The Heart of the Miami Condo Market – Which one has better Investment Potential?
Miami is changing rapidly and new developments are being announced on a daily basis. Miami is more and more becoming a city of prestige. Long seen as a tourist destination, Miami is now a thriving urban core with lots of entertainment, restaurants, fashion, arts, culture and international business.
Many New Yorkers or foreign investors have heard about Miami’s new urban core and its increasing commercial and residential investment potential.
Why New Yorkers are investing in Miami?
These investors are all looking for the same type of real estate; a luxury condo in an urban core, but with ocean views. Fact is however, that many of these investors have heard a lot about Brickell and few mention Downtown Miami.
Although it is true that Downtown Miami is Brickell’s less known little sibling, it is one to watch!
Brickell vs Downtown Miami, where should you put your investment dollar?
This is why we asked ourselves the questions: “Why is Miami Downtown less known than Brickell?” and “Which one offers a better investment potential?“
Brickell vs Downtown Miami
Brickell has been the center of attention since years. Miami’s Manhattan* has attracted a lot of international investors and a high number of brand new luxury condos are being constructed at the moment. Brickell is home to a large number of young professionals who want to live close to their jobs and within proximity of nightlife and entertainment. With a high density urban core, high walkability scores and an actual city center (Mary Brickell Village) that offers bars, restaurants and shops, Brickell has defenitely created a name for itself.
* Brickell got the nickname “Manhattan of the South” due to its large numbers of international banks
Downtown on the other hand is often seen as Brickell’s little and lesser known sibling. The area “across the bridge” is less walkable, doesnt have an actual core and offers less condos (at this moment).
One Thousand Museum, a game changing luxury condo in Downtown Miami featuring only one or two units per floor and a helipad.
Although it is true that Downtown Miami is Brickell’s less known little sibling, it is one to watch!
There is no need to compare apples with oranges. While Brickell is already developed and has a variety of condos for sale, Downtown Miami is just starting to develop itself. There are huge changes taking place in this area that had relatively little to offer in the past.
To be able to compare oranges with oranges (its Florida after all) we need to compare Brickell with Downtown Miami taking into account all of Downtown’s future changes.
The future of Downtown Miami
Downtown Miami is growing enormously and the amount of initiatives in the area are plentiful. Luxury residences are still relatively scarce in this neighborhood but change is on its way!
Please have a look at what is coming up.
1. Miami World Center and the Paramount Luxury Condo
Miami Worldcenter is a new mega project and Downtown’s game changer. With nearly 30 acres and an estimated price tag of more than $1.5 billion, Miami Worldcenter will be the second largest urban development in the United States. It will include 765,000 Sq.Ft of signature retail, 4.5 acres of open space, 7,000 new parking spaces, and an ultra-modern Marriott Marquis World Convention Center Hotel with 1,800 rooms, 600,000 Sq.ft of convention space, and an 80,000 Sq.ft outdoor event deck. To top it all off – literally – the Master Plan for Miami Worldcenter will include multiple residential towers with over 1,000 units. Read more on Miami Worldcenter
Miami Worldcenter – The New heart of Downtown
Miami Worldcenter – the Mall
Paramount at Miami Worldcenter will be in the middle of this all. This tower is selling the concept of urban luxury offering high-end finishes and private elevators with all units (This tower will not have hall ways). Besides its excellent location in Downtown’s new ‘urban heart’ and high end finishes, this tower will feature ocean views and a 6 acre amenity deck. The Paramount tower is selling fast as luxury towers in this part of town are still scarce.
2. One Thousand Museum by Zaha Hadid
One Thousand Museum is bring ultra-luxury to Downtown Miami. The type of luxury condo you would normally only find on Miami Beach. 1000 Museum creates a six-star lifestyle within an exceptionally elegant private residential tower and over 30,000 Sq. Ft of beautifully designed venues for swimming, sunning, socializing, fitness and pampering that cater to fewer than 100 residences, offering the luxury of abundant space
Starchitect Zaha Hadid (Pritzker Architecture Prize winnerin 2004 and the Stirling Prize in 2010 and 2011) created this unique tower which offers duplex townhomes, half- floor residences, full-floor residences and single duplex penthouse.
Besides the now famous heli-pad the residences offer multiple oversized balconies in every residence, ceiling heights from 10Ft to 20Ft in main living areas and floor to ceiling windows.
3. The commercial development
Miami’s commercial Real Estate is becoming the next best thing for international investors looking into our city for investment purposes. A recent study concluded that the inventory of Miami’s offices is decreasing rapidly while the construction of new workplaces is slowing down. This together with a rising demand for commercial real estate because of an ever growing population and interest in Miami as a business hub for Latin America can only mean one thing ⇒ An Increase in prices.
Moishe Mana, the Israeli entrepreneur and real estate mogul who owns almost all of Wynwood (and therefore made this area what it is today) is rapidly purchasing large amounts of properties in Downtown (around 200,000 Sq.Ft as of now). Mana told Daily Business Review, he’s looking to take advantage of the area’s visibility and position as a gateway to Latin America and encourages businesses to come to the district from around the world. A few of the properties that Mr Mana acquired in the last year:
The first two entire floors of One Flagler
Between Flagler Street and SE 1 Street Mana bought 3 buildings and a parking lot totaling 17,400 Sq.Ft. He bought this for the price of $7.6 M
48 and 76 East Flagler where bought (a 1.1 Acre site) for $35M
In August 2014, a company controlled by Moishe Mana picked up 107,000 square feet of retail space on Flagler Street in three transactions totaling more than $21 million.
17 East Flagler was bought for $4.5 million in September 2014
Read more about Downtown’s commercial development
4. The Green Belt / Biscayne Green
Great initiatives are coming from the Miami Downtown Development Authority to make Downtown more pedestrian friendly and greener than it already is. One of the plans is to to turn the stretch of Biscayne Boulevard from SE 1st Street to NE 5th into a ‘Biscayne Green’, saying it’s a huge step towards a walkable future for the city. All the current parking spaces will then be changed into little parks. See the video of this plan below.
5. The $12M facelift of Flagler Street
The Flagler Street is getting a $12M facelift to keep up with the rest of Miami’s fast development. The City of Miami as well as private investors are lining up to beautify and restore Flaglers 1950s glory.The Plan involves:
The Improvement of traffic floors
Expanding and straightening sidewalks
Adding trees, benches and bicycle racks.
The sidewalks will also be designed to resemble railroad tracks, harkening back to the days of Miami’s founding father Henry Flagler.
6. SkyRise Miami
Miami will also be home to SkyRise Miami, this brand new icon on Miami’s skyline is more than just a mere observation tower with breathtaking 40 mile vistas of this oceanfront city. Its entertainment venues are designed to be enjoyed by visitors and residents alike. From fine dining and an exclusive nightclub to its ballroom and distinctive event space. This vertical entertainment center has something for everyone and will deliver an unforgettable experience for all.
Skyrise Miami, a new icon on the Miami skyline
Residents of the great Miami Downtown area are now also enjoying a striving arts, fashion and fine-dining culture. While everyone might have heard from the Adrienne Arsht Center for the Performing Arts not all people know about Miami’s Art Walks or the high-end fashion scene in the Design District.
Miami is much more than just sun in the fun – Why Miami is a great place to live!
7 All Aboard florida
Finally, the “All Aboard Florida”-State of the art passenger train arrives in 2016, connecting Orlando to Downtown Miami will bring new job opportunities and retail to the area.
8. Patricia and Phillip Frost Museum of Science
The Patricia and Phillip Frost Museum of Science (formerly known as the Miami Science Museum) is a brand new attraction to be located in Downtown Miami. The museum is currently working to transplant the museum from its current location to Park West at Bicentennial Park in Downtown Miami, along with the new Pérez Art Museum Miami. In addition to interactive science exhibits, the museum also contains the Space-Transit Planetarium, Weintraub Observatory, a Sea Lab, and the Falcon Batchelor Bird of Prey Center. The museum broke ground for the new museum in February 2012 and the grand opening is expected in 2015.
Comparing the sales prices and rental prices of Brickell and Downtown Miami
When we compare the average sales prices (per Sq.Ft) in the last 5 years for both areas we see that although Downtown Miami used to be more affordable than Brickell, it is catching up. In 2015 sales prices as well as rental prices show nearly identical numbers. It needs to be said however that Downtown offers a lot of condos directly on the Bay meaning that, although the price per Sq.Ft is nearly identical, in Downtown you will get better views for the same money.
The average sales prices per Sq.Ft for Downtown and Brickell condos
The average sales prices for Downtown and Brickell condos
The average rental prices for Downtown and Brickell condos
Brickell vs Downtown
Whichever of the two is a better investment depends on your individual goals. Do you want to be safe and invest in an area that is already developed, offers an urban core and is on everyone’s radar? Or do you want to invest in the lesser known neighbor that has plenty of new development in the pipeline as well as a few ultra-luxurious new condos? Because Downtown Miami is not completely developed yet, prices might still be increasing.
Please contact me for any additional information on real estate opportunities in Brickell or Downtown Miami
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