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May 15, 2016
This post will examine how rental rates have changed in the “Brickell core area” between the first quarter of 2016 and Q1 of 2015. For this report we define the “Brickell core area” as South of the Miami River, West of the Metromover and North of SE 15th Street – basically where the largest concentration of new construction has taken place. This includes the Brickell City Center project, SLS, and Millecento among others. This does not take into account Brickell Key or any bordering areas – please refer to the map below for exact boundaries. As we all know there are thousands of new residential condos hitting the market by the end of 2017 and since the majority of these units were purchased by foreigners there is a large expectation that a good portion of these units will enter the market as “new condos available for rent”.
|TIME PERIOD||NUMBER OF UNITS RENTED||AVERAGE ASKING PRICE||AVERAGE RENTED PRICE|
|NET CHANGE||+ 9.2%||– 1.3%||– 1.9%|
DISCLAIMER: The above data was taken directly from the MLS in the first week of May 2016, which allowed about 30 days for all closed transactions that occured in Q1 2016 to be posted.
As we can see there was almost a 10% increase in the amount of condos rented in Q1 2016 compared to the same period last year. This is expected as new buildings come online and we know that Brickell continues to attract young professionals as well as young families from both the USA and abroad. The more important numbers to note are the fact that condo owners are well aware of the increase in available rental units on the market and have thus adjusted their asking price downwards 1.3% year over year. Likewise, now that potential renters know they have more inventory to choose from they can use this as leverage when trying to negotiate prices. This has caused the average rental price to decrease almost 2% since Q1 of 2015. While this number is not huge, it is a stark difference to the years of 2009 to 2014 when the average rental price in Brickell increased around 35%. Overall this will make for happy renters and unhappy condo owners who now face more competition when trying to lease their units quickly.
Not noted in this graph is the average days on the market until a unit is leased which remained steady at 78 for RENTED units – this excludes condos that have NOT been rented. This tells us that while there is an increase in new inventory there is also an increase in demand for rentals in Brickell which is keeping the average number of days on the market steady.
If you are looking to rent a condo in the Brickell area or, are looking to lease your unit please call Diego Valencia at (305) 704-8849 or email – email@example.com