Miami’s status as a top destination for real estate developers, brokers, foreign investors and New Yorkers was on full display at The Real Deal’s Miami Real Estate Forum last week.
The two-day conference attracted thousands of attendees and dozens of developers, brokers, lenders, architects and other vendors who featured their products and projects at the showcase component. Espresso and champagne flowed, and new development merchandise was offered at elaborately built-out booths. The event was held at Mana Wynwood on Nov. 5 and 6.
Despite challenges that include a difficult and time-consuming permitting process, high interest rates and more, speakers were bullish on the region. They pushed back on negative views.
Here are some of the biggest takeaways:
In a one-on-one with TRD Publisher Amir Korangy, multifamily investor Patrick Carroll reflected on his past controversies and his diagnosis of bipolar disorder. Carroll said he plans to re-enter the real estate game in 2027 once his noncompete agreement expires, and he projected $500 million to $1 billion in acquisitions.
On a separate panel, multifamily developers Bruce Menin, Erik Rutter and Joe Lubeck said that South Florida is “really not overbuilt.” Demand is high, especially for high-end apartments. Even though debt markets are robust, the true issue for South Florida’s multifamily market is skittish equity, the panelists said, again arguing that only top sponsors and projects in premier neighborhoods can get investment.
The lack of affordable housing came up a few times. That’s pushing local residents toward other growing Florida markets such as Orlando, said developer Dan Kodsi on a panel about how developers can survive the market crunch in Miami. Market analyst Ana Bozovic pushed back on the theory of a Miami bubble, arguing that the market is “built on cash” and not subject to a debt-fueled collapse like in 2008. Kodsi and Two Roads Development’s Brad Meltzer both addressed separate projects tied up in litigation — Kodsi’s Legacy Hotel & Residences and Two Roads’ planned Edition Residences — and said they would ultimately be resolved and built.
While domestic buyers now outpace foreign buyers, international investors are still very active, especially those from countries like Mexico, Brazil and Colombia, said panelists Edgardo Defortuna and Craig Studnicky on a panel about foreign investment.
On the office front, experts said the market is still driven by new-to-market tenants from states such as New York and California. New, boutique office projects are commanding record-high rents, such as The Fifth Miami Beach reaching $180 per square foot to $240 per square foot. Still, institutional owners are seeking exit strategies for older office buildings, with “pretty much zero institutional capital chasing office,” said David Moret, founder of Highline Real Estate Capital.
Developers Ugo Colombo and Camilo Miguel Jr. were among the speakers who anticipate a new wave of New Yorkers moving to South Florida following Zohran Mamdani’s mayoral election win, though they don’t expect it to match the scale of the pandemic-era influx. The developers are dealing with headwinds like market softening in non-luxury sectors and high construction costs, but the luxury condo market remains strong, they said.
The strong luxury market dominated a panel centered around luxury home design in South Florida and Naples. These buyers are increasingly demanding and seeking all-in-one primary homes with extravagant amenities.
It also spilled over into a conversation with brokers Margit Brandt, Danny Hertzberg and Dawn McKenna, who shared their journeys to achieving $100M deals in the luxury real estate market and how they were well-positioned for the pandemic-triggered boom in their respective markets: Miami, Palm Beach and Naples.
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