Miami’s Luxury Real Estate Faces Unexpected Sinking Issues

Recent research from the University of Miami has revealed startling findings regarding the luxury condos and hotels in the coastal areas of Miami, including Surfside, Bal Harbour, and Sunny Isles. According to the study, dozens of these lavish properties are sinking at rates described as “unexpected.”

Key Findings from the Study

• Affected Properties: Nearly 70% of the buildings in northern and central Sunny Isles are experiencing sinking issues, with 35 buildings identified as having sunk by up to three inches between 2016 and 2023.

• Notable Buildings Affected:
  • Surf Club Towers
  • Faena Hotel
  • Porsche Design Tower
  • The Ritz-Carlton Residences
  • Trump Tower III
  • Trump International Beach Resorts

This alarming trend poses significant concerns for residents and tourists, as these high-rises collectively accommodate tens of thousands of people.

Florida Forest Land Deal Faces Uncertainty

In another significant development, a proposed deal that would transfer 324 acres of protected state forest to a golf course company is now in jeopardy. Six months following the initial proposal, environmental concerns have intensified.

Critical Observations by Environmentalists:

• Rare Species Recordings: Chase Pirtle, a leader from a nonprofit research group for the Sierra Club, documented various endangered species in the affected area, including:
  • Indigo Snakes: A threatened species basking in the sun.
  • Florida Mice: An imperiled species exhibiting unique physical traits.
  • Gopher Tortoises: More than half of the observed burrows were actively used, emphasizing the area’s ecological significance.

This situation illustrates the ongoing conflict between development and environmental conservation in the state.

South Florida’s Rental-to-Condos Trend: A Sustainable Solution?

The trend of converting rental properties into condominiums is gaining traction in South Florida, driven by a significant shortage of newer condominium inventory.

Highlights of the Conversion Trend:

• Increasing Popularity: Demand for condos built in the last 30 years is on the rise, leading developers to consider residential-to-condo conversions as a viable alternative.

• Faster Development Times: These conversions allow developers to focus on enhancing finishes, amenities, and buyer-ready details, thus providing quicker solutions to housing demands in the area.

An ISG World report indicates that this trend could fill the gap of inadequate new construction in South Florida.

Publix Expands Presence in North Miami

In a significant real estate transaction, Publix Super Markets has acquired a shopping center in North Miami for $40 million. This 90,188-square-foot facility is now entirely owned by Publix, relieving the grocery chain from rental obligations.

Key Features of the Acquisition:

• Location: 12700, 12864, and 13000 Biscayne Blvd.
• Site Amenities:
  • A retail plaza anchored by Publix.
  • A four-story office building housing a Wells Fargo Bank branch.
  • A 4,362-square-foot restaurant leased to McDonald’s.

This acquisition highlights Publix’s commitment to growing its footprint in the region.

Brevard County Home Listings Show Small Decline

In the property market, Brevard County experienced a slight dip in median home listings. As of November, the median home listed for $389,000, a decrease of 0.4% from October’s figures.

Price Trends:

• Current Listings:
  • Median Price: $389,000
  • Square Footage: 1,740 square feet
  • Price per Square Foot: $233 (down 0.5% from the previous year)

This downward trend reflects the intricate dynamics of the housing market in Brevard County.

Additional Trends:

• Coworking Market Expansion: International Workplace Group plans to open 33 new coworking locations throughout Florida, including five in the tri-county area. Read more here.

• Emerging Suburbs: Florida’s housing market continues to thrive, with property values rising in unexpected suburbs across the state. Learn more here.

• Real Estate Redevelopment: Plans are in motion for the redevelopment of a Verizon office building in Miami-Dade County into warehouses. Explore the details here.

• Affordable Housing Initiatives: A new development project near Sarasota-Bradenton International Airport aims to create affordable housing for lower-income workers. Delve into the project here.

These developments underscore the complexities and evolving landscape of real estate in Miami and surrounding areas. As market conditions shift, both residents and investors must stay informed to navigate the emerging trends effectively.