The wave of residents and businesses flocking to Miami has resulted in the city becoming “New Yorkified” with more developments and restaurants, according to the panelists on Commercial Observer.
Panelists at CO’s “Miami Heat” forum On February 9, the city and South Florida in general announced they had stepped up their game as people moved to the area from New York during the coronavirus pandemic.
“More people from New York are coming here and they need a certain level of service that they are used to in New York.” David Levinson, Chairman and CEO of L&L holding company, said on the first “Fireside Chat” panel. “I think some of these things are lagging a bit because it takes a little longer to organize, but I have no question that it’s a permanent thing that is going to happen here.”
Levinson was referring to new restaurants, schools, and hospitals that have surfaced or are about to be opened The Sunshine State is seeing an influx of new residents.
“There is a feeling that Miami is a real city now, just like New York, Boston, San Francisco or DC have been considered by many.” David Arditi, managing member of Aria Development Groupsaid during the third panel. “This is a place where a lot of people come from the northeast and the west coast.”
During the pandemic, businesses and people flocked to South Florida, in part because of fewer COVID-19 restrictions, but mostly because of taxes Louise Sunshine, strategic advisor for Fort partner.
“I think taxes are a great reason people move to Florida,” said Sunshine. “Taxes in New York have gotten overwhelming.”
Sunshine, who was moderated in the first panel by the CO editor-in-chief Max Gross, added that people were also drawn to the larger living spaces with Florida outdoor spaces rather than their cramped Manhattan apartments.
Residents dipped their toes in Florida’s waters early on during the pandemic by renting, but many chose to take the state full time and rushed to buy.
“They came down, they rented, they kind of wanted to get their feet wet and see where things are,” said Gil Dezer, President of Decer developmentduring the second panel. “Now we see people making things more permanent.”
Dezer said demand for his oceanfront condos has skyrocketed lately. His company averaged six to seven sales a month. “I just wish I had more inventory on my hands to sell,” he added.
And it’s not just residents who move. Lots of finance and private equity firms have opened offices in Florida.
“We’re in a development where Miami is no longer just a playground, a vacation spot, or a place to stay away from taxes,” he said Don Peebles, CEO of The Peebles Corporation, during the second panel.
From left: Berdons Meyer Mintz, Gil Dezer from Dezer Development, Camilo Miguel from Mast Capital, Don Peebles from The Peebles Corporation and Jon Paul Pérez from Related Group. Headshots courtesy of the speakers
This is good news for high-priced condominium owners in the area who may have previously struggled to find buyers.
“That automatically creates a market that we didn’t have before” Jon Paul Perez, President of Related groupsaid on the second board. “Much of the local Miami domestic market was priced out of units because the Miami jobs were service-oriented, not high-paying jobs. Now companies like Blackstone … or Goldman Sachs are coming, and all of these employees will live in South Florida and be our buyers for our condominiums. “
Dezer, Peebles, Pérez and Mast Capital CEO Camilo Miguel were on the second panel, “Market Outlook: A Plethora of Opportunities in the Sunshine State,” moderated by Berdon‘s Meyer Mintz.
From left: Laurie Grasso from Hunton Andrew Kurth, Amanda Hertzler from MKDA, Aaron Kurlansky from FM Capital, David Arditi from Aria Development Group, Justin Oates from Cain International and Ryan Shear from PMG. Headshots courtesy of the speakers
Ryan Shear, managing partner PMG, said during the third panel that he expects this Miami boom to last for at least the next two years, but no one knows what will happen after that as Miami’s market can be difficult to predict.
“Miami has to be one of the craziest cities in the world when it comes to bikes,” Shear said. “It could be completely dead, oversupplied and you are crazy to launch, and next month is what a brilliant developer you are.”
Shear was on the final panel of the day, “Banking on Miami: A Spike in Investments, Moves and New Developments,” moderated by Hunton Andrews Kurth‘s Laurie Grasso, along with MKDA‘s Amanda Kertlzer, Kain International‘s Justin Oates and FM Capital‘s Aaron Kurlansky.
However, some are confident that this latest boom will put an end to the insane fluctuations of Miami’s past.
“I think Miami will continue to work overtime not to be the boom / bust market we have seen in the past and more of a market with a softer landing,” said Miguel. “New York will continue to face headwinds, and I think that will continue to fuel the success of the market here.”