Miami Downtown Development Authority’s “Annual Residential Market Study Update” report on the state of the residential real estate market in Greater Downtown Miami included a “submarket analysis” for Midtown and Wynwood neighborhoods.
Midtown has had the second greatest growth in market size, behind Edgewater, with an expected 41% increase. With an average per square foot price of $510, compared to $570, $618 and $854 in the CBD, Brickell and Arts/Entertainment District respectively, this is not surprising.
Midtown remains the second least developed submarket in terms of density; however, as Wynwood and the Design District continue to have success with limited potential for residential development, Midtown should capture a significant amount of new residential development opportunities due to its location, access and availability of vacant land.
…Wynwood has emerged as the submarket with the most potential for a significant % increase in residential development. While no significant condo projects have been announced, anticipated zoning changes within the Wynwood BID (Business Improvement District) and a significant number of land acquisitions make the submarket a candidate for explosive future residential development, albeit at a much lower density than other Downtown Miami submarkets.
Here are some more highlights.
Midtown Miami (the mixed-use development that includes condos, offices and retail), continues to be the primary driver for the submarket. With the recent construction commencing of a 400-unit rental project on the Midtown 5 site and the launch of sales at Hyde Midtown and additional rental projects planned for the area, Midtown is experiencing renewed interest from developers. The existing retail, residential and retail improvements, along with its close proximity to the Design District and Wynwood, make Midtown a strong candidate for additional future residential development. The availability of a large amount of vacant, developable land promotes the likelihood of additional near-term development in Midtown.
While the Wynwood neighborhood has experienced a significant level of commercial and retail redevelopment and investment speculation over the past 2-3 years, there has been minimal residential development within the submarket due to restrictive zoning. There is currently one (1) live-work project with eleven (11) units under construction. The Wynwood submarket has been experiencing substantial speculation by developers based on the possibility of redevelopment to a higher density subsequent to re-zoning in the area. The redevelopment projects that include residential uses will most likely be boutique and low-to-mid-rise projects with height limitations.