2019 · welcome to the 2019 edition of the miami reporttm for the last nine years, isg has produced...

2019TM

Welcome to the 2019 edition of the Miami ReportTM

For the last nine years, ISG has produced and published the Miami Report. In each report, we have documented the unparalleled growth of South Florida and chronicled its journey in becoming an area of global importance and its rise as a truly world-class destination.

Our market research department has worked tirelessly over the past several months tracking new developments in order to present a clear picture of the current state of our condominium market. Once again, we have assembled and graphically presented what we deem to be critical information for real estate industry leaders as they make decisions on future development and investment.

The constant changes in political climates of our neighbors to the south, Central and South America, and the strength of the U.S. dollar have had a profound effect on the absorption of new developer condo inventory over the last four years. This has resulted in a challenging condo market for urban centers reliant on international buyers.

So where are we now and what lies ahead for our immediate future? We believe the data we have assembled and are presenting will confront you with what we have labeled a “supply shock.”

South Florida continues to be one of the fastest-growing areas in the United States. However, the stubbornness of the high U.S. dollar has, for the most part,slowed any meaningful new condominium development. Despite the slowdown, our data reveals just 2,101 unsold developer condo units in our market area, with only 587 of these units being standing inventory. The remaining units are either under construction or in the pre-construction phase. Even at the lower absorption rates of the past two years, the total remaining unsold inventory should be absorbed in the next 18 to 24 months.

Developers are expecting to launch pre-sale campaigns for the next cycle in 2020. Factoring in the height of these new towers, which are planned to reach 60 to 100 stories, it’s evident that most of these future buildings won’t be available for occupancy until 2024 or 2025 at the earliest. What becomes clear is that after the current developer inventory is sold, a buyer relocating in the next several years will need to look solely to MLS/resale inventory to satisfy immediate needs, thus the title of this Miami Report, “Supply Shock.”

We trust you will find our report informative and concise. We have endeavored to present the current conditions factually. We hope that this data will help you formulate your own conclusions and guide you to take advantage of what the current state-of-the-market is offering as you develop your business plans.

Sincerely,

The Miami ReportTM is produced for general interest only. It is not definitive and is not intended to give advice. Although high standards have been used in the preparation of the information, analysis and views presented in the Miami Report,

no responsibility or liability whatsoever can be accepted by ISG World, International Sales Group, LLC and/or Related ISG International Realty for the contents. We make no express or implied guarantee of the accuracy of any of the contents.

As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents. Readers should not take or refrain from

taking any action as a result of information in the Miami Report.

CEOCraig Studnicky

PresidentMichael Ambrosio

Chief Marketing OfficerVeronica Escobedo Gorson

President, RelatedISG International RealtyAlex Vidal

Creative DirectorEdward Trelles

Director of Market Research Athena Rossano

EditorialRebecca StellaSenior Marketing & Communications Associate

DesignersEmiliana ZelkowiczGraphic Designer

Maria LatorreGraphic Designer

ContributorsRowena LunaMarketing Director, RelatedISG International Realty

Sergio PintosExecutive V.P. of Sales

Chrystal LozanoMarketing Associate

Lian OteizaMarketing Associate

Special thanks to: Becky Randel, MOR Printing, Inc., Element Image, Morphoto Inc., and Unsplash.com

C

PAGE

46

PAGE

50

PAGE58

TransportationSouth Florida’s inter-city rail service,

seaport and airports continue to expand

year after year, improving accessibility to

the region.

MLS/RESALE MARKET & RENTAL TRENDS34

Cultural &EconomicGrowthThe growth and diversification of the

sectors impacting Miami’s culture

and economy further position

Miami as a top global city.

LANDSCAPE OF THE FUTURE - A wave of new developments

in Greater downtown Miami is transforming the area into a

world-class neighborhood.

76

COMMERCIAL SNAPSHOT42

InternationalAn update on some of the most active

international markets currently impacting

Miami real estate.

ONTESTN

0302

2019 MIAMI REPORT ISGWORLD.COM

ISG CITY WATCH: BRICKELL74

NEW CONSTRUCTION CONDO DEVELOPMENT

An analysis and current status of South Florida’s new

developer condominium market.

08

DEMAND - Florida’s population grows by more than

900 people everyday.

22

PAGESupply ShockFeatured Story04 Dwindling new developer condo

inventory paired with increasing

demand has resulted in a shocking

shortage of new condo inventory.

WEALTH REPORT24

Brickell City Centre

Echo Brickell

ON THE GROUND - Expert insights on the South Florida

real estate landscape from president of RelatedISG

International Realty, Alex Vidal.

78

FEATURED STORY

The accelerated decline of new developer condo inventory

2019 MIAMI REPORT

04

The dwindling of new developer

condo inventory paired with

increasing demand for South Florida

condo living has resulted in a shocking

shortage of new condo inventory that

the market has never seen before.

ISGWORLD.COM

Low Remaining Developer Inventory

Based on the current absorption rate, this remaining

developer inventory is projected to be absorbed by 2021

SUPPLY

Of the 19,868 condominium units that were developed in the

current condo cycle and since 2012, 89 percent have been sold,

leaving just 2,101 new developer units available for sale across

South Florida, from Coconut Grove to Fort Lauderdale, east of

I-95. At the current rate of sales, the absorption projection for

this remaining inventory is as follows:

For more information on supply, see page 8.

587 Delivered Units ...............................................Estimated Sellout: 12 Months

1,331 Under Construction Units ...........................Estimated Sellout: 24 Months

183 Pre-Construction Units ...................................Estimated Sellout: 24 Months

Remaining Developer Inventory

Florida’s Daily Population Growth

The number of people Florida’s

population grows by each day

(does not include second-home buyers)

DEMAND

Every day, Florida’s population grows by more than 900 people.

Of those moving to Florida from other countries and other states,

45 percent of them move to South Florida. While states like New York

and Illinois are losing population every day, Florida’s population growth

is the second-fastest in the country, resulting in an ever-increasing

demand for real estate.

For more information on demand, see page 22.

Miami-Dade ............................................................ 82,308

Broward .................................................................. 39,508

West Palm Beach.................................................... 26,338

Total ...................................................................... 148,154

South Florida Yearly Population Growth Breakdown

New CondoDevelopment Cycle

The year developers plan to launch new

condominium developments

THE NEXT CYCLE

As shocking as the current low level of new developer condo

inventory is, it is the future supply of inventory that is more concerning.

The lack of condominium groundbreakings over the years is daunting

compared to South Florida’s history. Major real estate developers

expect to launch pre-sale programs for their next developments in

2020, kicking off the next condo cycle, with the majority of those

developments being delivered in 2024 or 2025 at the earliest.

For more information on the next cycle, see page 21.

ISGWORLD.COM

NEXT CYCLE

Projected start of next cycle

Projected delivery of new developer inventoryin the next cycle

PROJECTIONS

07

Remaining developer inventory

2019 MIAMI REPORT

SUMMARY

CURRENT CYCLE

Florida’s daily population growth

(587 Delivered / 1,331 Under Construction / 183 Pre-construction)

Supply Shock SummaryTotal new construction condo units currently available for sale in Brickell, Biscayne Corridor (Edgewater, Wynwood, Midtown, Design District, Omni), Downtown

Miami, The Beaches (South Beach, Miami Beach, Surfside, Bal Harbour, Bay Harbor Islands, Sunny Isles Beach, Hallandale Beach, Hollywood Beach), Aventura,

North Miami Beach, Coconut Grove and Key Biscayne since 2012

06

NEW CONSTRUCTION CONDODEVELOPMENT

CURRENT CYCLE

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

0908

ISGWORLD.COM

Downtown Miami Photo by Janis Laubergs

2019 MIAMI REPORT

New Construction Condo Development SummaryTotal new construction condo units sold and currently available for sale in Brickell, Biscayne Corridor (Edgewater, Wynwood, Midtown, Design District, Omni),

Downtown Miami, the Beaches (South Beach, Miami Beach, Surfside, Bal Harbour, Bay Harbor Islands, Sunny Isles Beach, Hallandale Beach, Hollywood Beach),

Aventura, North Miami Beach, Coconut Grove and Key Biscayne since 2012

TOTAL DEVELOPER UNITS SOLD DEVELOPER UNITS REMAINING DEVELOPER INVENTORY

Total new construction condo developer units east of I-95 and available for sale since 2012

New Construction Condo Inventory Analysis - Sold vs. Unsold

89% SOLD As of May 2019

19,868 Total Units

17,767Total Sold Units

2,101Remaining Developer Inventory

(587 Delivered / 1,331 Under Construction / 183 Pre-Construction)

Macro 2016-2021 Absorption Analysis for New Condos Built Since 2012

REMAINING DEVELOPER INVENTORY

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

11


10

CURRENT CYCLE CURRENT CYCLE

Jan 2012 Jan 2016 Jan 2017 Jan 2018

6,515

19,868

5,1953,860

2,101

Summer 2020*

420*

1,340Average Annual

Absorption(Last 3 years)

*Projected

As of May 2019

2,498

Jan 2019

1,238*

Jan 2020*

Delivered Inventory Sold Out Pre-Construction/Under Construction Remaining

Dec 2021*

0*

15,054Delivered

4,454Under Construction

587 Unsold

1,331 Unsold

183 Unsold

360Pre-Construction

Tota

l New

Con

stru

ctio

n D

evel

oper

Uni

ts

96% Sold

70% Sold

50% Sold

Source: Developer Sales Reports, Miami-Dade and Broward County Property appraisers and onsite sales staff

Cassa Brickell 81 Total Units100% SOLD

Echo Brickell 180 Total Units98% SOLD

Le Parc 128 Total Units100% SOLD

Nine at Mary Brickell Village 390 Total Units100% SOLD

My Brickell 192 Total Units100% SOLD

SLS Hotel and Residences 453 Total Units100% SOLD

SLS Lux 450 Total Units100% SOLD

50 Total Units100% SOLD

Smart Brickell Tower II 50 Total Units66% SOLD

The Bond 323 Total Units100% SOLD

Smart Brickell Tower I

*Est. % Sold - Project won’t release the information

5,757 Total Units / 5,461 Sold Units (95%) / 296 Unsold Units

Brickell - 95% SoldTotal new construction condo units available for sale since 2012

SOLD DEVELOPER UNITS UNSOLD DEVELOPER UNITS

D RECENTLY DELIVERED P PRE-CONSTRUCTIONUNDER CONSTRUCTIONU

250 Wynwood 11 Total Units

Baltus House 167 Total Units100% SOLD

100% SOLDW Y N W O O D

D E S I G N D I S T R I C T

E D G E WAT E R

Hyde Midtown* 410 Total Units100% SOLD

Aria On The Bay 648 Total Units96% SOLD

Canvas 513 Total Units

Aston Martin Residences

One Thousand Museum 83 Total Units82% SOLD

Paramount Miami Worldcenter 513 Total Units85% SOLD

M I D T O W N

D O W N T O W N M I A M I

O M N I

100% SOLDCentro 352 Total Units

48% SOLD 390 Total Units

94% SOLD

96 Total Units100% SOLD23 Biscayne Bay

Bay House 165 Total Units100% SOLD

Biscayne Beach 399 Total Units100% SOLD

The Crimson 90 Total Units100% SOLD

Elysee 100 Total Units49% SOLD

Icon Bay 300 Total Units100% SOLD

Gran Paraiso 95% SOLD 333 Total Units

Missoni Baia 249 Total Units40% SOLD

26 Edgewater 86 Total Units94% SOLD

Emilia Edgewater 30 Total Units100 % SOLD

One Paraiso 280 Total Units100% SOLD

Paraiso Bayviews 396 Total Units99% SOLD

Paraiso Bay 100% SOLD *360 Condo tower only*Bay homes not included

Biscayne Corridor - 94% Sold Downtown Miami - 76% Sold

Biscayne Corridor: 4,633 Total Units / 4,358 Sold Units (94%) / 275 Unsold UnitsDowntown Miami: 1,718 Total Units / 1,307 Sold Units (76%) / 411 Unsold Units

Total new construction condo units available for sale since 2012 (Wynwood, Design District,

Edgewater, Midtown & Omni)



Okan Tower 149 Total Units

1100 Millecento 382 Total Units

1010 Brickell

Brickell City Centre (Tower I) - Reach 390 Total Units

Brickell City Centre (Tower II) - Rise 390 Total Units

Brickell Heights East 367 Total Units100% SOLD

Brickell Heights West 332 Total Units100% SOLD

Brickell House 374 Total Units100% SOLD

Brickell Ten 155 Total Units100% SOLD

Brickell Flatiron 548 Total Units90% SOLD

B R I C K E L L

387 Total Units

Una Residences 135 Total Units45% SOLD

95% SOLD

100% SOLD

100% SOLD

70% SOLD

D

P

U

D

D

D

D

D

D

D

D

D

D

D

D

D

D

D

U

P

D

U

D

D

D

D

D

D

D

D

D

U

D

D

D

D

D

D

U

D

U

U

P 56% SOLD

YotelPad Miami 231 Total UnitsU74% SOLD

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

13

2019 MIAMI REPORT ISGWORLD.COM*Condo-hotel not included

M I A M I B E A C H /S O U T H B E A C H

The Beaches - 85% SoldTotal new construction condo units available for sale since 2012 (South Beach, Miami Beach,

Bay Harbor Islands, Surfside, Bal Harbour, Sunny Isles Beach, Hallandale Beach and Hollywood)





Beach House 8

Edition Residences

Faena House

Glass

Louver House

Marea South Beach

One Ocean

Palau Sunset Harbour

Peloro on the Bay

Bay Breeze Residences

Kai at Bay Harbor

Le Jardin

O Residences

Eighty Seven Park

L’atelier

Three Hundred Collins

Pearl House

Sereno Bay Harbor

The Ivory

Ritz-Carlton Residences

321 Ocean

B AY H A R B O RI S L A N D S

Bijour Bay House

Club at Bay Harbor

The Palm Residences

The Waters

Monad Terrace*

Harbor Park

57 Ocean

8 Total Units

26 Total Units

47 Total Units

10 Total Units

12 Total Units

30 Total Units

50 Total Units

45 Total Units

114 Total Units

66 Total Units

23 Total Units

19 Total Units

111 Total Units

21 Total Units

100% SOLD

100% SOLD

100% SOLD100% SOLD

100% SOLD

100% SOLD

100% SOLD

100% SOLD

100% SOLD

85% SOLD

100% SOLD

100% SOLD

72% SOLD

100% SOLD



17 Total Units

57 Total Units

30 Total Units

41 Total Units

15 Total Units

40 Total Units

42 Total Units

41 Total Units

42 Total Units

100% SOLD

96% SOLD

80% SOLD

100% SOLD

76% SOLD

100% SOLD

88% SOLD

80% SOLD

100% SOLD42 Total Units86% SOLD



D

U

D

D

D

D

D

D

D

U

D

D

D

U

U

D

D

D

D

D

D

D

U

D

D

D

U

U

Oceana 240 Total Units80% SOLDB A L H A R B O U R

Hyde Beach House

Hyde Resort and Residences

Sage Beach

Apogee Beach

H O L LY W O O DB E A C H

342 Total Units (Now including all residences)85% SOLD




BeachwalkH A L L A N D A L E B E A C H

2000 Ocean*

400 Sunny Isles

Aurora

Residences by Armani Casa

Chateau Beach

Mansions at Acqualina

Muse

Parque Towers

Porsche Design Tower

Regalia

Ritz-Carlton Residences

Turnberry Ocean Club

Jade Signature

The Estates at Acqualina

S U N N Y I S L E SB E A C H

84 Total Units100% SOLD64 Total Units15% SOLD

308 Total Units


212 Total Units

192 Total Units

242 Total Units


61 Total Units72% SOLD78% SOLD





39 Total Units100% SOLD75% SOLD


96% SOLD

75% SOLD

D

D

U

U

D

D

U

D

D

D

D

D

U

U

U

D

D

U

D

D

NEW

CON

DO

CON

STRUCTION

Fendi Chateau 58 Total Units100% SOLDDS U R F S I D E

Surf Club Four Seasons Private Residences 150 Total Units87% SOLDD

The Sophie 26 Total Units - Just releasedP

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

15


2000 Ocean* 64 Total Units15% SOLD U

Arte Surfside 16 Total Units13% SOLD U

158 Total Units

Aventura Park Square 131 Total Units85% SOLD

Bellini 70 Total Units100% SOLD

Echo Aventura 100% SOLD

Privé 86% SOLD

190 Total UnitsAV E N T U R A

North Miami Beach & Aventura - 97% SoldTotal new construction condo units available for sale since 2012




D

D

D

D

Oceana 100% SOLD

Grove at Grand Bay 100% SOLD

One Park Grove 60% SOLD

Two Park Grove 99% SOLD

Park Grove Club Residences 100% SOLD

Fairchild Residences

97 Total Units

67 Total Units

154 Total Units

73 Total Units

152 Total Units


K E Y B I S C AY N E

C O C O N U T G R O V E

Glasshaus in the Grove 60% SOLD 23 Total Units

D

The Harbour

The Reserve at Marina Palms 99% SOLD

99% SOLD 425 Total Units

468 Total UnitsN O RT H M I A M IB E A C H

D

D

U

U

U

D

D

Fort Lauderdale - 74% SoldTotal new construction condo units available for sale since 2012




321 at Water’s Edge 23 Total Units

Adagio on the Bay 12 Total Units100% SOLD

55% SOLD

Aquablu Fort Lauderdale 35 Total Units94% SOLD

Aqualuna Las Olas 16 Total Units100% SOLD

Aquamar Las Olas 20 Total Units100% SOLD

Aquavue Las Olas

100 Las Olas

8 Total Units

113 Total Units

75% SOLD

40% SOLD

Auberge Beach North Tower 57 Total Units100% SOLD

Auberge Beach South Tower 114 Total Units86% SOLD

Four Seasons Private Residences* 55% SOLD

Paramount Fort Lauderdale 95 Total Units100% SOLD

90 Total Units

Aquavita Las Olas 22 Total Units100% SOLD

Gale Hotel & Residences 129 Total Units100% SOLD

Adagio Fort Lauderdale Beach 31 Total Units71% SOLD

The Conrad 290 Total Units

Riva 100 Total Units75% SOLD

33 Intracoastal 11 Total Units100% SOLD

W Residences Fort Lauderdale 171 Total Units65% SOLD

Wave 18 Total Units89% SOLD

60% SOLD


D

D

D

U

D

D

D

D

D

U

D

D

U

D

D

D

R

R

U

R NEWLY RENOVATED

638 Total Units / 588 Sold Units (92%) / 50 Unsold Units

SOLD DEVELOPER UNITSSOLD DEVELOPER UNITS UNSOLD DEVELOPER UNITS


Key Biscayne & Coconut Grove - 92%Total new construction condo units available for sale since 2012

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

17


Arbor 83% SOLD 46 Total UnitsU

New Construction Condo Development Summary by SubmarketsTotal new construction condo units available for sale since 2012

Coconut Grove

Edgewater

Key Biscayne

Brickell

Miami Beach / South Beach

Surfside

Bal Harbour

Sunny Isles Beach

Hallandale Beach

Hollywood Beach

Fort Lauderdale

Design District

Midtown

Downtown Miami

BISCAYNE CORRIDOR

Wynwood

Aventura

Omni

BayHarborIslands

Miami River District

50% - 74% SOLD

Hallandale Beach ....................... 64%

Fort Lauderdale ......................... 74%

75% - 99% SOLD

Coconut Grove ........................... 90%

Brickell ....................................... 95%

Downtown Miami ...................... 76%

Biscayne Corridor ...................... 94%

Miami Beach/South Beach ........ 79%

North Miami Beach ................... 99%

Surfside ...................................... 92%

Bay Harbor Islands .................... 91%

Bal Harbour ............................... 80%

Sunny Isles Beach ...................... 86%

Aventura .................................... 92%

Hollywood Beach ...................... 89%

Key Biscayne ............................. 100%

100% SOLD

North Miami Beach

Photo by Muzammil Soorma

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

19


CURRENT CYCLE

18

15

20

10

5

Total macro* new construction groundbreakings by year for condos built since 2012 and east of I-95*(Brickell, Biscayne Corridor, Downtown Miami, South Beach, Miami Beach, Surfside, Bal Harbour, Bay Harbor Islands, Sunny Isles Beach, Hallandale Beach, Hollywood Beach,

Aventura, North Miami Beach, Coconut Grove, Key Biscayne and Fort Lauderdale). Condo developments with 20 units or less not included.

2000 OceanFour Seasons Private

Residences The Estates at

AcqualinaGlasshaus In the Grove 57 Ocean

Okan TowerUna ResidencesSmart Brickell Tower IIYotelPad Miami

The number of South Florida condominium groundbreakings has significantly tapered off from when this condo cycle peaked in 2014, indicating a winding down of the current cycle.

2012

15

2013

20

2014

23

2015

18

2016

14

2017

11

2018

4

2019*

5*

2020*

0*

TOTAL GROUNDBREAKINGS

* Projected

Condo Groundbreakings

Miami’s pre-construction development cycle timelineOver the past three decades, the typical high-rise condominium’s development cycle, from inception to delivery, was a two- to three-year process. Today, real estate developers are building 50- to 100-story luxury residential towers, which easily doubles the development and construction timeline to five or six years.

0

0.5 years

1 year

1.5 years

2 years

2.5 years

4 years

Pre-SaleRequirement Achieved/

Groundbreaking

Top Off

2023

2022

2021

2020

Completion

Pre-Sale

2024

2025+

3 years

3.5 years

4.5 years

5 years

NEW

CON

STRUCTION

CON

DO

DEVELO

PMEN

T

21


NEW CYCLE INCEPTION*

DELIVERY*

Typical high-rise condominium development cycle

20

CURRENT CYCLE

* Projected

NEXT CYCLE (projected)

22

2019 MIAMI REPORT


DEMAND

DEM

AND

23

ISGWORLD.COM

According to Knight Frank’s Wealth Report, Miami is expected to be the fastest-growing luxury real estate market in the U.S. and the fifth fastest-growing in the world in 2019.

Wealth Report


DEM

AND

2524

Source: Knight Frank Wealth Report

MIAMI

fastest-growing luxury real estate market in

the world

#5fastest-growing luxury real estate market in

the U.S.

#1

Miami’s private jet industryis soaringAs the ultra-wealthy flee high-tax states and cold weather for South Florida, the market’s private jet industry is seeing major growth, with more and more flights taking off and landing in South Florida.

increase in private flightsin South Florida

35%

Miami ranked a top global city for its prime residential property

Highest earners in U.S. leaving New York, Chicago, Silicon Valley for Miami

Wealthy residents from high-tax states like New York, New Jersey, Connecticut, Chicago and California are relocating to Miami and other parts of South Florida and purchasing ultra-luxury real estate. This group includes Wall Street hedge-fund managers, tech moguls, and other high earners looking to escape the effects of the tax reform law that was implemented last year by re-establishing their primary residence in Florida. This trend has resulted in record-setting real estate sales across the Miami area.

‘Tax refugees’ are dropping between

$10 million and$50 million on

ultra-luxuryMiami homes

Sources: Miami Herald & Privatefly

First-quarter luxury sales fromCoconut Grove - Fort Lauderdale Beach

Source: MLS Closed Sales

Single-Family, $5M+ Q1’17 Q1’18 Q1’19

Median Sales Price $10.9M $8.6M $12.4M

Volume $153.4M $103.8M $224.6M

Sales 14 12 18

Condos + Townhomes, $3M+ Q1’17 Q1’18 Q1’19

Median Sales Price $6.1M $6.3M $5.6M

Volume $225M $235.6M $254.7M

Sales 37 37 45

1. Madrid

2. Berlin

3. Paris

4. Cape Town

6. Monaco

7. Vancouver

8. Sydney

9. Los Angeles 10. Geneva

5. Miami

As the populations of the world, country and state of Florida continue to surge, a significant upward pressure is placed on the demand for goods, services and housing.

Population Growth

United States Population Growth

It will only take 33 yearsto add the next

73 Mil*

people in 1914

100 Mil

MIL

LIO

NS

100M

200M

326.8M

400M*

1800 1914 1967 2018 2051*

World Population Growth

BIL

LIO

NS

1.5B

3.5B

7.7B

9.8B*

1800 1914 1967 2018

It will only take 33 yearsto add the next

2.1 Bil*

people in 1914

1.5 Bil

2051*

Florida Population Growth

MIL

LIO

NS

18M20.6M 21.3M

28.9M*

1967 2006 2017 2018 2040*

*Projected Source: WorldPopulation.com & Statchat.com

6.6M

1998

MIDWEST

SOUTH

WEST

NORTHEAST

2018

MIDWESTWEST

NORTHEAST

2008

MIDWEST

NORTHEAST

WEST

Florida #2

nationally in population growth(2014-2018)

26

DEM

AND

27


California .......... 1,381 per day

Texas .................... 884 per day

Florida ................. 823 per day

New York ............. 580 per day

New Jersey .......... 193 per day

Illinois .................. 150 per day

Connecticut ......... 130 per day

Massachusetts ..... 125 per day

Texas ................. 1,032 per day

Florida ................. 902 per day

California ............. 342 per day

New Jersey ............ 55 per day

Massachusetts ....... 14 per day

Connecticut ............ -3 per day

Illinois ................. -123 per day

New York ............ -132 per day

Texas ................. 1,200 per day

California ............. 994 per day

Florida ................. 473 per day

New York ............. 430 per day

Massachusetts ....... 82 per day

Illinois .................... 75 per day

Connecticut ........... 70 per day

New Jersey ............ 55 per day

Regional Population Migration

The U.S. is experiencing a domestic migration trend and population shift from states in the Northeast and Midwest to states in the South like Florida and Texas. According to U.S. Census data, Florida had the highest level of net domestic migration from 2017-2018.

Sources: U.S. Census Bureau

SOUTH

SOUTH

Florida has consistently been one of the most desirable states in terms of weather and tax climate, maintaining a strong average daily population growth throughout the last couple of decades.

FLORIDA

1200

1000

800

600

400

200

0

1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

NU

MB

ER

OF

PE

OP

LE

PE

R D

AY

2018

823

747789

818

911

862 827 869890

550

437

343

522

701645 671

803

1,002

1,063

900 902

Florida’s 20-year average daily population growth

781

28

DEM

AND

29



20 Years of Florida’sDaily Population Growth

Florida’s Daily Population GrowthOf the 902 people that Florida’s population grows byeach day, 45 percent of them are in Miami-Dade, Browardand Palm Beach counties.

25%Miami-Dade

55%rest of the state

12%Broward

(Fort Lauderdale)

8%Palm Beach

of Florida’s daily population growth occurs in South Florida

45%

Source: Demographics for the Bureau of Economics and Business

States with the largest daily population growth

TEXAS

1

1,032per day

28.7 Miltotal pop.

FLORIDA

2

902per day

21.3 Miltotal pop.

CALIFORNIA

3

342per day

39.5 Miltotal pop.

(2018)

Average daily population growth (last 20 years)

(1998 - 2018)

TEXAS FLORIDA CALIFORNIA

1,159per day

781per day

943per day

Projected average daily population growth (next 20 years)

(2019 - 2040)

TEXAS FLORIDA CALIFORNIA

1,409per day

946per day

690per day

30

DEM

AND

31


Source: U.S. Census Bureau

Source: U.S. Census Bureau

Source: Statchat.com

Florida vs. New York

FLORIDA NEW YORK

#2in population growth

Florida

NU

MB

ER

OF

PE

OP

LE P

ER

DA

Y

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018

437

343

522

701645 671

803

1,063

900

1,002

#1 in population loss

New York

902

-132

people per day in Florida

people per day in New York

Photo by Blake Connally

32

DEM

AND

33


New Yorkers seeking milder weather and lower taxes are increasingly drawn to states like Florida, driving New York into a daily population loss for the first time in history.


[Miami] is experiencing more activity than usual from buyers living in states like New York, New Jersey and Illinois.

Photo by Jonathan Riley

Daily Population Growth (Florida vs. New York)

34

MLS/RESALE MARKET & RENTAL TRENDS

Downtown Miami Photo by Frank Charles

ISGWORLD.COM

MLS/RESALE M

ARKET & REN

TAL TREND

S

35


Condo MLS/Resale Market SnapshotTotal new construction condo units delivered in Brickell, Biscayne Corridor (Edgewater, Wynwood, Midtown, Design District, Omni), Downtown Miami,

The Beaches (South Beach, Miami Beach, Surfside, Bal Harbour, Bay Harbor Islands, Sunny Isles Beach, Hallandale Beach, Hollywood Beach), Aventura,


Miami-Dade & Broward Residential SnapshotSingle-Family Homes, Townhomes, Condos and Rental Units available on the MLS

MIAMI-DADE COUNTY

Total housing inventory: 1,024,211

Total Active Single-Family Homes ................... 6,932 0.68%

Total Active Condos / Townhomes ............... 16,067 1.57%

Total Active Rentals ........................................ 10,865 1.06%

TOTAL ACTIVE LISTINGS .............................33,864 3.31%

LOW INVENTORY

ONLY 3.31%of total housing units are available for sale or rent

in Miami-Dade County

3.31%96.69%(unavailable)

BROWARD COUNTY

Total housing inventory: 823,602

Total Active Single-Family Homes ................... 5.925 0.72%

Total Active Condos / Townhomes ................. 8,098 0.98%

Total Active Rentals .......................................... 4,890 0.59%

TOTAL ACTIVE LISTINGS .............................18,913 2.30%

LOW INVENTORY

ONLY 2.30%of total housing units are available for sale or rent

in Broward County

2.30%97.70%(unavailable)

* Under construction/pre-construction projects not included, only those with certificate of occupancy.

36


Brickell

Total Units Delivered(2012-2019)

Total Active MLS Listings**

% Active

Downtown Miami/Biscayne Corridor

The Beaches

Aventura/North Miami Beach

Coconut Grove/Key Biscayne

Fort Lauderdale

4,974

4,588

2,575

1,442

544

931

783

690

444

261

83

107

15.74%

15.03%

17.24%

18.10%

15.26%

11.49%

Totals 15,054* 2,368 15.73%

MLS/RESALE M

ARKET & REN

TAL TREND

S

37


15,054*

Total Active MLS Listings

2,368% Active

15.73%

ISGWORLD.COM

Sources: U.S. Census Bureau & MLS Source: MLS

What is Total Housing Units?

Total single-family homes, townhomes, condos and apartments for sale or rent that have been delivered in Miami-Dade and Broward County

Real Estate Rule of Thumb

5% of inventory on the market or below = a seller's market. 10% of inventory on the market or above = a buyer's market.

** Total active MLS listings as of May 2019

MLS/RESALE M

ARKET & REN

TAL TREND

S

39

Unsold Developer Inventory vs. MLS/Resale Absorption Analysis

TOTAL UNSOLD DEVELOPER INVENTORY TOTAL MLS RESALE’S SOLD

38


*Projected Source: MLS

Dec 2016

5,195

5,000

4,000

3,000

2,000

1,000

0

Dec 2017 Dec 2018 Dec 2019*

3,860

2,498

1,238*

88259

455 638*

0*

1,000+*

MLS reported a 75% increase in resale transactions in 2018 for

condos built since 2012

DEVELOPER INVENTORY DECLINING

TOTAL MLS/RESALES SOLD INCREASING

Dec 2021*

- Developer inventory SOLD OUT*

Total MLS/Resales sold

As developer inventory continues to decline,

MLS/Resale transactions continue to increase.

Total new construction condo units delivered in Brickell, Biscayne Corridor (Edgewater, Wynwood, Midtown, Design District, Omni), Downtown Miami,



Condo MLS/Rental Market Snapshot


15,054*

Total Active Units Available for Rent

882Average MLS Rental Absorption

(based on 2018 average absorption of 230 units per month)

4 months*Under construction/pre-construction/multi-family projects not included.

40

MLS/RESALE M

ARKET & REN

TAL TREND

S

41


Brickell

Downtown Miami/Biscayne Corridor

The Beaches

Aventura/North Miami Beach

Coconut Grove/Key Biscayne

Fort Lauderdale

Totals


4,974

4,588

2,575

1,442

544

931

15,054*

Total Activefor Rent*

234

370

117

104

34

23

882

Asking$/PSF

$3.32

$2.88

$5.02

$2.60

$4.67

$4.45

$3.82

Rented 2017$/PSF

$2.76

$2.61

$4.02

$2.20

$4.50

$3.23

$3.22

Rented 2018$/PSF

$3.19

$2.63

$4.33

$2.40

$4.61

$3.49

$3.44

Source: MLS

* Total active MLS listings as of May 2019

Total new construction condo units delivered in Brickell, Biscayne Corridor (Edgewater, Wynwood, Midtown, Design District, Omni), Downtown Miami,



42

COM

MERCIAL SN

APSHO

T

43

2019 MIAMI REPORT

Brickell City Centre Photo by Janis Laubergs

COMMERCIALSNAPSHOT

ISGWORLD.COM

RetailMiami boasts some of the most desirable retail

property in the world. Vacancies are below 4 percent

overall, while new neighborhoods for development

are constantly on the rise.

(2013-2018)

Under 4%Miami-Dade retail vacancy rates

* Projected Source: CBRE Research - Q4 2018

$40

$35

$30

$25

5%

4%

3%

2%

Miami-Dade retail asking rates and total market availability rate

2013 2014 2015 20172016 2018

Availability Rate($PSF)

Vacancy Rate (%)

$36.59

3.2%

VACANCY RATEASKING RENT

2019* 2020*

Largest mall in the U.S. is coming to MiamiSpanning 6 million square feet, the $4 billion American Dream Miami will be a retail and entertainment complex about twice the size of the

nation’s current largest mall, the King of Prussia Mall in Pennsylvania.

retail and entertainment complex

$4 Bilsquare feet6 Mil

OfficeAs Miami’s job market grows, so does the value of its office space. Price per square foot,

absorptions and completions are all up. One look at the burgeoning downtown area

tells you all you need to know about this thriving sector.

Vacancy levels dropped

at a record pace to 3.7%

Source: CBRE Research - Q4 2018

$50

$45

$40

$35

$30

$25

$20

Asking lease rate ($)

Q4 2012 Q4 2013 Q4 2014 Q4 2016Q4 2015 Q4 2017

$36.10

$27.18

CLASS BCLASS A

Q4 2018

Terminal

Lease rate (PPSF) $45.60

Net Absorption 76,000 SF

Completions 214,000 SF

8%

6%

4%

2%

0%

Overall Vacancy

2014 2015 2016 20182017

5-YEAR HISTORICAL AVERAGE = 5.4%

Miami’s strong economy and job growth suggest another strong

year for the industrial market in 2019. Similar to 2018, heavy

demand for warehouse/distribution space and continued trade

will support the market, keeping vacancy rates low.

Industrial

(2018)

15%Miami-Dade retail rents

$45.60

$33.89

3.7%Source: Cushman and Wakefield - Q4 2018 update

Source: Business Insider - May 2018

44

COM

MERCIAL SN

APSHO

T

45


Bric

kell

City

Cen

tre

American Dream Miami

INTERN

ATION

AL

4746

INTERNATIONAL


Miami Beach Photo by Raphaël Biscaldi

2019 MIAMI REPORT

48

Mexico

INTERN

ATION

AL

49

The growing population and desire from international buyers,specifically from Latin America, have always fueled the Miami real estate market. The high U.S. dollar and political uncertainty in several Latin American countries over the last real estate cycle have had an impact on the South Florida condominium market. Below is an update on some of the most active markets for Miami currently.

International Markets

Mexico’s current leftist government has created a sense of cautiousness among high-net-worth individuals. We are currently seeing an increase in Mexicans seeking to purchase high-end condos and make other real estate investments in Miami as a “plan B,” should their political situation change for the worse. Wealthy Mexicans have always viewed Miami as a safe haven, and are attracted to the social and financial security it offers.

Population: 123 MilPresident: Andrés Manuel López Obrador

ColombiaOver the past few years, Colombia has remained a fairly steady

market, with stable political and social conditions, even more so since Iván Duque Márquez became President. We see constant

activity from Colombians buying real estate in Miami, both as investments to diversify their portfolio with, and as second

homes, primarily in high-end condo buildings.

Population: 49.9 Mil President: Iván Duque Márquez

Miami

in U.S. foreign buyer sales (2018)

#1Florida

ArgentinaArgentina is currently facing political, social and economic challenges. The depreciation of the peso since Mauricio Macri assumed office in 2015 has caused negative sentiment around his presidency. With elections this October, there is some suggestion that former president Cristina Fernández de Kirchner could be re-elected, which could cause further economic and social unrest for the country, prompting more Argentinians to invest in Miami real estate.

Population: 44.7 MilPresident: Mauricio Macri

BrazilBrazil is exiting one of the worst recessions in its history. Last year, a new right-wing government won the election and is creating a new image for the country in an effort to generate economic confidence. High-net-worth Brazilians are coming to Miami to buy real estate because they remain uncertain about the future of their economy and enjoy the security of the U.S. A policy shift to reform the country’s pension system is crucial to Brazil’s economic growth and could result in more interest in Miami real estate.

Population: 208.5 MilPresident: Jair Bolsonaro

Contributed by Sergio Pintos

ISGWORLD.COM

Source: National Association of Realtors

50

TRANSPO

RTATION

51

TRANSPORTATION


Miami Photo by Eduardo Velazco Guart

“Brightline is at the forefront of innovation

in this market, and the ideal partner for Virgin

to work with to alter perceptions and traveling habits

across the United States.”

RICHARD BRANSONFounder, Virgin Group

2019 MIAMI REPORT

Next stop: OrlandoBrightline/Virgin Trains’ planned future expansion includes Orlando, with a station to be located at Orlando International Airport. Virgin has filed plans and secured funding of $1.75 billion for its expansion to Orlando, and has proposed to extend their train service to Orlando’s theme park area, as well as Tampa.

Connecting MiamiInterstate 395, which connects Miami Beach to downtown Miami, is currently undergoing an $800 million restructuring. The project includes a design-focused statement bridge, as well as plans to add 30 acres of urban parkland and revitalize parts of the historic community of Overtown.

Florida’s intercity rail service, formerly Brightline, is rebranding itself as Virgin Trains. Thanks to a new partnership with Richard Branson’s Virgin Group, the train system will utilize the international company’s brand recognition to help promote its services, while Virgin makes a footprint in one of the U.S.’s hottest markets.

By Land

Expected launch of Orlando to Tampa service

2021

TRANSPO

RTATION

53

ISGWORLD.COM

Virgin Trains

$800 Mil Interstate 395 Redesign

Current Station & Route

Future Station & Route

Fort Lauderdale

Miami

West Palm Beach

Orlando

TampaTheme Park

Area

Source: The Next Miami

52

Photos courtesy of Brightline

PortMiami, the busiest cruise port in the world, once again won Porthole Cruise Magazine’s Editor-in-Chief Award for Best U.S. Port in recognition for its customer service, quality operations and all around excellence.

PortMiami

Carlos Gimenez, Miami-Dade County Mayor

Cruise capital of the worldAnyone who drives over the I-395 causeway is familiar with the impressive line of ships coming in and out of PortMiami. Its cruise terminals are among the most modern in the world, hosting 22 cruise lines and 55 ships, and setting the bar in passenger service.

Economic impact

$43 Mil

Leading cruise port in North America

#1

Source: Miami Dade County, PortMiami, Sun-Sentinel, Cruise & Ferry, Travel Weekly year-long cruise lines

5Soon to be the only port with

in new development$500 Mil+

Record-breaking

Cruise LinesPort Everglades: 11 • Port Canaveral: 4

22passengers in one day

(short 66 people for world record)

55,819Record-breaking

Minimal construction cost

$300 Mil

Sq. ft. corporate campus

350,000

Photo by Linval Ebanks

PortMiami welcomes Virgin VoyagesVirgin Group’s bold, new cruise line, Virgin Voyages, is now in business. Its first ship, Scarlet Lady, will set sail from Virgin’s new PortMiami terminal in April 2020. From no buffets on board,

to free Wifi and a focus on environmental protection, Virgin Voyages will offer a cruising experience that is quite different from that of traditional cruise lines.

Terminals on the riseOn the heels of the completion of Royal Caribbean’s “Crown of Miami,” comes Norwegian Cruise Line’s “Pearl” of Miami. Slated for completion by fall 2019, the new terminal will welcome the Norwegian Encore, the newest ship in the cruise line’s Breakaway Plus class. PortMiami’s other major cruise lines also have big plans in the works for their terminals.

Royal Caribbean’s “Crown of Miami” cruise terminal, the largest in the U.S., is now open

Norwegian Cruise Line

Disney Cruise Line

MSC Cruises

Virgin Voyages

NEW TERMINALS TO COME FOR:

New $300 million Royal Caribbean HQ coming to PortMiamiRoyal Caribbean is expanding its main headquarters at PortMiami. The new, ten-story, 350,000-square-foot complex breaks ground this year and is expected to be completed by the end of 2020.

54

TRANSPO

RTATION

55


Source: World Travel Awards

Source: Cruise Ferry

Source: The Next Miami Source: South Florida Business Journal

in flights to Latin Americaand the Caribbean

#1Atlanta .......................................... 988Chicago ........................................ 701Dallas ............................................ 592Houston ........................................ 521Los Angeles .................................. 817New Jersey ................................... 411New York .................................... 2101San Francisco ................................ 309Washington .................................. 790

DOMESTIC

Ecuador .......................................... 48Peru ................................................ 42Colombia ........................................ 93Venezuela ....................................... 69Guyana ............................................. 2Suriname .......................................... 5Brazil ............................................. 121Paraguay ........................................... 4Bolivia ............................................... 9Chile ............................................... 31Argentina ........................................ 47Uruguay ............................................ 9

SOUTH AMERICA

Denmark ........................................... 4Turkey ............................................... 7London ............................................. 5Russia ................................................ 7Israel ................................................. 3Switzerland ....................................... 3

EUROPE & MIDDLE EAST

Lufthansa first to offer facial recognition departures from MIA

Passengers departing from Miami International Airport to Munich on Lufthansa flight 461 can now board with the quick click of a camera instead of a boarding pass and passport, thanks to the airport’s launch of biometric exit technology.

Photo by Brandi Ibrao

56

TRANSPO

RTATION

57

Busiest airports

#1 New York (1,613)

#2 California (1,611)

#3 Florida (1,555)

#4 Texas (1,476)

#5 Illinois (1,376)

TOTAL DEPARTURES PER DAY BY STATE

Miami International Airport Direct Weekly FlightsA sampling

Both Miami International Airport and Fort Lauderdale- Hollywood International Airport are among the busiest in the U.S. in terms of international passengers and flight options. Each year, they continue to grow their airline offerings and departures, and serve as top economic engines for Miami-Dade and Broward counties, as well as the state of Florida.

By Air

80 Mil PassengersMiami International Airport &

Fort Lauderdale-Hollywood International Airport

$62 Bil in economic impact for Miami-Dade and Broward Counties

Source: Miami International Airport & Fort Lauderdale-Hollywood International Airport

Source: Flightfrom.com

Source: Miami International Airport

Photo by chuttersnap

of Colombia’s total population

160%of Argentina’s total

population

180%To put it in perspective:

Source: Miami International Airport


CULTURAL &ECONOMIC GROWTH

Institute of Contemporary Art Photo by Juno Jo

58

CULTURAL & ECO

NO

MIC G

ROW

TH

59


60

CULTURAL & ECO

NO

MIC G

ROW

TH

61


Referred to as “The Gateway to the Americas,” Miami has long been a crucial market for companies seeking an international foothold, especially within Latin America. Global corporations are drawn to the city’s low taxes,

connectivity, multi-cultural population and desirable quality of life. From flourishing startups and Fortune 500 businesses, to the thriving tech scene, South Florida’s also become a magnet for talented professionals.

EconomicLandscape

largest in the U.S.

4thFlorida’s economy is the

best taxpayer ROI

#3Florida

business climate index

#4Florida

Florida’s economy tops $1 trillionUS WORLD NEWS

U.S. Ranking World Ranking

California 1 5

Texas 2 10

New York 3 12

Florida 4 17

New opportunity zone program for investorsStudies of the new federal Opportunity Zone Program are naming South Florida one of the most desirable destinations for these types of investments. Because Miami boasts a growing population, no state tax and a strong real estate market, investors can take advantage of delaying capital gains taxes by investing in economically distressed communities.

Sources: bisnow, floridajobs.org

Tax comparisons: metropolitan areas

PersonalIncome Tax %

CorporateIncome Tax % Sales Tax %

Florida’s Tax Advantages

Brickell

City State Local State Local State Local

Miami 0.00 0.00 5.50 0.00 6.00 1.00

New York 4.0-8.9 2.9-3.6 7.10 8.85 4.00 4.50

Los Angeles 1.0-9.55 0.00 8.84 0.00 8.25 1.50

Chicago 5.00 0.00 9.50 0.00 6.25 3.00

Houston 0.00 0.00 1.00 0.00 6.25 2.00

“Florida’s

economy is

thriving,

expanding at a

record pace.”

Local Personal Income Tax 0%

State PersonalIncome Tax 0%

State Corporate Income Tax 5.5%“The program could

become the most impactful federal incentive for equity

capital investment in low-income and distressed

communities ever.”

Source: Tax Foundation 2019 State Business Tax Climate Index

Florida markets lead U.S. for economic momentumFlorida’s economy is booming and has become the 17th

largest economy in the world. Cushman & Wakefield evaluated markets around the country across a range of factors indicative of economic momentum. Of the 10 cities with the most economic momentum, five are in Florida. From growing populations that support strong economic and commercial real estate fundamentals, to the lack of state income taxes in the state, the dynamics in these markets create a more favorable environment for development and investment.

Source: Cushman & Wakefield

ECONOMIC MOMENTUM INDEX

Orlando

West Palm Beach

Tampa

Dallas

Austin

Houston

San Jose

Ft. Lauderdale

Salt Lake City

Miami

0 20 40 60 80 100 120 140

136

122

138

137

126

123

120

120

150

157

Sources: South Florida Business Journal, Tax Foundation 2019 State Business Tax Climate Index, WalletHub

LARGEST U.S. ECONOMIES BY STATE

62

CULTURAL & ECO

NO

MIC G

ROW

TH

63

ISGWORLD.COM

W Residences Fort Lauderdale

The traditional branded concept is a hotel-led development with integrated or linked residences. They naturally benefit from the hotel brand (quality), management

(smooth running) and services (luxury). In essence, this gives the owner the comfort and performance of a home but with the full benefits and luxury of a five-star hotel.

Real Estate Trend:

Branded Residences

What defines a branded residence?

The Value of Branded Residences

Sampling of South Florida’s branded residences

PRIME LOCATIONSLocated in major, world-class cities as well as luxurious beach and resort locales, branded residences are found in the most desirable destinations in the world.

HASSLE-FREE OWNERSHIPOwners of branded residences enjoy peace of mind that their property will be safe and maintained in their absence, as well as rental flexibility and the option to rent their property through the development’s hotel rental program.

PROFESSIONAL, TRUSTWORTHY & CREDIBLE MANAGEMENTBuyers can expect certain management standards from these prestigious and reliable brands, as well as an assurance of quality and consistent re-investment in and maintenance of the property and brand.

SUPERIOR SERVICES & AMENITIESReputable, respected and desired brands consistently deliver 5-star service and quality amenities to all residents.

OWNER BENEFITS

A branded residence typically comes with owner-specific perks including exclusive access or discounts to property amenities, restaurants and other properties that the brand operates.

STRONGER RESALE VALUESBranded residences tend to sell at higher prices than non-branded properties as their limited availability and exclusivity help maintain property values.

BY THE NUMBERS

properties in South Florida

40+

properties globally

400

branded units globally by 2023

69,000Source: Knight Frank Branded Residence Report

“Buy into a reputable brand and you have the assurance in the delivery and quality of the development as well

as professional management.”

Auberge Beach Residences & Spa Fort Lauderdale

The Ritz-Carlton Bal Harbour

CHRIS GRAHAMGraham Associates

2019 MIAMI REPORT

Rapid job growth in Miami’s tech sector

has made the city one of the most

attractive for technology professionals.

According to a recent report from

RentCafe, from 2014 – 2017, the Miami

metro area had the fifth-fastest rate of

tech job growth in the U.S., higher than

that of San Francisco, and growing by

more than 20 percent.

(projected to grow an additional 11% by 2023)

40%

in the U.S. for startups

Miami #1

Tech job growth

Miami becoming a true “startup city”

For the last two years, the Kauffman Foundation, a

nonprofit focused on entrepreneurship, has ranked

Miami #1 in the U.S. for startups. Corporations from

all over the world, from Goldman Sachs to Endeavor

to Cambridge Innovation Center, are investing in

Miami’s burgeoning startup scene.

investment in co-working spaces, accelerators and events such as eMerge Americas since 2012

$25 Mil+

Source: miamiherald.com

Source: miamiherald.com

TheVentureCity brings Google Launchpad to MiamiMiami-based tech startup accelerator and

consultancy TheVentureCity partnered with

Google Launchpad, a global acceleration

program created by Google for developers,

to bring the tech-focused workshop to Miami,

making it the first city to host the program

in the U.S. outside of Silicon Valley. The

intensive program aims to boost the growth

of startups in flourishing tech markets, which

further positions Miami as an international

startup launcher.

Source: prnewswire.com

Courtesy of Magic Leap

64

2019 MIAMI REPORT

invested in South Floridastartups

$1.38 Bil2018 SOUTH FLORIDA TECH MARKET

startup deals128

in the nation in venture activity & investments by dollar volume

11thRanked

Top venture capital-funded South Florida companies

“We believe that Miami is on the cusp of something transformative - and we know the data and trends back it up.”

FELICE GORORDOCEO of eMerge Americas

2018 sampling

CULTURAL & ECO

NO

MIC G

ROW

TH

65

Source: eMerge Insights Report

ATransformative Tech Scene

ISGWORLD.COM

Miami’s tourism industry is extremely

robust, attracting a record 16.5 million

overnight visitors in 2018, up 3.5% from

2017. While Miami Beach remains home

to some of the area’s top hotels, the

region’s tourism boom has spread well

beyond the beaches. According to the

Miami Downtown Development Authority,

growth in tourism in downtown Miami

has led to a boom in hotel construction,

with nearly 4,000 new hotel rooms in the

development pipeline.

Hospitality

Top 10 hotel markets in the U.S.

1. New York

2. Oahu Island

3. San Francisco

4. Miami

5. Boston

6. Los Angeles

7. San Diego

8. Anaheim

9. Seattle

10. Washington, D.C.Source: STR

“Miami – a vibrant, dynamic and truly cosmopolitan destination that draws travelers from all over the world – is the perfect market for our Waldorf Astoria brand.”

Danny Hughes President for the Americas, Hilton

Miami is getting its first Waldorf Astoria Hotel and Residences — and it will change

the city’s skyline

1,049 Feet Tall 200 Hotel Rooms* 400 Condos*

CULTURAL & ECO

NO

MIC G

ROW

TH

67


total number of visitors

23.3 Mil

economic impact

$18 Bil

2018

• Latin America and New York City were key feeder markets in 2018, contributing significantly to the total overnight visitors.

• The top three countries of origin for overnight international visitors into Greater Miami were Brazil,

Colombia and Argentina.

HIGHLIGHTS

W Fort Lauderdale

Waldorf Astoria Hotel & Residences MiamiImage by ARX SolutionsCourtesy Property Markets Group

66

Source: South Florida Business Journal*ProposedSource: GMCVB 2018 Visitor Industry Overview

ISGWORLD.COM

Miami loves art and art loves Miami. A recent study by Americans for the Arts, the nation’s leading nonprofit organization for advancing the arts and arts education, found that Miami-Dade’s arts and cultural

sector generates a whopping $1.43 billion in economic activity annually. Additionally, attendance at Miami-Dade’s cultural events continues to grow, representing over 16 million global attendees annually.

Arts & Culture

Arts and cultural economic impact

$1.43 Bil

annual visitors to Miami-Dade cultural events and venues

16 Mil+

Local and state revenue

$158 Mil

Knight Foundation invests an additional $37 million in Miami artsThis latest investment of $37 million brings the total arts funding that the Foundation has contributed to the city since 2005 to $165 million, which supports the growth of Miami as a force for arts and culture. The new funding will be invested in:

• Fostering the work of anchor institutions

• Promoting the creation of cutting-edge art in Miami

• Advancing training and learning opportunities

• Knight Arts open calls for ideas

CULTURAL & ECO

NO

MIC G

ROW

TH

69

CONTINUING SUPPORT OF THE MIAMI ART SCENE

Nonprofit ArtCenter/South Florida has accumulated $100 million, more than any other South Florida visual arts organization, to help grow Miami’s art infrastructure and provide career support for emerging artists. In a move from South Beach to Little Haiti, the ArtCenter will build a new $30 million facility scheduled to break ground in Fall 2020 with a planned opening in Spring 2022.

A new $30 million, 40,000-square-foot art center will include:

• 22 studios for resident artists

• 2,500-square-foot exhibition space

• 120-seat theater

• Classrooms and work spaces

ART SPOTLIGHT

To commemorate the 35th anniversary of Surrounded Islands, Christo and Jeanne-Claude’s renowned 1983 installation, Pérez Art Museum Miami presented a special documentary exhibition from October 2018 – February 2019. Surrounded Islands made alasting impact on the city’s cultural history, marking the birth of Miami’s international artistic profile while anticipating its rise as a hub for contemporary art.

Miami-Dade County is in the top ranks of comparable American cities with New York, Chicago and

Philadelphia in the arts.

Adolfo HenriquesChairman of the Miami-Dade Cultural Affairs Council

Phot

o by

Geo

rge

Paga

n III

/ W

ynw

ood

Arts

Dist

rict

2019 MIAMI REPORT

68

Source: KnightFoundation.org

Photo by Ruben Ramirez

Source: The New York Times

Source: PAMM.org

Source: Miami-Dade County Department of Cultural Affairs

Art Center/South FloridaMiami art scene’s new $100 million player

Already a sports haven and home to four major professional teams, including the Miami Dolphins, Miami Heat, Miami Marlins, and Florida Panthers, Miami is now home to the future Major League Soccer team Inter Miami CF, who’s ownership group is led byDavid Beckham. The team is slated to begin play in 2020 in a new training facility and stadium in Fort Lauderdale before relocating to its permanent home in Miami.

Sports David Beckham’s MLS teamunveils name and crest

“Our mission to bring an MLS club to Miami is now complete and we are deeply satisfied, grateful and excited.”

Miami will host the Super Bowl in 2020, which will celebrate the NFL’s 100th centennial season. While the big game will be played at Hard Rock Stadium, downtown Miami will be transformed into the Super Bowl Live fan village.Bayfront Park and Museum Park will become “Super Bowl Park,” hosting a full week of events including concerts, large-screen broadcasts and numerous activations.

Super Bowl LIVSouth Florida hosts record-breaking 11th Super Bowl

NFL celebrating

100th SeasonSouth Florida

# 1in number of Super Bowlshosted

Estimated

$500 Milin economic impact

2020Inaugural season

begins

David BeckhamInter Miami team owner and president of football operations

70

CULTURAL & ECO

NO

MIC G

ROW

TH

71


Source: Sun Sentinel

“I think Miami continues to grow, and get more

diverse and dynamic. In a lot of ways, I think Miami is

a curator for culture for the rest of the country, and in

some ways for the rest of the world.”

Tom GarfinkelPresident and CEO of the Miami Dolphins and

Hard Rock Stadium

72

CULTURAL & ECO

NO

MIC G

ROW

TH

73


Year after year, Miami continues to top itself in terms of the quality and quantity of its educational offerings. The private schools are top-notch, the magnet schools have been ranked among the best in the U.S. and Florida International University, the city’s public research university, is breaking records for growth and performance.

EducationMiami-Dade County Public Schools is now home to 21 certified magnet schools, more than any other district in the U.S. Seven of those schools have earned the bonus “Demonstration” designation for exceeding the criteria outlined in the Magnet Schools of America (MSA) Standards of Excellence.

Miami tops country in certified national magnet schools

Southside ElementaryK-8 expansion to be completed

by 2021

Mater Brickell Preparatory AcademyNew facility to be completed

by 2021

Avenues: The World SchoolManhattan-based private academy

to open Miami location in 2022

New Schools Coming to Miami’s Urban Core

in U.S. for total number of magnet schools

#1Florida ranked

#1 Florida 581

#2 California 529

#3 Texas 260

MAGNET SCHOOLS BY STATE

New performance scores from the Florida Board of Governors of the state’s public universities ranked Florida International University (FIU) second in the state, just behind the University of Florida (UF) in Gainesville. FIU’s increase in these key performance measures resulted in additional funding for the school.

FIU second behind UF in new performance score

An influx of wealthy out-of-state buyers seeking to avoid the effects of the recent tax reform is creating huge waiting lists at Miami’s most elite private schools. The schools are

seeing a big increase in applications from families from New York, New Jersey, Chicago, Boston and California.

As the wealthy flock to Miami, private schools report massive waiting lists

U.S. News & Worldreport recently ranked Florida the #1 state for higher education for the second year in a row.

Miami schools say they are seeing a sharp uptick in demand as a result:

• Palmer Trinity School says the number of families from

New York and New Jersey have doubled in the past year.

• Miami Country Day School has seen an uptick in applicants

from New York, Boston, Chicago, Los Angeles and Houston.

• Gulliver Schools has seen a lot of interest from families

moving to Miami both from high-tax states and

around the world.

• Ransom Everglades School’s waiting lists are always full.

Source: South Florida Business Journal

Source: Business Insider

Source: Miami-Dade County Public Schools / Florida Department of Education

74


With its booming population, surge of new condominiums and hotels and some of the hottest new bars and restaurants, the Brickell neighborhood has become one of the fastest-growing destinations in the country. A magnet for both business and tourism, this highly accessible and thriving district offers a true “live, work, play” lifestyle.

ISG City Watch: Brickell

WHY BRICKELL?

of Greater Downtown Miami’s population resides there

45%

visitors go to Brickell every year

15 Mil

concentration of international banks in the U.S. & second-largest financial hub outside

of New York’s City’s financial district

#1

New ConstructionBeyond mixed-use development Brickell City Centre, the neighborhood’s $1.05 billion anchor including two condo towers - Reach & Rise, office buildings, the EAST, Miami hotel and 500,000 square feet of retail, other major new developments to the area include Echo Brickell, SLS Lux and Brickell Flatiron.

Creative Culture

Phillip and Patricia Frost Museum of Science

Pubbelly Sushi

ConnectivityGet everywhere you need to go in Miami with Brickell’s easy access to public transportation

including the Metromover, Miami Trolley and Virgin Trains, as well as a variety of ridesharing options.

Delicious eatsFrom top-rated Italian, Asian and Latin cuisines, to some of thebest sushi in the city, Brickell offers an extensive list of trendy and tasty restaurants including Casa Tua Cucina, NAOE and Quinto La Huella.

CULTURAL & ECO

NO

MIC G

ROW

TH

75

Wellness LifestyleStaying fit and active is a breeze in Brickell. Take a jog around beautiful Brickell Key, or enjoy a yoga class in downtown’s Bayfront Park.


Baywalk

Metromover

Source: Forbes

Just north of Brickell, residents and visitors can enjoy the city’s best cultural destinations, from premier performance and entertainment venues like the Adrienne Arsht Center for the Performing Arts, to world-class art and science museums like Pérez Art Museum Miami.

Greater Downtown Miami is rapidly

evolving into a world-class neighborhood.

A wave of transformational new

developments is coming, adding to

its accessibility, pedestrian-friendliness,

retail and tourism offerings, and

changing the landscape of Miami forever.

The 1,000-foot observation tower and entertainment center is a revolutionary structure that will capture Miami’s energy and exhilaration.

The Biscayne Green project will convert sections of Biscayne Boulevard into a grand promenade with sitting areas, green spaces, and “activations” including art exhibits and activities.

The $802 million project will completely reconstruct the existing interstate, create a

signature bridge that will span 1,025 feet and transform the area beneath I-395 into 55 acres of open communal green space.

The $2.7 billion mixed-use development is the biggest in the U.S. after New York’s

Hudson Yards and will include 450,000 square feet of retail and a condo tower

complete with a flying cars SkyPort.

The 10-mile linear park, urban trail and living art destination will connect communities, improve pedestrian and

bicyclist safety and create over 120 acres of open space.

Museum Park

PortMiami

AmericanAirlines Arena

Bayside

Pérez Art Museum Miami

Phillip and Patricia Frost Museum

of Science

Freedom Tower


Adrienne Arsht Center for the Performing Arts

Landscape of the Future

The UnderlineMiami WorldcenterI-395 Signature BridgeBiscayne GreenSkyRise Miami

Bayfront Park

Baywalk

Virgin Trains USA

Metromover

Metrorail

Source: Miami Downtown Development Authority, Florida Department of Transportation, Miamiworldcenter.com, Miami Today News, Bisnow

76

CULTURAL & ECO

NO

MIC G

ROW

TH

77

Status: Under construction Status: Planning phase Status: Under construction Status: Under constructionStatus: Under construction


On the GroundExpert Insights on the South Florida Real Estate Landscape

Alex VidalPresidentRelatedISG International Realty

Q: The Miami Report is highlighting shockingly low levels of developer condo inventory in South Florida. Are you seeing any similarities in the MLS/resale market for single-family homes?

A: In Miami-Dade and Broward counties, there are approximately 13,000 active single-family homes available for sale. This may sound like a large number, but it’s actually less than 1% of total housing units in these markets. MLS has reported that Miami-Dade and Broward have sold close to 32,000 homes per year over the last 3 years, largely driven by our surging population growth. Therefore, the 13,000 active single-family homes represent only five months of supply. So, yes, single-family home resale inventory is following the same trend as the low developer condo supply.

Q: What are you seeing in terms of condominium resales on the MLS?

A: There are currently 21,000 condos active on the MLS between Miami-Dade and Broward counties. MLS has reported annual resales of condos equaling 24,800 per year over the last 3 years. That means there is approximately one year of condo inventory on the market.

Condo resale inventory is following a similar trend as that of single-family homes, for the same basic reasons. In fact, we expect condo resale velocity to accelerate as developer inventory continues to shrink.

Q: What impact has the 2017 change to the federal tax law had on the general real estate market in South Florida?

A: We’ve seen an immediate impact on the ultra- luxury market as a result of this recent change to the tax law. As an example, for single-family homes above $5 million, total sales volume jumped from $103.8 million in Q1 2018 to $224.6 million in Q1 2019. For condos above $3 million, total sales volume increased from $235.6 million in Q1 2018 to $254.7 million in Q1 2019.

Most of this activity is fueled by tax refugees from high-tax states like New York, New Jersey, Illinois and California.

Q: At the moment, what are the most active neighborhoods for resales for both single-family homes and condos?

A: When it comes to resales of single-family homes, the most active submarkets are currently Fort Lauderdale, Pembroke Pines and Miramar. For condo resales, the most active submarkets are Fort Lauderdale, Miami Beach and Brickell.

78

2019 MIAMI REPORT

For over 26 years, ISG World® has been honored and privileged to work with some of the

most respected and talented professionals in the real estate industry, from developers,

architects, engineers and designers, to brokers, vendors and of course, our dedicated employees.

To engage ISG today is to harness the talent, network and creativity that provides our clients

the competitive edge necessary to succeed in the South Florida marketplace.

International Sales Group, LLC • 2875 Northeast 191st Street • 2nd Floor • Aventura, FL 33180

305.931.6511 • isgworld.com

+$10 Billion in sales

110 Developments

26 Years

Clients include

HEADQUARTERSInternational Sales Group, LLC2875 Northeast 191st Street • 2nd Floor

Aventura, FL 33180

305.931.6511 | isgworld.com

2019 · welcome to the 2019 edition of the miami reporttm for the last nine years, isg has produced...

Documents