August 5, 2016
Miami’s skyline is as beautiful as it is dynamic, constantly expanding and evolving before our eyes. As new skyscrapers continue to rise, the central business districts of Downtown Miami and Brickell are quickly becoming the largest hubs for South Florida’s blossoming financial services industry. Consequently, prices for commercial and residential real estate in these flourishing downtown areas continue to increase. With dozens of projects under construction, and dozens more proposed, the transformation of Miami’s developing but alluring skyline has only just begun. With the evolution of downtown Miami and Brickell underway, investment potential in the area has never been higher. Furthermore, this major transformation is establishing downtown Miami as the heart of the city; which in turn will have have a major positive impact on local businesses.
Major projects underway in Downtown Miami and Brickell
The new Miami World Center has been deemed “a city within a city”, and is not only one of the largest developments in South Florida history, but is also currently the second largest urban project in the country. The monumental mixed-use development will span at least 6 city blocks in the Park West neighborhood (on the northern edge of Downtown Miami) and will cover over 25 acres of land. It will include a convention center, extensive street level retail with department store anchors, and a luxury hotel. In addition, a 60-story residential skyscraper boasting over 500 units will be added to the skyline. The developers behind the Miami World Center aim to reshape the face of Downtown Miami with this historic project. The $2Billion development broke ground in March 2016, and phase I is expected to be complete in 2018.
In addition to the Miami World Center, construction on another massive mixed-use development is underway in the city’s urban core: Brickell City Center. Much like the Miami World Center, the Brickell City Center will include a hotel, an open air shopping center, office space, and two luxury residential towers. Located in the heart of Brickell, this project is a monumental step toward revitalizing the neighborhood, and property values in the surrounding area are rising as a result of its impact and scale. According to Miami Downtown Development Authority executive director Alyce Robertson, the megaproject is “pivotal”, and “a catalyst”. Construction on the development broke ground in 2012, and is nearing completion.
When completed in late 2017, The Panorama Tower hopes to become the signature piece of the Miami skyline. Upon completion, this mixed-use skyscraper will be the tallest building in all of Florida, standing at 830 feet. The upper levels of the tower will be residential, while the lower levels will feature office space combined with a hotel. The ground floor will be occupied by high end retail stores and restaurants. The skyscraper is being constructed in the epicenter of the Brickell financial district, and real estate in the building will come at a steep price.
The Brickell Flatiron, a 65-story residential skyscraper, will be a dazzling addition to Miami’s Skyline. The project headlines a wave of residential towers popping up in the Downtown area. Named after the triangular lot it stands on, the Brickell Flatiron will be one of the tallest buildings in Miami when complete, towering at over 700 feet. The amenities in the building will include an on-site car wash, a theatre, a children’s playroom, and a rooftop pool lounge, so it should come as no surprise that units are priced at an average of $750 per square foot.
As the Miami skyline evolves, prices will rise.
As new skyscrapers rise, Brickell and Downtown Miami commercial real estate prices rise with them. Plus, with so many projects under construction, and many more planned for the future, there are very few parcels of land remaining in the Downtown area. Case in point: SkyRise Miami.
According to Miami’s Mayor Carlos Gimenez, “SkyRise Miami will become Miami’s ‘Eiffel Tower’ and a symbol of Miami’s growing stature as a 21st century global city for business and leisure”. With a planned location on the water in the heart of Downtown Miami, SkyRise will be Miami’s tallest structure, standing at 1,000 feet. SkyRise Miami is not your typical mixed-use skyscraper, but has rather been dubbed a “Vertical Entertainment Center”. Drawing comparisons to the Eiffel Tower and Seattle’s Space Needle, SkyRise Miami will have observation decks on the top floors, with the rest of the tower uninhabited. It will earn its title of Vertical Entertainment Center with a skydrop ride along the side of the building, a bungee jumping attraction, and restaurants and stages for shows at the base. SkyRise will be a brilliant spectacle of modern architecture, and is sure to become a Miami icon, and a globally recognized South Florida landmark.
Furthermore, as Downtown Miami and Brickell evolve into hubs of business and culture, a growing number of organizations and individuals are relocating to the area. Consequently, both residential and office vacancy rates are becoming lower, resulting in a rise in average real estate prices. According to Peter Zalewski of Cranespotters.com, “Back then, in downtown Miami, if you were to lease a 1,000-square-foot apartment, you would pay about $1,500 a month. Today if you were to lease that same apartment, you are looking at $2,400 a month”.
Local businesses may see an increase in rent, but overall they will benefit greatly from the transformation of the area. The evolution of Downtown Miami and Brickell will increase property value, draw foot traffic, and invigorate the economy on a whole. To view available properties in the flourishing heart of Miami, visit Metro1.com.