It’s hard to believe that we have lived through nearly three quarters of life amid the coronavirus pandemic. It seems everything is different these days, in a constant state of change, and the real estate market is no exception. The Miami commercial market has been particularly affected, which should come as no surprise, with business closures, reduced traffic, and capacity. However, quarter three finds the market improving a bit. After quarter two saw an eight-year low volume in multifamily housing investments. Quarter three bounced back a bit with sales surpassing that of quarter two by late August.
One notable deal that attributed in large part was the sale of downtown Miami’s 28-story Hamilton on the Bay at a price of $85 million or $300,000 per unit. In line with the average market price in this highly sought-after neighborhood of Edgewater. This sale was also notable because it alone was more than 20% higher than the total sales volume across Miami from April to June. During these months where deals were smaller, bringing in lower than expected prices.
In the office sector, we are also starting to see a month-over-month improvement. In quarter three, new leases accounted for were up from 250,000 square feet of lease space in quarter two to 296,000; an 18% increase. As unemployment improves but remains uncertain (C), and work-from home opportunities increase, vacancies have also risen. However, Florida’s Phase Two reopening has led to some job growth. One new project (B) coming to Miami seeks to tap into the City’s vibrant tech and banking sectors. Blackstone Group, Inc has announced plans to open an office and hire 215 employees to staff the firm. Market pricing for commercial rental space has also risen 2.3% year-over-year to $41.08 overall. The most significant year-over-year gain happened in Biscayne Bay with two large class A projects in quarter three.
While the recent rise in coronavirus cases is no surprise, market fluctuations continue to be expected as well. Though experts do not anticipate another quarter two, prices may decline a bit. However, though it may be the new normal, life goes on in Miami. Construction has continued moving forward (A) despite the persistence of coronavirus. A testament to the strength of our city and its’ people.
A – https://www.miamiherald.com/news/business/real-estate-news/article241721996.html
B – https://finance.yahoo.com/news/blackstone-joins-rush-miami-office-154419804.html