Miami Design land prices Soar!!

Wednesday, May 13, 2015
Tags:   Miami Design land prices Soar!!

Commercial land prices have gone sky high in the Design District over the past year or so, industry experts say, because it’s finally becoming a destination.

There was talk among developers a while back that this small Miami neighborhood – about 10 square blocks – could never be an area of the city where people would deliberately set out to visit, said Marc Shuster, a partner with Berger Singerman who focuses his practice on commercial real estate transactions. “That notion has been disabused by all the luxury retailers already there and coming in, paying up to $250 per square foot.”

Commercial land prices went up because “all the pieces are coming together” for building the Design District, Mr. Shuster said. The high-end retailers are established, he said, and the advent of office and hospitality is coming.

“Now, the district will need local lunch places where people can eat and the Design District will be a destination for years to come.”

Historically know as Buena Vista, this area is roughly bound by Northeast 36th Street (US 27) to the south, North 43rd Street to the north, Northwest First Avenue to the west and Biscayne Boulevard to the east.

In the 1980s and early 1990s, a number of historians and market watchers say, the Design District had fallen to urban decay. In the late 1990s and early 2000s, however, that arts and design stores began opening in some of the old warehouse buildings that dot the district.

Today, the Design District is growing in popularity and its name is almost synonymous with high fashion.

Mr. Shuster said developer Craig Robins should be applauded for what he’s done: purchasing many run-down buildings, renovating them and persuading top designers to relocate or open shops in the district.

These luxury brands have validated the area, said Lyle Chariff, president of Chariff Realty Group. The quality of the tenants and the fact that they are signing leases is the “Good Housekeeping” sign of approval, he said.

The Design District has seen land prices increase from $1,100 per square foot to $3,000 in a fairly short time, Mr. Chariff said. There are condo, hotel and retail projects still underway, so the next validation point will be when the bulk of them are built, which Mr. Chariff said is about three or four years away.

At that time, he said, industry experts will be able to re-evaluate what rents prices can be and determine the value of the improved real estate.

Mr. Shuster said it can sometimes be unclear which neighborhoods will “catch on fire,” but the hospitality and food ventures help create destination districts.

“There’s a lot of construction going on now, so we can’t really get a sense of foot traffic yet,” he said. “Once the projects are finished, we’ll start seeing more people walking around the district.”

No one is making more land in the Design District, Mr. Chariff said, so there won’t be much to buy once all the old buildings are purchased and developed. However, he said, neighborhoods around this part of the city – west up to I-95, particularly Northwest Second Avenue – have seen commercial land prices increase.

At one time, Mr. Chariff said, developers were paying $20 per square foot in this area but prices have now risen to at least $100 per square foot.

The Design District, like all parts of Miami, is not immune to global macro factors, Mr. Shuster said. Any bubble or meltdown will be felt, he said, but in step with the rest of our communities.

“There’s been a steady increase of development in the Design District,” he said. “The smart money will continue to invest, and it will remain a vibrant market.”

LEAVE A COMMENT
 
Name
 
Email Address
 
URL
 
 
Comment
 
< Back
 
73 NE 40 ST-DESIGN DISTRICT RETAIL 73 NE 40 ST-DESIGN DISTRICT RETAIL73 NE 40th Street is a brand new slice of modern elegance, articulated within th...
Noticias sobre o mercado imobiliario em Miami
Visit our Chairff Mobile website
South Beach Web Cam, Live South beach Webcam Miami Realtors Client login Points Of Interest Selling Commercial Marketing Plan
Chariff Realty Group
5801 Biscayne Boulevard,
Miami, FL 33137
Phone: (305) 576-7474
Fax: (305) 576-7494
Email: info@chariff.com
LEASED! ANOTHER DONE DEAL
Romero Britto’s gallery to move to 532 Lincoln Road After more than two decades at...

SOLD! Another Done Deal!!
Jugofresh owner Matthew Sherman has sold the Biscayne Boulevard site in MiMo that he had...

ANOTHER DONE DEAL!! CHARIFF INKS IN PINK
Two pink houses, two new deals. Lyle Chariff and Mauricio Zapata, partners in Chariff Realty...

Another Done Deal!! SOLD!
A group of local investors led by Lyle Chariff sold a retail development site in the emerging...

ANOTHER DONE DEAL! SOLD!
A Design District property across the street from the Palm Court Garage has traded hands...

Miami Design land prices Soar!!
Commercial land prices have gone sky high in the Design District over the past year or so,...

Sales heat up in area from Wynwood to Design District - “It’s become a very hot, targeted area,” Chariff told TRD.
A vacant lot west of Midtown Miami has sold for $980,000, The Real Deal has learned, as...

Boulevard 57 gets new name, management, renderings revealed
Boulevard 57, an eight-story condominium tower planned for Miami’s Biscayne Boulevard,...

Bank of China and Deutsche Bank to Loan $600M for Miami Design District Development
A trio of lenders—Deutsche Bank, Bank of China and the French banking network Crédit...

Another Done Deal-SOLD!
2400 NE 2nd Ave Miami, FL. A 10,000-square-foot office building on 13,000 Sq. Ft of land...

< Visit Our Chariff Realty Group Blog

Today's Real Estate News and Advice Updated: Saturday, August 19, 2017

How To Simplify Your Next Move

When youre selling your home, getting your belongings organized can seem like a low priority...
> Full Story

New Advances In Technology Make Going Green A Breeze

Did you know that an automatic dishwasher uses less hot water than doing dishes by hand, whi...
> Full Story

How Do You Know If Your Moving To A Diverse Neighborhood

A family I know moved from California to Texas recently to take advantage of a new job oppor...
> Full Story

Escaping Condo Jail
Question: The president of our condominium association acts alone and has previous membe...
> Full Story

4 Tips for Keeping Your Rental Property Secure

Burglaries are a concern for all home owners, but for landlords, they are an even bigger ris...
> Full Story

Savvy Buyers Search Out Visual Disasters

Instead of shopping for your dream home, why not search out your dream discount?

First-tim...
> Full Story

Seller Cancellation Must Be Done By The Book

Breaking up is hard to do. So is cancelling a California real estate purchase contract. Espe...
> Full Story

Clever Ways To Create More Storage In Your Kitchen

Who doesnt need more storage in the kitchen? You may not have a massive space with dozens of...
> Full Story

Introducing Your New Color Obsession

Is it gray? Blue? Green? Its all of them wrapped up in your new color obsession, and its goi...
> Full Story

What to Do With That Spare Wall In The Kitchen

Does your kitchen have a wall or a nook thats too far away from the action to be part of the...
> Full Story

Copyright © 2017 Realty Times®. All Rights Reserved