A record number of new apartments are available in South Florida this year.
South Florida multi-family developers are expected to complete 22,541 units by 2023, which would exceed annual deliveries for at least the past decade, according to a Berkadia report. New unit volume is nearly double the 12,179 units completed last year and more than the approximately 13,000 units completed in 2021 and 2020. (All figures are for market rate units only.)
A multi-family market supercharged by an influx of population and constant rent increases has emboldened developers. How bold are you going to be this year?
The expected number of new units would exceed the expected net absorption for this year of 16,179 units, according to the Berkadia report. While this would bring occupancy for the tri-county region down to 96.2 percent from 97 percent last year, landlords are not expected to budge on rent increases.
Median rent is expected to hit $2,465 per month, up 3.6 percent year-over-year, according to Berkadia.
Developers are counting on a rebound in wealthy homes. Financial and technology companies expanding and moving to South Florida are bringing their well-paid workforce that is better positioned to pay high rents.
Berkadia forecasts a 1.6 percent increase in households and a 3.6 percent increase in annual median income, to $73,190.
However, it remains to be seen if the construction spree works. The continuous increases in interest rates by the Federal Reserve could make it difficult to finance some projects.
In the meantime, here’s a look at some multi-family projects slated for completion in South Florida by the end of the year:
Soleste in Dania Beach
Dev Motwani (right) and Jeff Ardizon and Robert Suris of The Estate Companies with renderings of the project
Soleste SeaSide will feature 340 luxury apartments in an eight-story building in Dania Beach.
The Estate Companies, in partnership with Dev Motwani and his family’s Merrimac Ventures, are developing the project at 4 North Federal Highway.
The project, part of the Estate’s Soleste brand, will consist of studios and one- to three-bedroom apartments, ranging from 600 square feet to 1,200 square feet.
It is expected to be finished in February, said Robert Suris, the Estate’s managing director.
Soleste in North Miami Beach
Jeff Ardizon and Robert Suris, with a rendering of Soleste NoMi Beach (Credit: The Estate Companies)
Another Soleste-branded Estate project would bring the first of two towers to North Miami Beach.
Soleste NoMi Beach will be 23 stories and include 367 units at 16395 Biscayne Boulevard. Soleste NoMi Beach is expected to be ready in August, Suris said.
The South Miami-based Estate also plans the 28-story, 363-unit Soleste on the Bay at 16375 Biscayne Boulevard, or immediately south of Soleste NoMi.
City officials approved the Soleste on the Bay site plan in August.
January 2023. UpJobsNews.