After Historic 2008 Crash, Downtown Miami Among Nation's Most Active Residential Markets in 2012

(Miami, FL) -- Based on a new report, Downtown Miami now stands strong as one of the most active residential real estate markets following what was considered to be among the worst real estate market crashes in U.S. history.

An independent Residential Closings & Occupancy study commissioned by the Miami Downtown Development Authority shows that 93% of the 22,785 condo units constructed since 2003 are now occupied with primarily full-time residents, signaling a tightening of the market as a result of limited remaining inventory.

The report, conducted by Lewis Goodkin and Craig Werley of Goodkin Consulting/Focus Real Estate Advisors, finds a strong demand for urban living in Miami. According to the study, 84% of the condo units built during the building boom in the downtown Miami area have been sold, up six percentage points from only one year ago.

"Downtown Miami continues to defy national trends in real estate economics," said Craig Werley of Focus Real Estate Advisors. "Foreign demand for residential product characterized by mostly cash buyers is driving a market rebound not seen anywhere else. This is particularly remarkable considering the foreclosure crisis that continues to grip much of the rest of the region and state."

Other key findings from the Miami DDA's Residential Closings & Occupancy Study include:

• Sales activity decelerates as inventory shrinks: Diminished inventory saw total condo sales in Downtown Miami down approximately 5% from 2010. Monthly residential sales averaged 307 units per month in 2011 compared to 315 per month in 2010.

• Prices continue to rise for sales: Average sales prices in 2011 were up in Q4 and on a year-over-year basis. The average unit sales price (new and resales) in 2011 was $370,003, representing a 6.4% increase from the average price of $347,729 in 2010, and a total 22.4% increase from 2009. Average price per square foot in new inventory rose by 12.6% to $365. The average rent per square foot also rose 10% year-over-year to $1.78.

• Condo surplus all but eliminated: The unsold inventory of new condo units in the downtown Miami area declined more than 25% in the past 12 months. Additionally, 1,559 condo units are currently unoccupied, representing less than four months of supply given current leasing trends.

Taking a look at where some of the projects hardest hit during the real estate crash stand today further demonstrates a tightening in the market. For example, with 342 units, the Epic was 17% occupied in 2009. Today, occupancy stands at 89 percent. Once classified by the New York Times as a "monument to excess," the Icon Brickell had an occupancy rate of only 4.9 percent in 2009. Today, this 714-unit complex is also 89% occupied. And the Infinity at Brickell, which had an occupancy rate of 12% in 2009, is today almost fully absorbed with an occupancy rate of 98 percent.

"Downtown Miami continues to prove itself to be one of the country's most resilient markets," said Alyce Robertson, executive director of the Miami Downtown Development Authority. "Demand is quickly outpacing supply and as a result, developers are once again coming off the sidelines to build new projects- and nearly a decade earlier than even the most bullish economists predicted."

Werley adds that the renter demand is playing a major role in stimulating commercial activity within Miami's urban core. The majority of renters are full-time residents, many of whom have disposable income that translates to heightened demand for goods and services

A Miami DDA report from September 2011 found that downtown Miami is attracting a younger, more affluent residential base. Since 2000, the number of households in the downtown Miami area has increased by 93%, with the highest percentage (57%) of residents falling within the 24-44 age range. Additionally, the area's per capita income has grown by 39%, far exceeding that of the City of Miami and Miami-Dade County. All told, the area's population stands at approximately 72,000 people as of mid-2011, representing a 9% year-over-year increase from 2010 and outpacing the 6.8% growth rate experienced during the previous decade.

Posted by Michael Gerrity 03/13/12 12:01 PM EST - http://www.worldpropertychannel.com/
DQEKYTWHGQT4

http://www.alexmiarealtor.blogspot.com

Water Taxis offer Commuters a New Form of Transportation

Something new is afloat in Miami: water taxis.

Different from the narrated floating tiki bars, pirate ships and other tour boats that bring sightseers to the homes of Miami’s rich and somewhat famous, these vessels have a practical purpose: Get from points A to B with as little fuss as possible.

Before January, that wasn’t an option — and Max Vlessing, an entrepreneur who was born in Holland and moved to Miami about a year ago, thought it was time to resurrect the idea.

“The reason why I started it is because there are no water taxis in Miami,” said Max Vlessing, owner of Water Taxi Miami.

Make that were no water taxis.

After more than a decade without, Biscayne Bay now has two vessels ferrying passengers between downtown and Miami Beach.

Biscayne Xpress Water Taxi, based on the north end of Miamarina at Bayside, started service Jan. 15. It has room for 42 passengers. The 38-passenger Water Taxi Miami had its first sailing Jan. 26, departing Miamarina’s south side near Hard Rock Cafe. Each go to the Miami Beach Marina and downtown’s Riverwalk station; Water Taxi Miami also stops at Sea Isle Marina in downtown just north of the Venetian Causeway.

While neither company sounds all that happy about the other’s existence, they have similar goals: Give people an alternative other than sitting in traffic. Appeal to locals as well as tourists. Make people aware that they are open for business.

“Competition’s good,” said Kevin Pagan, who owns Biscayne Xpress along with a charter fishing boat also based at Bayside. “I’m not knocking anyone. I think there’s enough for everybody.”

Monday afternoon was fairly slow for both, each departing Bayside between 2 and 3 p.m. with just three passengers, all tourists.

At 2:15 p.m., three women vacationing from New York hopped aboard Biscayne Xpress with fruity drinks and plans to take in the views — but not disembark at any stops.

Water Taxi Miami, 35 minutes later, departed for Miami Beach with a 24-year-old Brazilian killing time before her flight and a couple of Australian tourists who wanted an easy route to South Beach.

For Sue Nikolovski, of Melbourne, previous bus trips to Miami Beach proved complicated and long. The water taxi route promised a quicker, easier transit. She learned of Water Taxi Miami from her daughter, who lives in South Florida and spotted a Groupon for the service last week.

“It just is another experience,” Nikolovski said. “The bus took forever.”

The Groupon is one of Vlessing’s efforts to get publicity. He’s also partnered with Bayside sightseeing giant Island Queen Cruises. Pagan is working with Half Price Tour Tickets and DecoBikes, among other local partners.

Bob Christoph, manager of Miami Beach Marina, said he was surprised when two water taxi companies emerged — but thinks there is enough demand for both. He said event-specific scheduling and familiarity with the market over time should help.

“I think we’ve seen a much more vibrant whole urban area here and hopefully their time has come,” Christoph said. Previous water taxi services in Miami-Dade failed more than a decade ago.

With a downtown that now boasts more than 65,000 residents, Miami has more built-in customers than ever before, said Alyce Robertson, executive director of Miami’s Downtown Development Authority.

“Certainly it’s a different downtown that they’re being tried in,” she said. “I think there is a different environment today that will give them a good chance of success.”

Read more here: http://www.miamiherald.com/2012/02/27/2664487/water-taxi-transportation.html#storylink=

Read more here: http://www.miamiherald.com/2012/02/27/2664487/water-taxi-transportation.html#storylink=cpy

Water taxis offer commuters a new form of transportation - Business - MiamiHerald.com

http://www.alexmiarealtor.blogspot.com