ISG World Miami Report (English)

A N I N - D E P T H A N A L Y S I S O F S O U T H F L O R I D A ’ S N E W C O N D O M I N I U M M A R K E T

D E C E M B E R 2 0 1 4

MIAMIRise Of A GlObAl City

INTE

RN

ATIO

NAL

ART

CULTURE

TECHNOLOGY

ENTERTAINMEN

T

EDUCATION

FINANCE

FILM&FASH

ION

REAL ESTATE

PERCEPTIONvs. REALITY

RENTAL TRENDS

arts&cultureInternatIonal report

ISG CITY WATCH

Cover Credit:

Welcome to the ISG Miami Report, we are honored to present our current research on the state of the South Florida market. This edition is the most extensive and in-depth Miami Report to date.

The speed at which the South Florida Market is evolving is breathtaking.

Our intention these last five years has been to define the state of the market and to inform our fellow business associates how these dynamics affect our business environment and define our region.

In this report, we have once again assembled all of the recent data on our current market conditions. We have examined new and pre-construction developments sub market by sub market, studied MLS trends, and have included (for the first time) an analysis of the rental market, which is playing such a big part in our economic growth.

Our latest edition covers more than statistics. We have diligently charted the many influences that propel Miami’s emergence as a Global City. The future is both exciting and dynamic. In this issue we feature the various areas that demonstrate the evolution of Miami.

In this regard, we have also examined the subjective factors that are impacting the worldwide surge of interest in South Florida. In the course of our research, one theme begins to emerge “MIAMI IS THE REASON”. The rationale may vary and be as diverse as the people looking to settle here. It may be the politics, security, culture, economic stability, education, climate or simply the lifestyle, but it is MIAMI as a whole that is the star.

Has Miami already achieved the status of “Global City”? Perhaps, not yet. We have much to do in areas like infrastructure, transportation and education before we can rightly take our place as a Global City. However, no one can deny that we are certainly on the right track to distinction.

We, at ISG, invite you to follow us as we chronicle the journey of a city on the rise to global prominence.

We hope that you will find our material helpful in telling our story to a global audience and useful in promoting your business interests. ISG is committed to continuing to produce the high level of marketing information for which the Miami Report is known.

Sincerely,

Craig Studnicky & Philip Spiegelman ISG Principals

FROM THE ISG PRINCIPALS

Michael Ambrosio ISG President

T A B LE O FC O N TE N T S

4. FEATURED STORY

6. WEALTH REPORT

8. FINANCIAL

12. NEW CONSTRUCTION

24. WORLD CLASS PENTHOUSES

26 . MLS RESALE INVENTORY

32. RENTAL TRENDS

40. POPULATION STATISTICS

42. INTERNATIONAL MARKET

48. TRANSPORTATION

54. CULTURAL AND ECONOMIC GROWTH

68. ISG CITY WATCH

70. SOUTH FLORIDA 2020

82. ON THE GROUND REPORT

PERCEPTION REALITYExamining the Difference Between “Proposed” and “For Sale” in the South Florida New Condo Market Once again, buzz is brewing about the number of proposed new condos set to hit the Miami / South Florida market. Concern comparisons are even being made to the bubble stories of 2005. The Miami Herald published an article in May of 2005, “PROJECTING”, that 62,000 condos were planned for development within the Brickell Ave. / Downtown Miami corridor. In actuality, just 17,502 of those proposed 62,000 condos were developed...less than 40% of what was projected. In tracking the data of Miami / South Florida’s current cycle, we found that the number of proposed new condos is, once again, different from the number of condos that have actually been brought to market for sale thus far. Additionally, proposed condo projects may, eventually, be brought to market, once various governmental and business issues get resolved. But it is critical to note the

difference between a condo project released to market (“For Sale”) versus a proposed project that remains subject to the following: - Land Use Approvals - Zoning Approvals - Entitlement Approvals - Backing of Reputable Developer - Suitable Financing - Changing Business Plans Currently, the estimated number of new “Proposed” condos East of I-95, in Miami-Dade, Broward, and Palm Beach is 38,000 (according to the South

Florida Business Journal, October, 2014). Of those, 16,033 have been brought to market for sale, since the last business quarter of 2011 (42% of the 38,000 “Proposed”). To date over 62% of this inventory has been sold. With less than 6,200 new condo units remaining to be sold, South Florida currently has less than 18 months of new condo inventory for sale according to historical absorption patterns.

FEATURED STORY

ISG MIAMI REPORT4

“Generally speaking, the market has continued a slow and steady recoverythat is markedly different from pastdown cycle recoveries. History would suggest a more vertical recovery especially given the severity of the economic decline. This recovery has been a decidedly different experience as the slope of recovery has been shallow and the expected acceleration has not materialized.”

Stuart A. Miller QuoteChairman of Lennar ChairmanMiami Herald, Monday October 13, 2014

sources: multiple listing service (mls), tax records and on-site sales

CONSTRUCTIONSTATUS

Delivered 8 1,133 1,046 93% 84

Under Construction 44 8,540 7,209 84% 1,331

Pre-Construction 35 6,360 1,745 27% 4,615

Totals 87 16,033 10,000 62% 6,030

TOTALTOWERS

TOTALUNITS

TOTALSOLD

PERCENTSOLD

TOTALUNSOLD

2014 NEW CONSTRUCTION CONDO OVERVIEWSouth Florida Condominium Analysis East of Interstate 95

2 0 0 5

62,000PROPOSED

17,502A C T U A L

2 0 1 4

38,000PROPOSED

16,033A C T U A L

DOWNTOWN MIAMI AND BRICKELL ONLY

MIAMI-DADE, BROWARD & PALM BEACH COUNTY EAST OF I-95

62% SOLDSOLD

FOR SALEFOR SALE

ISG MIAMI REPORT 5

WEALTH REPORT

1. London $6,000 psf

7. Miami $800 psf

2. New York $4,000 psf (NYC / Manhattan)

5. Geneva $3,000 psf

10. Paris $4,400 psf

Sources: Knight Frank Wealth Report Forbes, June 2014, Business Insider March 2014

For the past eight years, Knight Frank distributes an annual Wealth Report - a collection of data about the Global “UHNWI” community (ultra high-net-worth individuals), defined as those with US $30 million or more in net assets.

ISG MIAMI REPORT6

2014 Miami Ranking: 7




The Cities that matter to UHNWI’s - Global SurveyMOST IMPORTANT NOW

3. Singapore $1,500 psf

4. Hong Kong $4,500 psf

6. Shanghai $2,000 psf

8. Dubai $2,500 psf

9. Beijing $1,500 psf

1. New York

2. Miami3. Washington, D.C.

4. San Francisco

5. Toronto

T O P 5 C I T I E SN O R T H A M E R I C A

When exAmininG nORth AmeRiCAn Cities Of impORtAnCe tO UhnWi, miAmi COmes in At #2 – seCOnd Only tO neW yORk City.

ISG MIAMI REPORT 7

“ 53 banking offices hold $12 billion in domestic deposits and $6.7 billion in non-resident alien deposits on Brickell Avenue, and nearly $7 billion in foreign money sits on the balance sheets of Greater Miami banks.”

Miami Today, Dec. 11th, 2013

ISG MIAMI REPORT8

Miami is the second most popular banking hub in the U.S. after New York City. Currently home to over 60 international banks and nearly 100 alternative investment companies*, Miami’s thriving financial district is attracting financial institutions from around the world. Additionally, many of the nation’s wealthy financial leaders are heading to the Sunshine State – with their clients’ funds - to semi-retire while they work, live, and play. So why are banks and hedge funds setting up shop in Miami and investors from around the worlddepositing their millions here? One major reason are the tax breaks– no individual state income tax or estate tax exists in Florida. Another reason is Miami’s obvious connection to Latin

America. As the gateway to the rest of the country, Miami and its financial center on Brickell Ave. is at the center of Latin American investments. Mark Spitznagel, founder and CIO of Universal Investments – the largest Hedge Fund to move to Miami in recent years, said to Florida.gov, “Florida and Miami Dade County’s business-friendly policies offer the perfect environment for Universal as we expand.” Even the financial tycoons who aren’t bringing their actual businesses to Miami are bringing their money here in a major way – through large real estate purchases. Goldman Sachs CEO Lloyd Blankfein and Apollo Global Management’s Leon Blac have both reportedly purchased eight-figure residences in Miami Beach.

W A L L S T R E E T O F T H E S O U T H

“Miami Is Wall Street South”Business Insider, February, 2014

Rendering of proposed new Fairholme Capital HQ,

designed by Arquitectonica

ISG MIAMI REPORT 9

*Miami Downtown Development Authority (DDA)

A S A M P L I N G O F H E D G E F U N D S & F I N A N C I A L I N S T I T U T I O N S

W I T H H E A D Q UA RT E R S I N M I A M I

Banco Colpatria Red Multibanca

Colpatria SA

Banco Davivenda SA

Banco de Bogata SA

Banco de Credito del Peru

Banco de Nacion Argentina

Banco de Brasil

Banco Industrial de Venezuela

ESL Fund

Fairholme Capital

Bayview Asset Management

Encore Housing Opportunity Fund

WE Family Offices

Atyant Capital (Boca)

FINSER International Group

Riverloft Capital Management

Universa

City National Bank

USB

TotalBank

US Century Bank

ISG MIAMI REPORT10

“ Downtown Miami is home to the second largest concentration of international banks that manage $26 billion worth of international bank assets and finances $54 billion worth of trade.”

August, 2014

In addition to the aforementioned banks and hedge funds that have added offices or relocated to Miami, the state of Florida has seen quite a bit of corporate growth in a number of other areas as well. Once again taking advantage of our tax breaks, proximity to Latin America, and ideal climate, numerous corporations are relocating to the Sunshine State. According to Enterprise Florida, since 2013, 21 companies have announced locations, relocations or expansions of corporate headquarters in Florida, accounting for nearly 3,000 jobs

and more than $209 million in capital investment. There are currently 16 Fortune 500 companies located in Florida including the international rental car conglomerate Hertz, which recently moved their operations here. Additionally, Miami serves as the international hub for many large corporations. Global Trade Magazine points out that 1,400 multinational corporations use Miami as their Latin American headquarters including Exxon, AIG, Microsoft, Visa, Walmart and many more.

M A J O R C O R P O R A T I O N S

ISG MIAMI REPORT 11

ISG MIAMI REPORT12

NEWCONSTRUCTION

ISG MIAMI REPORT 13

B r i c k e l lTotal New Construction Condo Units Available for Sale since Jan. 2012

5,608 Units total • 3,815 Units Sold • 1,793 UnsoldAvg. Absorption: 1,900 Units Annually over the last 10 years

1100 Millecento

1010 Brickell

Brickell city centre tower i - reach

Brickell city centre tower ii - rise

Brickell heights east

Brickell heights west

Brickell house

Brickellten

Brickell Flatiron

cassa Brickell

the edge on Brickell

echo Brickell

le Parc

nine at Mary Brickell Village

MyBrickell

sls

sls lux

the Bond

Developer Units solD Developer Units UnsolD

382 Total Units100% SOLD



390 Total UnitsCOMING SOON













BRICKELL



ISG MIAMI REPORT14









B i s c a y n e C o r r i d o rConsists of Wynwood, Design District, Edgewater, Midtown & Downtown MiamiTotal New Construction Condo Units Available for Sale since Jan. 2012

5,198 Units total • 2,590 Units Sold • 2,608 UnsoldAvg. Absorption: 1,300 Units Annually over the last 10 years

250 wynwood

Baltus house

23 Biscayne Bay

Bay house

Biscayne Beach

the criMson

icon on the Bay

ion

one Paraiso

Paraiso BayViews

Paraiso Bay tower i

hyde Midtown

1000 MuseuM

aria

canVas

centro

krystal towers

ParaMount, MiaMi worldcenter signature tower











WYNWOOD

DESIGN DISTRICT

EDGEWATER

MIDTOWN

DOWNTOWN MIAMI


ISG MIAMI REPORT 15

T h e B e a c h e s

2,970 Units total • 2,228 Units Sold • 742 UnsoldAvg. Absorption: 1,300 Units Annually over the last 10 years

Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale and Hollywood BeachTotal New Construction Condo Units Available for Sale since Jan. 2012





BAL HARBOUR

SURFSIDE





321 ocean

the Bath cluB estates

Beach house 8

edition residences

Faena house

glass

Marea south Beach

one ocean

Peloro on the Bay

ritz-carlton residences

*1 hotel and hoMes

Fendi chateau

surF cluB Four seasons

PriVate residences

oceana Bal harBour



MIAMI BEACH /SOUTH BEACH






*New Construction Standing Inventory

ISG MIAMI REPORT16

*Condo Residences Only


400 sunny isles

arMani casa

chateau Beach

Jade signature

Muse

Parque towers

Mansions at acqualina

Porsche design tower

regalia

turnBerry ocean cluB

*Beachwalk

gulFstreaM Park towers

aPogee Beach

*hyde resort and residences

sage Beach



84 The Total Units98% SOLD









10% SOLD 154 Total Units


SUNNY ISLESBEACH

HALLANDALEBEACH

HOLLYWOODBEACH



ISG MIAMI REPORT 17

A v e n t u r aTotal New Construction Condo Units Available for Sale since Jan. 2012

N o r t h M i a m i B e a c h , K e y B i s c a y n e& C o c o n u t G r o v eTotal New Construction Condo Units Available for Sale since Jan. 2012

echo aVentura

Bellini

PriVe



the harBour

Marina PalMs towers i & ii

oceana

groVe at grand Bay

one Park groVe

two Park groVe

Park groVe cluB residences








420 Units total • 274 Units Sold • 146 UnsoldAvg. Absorption: 265 Units Annually over the last 10 years

1,314 Units total • 941 Units Sold • 373 UnsoldAvg. Absorption: 200 Units Annually over the last 10 years

AVENTURA

NORTHMIAMIBeach

KEY BISCAYNE

COCONUTGROVE




ISG MIAMI REPORT18

F o r t L a u d e r d a l eTotal New Construction Condo Units Available for Sale since Jan. 2012

N e w C o n s t r u c t i o n S u m m a r yToTal New CoNsTruCTioN CoNdo uNiTs To be builT, sold aNd CurreNTly available for sale iN briCkell, bisCayNe Corridor (dowNTowN MiaMi, edgewaTer, wyNwood, MidTowN & desigN disTriCT), The beaChes (souTh beaCh, MiaMi beaCh, surfside, bal harbour, suNNy isles, hallaNdale, hollywood) aveNTura, NorTh MiaMi beaCh, CoCoNuT grove & key bisCayNe siNCe JaN. 2012.



1800 las olas

adagio on the Bay

aquaBlu Fort lauderdale

aqualuna las olas

aquaMar las olas

aquaVita las olas

auBerge

BellaVita las olas

ParaMount Fort lauderdale

PriVage

riVa




FORTLAUDERDALE 22 Total Units100% SOLD


523 Units total • 152 Units Sold • 371 UnsoldAvg. Absorption: 470 Units Annually over the last 10 years





Developer Units solD

Developer Units UnsolD

project Units total

16,033Total 6,003

Unsold

10,000

62% SOLDAS OF OCT 2014


ISG MIAMI REPORT 19

95

1

A1A

FLO

RID

A’S

TURN

PIKE

1

1

95

595

75

1

A1A

A1A

COCONUT GROVE

WYNWOOD EDGEWATER

DESIGN DISTRICT

MIDTOWN

KEY BISCAYNE

BRICKELL

DOWNTOWN MIAMI

MIAMI BEACH / SOUTH BEACH

NORTH MIAMI BEACH

SURFSIDE

BAL HARBOUR

SUNNY ISLES BEACH

HALLANDALE BEACH

AVENTURA

HOLLYWOOD BEACH

FORT LAUDERDALE

BISCAYNE CORRIDOR

ISG MIAMI REPORT20

fORt lAUdeRdAle 29% SOLD

hOllyWOOd beACh 94% SOLD

hAllAndAle beACh 84% SOLD

sUnny isles beACh 80% SOLD

bAl hARbOUR 50% SOLD

sURfside 56% SOLD

nORth miAmi beACh 70% SOLD

miAmi beACh / sOUth beACh 82% SOLD

bisCAyne CORRidOR 75% SOLD

dOWntOWn miAmi 40% SOLD

bRiCkell 80% SOLD

COCOnUt GROve 67% SOLD

key bisCAyne 100% SOLD

75% - 99% SOLD

50% - 74% SOLD

100% SOLD

UNDER 50% SOLD

N e w C o n s t r u c t i o n % S O L D S u m m a r y b y S u b M a r k e t s

AventURA 65% SOLD

Based off of current buildings on the market for sale

ISG MIAMI REPORT 21

1 0 Y e a r A n n u a l A b s o r p t i o n A n a l y s i sFor Condos built from 2004 - 2014

Submarkets consist of Brickell, Biscayne Corridor (Downtown Miami, Edgewater, Midtown &

Design District), The Beaches, (South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles,

Hallandale & Hollywood Beach), Fort Lauderdale, Aventura, North Miami Beach, Coconut Grove

& Key Biscayne.

Brickell

Biscayne corridor

the Beaches

north MiaMi Beach, key Biscayne, coconut groVe

aVentura

Fort lauderdale

ToTal

AverAge YeArlY Condo InventorY AbsorptIon from 2004-2014

1,300 PER YEAR

1,300 PER YEAR

200 PER YEAR

265 PER YEAR

470 PER YEAR

Sources: Integrated Realty Information System (Irsi); Miami-Dade & Broward County Property Appraiser and Multiple Listing Service (MLS)

ISG MIAMI REPORT22

4,700 PER YEAR

ISG MIAMI REPORT 23

1,900 PER YEAR

Miami Pen thouses. S ta r s A re Bo rn .As the ultra-luxury market continues to grow in South Florida, buyers are seeking spacious, one-of-a kind residences like never before, and nothing fills this prerequisite more than the unrivaled penthouses being brought to market. With sizes ranging from 8,000 to 16,000 square feet, fully equipped outdoor living spaces, expansive roof decks, and amenities such as personal fitness rooms, private spas & pools, in-residence parking, and advanced technology. With price points up to $60 million, these “mansions in the sky” are aligning themselves with the stars.

BALHARBOUR

DOWNTOWNMIAMI

BRICKELL

ISG MIAMI REPORT24

MANSIONS AT ACQUALINAArchitect: Cohen, Freedman, Encinosa & Assoc.AC Area: 15,219 Price: $55,000,000 Price PSF: $3,614

MUSE SUNNY ISLESArchitect: Carlos Ott / Sieger + SuarezAC Area: 6,106 Price: $18,554,000 Price PSF: $3,039

JADE SIGNATUREArchitect: Herzog & de MeuronAC Area: 16,915 Price: $32,500,000 Price PSF: $1,921

FENDI CHATEAUArchitect: Bernardo Fort-BresciaAC Area: 6,861 Price: $24,500,000 Price PSF: $3,571

RITZ CARLTON RESIDENCESArchitect: Piero LissoniAC Area: 10,000 Price: $32,000,000 Price PSF: $3,200

THE BATH CLUB ESTATESArchitect: Bernardo Fort-BresciaAC Area: 9,044 Price: $50,000,000 Price PSF: $5,529

FAENA Architect: Norman FosterAC Area: 8,273 Price: $60,000,000 Price PSF: $7,252

ONE THOUSAND MUSEUMArchitect: Zaha HadidAC Area: 15,738 Price: $45,000,000 Price PSF: $2,859

ECHO BRICKELLArchitect: Carlos OttAC Area: 10,305 Price: $37,500,000 Price PSF: $3,639

SURFSIDE

SUNNYISLES BEACH

MIAMI BEACH / SOUTH BEACH

mAnsiOns At ACqUAlinA mUse sUnny isles

JAde siGnAtURe fendi ChAteAU

the bAth ClUb estAtes eChO bRiCkell

Ritz CARltOn ResidenCes

One thOUsAnd mUseUm fAenA

ISG MIAMI REPORT26

MLS-RESALEINVENTORY

ISG MIAMI REPORT 27

B r i c k e l lNew Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago,

6 Months Ago, and Currently Active

B i s c a y n e C o r r i d o rConsists of Downtown Miami, Edgewater, Midtown & the Design DistrictNew Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago,


ACtIve lIstIng

prICe psf

200

400

600

800

1,000

1,200

$100

$200

$300

$400

$500

$600

18 Months Ago 12 Months Ago 6 Months Ago Currently Active

$425

$470$510 $527

1,049

804

698

556

200

400

600

800

1,000

1,200

$100

$200

$300

$400

$500

$600


$437

$488$532 $564

1,071

814

660

420

Source: Multiple Listing Service


ACtIve lIstIng

prICe psf

ISG MIAMI REPORT28

A v e n t u r aNew Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago,


T h e B e a c h e sConsists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood BeachNew Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago,


100

200

300

400

500

600

$390

$400

$410

$420

$430

$440


$402$409

$417

$427

436387

255194

400

600

800

1,200

1,600

2,000

$860

$880

$900

$940

$980

$1,020


$907

$933

$957

$1,011

1,717

1,332

890

623

$1,000

$960

$920

1,800

1,400

1,000



ACtIve lIstIng

prICe psf

ACtIve lIstIng

prICe psf

ISG MIAMI REPORT 29

G r e a t e r F o r t L a u d e r d a l e

E a s t P a l m B e a c hConsists of Delray Beach, Boynton Beach and West Palm BeachNew Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago,


Consists of Sunrise, Plantation and East Fort LauderdaleNew Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago,


100

200

300

500

700

900

$100

$150

$200

$300

$400

$500


$353$379

$405 $439844

610

372

240

$450

$350

$250

800

600

400

100

200

300

400

500

600

$200

$210

$220

$230

$240

$270


$215

$231$242

$257

485

330

202161

$250

$260



ACtIve lIstIng

prICe psf

ACtIve lIstIng

prICe psf

ISG MIAMI REPORT30

D a y s o n t h e M a r k e t ( D O M )2012 vs 2014 MLS Analysis for Closed SalesNew Condos built Since 2006

2012 Avg. dom2014 Avg. dom

Brickell

Biscayne Corridor

Aventura

The Beaches

Greater Fort Lauderdale

East Palm Beach

32120

30160

31110

3590

37160

35147


ISG MIAMI REPORT 31

ISG MIAMI REPORT32

RENTALTRENDS

ISG MIAMI REPORT 33

Source: Marcus & Millichap, 2014

Miami vacancy rates are still currently the third lowest in the nation.

ISG MIAMI REPORT34

B r i c k e l lJan 2013 - Oct 2014New Construction Condos Built since 2006

$3,000

$2,500

$2,000

$1,500

$1,000

$500

Jan/13

$2,140

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50

Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14

$2,250$2,370

$2,460 $2,475$2,510 $2,590

$2,610 $2,638 $2,650$2,700 $2,790

$2.31 $2.33 $2.36 $2.36 $2.38 $2.42 $2.45 $2.55 $2.61 $2.68$2.73 $2.82

avg. price avg. price psF

2006 Vacancy Rate 2010 Vacancy Rate 2014 Vacancy Rate

18%

82%

9%

91% 99%

1%


occUpancy rate

vacancy rate

JAN 2006 - OCT 2014

ISG MIAMI REPORT 35

B i s c a y n e C o r r i d o rJan 2013 - Oct 2014Consists of Wynwood, Design District, Edgewater, Midtown & Downtown Miami

New Construction Condos Built since 2006

$2,800

$2,700

$2,600

$2,500

$2,400

$2,300

$2,200

$2,100

Jan/13

$2,250

$3.00

$2.50

$2.00

$1.50

$1.00

$0.50


$2,287$2,298 $2,302 $2,315

$2,341

$2,444

$2,504

$2,578$2,600

$2,628

$2675$2.20 $2.20 $2.25 $2.27 $2.29$2.40 $2.42 $2.41 $2.45 $2.48

$2.69$2.78


2014 Vacancy Rate

97%

3%


occUpancy rate

vacancy rate

2010 Vacancy Rate

10%

90%

2006 Vacancy Rate

13%

87%

JAN 2006 - OCT 2014

ISG MIAMI REPORT36

T h e B e a c h e sJan 2013 - Oct 2014Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale &

Hollywood Beach New Construction Condos Built since 2006

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

Jan/13

$3,851

$4.50

$4.00

$3.50

$3.00

$2.50

$2.00

$1.50

$1.00

$.50


$3,927

$4,327 $4,376$4,611

$4,716 $4,685 $4,709$4,893

$5,380$5,620

$5,813

$2.67 $2.72 $2.76$2.91 $3.06 $3.12

$3.34 $3.35 $3.36$3.59

$3.76$4.21


14%

86%

2006 Vacancy Rate

20%

80%

2010 Vacancy Rate 2014 Vacancy Rate

98%

2%


occUpancy rate

vacancy rate

JAN 2006 - OCT 2014

ISG MIAMI REPORT 37

14%

86%

99%

1%

99%

1%

A v e n t u r a

$3,500

$3,000

$2,500

$2,000

$1,500

$1,000

$500

Jan/13

$2,320

$2.50

$2.00

$1.50

$1.00

$0.50


$2,415 $2,480$2,502 $2,517 $2,525 $2,617 $2,621 $2,679

$2,720 $2,750 $2,961$1.64 $1.69 $1.70 $1.72 $1.74 $1.76 $1.77 $1.80 $1.85 $1.88 $1.98 $2.02




occUpancy rate

vacancy rate

99%

1%

JAN 2006 - OCT 2014

Jan 2013 - Oct 2014New Construction Condos Built since 2006

ISG MIAMI REPORT38

10%

90%

13%

87% 94%

6%

F o r t L a u d e r d a l e

$3,000

$2,500

$2,000

$1,500

$1,000

$500

Jan/13

$1,785

$2.50

$2.00

$1.50

$1.00

$0.50


$1,920 $2,035$2,149 $2,234 $2,329 $2,363 $2,422 $2,484

$2,656 $2,680 $2,720

$1.54$1.66

$1.70 $1.73$1.75

$1.60

$1.76 $1.88 $1.92$1.96 $1.96 $1.98




occUpancy rate

vacancy rate

JAN 2006 - OCT 2014

Jan 2013 - Oct 2014New Construction Condos Built since 2006

ISG MIAMI REPORT 39

P o p u l a t i o nA great source of demand for South Florida real estate both now and in the future is the ever-increasing population of the state. In the last one hundred years, Florida’s population ranking in the U.S. has gone from 33rd to 4th. By 2015, Florida is projected to become third in population – overtaking New York.

2040*

2020*

2015*

2006

1967

1914

400 MIL

336 MIL

321,360,000 MIL

300 MIL

200 MIL

100 MIL

United States Population Growth

= 10 Mil

*Est. Projection

ISG MIAMI REPORT40

2040*

2020*

2015*

2006

1967

1914

26 MIL

21.2 MIL

20,297,000 MIL

18 MIL

6.6 MIL

882K

Florida Population Growth

= 1 Mil

State Population Growth

1914

1. new york 5. texas

12. caliFornia

33. Florida

1967

1. new york 2. caliFornia

6. texas

15. Florida

2006

1. caliFornia

2. texas

3. new york

4. Florida

2020*

1. caliFornia

2. texas

3. Florida

4. new york

Source: US Census Bureau

2040*

1. caliFornia

2. texas

3. Florida

4. new york

2015*

1. caliFornia

2. texas

3. Florida

4. new york

ISG MIAMI REPORT 41

ISG MIAMI REPORT42

INTERNATIONALMARKETREPORT

ISG MIAMI REPORT 43

South America Report

PeruWith the emergence of an increasing segment of young and wealthy Peruvians with disposable income, interest in the South Florida lifestyle continues to grow. Additionally, Peruvian families are purchasing homes here in order to enroll their children in well diversified universities. South Florida is more than a financial investment for this community, it a lifestyle investment.

In the 21 years that ISG has been selling South Florida real estate, a constant shift in the patterns and motivations of International buyers has become apparent. In the early 1990’s, buyers consisted of wealthy families looking for vacation homes, mainly from the large cities of São Paulo, Brazil, and Buenos Aires, Argentina. By the late 1990’s, the buyer profile shifted to Bogota, Colombia, Caracas, Venezuela, and Mexico City, Mexico. These buyers were not only looking for vacation homes, but for investment properties as well. Fast forward to 2014, and we see that buyers from every South American country and most cities, are buying real estate in Miami and South Florida. ISG has witnessed two decades of South American real estate purchases in Miami, creating a concentration of new residents and families from these countries unlike any other city in the U.S. This critical mass of South American property owners now compares with property owners from the Northeast US and Canada, making Miami the playground for families from both Americas. Today, the motivating factors behind the decision of many South Americans to buy in South Florida include:

• Tropical Weather

• Security

• Nightlife

• Growing Cultural Center

• Prestige

• World Class Shopping

Within different regions of South America, specific patterns are emerging that explain, in better detail, motivating factors for South Florida real estate purchases:

BrazilBrazilians have always been attracted to the U.S., particularly South Florida. One of the greatest appeals South Florida offers to Brazilians is the world-class shopping - the prices are substantially lower than in Brazil. Additionally, we are seeing a steady increase of direct flights from Brazil to Miami, which is an absolute reflection of the influx of Brazilian visitors. According to CNN, Florida is the top U.S. vacation destination for Brazilians.Source: CNN.com February, 2012

ColombiaColombia has changed in recent years; the economy is now soaring, and the country has almost doubled its population of millionaires in only five years. Colombians are visiting South Florida in large numbers, buying homes for pleasure rather than just as an investment. Colombians are now looking to invest their wealth in a secure and enjoyable environment. Source: Fundspeople.ci, October, 2013

by Liliana Gomez - Director of International Sales & ISG’s International Division

ISG MIAMI REPORT44

MexicoSouth Florida has long been a “backyard playground” for wealthy Mexicans. Buying a second home in South Florida means enjoying all the amenities that the city has to offer, while investing in a nearby and secure area. Mexican buyers tend to select coastal waterfront communities and large apartments.

ArgentinaArgentinians have had a long love affair with South Florida. Families who own property in Miami have witnessed an amazing cultural transformation firsthand. The Miami real estate market provides consistent long- term stability to this growing community.

VenezuelaVenezuela has been characterized as a rich country due to its main source of income – petroleum. In the past decade, the changing political landscape of Venezuela has motivated many families to purchase both investment properties and second homes in South Florida (to be converted to permanent homes as part of a long-term strategy).

Mexico

coloMbia

Venezuela

brazilPeru

argenTina

ISG MIAMI REPORT 45

in response to the continUally growing DeManD For soUth FloriDa real estate FroM oUr neighbors in soUth aMerica, isg has oFFices in Most oF soUth aMerica’s Major cities. São Paulo

Rio

Buenos Aires

Bogotá

Caracas

Panama

on tHe groUnd

A new market is emerging for South Florida real estate - China. According to the National Association of Realtors, China has become the largest real estate buyer in the US overall, and those buyers are now beginning to shift their focus to Miami. “Until this year, Chinese investors were not among the top international buying groups in the Miami market. But through the first six months of

2014, Chinese buyers represented about 1.6 percent of properties sold in Miami-Dade County” according to the Miami Association of Realtors. We will continue to see an increase in interest from China with the expansion of the Panama Canal underway and the Port of Miami positioning itself to benefit from the new trade opportunities.

MOTIVATING FACTORS FOR THE EMERGING CHINESE REAL ESTATE BUYERS:

1

China

ISG MIAMI REPORT46

CLIMATE, ENVIRONMENT & LIFESTYLEMiami’s low pollution (our city was named “America’s Cleanest City” by Forbes Magazine), it’s year-round air quality, vast green spaces, and clean drinking water. make it an attractive city to live in. The tropical climate is inviting for all types of outdoor lifestyle activities and events.

CHINA’S LIMITS ON REAL ESTATE INVESTMENTSThe real estate market in China has seen a golden decade of fast growth. Today, the Chinese government has imposed a limit on the number of properties allowed to be owned by a single household, inside China. This policy is driving many wealthy people to look over-seas for investment opportunities,.In South Florida, pre-construction properties sell for less than 50% of the equivalent in Beijing.

TRADEThe completion of the Panama Canal will make Miami aninternational trading center, connecting North America, South America, and Asia. Currently, China is Florida’s largest importer, it’s third largest merchan-dising partner, and the Port of Miami’s number one customer in overall tonnage. Most experts agree, with the opening of the Panama Canal, Chinese businesses will begin opening regional offices throughout South Florida, affecting all sectors of real estate (industrial, commercial, and residential).

2 3

ISG MIAMI REPORT 47

5 soUtH florIdA

2 lOs AnGeles

1 san Francisco

4 seattle

3neW yORk

Asian Capital into U.S. Multifamily2 0 1 4 T O P 5 M E T R O S

2004

1. new york 2. washington, d.c.3. los angeles

4. san Francisco

5. seattle

10. SouTh Florida

Source: CBRE CapitalMarkets, Assets, Real EstateIndustry and Trends,December, 2004 survey

2010

1. new york 2. washington, d.c.3. Boston

4. san Francisco

5. los angeles

8. SouTh Florida

Source: Business Wire,January, 2011

2014

1. los angeles 2. san Francisco

3. new york

4. seattle

5. SouTh Florida

Source: CBRE Capital Markets, Real Capital Analytics,October, 2014

ISG MIAMI REPORT48

TRANSPORTATION

ISG MIAMI REPORT 49

Miami International Airport (MIA) is one of the fastest growing airport hubs in the world. Last year (2013), MIA set a new all-time record for annual passenger traffic with 40.5 million passengers, an increase of 3% over 2012. Of the total passengers that traveled through MIA, 50% were international, which is one of the highest international to domestic passenger percentages of any US airport. During 2013, MIA handled 49% of the U.S. to South American passenger market, and was the largest connecting point for flights between the Americas, and for flights between the Americas and Europe. MIA has recently completed a $6.4 billion Capital Improvements Program (CIP), the largest components of which are the new South and North Terminals. The Terminal expansion has increased gates by 23% and there are now 29 more gates with international and domestic capability.

AIR

20,200,000MIA INTERNATIONAL PASSENGERS 2014

Ranking of Major US Airports - 2014International Passengers

5 MIL 10 MIL 15 MIL 20 MIL 25 MIL

2014 Total Passengers to/fromLatin America & Caribbean

MiaMi (Mia)new york (JFk)

hartsField atlant (atl)

houston (iah)

Fort lauderdale (Fll)

newark (ewr) 1.8 MIL

2.5 MIL

2.7 MIL

3.8 MIL

7 MIL

15.1 MIL

Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014-2015 Report.

Miami-Dade Aviation Department

2014 WEEKLY TO/FROMLATIN AMERICAN/CARIBBEAN FLIGHTS: 1,120

Source: Miami International Airport Gateway to Miami,to Florida & to the Americas 2014 / 2015 Miami DadeAviation Department

new york (JFk)

MiaMi (Mia)

los angeles (lax)

newark (ewr)

hartsField atlanta (atl)

chicago o’hare (ord)

san Francisco (sFo)

houston (iah)

washington dulles (iad)

dallas Fort worth - (dFw)

20.2 MIL 2

2014 Ranking: 2 20.2 Mil



By u.s. gateway

10

8

7

5

4

3

1

6

9

ISG MIAMI REPORT50

Chile27

Argentina42

Uruguay7

Paraguay4

Brazil110

Bolivia7

Peru35

San Francisco 252

Colombia76

Venezuela66

Guyana2

Surinam5

MIAMI

Ecuador35

Los Angeles700

Chicago602

Dallas560

Houston476

Atlanta903

WashingtonD.C784

New Jersey392 New York

1,708

Mexico296

2014 Weekly Direct Flights

DoMestic

latin aMerica

Source: Miami-Dade Aviation Department Marketing Division

ISG MIAMI REPORT 51

*Caribbean Region Not Included

All Aboard Florida is a high-quality, express intercity passenger rail that will connect Miami to Fort Lauderdale to West Palm Beach to Orlando. This rail service will provide Floridians and visitors a viable transportation alternative and will be the first privately owned, operated and maintained passenger rail system in the United States.

LANDALL ABOARD FACTSMiamiCentral, All Aboard Florida’s multimodal hub station in Miami is set to break ground early 2015 and will serve as the flagship of the intercity passenger rail service operation. MiamiCentral will:

• Connect with existing public transit systems—MetroRail, MetroMover & MetroBus, through the new terminal • Create approximately 3.5 million square feet of office, retail, residential and hospitality space • Feature a mix of premier and unique dining and shopping options as well as entertainment venues

“ All Aboard Florida has officially begun construction to the Fort Lauderdale station... the station is expected to create about 800 construction jobs and have an economic impact of $333 million through 2021.”

Source: South Florida Business Journal - 10/14

$6 BillionIN DIRECT ECONOMIC IMPACTTO FLORIDA’S ECONOMY OVERTHE NEXT 8 YEARS

Over 10,000 JobsON AVERAGE PER YEAR THROUGH

THE RAIL LINE CONSTRUCTION(FALL 2014-FALL 2015)

3 MillionVEHICLES REMOVED FROM THE

ROADS EACH YEAR

UPTO

Fort Lauderdale- Approx. 25 min.

Miami

West Palm Beach- Approx. 1 Hour

Orlando- Approx. 3 Hours

MiamiCentral Station

ISG MIAMI REPORT52

Source: All Aboard Florida

PANAMA CANAL / PORT OF MIAMI The $5.25 billion Panama Canal Expansion is now 80% complete. The expansion will allow the passage of bigger vessels – called Post-Panamax, which will double the canal’s capacity and change the face of global marine transit. In response to this major event, PortMiami began their own $1.3 billion expansion – positioning itself to be the first port of call for the post-Panamax ships. The largest element of this undertaking - deepening PortMiami’s harbor from 44 feet to 50-52 feet and widening part of its shipping channel, is set to be complete in 2015, while other elements such as a new underwater tunnel and rail link are already up and running. The deepening of the PortMiami channel, could be the boost needed here to allow it to gain more relative importance with China. China is PortMiami’s No. 1 trade partner, more than doubling it’s numbers in a short time. A decade ago, China accounted for 11.44% of all PortMiami trade while today that market share is up to 26.43%, according to WorldCity analysis of U.S. Census Bureau.

SEA

COMMERCE EXPANSION TRACKINGFORECASTFlorida East Coast Railway (FECR) $50 Millionin upgrades to the 351 miles of track fromMiami to Jacksonville COMPLETED

Port Tunnel opens for traffic COMPLETED

Government cut dredging SCHEDULED 2015

Panama Canal Expansion Completion SCHEDULED SUMMER 2016

“ The countdown is on! The Panama Canal project is two-thirds completed. A wider and deeper canal means shippers will have new options for all water routes from Asia to markets on the East Coast, PortMiami, the first U.S. port of call from Panama, is well positioned to benefit from the new trade opportunities.”

Bill Johnson, Director of PortMiami

Source: Miami Today, Panama Canal Authority

Post Panamax: 136’Super Post Panamax: 176’

Panamax: 106’50’PortMiami

ISG MIAMI REPORT 53

2014: 26.43%2004: 11.44%

PORTMIAMI / CHINA TRADE %

arts&cultureentertainment

FASHIO

N C

UIS

INE H

OSP

ITALIT

Y

T E C H N O L O G YSPORTS

Education f ilmIn the scope of our country and even more so

the world, Miami is a very young city. Which

is precisely why the explosive business and

cultural growth that has overtaken the Magic

City in recent years has been so exciting to

watch. From art to entertainment to business,

every aspect of this rising city is being cultivated.

ISG MIAMI REPORT54

arts&cultureentertainment

FASHIO

N C

UIS

INE H

OSP

ITALIT

Y

T E C H N O L O G YSPORTS

Education f ilmCULTURAL &ECONOMICGROWTH

ISG MIAMI REPORT 55

“ Show me a city that does not promote the arts, and I will show you a city without an identity. It is the one piece of humanity that transcends time and ties us all together as the human race. Art is the soul and the spirit of each generation, to be passed along to the next and beyond. Through paintings, sculpture, books, architecture, music, dance, we show our creativity, our expression, who we are – it is how we remain alive. Art connects us to the past, and is a legacy we leave for the future.”

Former Miami Mayor Manny Diaz at the 2014 Mayor’s Ball in Sunny Isles

ISG MIAMI REPORT56

Miami and The Arts have never been more connected. The relationship has flourished in recent years, and is growing stronger by the day. With the Perez Art Museum (PAMM) officially open and breaking records (attendance levels hit over 150,000 visitors in its first four months, original estimates were for 200,000 visitors in its first year) and the Patricia and Phillip Frost Museum of Science well into construction (MiaSci), Museum Park in Downtown Miami is now a reality. Additionally, the progression of Miami’s local artists – from Wynwood to Coconut Grove to Design District – continues to gain immense international praise.

“Every great city needs a great museum”

Jorge PerezChairman, President & CE0 - RelatedGroupForbes 400 Summit On Philanthropy

ISG MIAMI REPORT 57

The world’s premier interna-tional art show, Art Basel, a four day event displays an estimated $3 billion worth of paintings, photographs and sculptures. The show has been break-ing records since its inception in 2002. Last year, Art Basel Miami Beach – reported over $100 million in sales. But Art Basel goes well beyond art. The week leading up to and during the fair encompasses

fashion shows, dozens of additional art fairs such as Scope, ArtMiami and the Brazilian Art Fair, major food

and dining events, pop-up bars,

music con-certs, film premieres, and stars at every turn. The economic

impact on Miami of this

weeklong cultural event has

been estimated at $500 million, with 75,000 attendees from around the world.

4 DAYS

ECONOMIC IMPACTEstimated

VISITORSEach YearSource: artbasel.com, 2014

$500 MIL75,000

Source: nbcmiami.com, 2013

Sources: Los Angeles Times, 2002,Art Basel 2014

ENTERTAINMENTMIAMI’S ENTERTAINMENT OFFERINGS ARE SOME OF THE BEST IN THE WORLD. FROM THEATER TO MUSIC TO SPORTS TO FILM, THE CURRENT OPTIONS ARE LIMITLESS, AND THE EVOLUTION OF THIS EXCITING INDUSTRY IS BOUNDLESS.

After a large renovation that was completed in 2006, the Adrienne Arsht Center for the Performing Arts of Miami-Dade County is now one of the largest performing arts centers in the world. Each year, the Arsht Center presents new and exciting programming in its 570,000 square feet of downtown performance space including Broadway musicals, World Music & Dance Series Comedy Planet, Florida Grand Opera, the Miami City Ballet, the New World Symphony and more.

South Florida is host to dozens of additional performance centers, hosting the largest music acts in the world. From American Airlines Arena to Cruzan Amphitheater, Bank Atlantic Center, Jackie Gleason Theater, Revolution Ft. Lauderdale, and Seminole Hard Rock, our region offers amusements of all kinds for all tastes, every day and night of the year.

Adrienne Arsht Center for the Performing Arts

“Second only to the Lincoln Center”

Travel and Leisure.com, Nov. 2011

ISG MIAMI REPORT58

South Florida plays host to some of the best sporting teams and venues in the world. With the world-champion Miami Heat playing at AAA, the brand new Marlins Park, the Florida Panthers at Bank Atlantic, and Sun Life Stadium now hosting the Dolphins as well as the Miami Hurricanes, sports enthusiasts have no shortage of options.

As if South Florida weren’t already bursting with things to do, 20th Century Fox just announced plans to build a theme park near Zoo Miami. The as-yet-approved plan for “Miami Wilds” would feature characters from 20th Century Fox Animation movies such as Rio in addition to a water park, a 400-room hotel, a performance space, a movie theater, a bowling alley, restaurants, and retail shops.

“ It can’t be that the most Latin city in this country doesn’t have a soccer team, my job is to make sure to change this.”

David BeckhamDespierta America Sept 2014

Miami has world championship football, basketball and baseball, but one professional sport has been missing for the city’s legions of fans – soccer. Enter David Beckham. He and his business group, Beckham Miami United, have announced plans to start a Miami MLS soccer team and build a 20,000 seat stadium using 100% private funding.

Marlins Park

Miami Wilds - Proposed

eUe/sCreen gems stUdIos fIlm Complex - openIng fAll, 2015Film studio EUE/Screen Gems Studios has just signed a multi-million dollar lease for a large-scale production studio in Downtown Miami. The company will build out and operate two sound stages of 15,000 square feet each. “Miami is so unique, it fits readily into our production portfolio,” said Chris Cooney, EUE Screen Gems chief operating officer. “All of Latin America wants to come here. India and China want to do business here, as well as countries in Europe, including Turkey and Spain.” Source: Miami Today, March, 2014

lUxUrY dIne-In tHeAtersHigh-end movie theaters are taking Miami head-on. From Swire Properties’ planned world-class theater at Brickell City Centre to the dine-in Silverspot at Met 3 Downtown to the luxury Ipic theater coming to North Miami Beach to the planned luxury theater for the Bal Harbor Shops expansion, seeing a flick in Miami is moving way past just popcorn and candy.

film “ Miami offers a seasoned film community and experienced crew, the locations here are like no other in the country, and the Hollywood community is very aware of the assets Florida offers.”

For decades, Miami has served as the backdrop for a variety of film and television productions. In recent years, Florida’s film industry has extended beyond the background and moved into the foreground of development, promotion and exhibition.

Chris Cooney, EUE Screen Gems COOMiami Today, March 2014

3,000LOCAL FILM &

ENTERTAINMENT COMPANIES

$2 BillionFILM & ENTERTAINMENT INDUSTRY

ANNUAL ECONOMIC IMPACT ON SOUTH FLORIDA

70,000 attendees2014 FESTIVAL

ISG MIAMI REPORT60

Sources: MiamiWalkofFame.com

FASHION

Miami plays host to three major fashion weeks: Mercedes- Benz Fashion Week Swim, Miami Beach International Fashion Week and Funkshion Fashion Week. The largest of the three, Mercedes-Benz Fashion Week Swim, is an international event on the calendar of every editor and fashionista, celebrating the sexiest swimwear designs and resort wear of the year.

While South Florida has always been the capital of beautiful models and breathtaking photo shoots, the city has been establishing itself in the coveted world of high fashion for years. Thanks to a new crop of trendsetters receiving attention from the likes of Vogue’s Anna Wintour, this feat has finally been accomplished. One reason the city has received so much fashion attention of late is the birth of an impressive stable of fashion bloggers who have made themselves known around the world. These writers keep their thousands of followers engaged through inventive styles, witty anecdotes, front-row access, celebrity friendships, and robust social media outreach.

“Miami Beach International Fashion Week has become the largest latin american and international fashion festival in the United States”.

Source: Elite Traveler

Elisea Holt of HOLT Swimwear, theholtstore.com

Courtesy of Mara HoffmanISG MIAMI REPORT 61

Mega-designer Tommy Hilfiger recently named Miami his new home and will be working on a large-scale design project here.

Source: cnn.com, 2014

DON’T MESS WITH TECH

2014 Highest % Growth and Most New Positions Added in the Tech IndustryAugust 4, 2014 | Shravan Goli

Source: Bureau of Labor Statistics

ISG MIAMI REPORT62

1. TEXAS ................................. 5.99%

2. FLORIDA ............................. 5.64%

3. NORTH CAROLINA ............. 3.80%

4. OREGON ..............................3.57%

5. WASHINGTON ......................3.53%

6. NEW YORK ......................... 3.08%

7. MASSACHUSETTS ............... 2.91%

8. NEW JERSEY ..................... 2.84%

9. MICHIGAN ........................... 2.72%

10. MISSOURI ........................... 2.10%

Miami has seen substantial recent growth in the financial and corporate sectors, but almost nothing can compare to the technology boom that has taken over South Florida. Now nicknamed “Silicon Beach,” The Magic City has birthed over 1,000 startups in the last few years including rising stars STS, Open English and Live Ninja. The city has also established co-working spaces to support tech growth such as The Lab Miami, Venture Hive, Rokk3r Labs - a technology portfolio company, The Launch Pad Tech Accelerator at the University of Miami, Pipeline Brickell, the Micro Venture Capital Club, and the Miami Entrepreneurship Center. Many of these startups and tech support companies have their own funding sources as well such as Endeavor’s venture capital fund, Catalyst. Additionally, organizations such as The Miami Economic Development Council, Florida International University and the Knight Foundation are investing major backing and funding in an effort to grow and support Miami’s tech boom. Most recently, the mysterious South Florida tech firm Magic Leap received over $500 million in funding from Google to develop their high-tech product. In May of 2014, the Technology Foundation of the Americas hosted thousands of attendees at eMerge Americas - the pre-eminent technology conference of The Americas. The second annual eMerge Americas event will take place in May 2015, where 10,000 attendees are expected. European-based Sime - Northern Europe’s largest conference on Internet and digital opportunities, jumped on the Miami tech wagon last year with Sime MIA. This year, they’ll do it again in December 2014. Besides the financial backing available to South Florida startups, the region is clearly the gateway to South America – where the amount of Internet users has doubled in the past ten years*. This gateway is not simply a cultural perception, rather in tech terms, it’s a matter of speed – the link from Miami to South America is a matter of milliseconds, whereas it would take much longer from other areas.

S I L I C O N S O U T H

“...recently moved to Miami to expand his nonprofit LaunchCode, which helps train and place programmers. “We’re particularly excited about [Miami coding school] Wyncode”, McKelvey told the South Florida Business Journal, and he even discussed working with a team from Harvard here, saying, “My guess is that the Harvard team could be convinced to come to Miami, especially when the temperature starts dropping in Boston next month.”

SQUARE CO-FOUNDER: HOW I PLAN TO BOOST MIAMI’S TECH TALENTJIM MCKELVEY, SQUARE FOUNDER (VALUED AT $6 BILLION)

Source: Business Journal, 2014

ISG MIAMI REPORT 63

“ We are the logical point to be the technology capital of Latin America,” said Manuel Medina, founder of Terremark, a Miami data-services company acquired by Verizon Communications for $1.4 billion in 2011.

WOULD YOU BELIEVE IT?MIAMI HAS A REAL TECH SCENE NOWTECH COMPANIES FLOCK TO MIAMI TO REACH LATIN AMERICA.

May 30, 2014 | Arian Campo-Flores

- Bringing Microsoft in is part of the broader goal of “bringing the world to Miami.”

MICROSOFT PICKS MIAMI FOR1ST US INNOVATION CENTERMICROSOFT VICE PRESIDENT SANET AKERKARTOLD THE ASSOCIATED PRESS THE COMPANYLOOKED AT MIAMI AS A GREAT HUB FOR TECH INTHE SOUTHERN UNITED STATES.

May 30, 2014 | Arian Campo-Flores

*Pingdom.com, 2012

HOTELSSOUTH FLORIDA’S HOSPITALITY SCENE IS HOTTER AND MORE PROFITABLE THAN EVER.

CELEBRATED HOTEL BRANDS ARE JOINING MIAMI’S ALREADY WORLD-CLASS

OFFERINGS BY THE DAY, FURTHER CEMENTING OUR REGION’S ROLE AS ONE OF THE

BEST TOURIST DESTINATIONS ON THE PLANET.

ISG MIAMI REPORT64

2,500 MORE HOTEL ROOMS DUEIN MIAMI IN 2015Greater Miami Convention & Visitors Bureau

5-Star Hotel Analysis over the Past 20 YearsSouth Florida Hotels Located East of Interstate 95

Source: GREATER MIAMI CONVENTION& VISITORS BUREAU

A N T I C I PAT E D H O T E L O P E N I N G S

The Edition - Miami Beach Aloft South Beach The Thompson - Miami Beach

nUMber oF hotel rooMs

nUMber oF hotels

1994 2004 20141,254

7

5,643

14

10,281

45

Sampling of South Florida’s5-Star Hotels

The always-hot Miami has introduced some exciting newcomers recently such as Tongue & Cheek, Il Mulino, Bar Crudo, Naked Taco, 1826, Ceviche 105, Lure, a new chef at The Forge, Traymore, and Top Chef’s Fabio Viviani’s Siena Tavern.

These are in addition to mainstays such as Prime 112, Joe’s Stone Crab, Makoto, Cecconi’s at Soho Beach House, Khong River House, the numerous

delectable restaurants at the Fontainebleau, Yardbird, the

Pubbelly chain and many more.

CU I S I NEWHILE THE EXPLOSION OF NEW HOTELS NATURALLY BRINGS WITH IT A CROP OF TOP-NOTCH

RESTAURANTS, SOUTH FLORIDA’S DINING SCENE TODAY IS MORE INVENTIVE, MORE THRILLING

AND MORE LUCRATIVE THAN EVER BEFORE.

DOWNTOWNBRICKELL

DESIGN DISTRICT, EDGEWATER, WYNWOOD & MIDTOWN

CORAL GABLES & SOUTH MIAMI

Miami’s restaurant scene has exploded in the past few years...

The melting pot of residents and visitors has brought an array of sophisticated, tasty cuisine.”

A S A M P L I N G O F N E I G H B O R H O O D E A T E R I E S

ISG MIAMI REPORT 65

ISG MIAMI REPORT66

In any city, there are developments that serve a singular purpose such as housing, retail, hospitality, or office space, and then there are projects that change the landscape of the city as a whole. Three current examples of such grand undertakings in Miami are the Flagler Streetscape project, the Grand Pedestrian Promenade Plan along Biscayne Blvd., and the futuristic, thousand-foot tall observation deck that is Skyrise Miami.

Grand Pedestrian Promenade - Biscayne Blvd.• Replace median parking with a pedestrian oriented green median• Bicycle Lanes: Two Dedicated Bike Lanes• Original Sidewalk: Expanded• Total Cost from NE 8th St. to Biscayne Blvd. Way = $24 MIL

Skyrise Miami• $430 MIL Project• 3 Observation Decks• Restaurant, Nightclub, Ballroom, Meeting Room, Interactive Exhibit• Estimated 3.2 MIL visitors per year

East Flagler Street Redevelopment• $13 MIL Project• Portions of historic street to be transformed into pedestrian-friendly promenade

Landscape of the Future

Source: SkyriseMiami.com

Source: Miami Today, October 2014

Source: MiamiDDA, May 2014

Dr. Eduardo Padrón is the President of Miami Dade College, a national model of student achievement and the largest institution of higher education in America. In 2009, Time Magazine included him among the “10 Best College Presidents” in the United States. Dr. Padrón’s pace-setting work at Miami Dade College has been hailed as a model of innovation in higher education. He is credited with engineering a culture of success that has produced impressive results in student access, retention, graduation, and overall achievement.

Time Magazine included President of Miami Dade College, Dr. Eduardo Padrón, among “10 Best College Presidents” in the United States

Named one of the top 50 National Universities byU.S. News & World Report: Best Colleges Rankings 2014

University of Miami – one of the top private colleges in the country - hosts more than 15,000 students from around the world, almost 30% of which are Hispanic. Every year, approximately 3,000 international students (undergraduate and graduate) and scholars (professors and researchers) from 115 countries representing every region of the world study, teach, and conduct research at the University of Miami.

Educat ion

# 1 IN NATIONAWARDING BACHELOR’S AND MASTER’S DEGREES TO HISPANIC STUDENTS

On the University front, Florida International University (FIU) is the largest school in South Florida and is #5 on the list of largest public universities by enrollment in the country, #11 among international business programs in the nation and #1 in the nation in awarding bachelor’s and master’s degrees to Hispanic students. Additionally, FIU has students from 142 countries, most notably Colombia, Venezuela, Jamaica, China, Peru, The Bahamas, and Trinidad & Tobago.

In 2014, Miami-Dade County Public Schools Superintendent Alberto Carvalho was named National Superintendent of the Year thanks to his efforts in turning around the Miami-Dade Pubic School system.

SUPERINTENDENT OF THE YEAR

ISG MIAMI REPORT 67

PoPulation growth

50,000

40,000

30,000

20,000

10,000

*Projected

2003 2012 2014

26,438

47,534 50,000+*

Doral• Business Week ranked Doral as the number one city in Florida to start a business.• Amazon.com signs Doral distribution center lease, to create 500 jobs.

Nationally Ranked #2“25 Best Cities in the United States toLive Well”

May, 2009

Trump National DoralBlue Monster Course

DowntownMiami

20 Min.Brickell22 Min.

MiamiInternational

Airport10 Min.

DoralDesignDistrict

oVerall Value assessed ProPerty

$10 Billion

$5 Billion

*Projected

2003 2012 2024-34

$4.9 BIL

$8.4 BIL

$12 BIL*

Source: Miami Today, 2014 City Planning & Zoning Dept.

ISG CITY WATCH

Source: South Florida Business, November 21, 2014

ISG MIAMI REPORT68

“ Doral is a great place to live and work... with every school in the city – public, private, charter – rated A”

Nathan KogonDirector of the City’s Planning & Zoning DepartmentMiami Today, February, 2014

Downtown Doral Charter School

• Kindergarten to 12th Grade

• School opens summer 2015

• English with additional Spanish and Portuguese language classes.

• More than 50% of the registration is set aside for Downtown Doral Residents

• First time a Public and Private sector partner to manage charter school

• College preparatory focused, teaching high standards for academics and character

• Faculty made up of committed and talented leaders and teachers

• New Deluxe Guestrooms designed By Ivanka Trump • Complete Redesign of Golf Course scheduled to be completed Fall 2014 • New Meeting and Event spaces totaling over 100,000 sq. ft. • Addition of BLT Prime, a modern American Steakhouse

• Resort Clubhouse (includes dining venues and retail shops) undergoing comprehensive makeover • The New Royal Palm Pool featuring all new landscape and patio design with expanded seating capacity • New State-Of-The-Art Fitness Center

THE TRANSFORMATION

Trump National Doral Purchased by the Trump Organization in June 2012, the Doral Golf Resort & Spa has been undergoing a $250 million “Return to Grandeur.” Every aspect of the 800-acre resort has been or is being completely transformed including a completely re-designed clubhouse, new deluxe accommodations, luxurious event spaces, new restaurant concepts, redesigned championship golf courses, plus all new re-imagined recreational amenities and retail shops for guests and members to enjoy.

ISG MIAMI REPORT 69

Photo Credit:

ISG MIAMI REPORT70

SOUTH FLORIDA2020With the extensive construction and expansion taking place in our region, what will Greater Miami actually look like by the end of this decade? The following pages illustrate a variety of “2020’s”, broken down by neighborhood.

ISG MIAMI REPORT 71

EPIC

MIAMI RIVER

MET

TO SOUTH BEACH

CRUISE SHIP PORT

BAYFRONT PARK BAYSIDE MARINA

MIAMI DADE COLLEGE

BISCAYNE BAY

VICEROY

DOWNTOWN MIAMI: $11 BILLION IN NEW DEVELOPMENT THROUGHOUT 20 BLOCKSDowntown Miami 2020

One Bayfront Plaza (FECR)

4.2 million sq. ft. 72 Story Tower

Mixed-use, Office, Hotel, Retail

$2 Billion

VizcayneTwo 49 Story Towers

849 Condos55,000 s.f. Retail

$265 Million

Biscayne Boulevard Beautification

Grand Boulevard Landscaping & Baywalk Links Streets,

Parks and Bay

MET (MDM)JW Marriott Hotel Beaux Arts Hotel

MET Square470 Hotel Rooms

1,700 Seat Theatre4 Story Retail,

41,000 Sq. Ft. Restaurant Whole Foods

GUSMAN CENTER

Skyrise Miami Tower (Berkowitz)

1000 Ft. Observation TowerMixed Use Retail and

Hospitality$400 Million

CENTRO (Newgard)

37 Stories350 Loft Style Condos

$90 Million

Flagler on the River(MELO)32 Stories300 Condo Residences

All Aboard Florida(Florida East Coast Industries)Mixed use 9 Acres1.5 Million Sq. Ft. Office, Residential, Retail , and Hotel

Krystal Tower(Rodolfo Ishak)35 Stories153 Condos

300 Biscayne(PMG)Residential and Commercial

AMOUNTS ARE AN ESTIMATE

ISG MIAMI REPORT72

PERFORMING ARTS CENTER

WATSON ISLAND MARINA

STAR ISLAND

MIAMI INTERNATIONAL AIRPORT

BISCAYNE BAY

I-395AMERICAN AIRLINES ARENA

MARLINS STADIUM

Omni (Genting)1.5 million sq.ft.Hilton Hotel, Office, Retail & Potential Casino$400 Million

Resorts World Miami (Genting)14 acres

Destination Resort Hotels & Residences

$3 BillionProposed

Port of Miami Tunnel Connects I-395 and

Watson Island to Port$607 Million

Museum Park 29 acres. Perez Art Museum MiamiPatricia & Phillip Frost Museum of Science$500 Million

Miami World Center (Falcone)12 million sq. ft., 27 AcresHotel, Retail, Civic Space, Office, Residential $4 Billion

Adrienne Arsht Center48,000 sq. ft.

Film Production Studio$13.6 Million

FREEDOM TOWER

1000 Museum(Covin)63 Stories83 CondosDesign by Zaha Hadid$300 Million

MIAMI RIVER DISTRICT

Overtown Gateway (Peebles)2 Phases150 Staybridge Hotel Room Suites635 Apartment Units60,000 Sq. Ft. Retail100,000 Sq. Ft. Office$200 MillionProposed

ParamountMiami World Center749 Ft. Signature Tower466 Condos

Canvas(NR Investments)37 Stories513 Condos

600 BiscayneTBD

ISG MIAMI REPORT 73

Landscape ParkPublic

Bayfront Park Proposed

Echo Brickell (PMG & JDS)

180 Luxury Residences

57 StoriesCollaboration by

Carlos Ott + yoo Studio

Le Parc (ALTA & Strategic)

128 Boutique Condos

12 Stories

Brickell House (New Guard)

374 Condos46 Stories

SLS Brickell (Related)

453 Condos120 Hotel Rooms

52 StoriesDesign by

Phillipe Stark

BISCAYNE BAY

CORAL GABLES

Atton Hotel270 Rooms

12 StoriesDesign by

Luis Revuelta

Panorama Tower(Florida East Coast)821 Condos 128 Hotel Rooms81 Stories82,000 Sq. Ft. Retail38,000 Sq. Ft. Office

1100 Millecento (Related)382 Condos42 StoriesDesign by Carlos Ott + Pininfarina

Cassa Brickell(TSG)

10 Stories81 Condos


BRICKELL: $6 BILLION IN NEW DEVELOPMENTBrickell 2020

ISG MIAMI REPORT74

The Bond(MDR)


1010 Brickell (Key International)352 Condos47 StoriesDesign by Sieger Suarez

NINE at Mary Brickell(Starwood Capital & Lynd)390 Condos 48 StoriesDesign by ADD

Brickell City Centre(Swire)5.4 million Sq. Ft. 9 Acres780 Condos 93 Apartments243 Hotel Rooms 520,000 Sq. Ft. Retail240,000 Sq. Ft. Office

Brickell Heights (Related)2 Towers690 Condos 48 StoriesDesign by Arquitectonica

My Brickell (Related)

192 Condos 27 Stories

One Brickell(Related) 3 Towers80 Stories70 Stories55 Stories1,200 Condos200 Hotel Rooms200,000 Sq. Ft. RetailProposed

BISCAYNE BAY

MARLIN’S STADIUM

DOWNTOWN

BRICKELL KEY

MIAMI RIVERDISTRICT

BrickellTen (IBGroup)155 Condos22 Stories

Brickell Flatiron(Ugo Colombo)548 Condos65 StoriesDesignBy Luis Revuelta

SLS Lux(Related)450 Condos85 Hotel Suites57 StoriesDesign by Arquitectonica

Edge on Brickell

(Grupo Habitat)130 Condos

58 StoriesDesign by

Luis Revuelta

ISG MIAMI REPORT 75

National Young Arts Foundation Proposed New Campus

Designed by Frank Gehry at Historic Bacardi Building

Biscayne LinePublic Bay Walk

Proposed from Venetian Cswy to Julia Tuttle Cswy

Mbay (Hyperion)129 Condos

39 StoriesProposed

MARLIN’S STADIUM

VENETIAN CAUSEWAY

TO MIAMI BEACH

ADRIENNE ARSHT PERFORMING ARTS CENTER

Wynwood Art District Walls

On-going Art Movement

PÉREZ ART MUSEUM

AMERICAN AIRLINES ARENA

The Filling Station(FLS Development)

81 CondosProposed

MACARTHUR CAUSEWAY

TO MIAMI BEACH

DOWNTOWN MIAMI

MIAMI INTERNATIONALAIRPORT

MIAMI RIVER DISTRICT

Aria on the Bay(Melo)


40,000 SF Commercial Space

250 Wynwood (Fortis)

11 Condos6 Stories

Mixed-Use Retail

EDGEWATER, MIDTOWN AND DESIGN DISTRICT: $3.5 BILLION IN NEW DEVELOPMENT

Biscayne Corridor 2020


ISG MIAMI REPORT76

Bay House (Melo)164 Condos38 Stories

NEW PUBLIC& PRIVATE PARK

1/2 ACRE

Icon on the Bay (Related)300 Condos42 Stories

Biscayne Beach Club(Eastview)399 Condos51 Stories

Paraiso Bay (Related)2 Towers720 Condos55 Stories

LUXURY BAYFRONTRESTAURANT

Hyde Midtown (Related)40 Hotel Units397 Condos 31 Stories*Midtown

The District 36 (Terra)

60,000 Sq. Ft.High-End Home

Furnishing RetailProposed

Dacra Project (Craig Robins)540,000 Sq. Ft. Luxury Retail*Design DistrictProposed

JULIA TUTTLE CAUSEWAY

TO MIAMI BEACH

New Public & Private Bayfront Marina and Park

MIAMIDESIGN DISTRICT

The Crimson(Mckafka)90 Condos20 Stories

Baltus House(Related)


Ion(Sakor)330 Condos36 StoriesDesign by Arquitectonica

WYNWOOD SHOPS AT MIDTOWN

Paraiso Bayviews (Related)388 Condos44 Stories

One Paraiso(Related)276 Condos53 Stories

ISG MIAMI REPORT 77

The IVI Doral64 Condos12-acre development

Vintage Estates (Terra)28-acre gated community110 ResidencesSingle Family

DOWNTOWN MIAMI

Modern Doral (Terra)3 Phases316 CondosLuxury Single Family27-acre development150,000 Retail Space

Isles at Grand Bay(Lennar)672 CondosLuxury Single Family

Midtown Doral (Optimus)3 PhasesPhase I + II509 CondosPhase III TBD150,000 Sq. Ft. Retail90-acres

DORAL: $2 BILLION IN NEW DEVELOPMENTDoral 2020

MIAMI INTERNATIONAL AIRPORT


ISG MIAMI REPORT78

Downtown Doral5252 Paseo + 5300 Paseo

(Cordina)Mixed-use Community1 Million Sq. Ft. (Office)180,000 Sq. Ft. (Retail)

2,840 Condos

Bel Air Doral(ZOM)

249 Condos Luxury Rental Complex

Groundbreaking Aug. 20134.2-acres Lakefront

City Place Doral(Related)48-acres

22 Million Sq. Ft.300,000 Sq. Ft. Retail280,000 Sq. Ft. Office

1,000 Residences

Oasis Park(Optimus)150 CondosSingle Family

Trump National Doral$250 Million Renovation100,000 Sq. Ft. Event SpaceNew BLT Prime Restaurant

ISG MIAMI REPORT 79

RIVA(Premier)14 Stories100 Condos

2nd Street Residences(Ellis Diversified)

30 Stories398 Condos

2,200 Sq. Ft. RetailProposed

Elan 16Forty(Greystar)10 Stories261 Condos6,000 Sq. Ft. Gym2,300 Sq.Ft. RetailProposed

Paramount (Encore Housing and Kodsi)18 Stories95 Condos

AquavitaLas Olas

(Roy & Eisinger)Two Waterfront Buildings

22 Condos

The Pearl at Flagler Village (Morgan)7 Stories331 CondosHenry Square (Related)6 Stories382 Residences25,000 Sq. Ft. Retail

BROWARD CENTER FOR THE PERFORMING ARTS

MUSEUM OF DISCOVERY AND SCIENCE

DOWNTOWN FORT LAUDERDALE

BROW

ARD

BOUL

EVAR

D

AquaBlueFt. Lauderdale(Roy & Eisinger)45 Condos

AquaLunaLas Olas

(Roy & Eisinger)Two Waterfront

Buildings16 Condos

AquaMarLas Olas

(Roy & Eisinger)Three Waterfront

Buildings20 Condos

AdagioOn the Bay(Grupo Alco, Garcia Stromberg + GS4 Studio Architects)12 Condos

Privage(Roy & Eisinger)22 Condos

BellaVitaLas Olas

(Roy & Eisinger)16 Condos

FORT LAUDERDALE: $3 BILLION IN NEW DEVELOPMENTFt. Lauderdale 2020

Auberge Beach Residences(Related)Two Towers17 - 22 Stories171 Condos


ISG MIAMI REPORT80

Gale Hotel &Residences (Neward Development &Menin Hospitality)128 Condos

W Hotel & Residences (Related NY)171 Condos

Crocker Tower(Crocker)

42 Stories395 Condos

Proposed

Marina Lofts(Asi Cymbal)2 Towers28 - 30 Stories856 Condos29,000 Sq. Ft. Retail & RestaurantDesigned by Bjarke InglesProposed

South Andrews Tower(Fred Kern)37 StoriesOffice, Hotel &ResidencesProposed

New River Yacht Club (Related)26 Stories249 Condos$36 Million

8th Avenue Residences(Rockefeller)262 Condos2,500 Sq. Ft. Retail

New RiverVillage III(American Land Ventures)15 Stories209 Condos2,245 Sq. Ft. Restaurant

Airport and I-595$42.5 Million Expansion to I-595$791 Million runway renovation atFt. Lauderdale Airport

RIVER FRONT

LAS

OLA

S BO

ULE

VARD

SOUTH FEDERAL HIGHWAY

1800Las Olas

(Roy & Eisinger)4 Condos

ISG MIAMI REPORT 81

ICON Las Olas(Related)272 ResidencesUnder Construction

ON THE GROUND REPORT

QA&The State of South Florida General Realty

Q: What kind of single-family homes are people buying in South Florida now?

A: We are now seeing a shift from people buyingless expensive homes and paying for private schools to people buying more expensive homes in areas with stronger Public School systems.

Q: What reasons are foreign buyers giving your agents for buying in South Florida?

A: I would have to say that the major reason foreign buyers are buying is for security - both personal and financial presently.

Q: That addresses demand. What is the status of supply right now for single-family homes?

A: As in the old cliche: Location, Location, Location. Seriously, the supply in the re-sale single family market, especially in neighborhoods east of I-95 is very tight and there is very little inventory of homes in desirable neighborhoods.

Q: What do you see as the big differences between the market now and the boom of 2005?

A: Night and Day. In 2005, the market was driven by a predominantly speculative fever fueled by the “easy credit” provided by the financial community. In today’s market, the credit markets remain “tight”, eliminating speculation. Today, we have buyers who are looking for the financial security, stability or simply a second home in Miami.

Q: What neighborhoods are the hottest right now for new properties?

A: Brickell, Downtown, Edgewater, the Beaches, East Fort Lauderdale and Doral area (the one “western” neighborhood drawing major interest) are all very active. Interestingly enough, with the exception of Doral, these are all high-rise areas with little single-family home activity. Actually, most of the new construction in single family homes is concentrated in the western fringes of the tri-county area.

Q: Given the current market dynamic, have you changed the type of agent you are currently recruiting?

A: That is an interesting question. Our recruiting philosophy at RelatedISG is probably somewhat different than the industry norm especially in this new cycle. Our focus has been to recruit seasoned agents who specialize in pre-construction sales. The tightness of the resale market coupled with the demand for new Condominiums makes that type of agent the most sought after. In addition, RelatedISG is the joining of two of the most prominent South Florida companies in the new construction market. This certainly gives our agents a distinct advantage in competing in the new construction sector, which is by far the most active and the most lucrative in terms of commissions paid.

Alex VidalMANAGING DIRECTORRelatedISG International Realty

ISG MIAMI REPORT82

VCelebrat ing 5 Years of ISG’s Miami Report .

The Miami Report is produced for general interest only; it is not definitive and is not intended to give advice. It must not be relied upon in any way. Although high standards have been used in the preparation of the information, analysis and views presented in The Miami Report, no responsibility or liability whatsoever can be accepted by ISGWorld for the contents. We make no express or implied warranty or guarantee of the accuracy of any of the contents. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents. The Miami Report does not necessarily reflect the view of ISGWorld in any respect. Readers should not take or omit to take any action as a result of information in The Miami Report.

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