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March 9, 2016
Three of the hottest rental markets in Miami right now are Brickell, Downtown and Edgewater. While the neighborhoods are comparatively priced, each offers something different for renters in terms of traffic, walkability, shopping, nightlife, and demographics.
With more young people moving into the downtown Miami core area, its population has soared to 80,000–more than double what it was just ten years ago (according to the Downtown Development Authority). This has increased demand for rental apartments in Miami while the supply of apartments is basically the same as 5-7 years ago. Over the last three years rent prices have increased between 5 and 10% annually. This is a dramatic price increase for any real estate market in any city. Newcomers to Miami often experience “sticker shock” when they see the price of a studio or other small units in the Miami core area. For the second half of 2016 and beyond there are thousands on new construction units which will be coming to market. This will increase supply and should stabilize the price of rentals by the end of 2016.
In its most recent February 2016 report, the DDA noted all sub-markets in Greater Downtown Miami–including Brickell–are asking rents over $3,000. The biggest rental rate growth occurred in Edgewater. Edgewater was the lowest-priced submarket in 2012 -it is now only slightly discounted to Brickell and Midtown, according to the DDA.
So with rental prices basically even in all three areas the deciding factor on where to live is often based on personal preferences: some city dwellers may prefer an older, more affluent neighborhood like Brickell with its slight Manhattan feel, others may choose Downtown and its proximity to many of Miami’s largest events, yet others will flock to Edgewater which is one of the fastest growing areas in Miami.
The general atmosphere of a neighborhood should always be considered when deciding where to rent:
Brickell has a large concentration of wealthy, highly educated Argentine, Colombian, Cuban, and Venezuelan residents. Many work in the neighborhood’s financial, law and trade sectors, or live in Brickell part-time. There is also a very large presence of young professionals who work in the area or in nearby communities (Coral Gables, Coconut Grove etc.)
Over the last few years new condo construction has extended the upscale neighborhood feel of lower Brickell into upper Brickell. Mary Brickell Village, with its assortment of restaurants, boutiques, and high-class retail lies at Brickell’s center. Walk-ability and access to public transportation is the best in Miami (South Beach is close) but traffic congestion due to new construction would be a challenge for some.
By the end of 2016 and early 2017 the Brickell skyline and the overall Brickell environment will feel even more upscale as the luxury towers of Brickell City Centre, SLS, SLS LUX, Brickell Heights, The Bond & Echo will open allowing luxury renters and condo owners to live and enjoy the Brickell lifestyle.
Downtown Miami, including the Central Business District and the Arts and Entertainment district is very walk-able and most errands can be done on foot.
Projects such as All Aboard Florida, Miami World Center and a proposed Flagler Street renovation are transforming the area and spurring interest by younger renters looking to rent close to Miami’s urban core. The performing Arts Center, Ice Palace Film studios, Opera Center are among the attractions of the Arts & Entertainment District. Recent changes in the area’s new construction zoning laws encourage cheaper rents, according to a Real Deal report citing Miami Today.
The Downtown Miami area has a large mix of people from all over the USA as well as international residents. The upsides to living in one of the high rises along Biscayne Boulevard is the easy access to Miami Beach, Brickell, Miami Heat games, Wynwood and great music from the concerts at Bayfront Park. The downsides to living in Downtown is foot traffic from events, street closures on certain weekends from events, a slight homeless population, and not so good music from Bayfront Park concerts.
Edgewater – the area once blighted by homelessness, gangs and drugs–and has evolved into one of the hippest places to live in Miami favored by young professionals. Located north of downtown, it is walking or biking distance to retail, restaurants and nightlife in Midtown, Wynwood and the Design District. Rental and condo towers abound, and more are still planned. While most new construction in Brickell is west of Brickell Avenue, Edgewater provides great views of Biscayne Bay and Miami Beach.
One of the game changers coming to Edgewater is the Paraiso complex which is made up of 4 large condo towers each offering amazing views and luxury amenities. The recently completed Icon Bay and Bay House towers have already bought an air of sophistication to this neighborhood and provide ample rental options for a tenant seeking unobstructed views of Miami Beach and privacy . When you factor in the already popular buildings of Cite, Paramount, Opera Tower, Quantum on The Bay and others as well as the constant level of activity at Margaret Pace Park you can see why this area is growing so quickly. Retailers have already taken notice as several new restaurants and boutique shops have open with many more on the way. Residents that are planning to move to Edgewater can expect to see a much more walkable area by the end of 2016 and well into 2017. There is also talk of a Biscayne Line which is being promoted by a local developer. This would be a walkable boardwalk basically connecting 195 to 395 offering biking, dog walking, jogging and more activities with the beautiful view of Biscayne Bay and the buildings of Miami Beach.
For more information please contact Diego Valencia at diego@werentbrickell or call him at (954) 296-9189 or (305) 704-8849