter Rail System Nearly Ready

Negotiations on a deal for Brightline to build a commuter rail system on its tracks are “advancing very nicely,” according to a recent report on the SFBJ. Miami-Dade commissioners will probably vote on the deal in June or July, the report said. While Brightline will build the system, it will likely be operated by the South Florida Regional Transportation Agency, which operates Tri-Rail.

Construction Dates & Additional Details Released For Midtown Miami’s Tallest Tower Ever

The developers planning the Midtown 1 tower have announced an expected construction start date and additional details. The tower is proposed to rise 48 stories, or 596 feet above ground, making it the tallest ever in Midtown Miami. There will be 329 luxury condominium units, according to a statement released by the developers. Arquitectonica is designing the building…

New York Hotel Operator Proposes Two New Hotels At 5101 Blue Lagoon Drive Near Miami Airport

New York-based hotel owner MCR, under the M2 Miami Airport Blue Lagoon, LLC, has unveiled plans for two new hotels adjacent to its Hilton Miami Airport Blue Lagoon. The proposal filed as a pre-application with Miami-Dade County officials concerns the 20.6-acre property at 5101 Blue Lagoon Drive, which currently hosts the 14-story, 508-room hotel developed…

WeWork holds onto leases for most of its South Florida portfolio – still unclear on Miami, South Beach outposts

WeWork will hold onto its leases for most of its South Florida co-working spaces, while the future of its South Beach and downtown Miami outposts remains in doubt. The firm, which filed for Chapter 11 reorganization in November, is working to emerge from bankruptcy by the end of May, most recently filing a plan to keep 89 co-working spaces in the U.S. and Canada.

3 firms to relocate to recently renovated Doral building

Three companies secured a total of 14,201 square feet in a Doral office building that recently underwent a multimillion dollar renovation. Grupo Eulen, Vanderweil Engineers, and Trust Lending have signed leases and will relocate to the Offices at Doral Square, a 141,246-square-foot building at 8600 N.W. 36th Street. Grupo Eulen will move its Miami office into a 6,026-square-foot…

Developer plans 245-unit senior living facility in Weston

South Florida developer Terry Salzman won site plan approval for the development of a six-story, 245-unit senior living facility in Weston. Fort Lauderdale architecture firm Synalovski Romanik Saye LLC designed the 325,808-square-foot building with 113 units for independent living, 108 for assisted living, and 24 for memory care. A resident of Weston for the last 25 years…

286-Apartment ‘Cypress Crossing’ Could Replace Park-and-Ride in Fort Lauderdale

Oakland Park’s Development Review Committee will review a proposal for Cypress Crossing tomorrow, May 23rd. The mixed-use venture would replace a park-and-ride lot, comprising three buildings: one eight-story building and two 7,500-square-foot retail buildings. According to the South Florida Business Journal, the mid-rise building would offer 286 apartments…

Mixed-Use, 71-Apartment ‘1435 ArtXchange’ Set for 1429 to 1435 Sistrunk Boulevard in Fort Lauderdale

Sirrom Commercial hopes to move one step closer to accomplishing 1435 ArtXchange, a mixed-use project in Fort Lauderdale. The city’s Community Development Agency (CRA) board will consider a $6 million forgivable loan for the workforce housing development which, upon completion would deliver 71 apartments, 5,844 square feet of commercial bays (five total), and a 218…

NRIA’s successor proposes 48-story apartment tower in Fort Lauderdale

The successor to the formerly embattled National Realty Investment Advisors proposed a 48-story, 429-unit apartment tower in Fort Lauderdale’s Flagler Village area. A city review panel told a subsidiary of AIRN Holding Company on Tuesday to consider redesigning the ­proposed multifamily tower to address excessive podium height and add visual drama to the roofline.

Former funeral home site in Wilton Manors to be redeveloped as boutique hotel with 123 rooms

The owners of a former funeral home in Wilton Manors won city approval to redevelop the property as a 123-room boutique hotel called the Wilton Hotel. The Wilton Manors City Council unanimously approved a rezoning of the hotel development site during the council’s meeting Tuesday night, along with a developer’s agreement and deed restrictions on the development site.

New Renderings Of Broward Elevated Light Rail That Could Eventually Reach Sawgrass

The Sun Sentinel has published new renderings of a people mover system and an elevated light rail system to be built in Broward County. The light rail system is planned to be elevated. It will run 3.5 miles in a first phase, from an intermodal center at Fort Lauderdale airport to the Broward County Convention Center and Port Everglades. Eventually, it could be extended to Sawgrass Mills.

Pompano Beach senior rental project lands $28M in construction loans, as affordable apartments defy financing slump

A low-income apartment project for senior residents in Pompano Beach landed a $27.5 million construction loan package, as affordable housing remains immune to the multifamily financing slump. The Housing Authority of Pompano Beach and Jacksonville-based apartment developer Vestcor are building the 100-unit Provident Place with a pair of three-story buildings…

Ares drops $140M for Boca Raton apartments in biggest South Florida multifamily sale this year

Ares Management bought a 284-unit apartment building in Boca Raton for $139.7 million, marking the biggest multifamily sale in South Florida so far this year. Los Angeles-based Ares scooped up the eight-story Ceru property at 5205 Congress Avenue from Fort Lauderdale-based Mainstreet Capital Partners, according to records and real estate database Vizzda. The sale defies the…

Brookfield buying big US multifamily portfolio including properties in Coral Springs, West Palm Beach

Brookfield has agreed to pay US$1.55bn for a 7,300-unit apartment portfolio concentrated in Florida and Texas, Green Street News can reveal. The investment behemoth is buying the 23-property package from Starwood Capital, which evidently pieced the portfolio together over the last five years. The deal values each apartment at US$212,000. It’s not clear if Miami Beach-based…

Lease roundup: Financial firms lease at Steve Ross’ West Palm towers, Pura Vida is in expansion mode

Steve Ross’ Related Companies signed six new tenants in downtown West Palm Beach, amid the developer’s hefty bet on the area’s office market. JPMorgan Chase leased space at the 20-story 360 Rosemary building at 360 South Rosemary Avenue, which Related completed in 2021, Bloomberg reported. Also, billionaire hedge funder John Paulson’s Paulson Capital and private equity…

What’s Trending In Industrial Space? Automation In Towering Cold Storage Boxes

Many in the cold storage space are using ASRS to more strategically manage their inventories. In one instance, an occupant called AmeriCold constructs their new buildings around such a system, and in many cases, they stretch 150 feet in height. To put this in context, that is approximately 12 stories high, and roughly four times the height of the modern concrete…

The Supermarket Rental Sweep: Analyzing Multifamily Rent Premiums Generated by Grocery Store Anchors

Across the country, both urban centers and established suburbs have contended with a mismatch between the desire to densify with contemporary mixed-use development and their existing land use patterns of single-use, low-density development. In particular, many grocery stores were built as sprawling, low-density stores in central locations that today present an inefficient…

Multifamily Distress Rate Nearly Doubles Nationally In April

The worst isn’t over for the distress-riddled multifamily industry, according to new monthly financial indicators. The overall distress rate set a new record of 8.35% in April, according to real estate data firm CRED iQ, with multifamily leading the increase. Multifamily’s distress rate increased from 3.7% in March to 7.2% in April, CRED iQ reported. The jump was led by a loan…

DeSantis Signs Live Local Amendments, Boosting Tax Breaks For Developers

Florida Gov. Ron DeSantis signed into law changes to the Live Local Act that are meant to clarify its rules while providing a boost for developers looking to build affordable and workforce housing. The amendments were one of 11 bills DeSantis signed into law Thursday. Among the changes, which are seen as largely favorable to developers, are increased tax breaks for affordable…

Live Local changes could propel workforce housing boom in South Florida

A “coming soon” sign posted at the construction site of an affordable housing development in Hollywood, a market brimming with new projects, prompted an unexpected response. More than 21,000 people applied to live in the 113-unit future development, called Pinnacle 441. Pinnacle opened a lottery for the units March 15 and closed it 10 days later. It’s no secret that South Florida…

The Weekly Dirt: It’s go time for Live Local projects

Gov. Ron DeSantis signed long-awaited amendments to the Live Local Act into law last week, a relief for developers banking on the changes. Senate Bill 328 generally boosts and clarifies developer incentives under the workforce housing law that the Florida Legislature passed in 2023. It took more than two months for the latest bill to make it to DeSantis’ desk in early May.

Video: Morgan Stanley’s Real Estate Investing Co-CEO Lauren Hochfelder discusses firm’s top real estate investing ‘megatrends’

The recent Yahoo Finance episode of “Wealth!” featured Morgan Stanley Real Estate Investing Co-CEO, Lauren Hochfelder, who provided an in-depth analysis of current real estate investing trends amidst a volatile market. With shelter prices rising by 5.5% year over year and high mortgage rates coupled with low housing inventory, investors face a challenging landscape. Hochfelder…

How to use the debt service coverage ratio in real estate

The debt service coverage ratio, or DSCR, is a useful metric for assessing a borrower’s ability to cover debt obligations. In real estate, it can measure how easily the net income a property generates can cover its mortgage. The DSCR is one tool real estate investors often use when evaluating potential investment properties. It’s also an important factor lenders consider when investors…

Innovative financing for workforce housing

Half of all U.S. renter households spent more than 30% of their income on rent in 2022, according to the Harvard Joint Center for Housing Studies. In many markets, families are spending the majority of their income on housing costs, leaving limited resources for other needs. When cost burdens are that widespread, low-income renters aren’t the only ones struggling…

U.S. Apartment Transactions Nationally Slump to Lowest Level Since Pandemic

Investments in U.S. apartments continued to decline in 2024’s 1st quarter amid the high cost of borrowing and economic uncertainty. Though the asset class remains an attractive commercial real estate investment, sales have fallen well below pre-pandemic levels. Nearly 1,040 apartment properties changed hands at a value of $20.6 billion during 1st quarter 2024, according…

Bank OZK Has Dominated Construction Lending. Its CEO Has No Plans To Slow Down

No one has handed out more U.S. construction loans over the past year and a half than a midsized bank in Little Rock, Arkansas. In fact, no entity is even close. Bank OZK handed out more than $3B in real estate construction loans in 2023, while its closest competition, JPMorgan Chase and Wells Fargo, each originated less than $2B, according to MSCI. As most banks are pulling…

The post Miami Commercial Real Estate News May 22, 2024: Live Local Act Amended; 1,219-Unit 1.8M sf Overtown Development Approved; $200M+ Fisher Island Dev Site Hits Market; More… appeared first on Hawkins Commercial Realty.