The Crimson, Miami FL

The Crimson, Edgewater – Miami FL

2 BEDROOMS / 2 BATHROOMS

 $750,000

anno 2016

 superficie 1210 ft² (112,4 m²)

(il prezzo include l’arredamento di interior designer)

possibilità di acquistare anche con il mutuo

possibilita’ di trattativa

 The Crimson è un palazzo boutique (solo 130 appartamenti) di sviluppatori europei, ottima qualita’ di costruzione, ottimo prezzo per questa tipologia di appartamento, situato ad angolo con viste panoramiche sulla baia.

E’ l’appartamento con il miglior prezzo nel palazzo, che e’ appena stato finito di costruire, molto moderno e di qualita’.

 

Why Vacancy Rates Are Dropping, And What It’s Doing To The Rental Market.

Since 2010, there has been a noticeable drop in vacancy rates and an increase in rentals. Craig Studnicky, co-founder of International Sales Group, who specializes in Miami east of Interstate 95, explained that as vacancy has decreased, rental rates have increased significantly in two of Miami’s primary markets. In 2010, overall vacancy rates were 7 percent, which is pretty high, according to Studnicky. By 2012, however, that percentage fell to four, and today is around 2 percent. In dealing with the first primary market, downtown Miami and Brickell through Edgewater, in 2010, rental rates were squaring off at $1.50 per foot and two years later, $2 a square foot. Today, the average is about $2.50 per square foot for these areas. Comparatively, rates in the second main market, South Beach through Sunny Isles, have increased in a similar fashion, rounding off at about $3 a square foot in 2010, $4 a square foot in 2012 and today, $5-7 per square foot. Studnicky names these two areas Miami’s primary markets for development. To put into perspective how significant the vacancy rate drop has been in the last two years, let’s take a look at Biscayne Corridor. According to ISG, a 3 percent vacancy rate is listed for the area, staggeringly however, in 2012, that number was 12 percent higher, listed at 15 percent. Studnicky explains that, “Biscayne is currently one of the hottest and fastest growing areas appealing to people in their 20’s through 50’s.” Most of the people purchasing or renting in the Biscayne area work in downtown Miami but want to live in the design district and have easy access to I-95.“

Vacancy has everything to do with popularity.

 “In keeping with that trend, “Vacancy rates have everything to do with popularity,” said Studnicky. Take for instance the Edgewater and Biscayne neighborhoods. In the past, these areas may have seemed in disrepair, but now, properties are being developed here and purchased by developers. Studnicky predicts that in the next two to three years, it’s possible for these areas to be as attractive and in-demand as Brickell.

Vacancy rates can easily be attributed to popularity of a given area—or lack thereof.

Popularity is not the only factor bringing people to South Florida, however. According to data from International Sales Group, California is the fastest growing state in the country followed by Florida, which receives 700 new people each day. South Florida alone is responsible for one-third of that number, which explains the high demand for rentals. In addition, as the economy has slowly come out of its most recent downfall, the demand has continued to increase. Studnicky explains that the lack of supply resulting from the recession and the always-growing population have finally intersected, creating increased rental rates and lowered vacancy rates. Since 2012, the total number of units rented has continued to increase. In today’s robust market, Studnicky is thinks that the total number of units rented in 2014 will surpass that of 2013. Currently, demand is outpacing supply, but Studnicky speculates that this will level out in the next few years. Until then, however, it is expected that the price per square foot will continue rising. In the last 3 years the price per square foot has risen 10 percent each year and Studnicky predicts that this will level off at about a 5 percent per year increase.

Peace Of Mind For Investors

As an incentive to investors, ISG is offering a one and first-of-its-kind program, which will guarantee $3 per square foot for The Crimson, located in Edgewater. The 90-unit boutique building is a luxury, high-end condominium, in which some investors are purchasing units with the plan to rent. The building will be completed in about one year, and Studnicky and ISG expect that it will be worth much more than what it is going for now. Currently, rental rates in Edgewater are about $2.50 per square foot, while new rentals are receiving $3-3.50. The “Rentals Leaseback Program” is guaranteeing that when the time comes for investors to rent these units out, they will get no less than $3 per square foot. Investors will automatically get a return on their investment and will have a fixed income during a 24-month period whether or not the unit is rented out. As far as Studnicky is concerned, he is positive that they will be able to rent these units. “We are not guessing here,” Studnicky said. “We are matching the confidence of our investors with our confidence and backing that up through our rental guarantee program.”

International Sales Group is the first company to create such a program in Miami during the presale of a building. Typical buildings in Biscayne and Edgewater are on average, 300 units, whereas The Crimson is a 90-unit boutique building. Sixty of the 90 units have already been sold and 20 of those buyers are investors. Studnicky presumes that the demand for the building will continue to increase, however, if the building was larger, the risks of the rental program may have outweighed the benefits for both ISG and investors. In this case however Studnicky sees this opportunity worth more than any of the risks involved. “It’s dynamic. We are on the front line of development in Miami and we are very confident that we will rent these units,” said Studnicky.