The pace of pre-construction condo contract activity has slowed, but are still plenty of good news, and many signs that the overall real estate market in Miami is resilient.
Experts agree that the real estate market is deep, with both new commercial and residential projects continuing to gain support from lenders, developers and professionals.
The multifamily sector continues to grow: Atlantic | Pacific Group broke ground on two new rental apartment towers and Greystar announced plans for a high-rise apartment building near Dadeland Mall.
More ground-up industrial warehouses are also on the way in anticipation of the completion of the Panama Canal, which dovetails nicely with continuing upgrades to PortMiami and Miami International Airport.
The office sector is also driving interest: Brickell City Centre is allowing tenants like anchor Akerman to move into its new offices. More new projects are also on the way including luxury, Class A office condo Ofizzina, which The Solution Group, an Influence Communications client, is building in Coral Gables.
All this commercial activity is fueled in part by the continued confidence in the residential market, in particular in downtown Miami. To that end, the vast majority of downtown Miami condominiums that are becoming available in 2016 are pre-sold, according to a new report.
Integra Realty Services generated the report that tracked sales for 12 months ending in January 2016. The data came from several neighborhoods including Brickell, Wynwood and Overtown, according to the Miami Herald.
Developers also responded in the right way to a sales slowdown of pre-construction units in 2015 by postponing or canceling projects, which resulted in 2,000 units being produced instead of 3,600, according to the Miami Herald.
Another market boost came from the announcement that The Canvas condominium in Miami’s Arts & Entertainment District received a $70 million construction loan. Bank of the Ozarks provided the funding for the 513-unit project.
Bank of Ozarks also provided nearly $74 million in financing to the developers of the mixed-use Landmark South in Doral project, according to the South Florida Business Journal.
The Related Group is also set to break ground on GranParaiso, the fourth tower in its massive condo project in Miami’s Edgewater neighborhood.
Despite some indications that it might wait to develop its new property, China Construction Company is moving ahead with plans to build a 42-unit condominium on the oceanfront site it bought from Don Peebles. Engel & Völkers Miami, an Influence Communications client, brokered the sale.