Miami Downtown Development Authority Market Trends Report Q1 2010

Residential Market Trend Update ± March 31, 2010 (2010 Q1)

Downtown Development Authority District and Adjacent Areas of Influence

Prepared for:

Published May 2010

A Professional Strategic Alliance

Lewis M. Goodkin, CRE,FRICS,MIRM Lewis.goodkin@goodkin.com 305.860.0771

Craig A. Werley, CRE, FRICS cwerley@focusadvisors.net 305.441-6438

T A B L E O F C O N T E N TS I.

R ESI D E N T I A L M A R K E T T R E N D UPD A T E ....................................................................................................... 1 RESIDENTIAL SALES UPDATE ............................................................................................................................. 1 RESIDENTIAL PRICE TREND UPDATE ................................................................................................................ 2 RESIDENTIAL LEASING VELOCITY AND RENTAL RATE TRENDS ............................................................... 3 RESIDENTIAL FORECLOSURE ACTIVITY........................................................................................................... 5

L IST O F E X H I B I TS EXHIBIT I.1 RESIDENTIAL SALES (CLOSINGS) TREND-UPDATE ................................................................ 1 EXHIBIT I.2 RESIDENTIAL SALES PRICE TREND-UPDATE ........................................................................... 2 EXHIBIT I.3 RESIDENTIAL SALES PRICE PER SQ.FT. TREND-UPDATE ...................................................... 2 EXHIBIT I.4 RESIDENTIAL SALES PROFILE BY MONTH AND SUB-MARKET ........................................... 3 EXHIBIT I.5 DOWNTOWN AREA RESIDENTIAL LEASING VELOCITY ........................................................ 4 EXHIBIT I.6 DOWNTOWN AREA RENTAL RATES ........................................................................................... 4 EXHIBIT I.7 FORECLOSURE ACTIVITY ± DOWNTOWN AREA, APRIL ± DECEMBER, 2009 ..................... 5

Miami DDA- Residential Market Trends Update (2010 Q1)

ST U D Y A R E A

Miami DDA-Residential Market Trends Update (2010 Q1)

I.

R ESI D E N T I A L M A R K E T T R E N D UPD AT E

This report presents a statistical update of key residential market trends in the downtown area.

This report includes data that covers trends through March 31, 2010 including: Monthly Residential Sales Activity (Closings) Price Trends Residential Leasing Velocity Foreclosure Activity The information presented in the following exhibits is based on direct research of public records maintained by the Miami-Dade County Appraiser and County Clerk along with MLS and other independent data services. Research using the above noted sources was supplemented, as deemed necessary, by direct field reconnaissance.

R ESI D E N T I A L SA L ES UPD A T E

Average monthly residential sales in the Miami Downtown Area in the 1st quarter of 2010 were 318 units, down slightly from the 4th quarter 2009, but up nearly 140% over the same period in 2009. Monthly sales for all downtown area housing fluctuated during the past six months, dropping back in January and February from the December 2009 high of 486 units then climbing back to 439 sales in March 2010. December and March sales volume was influenced by bulk sales activity as well as by the first-time home-buyer tax credit program. The expiration of the first-time home-buyer tax credit could result in lower monthly sales volume during the next several months.

Residential Sales Update -­‐ Miami Downtown Area March 2009 through March 2010 500

486

450

439

Closed Sales (Units)

400 350

339

300

250

248

200

234

262 254

203

150 100

279 268

147 144

171

50 0

Source: Miami-­‐Dade Public Records; MLxchange; Realist; Focus Real Estate Advisors, LLC.

E X H I B I T I.1 R ESI D E N T I A L SA L ES (C L OSI N GS) T R E N D-UPD A T E

Miami DDA-Residential Market Trends Update (2010 Q1)

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R ESI D E N T I A L PR I C E T R E N D UPD A T E

The average unit sales price in the 1st quarter of 2010 was up on a year-over-year basis by about 17%.

Average Sales Price Trend Downtown Miami Study Area $400,000

Average Unit Sales Price

$350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0

Source: Miami-­‐Dade Public Records; MLxchange; Realist; IMAPP; Focus Real Estate Advisors, LLC.

E X H I B I T I.2 R ESI D E N T I A L SA L ES PR I C E T R E N D-UPD A T E

Average Sales Price Per Square Foot Downtown Miami Study Area $350 $300

Price /SqFt

$250

$300 $272

$255

$272 $243 $236

$256

$279 $271

$287

$297

$297 $278

$200 $150 $100 $50 $0

Source: Miami-­‐Dade Public Records; MLxchange; Realist; Focus Real Estate Advisors, LLC.

E X H I B I T I.3 R ESI D E N T I A L SA L ES PR I C E P E R SQ. F T. T R E N D-UPD A T E

Miami DDA-Residential Market Trends Update (2010 Q1)

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Downtown Study Area Residential Sales Update and Profile, Mar 2009 -­‐ Mar 2010 Monthly Sales Profile Units Sold

Sep-­‐08 Oct-­‐08 Nov-­‐08 Dec-­‐08 Jan-­‐09 Feb-­‐09 Mar-­‐09 Apr-­‐09 May-­‐09 Jun-­‐09 Jul-­‐09 Aug-­‐09 Sep-­‐09 Oct-­‐09 Nov-­‐09 Dec-­‐09 Jan-­‐10 Feb-­‐10 Mar-­‐10

Total Sales Volume ($)

Total Sq.Ft.

Average Unit Price

$/SqFT

97

$43,061,921

124,714

$443,937

$295

119

$36,085,582

143,394

$303,240

$263

96

$29,017,302

105,680

$302,264

$276

140

$46,338,843

158,860

$330,992

$275

100

$27,836,605

112,268

$278,366

$239

154

$44,156,204

166,052

$286,729

$259

147

$46,953,512

161,176

$319,412

$272

144

$48,995,843

177,443

$340,249

$255

171

$54,897,916

203,936

$331,139

$272

203

$58,972,233

228,911

$290,504

$243

248

$63,460,150

271,825

$255,888

$236

279

$83,465,733

312,142

$299,160

$256

268

$83,532,567

299,516

$311,689

$279

339

$98,294,072

362,471

$289,953

$271

234

$79,260,145

263,779

$338,719

$300

486

$152,556,872

530,811

$313,903

$287

262

$87,872,433

296,122

$335,391

$297

254

$81,364,900

292,165

$320,334

$278

439

$166,042,566

559,600

$378,229

$297

Total Sq.Ft.

Average Unit Price

Breakdown by Area -­‐ March 2010 Brickell CBD Park West M&E/Wynwood Total March 2010

Units Sold

Total Sales Volume ($)

215

$87,898,399

261,312

$408,830

$336

157

$35,630,967

160,138

$226,949

$223

39

$27,116,500

77,875

$695,295

$348

28

$15,396,700

60,275

$549,882

$255

439

$166,042,566

559,600

$378,229

$297

$/SqFT

Source: Miami-­‐Dade Public Record; Mlxchange; Realist; IMAPP; Focus Real Estate Advisors, LLC.

E X H I B I T I.4 R ESI D E N T I A L SA L ES PR O F I L E B Y M O N T H A N D SU B-M A R K E T

Average per square foot prices were up on a year-over-year basis in the 1st quarter of 2010 to just over $291. The average sales price per square foot in the 1st quarter of 2010 was up about 13% from the same period a year ago.

R ESI D E N T I A L L E ASI N G V E L O C I T Y A N D R E N T A L R A T E T R E N DS

Average monthly residential leasing velocity in the downtown area during the past twelve months remained steady, averaging 337 units per month. Monthly leasing activity in the downtown area, including all existing and new housing, during the first 3-months of 2010 was up slightly, averaging 341 lease closings per month.

Miami DDA-Residential Market Trends Update (2010 Q1)

3

Sales and Leasing Activty Downtown Miami Area March 2009 through March 2010 900

Leases 800

336

Sales

364

700

Units Absorbed

600 387

500 400

380

375

342

365 329

322

486 439

290 339

300 279

248

200 100

332

318

365

147

144

171

268

262

234

203

254

0

Source: MLxchange; Realist; G oodkin-­‐Focus Strategic Alliance.

E X H I B I T I.5 D O W N T O W N A R E A R ESI D E N T I A L L E ASI N G V E L O C I T Y

Average Residential Rental Rate Trends Downtown Study Area, March 2009 -­‐ March 2010 Monthly Rate

$2,000

Avg Rent Per Sq.Ft.

$2.00

$1,800

$1.80

$1,600

$1.60 $1.50

$1,400

$1.40

Rent per Sq.Ft.

$1.70

$1.30 $1,739

$1,797

$1,765

$1,724

$1,742

$1,728

$1,834

$1,776

$1,608

$1,748

$1,786

$1,000

$1.20 $1,830

$1,200 $1,735

Average Monthly Rental Rate

$1.90

$1.10 $1.00

Source: MLxchange; Focus Real Estate Advisors, LLC.

E X H I B I T I.6 D O W N T O W N A R E A R E N T A L R A T ES

Miami DDA-Residential Market Trends Update (2010 Q1)

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R ESI D E N T I A L L E ASI N G V E L O C I T Y A N D R E N T A L R A T E T R E N DS (Continued)

Average monthly rental rates and per square foot rates for units are illustrated in Exhibit I.6 on the previous page. The average monthly rental rate for units rented during the past twelve months was $1,756. As shown, the average monthly rental rate increased moderately in the 1st quarter of 2010 to about $1,767 with a corresponding rate per square foot of living area of about $1.64 per square foot.

R ESI D E N T I A L F O R E C L OSU R E A C T I V I T Y

Residential foreclosure activity by stage of process (pre-foreclosure vs. auction sales) is shown below based on research of public records and associated residential data services. Preforeclosure activity in the downtown area was generally declining from June 2009 through February of 2010, but spiked in March of 2010. Foreclosure sales (auction sales) activity averaged 67-sales per month during the last 12-months, increasing moderately through 2009.

However, the number of foreclosure auction sales also spiked in March to 119, boosting average monthly auction sales in the 1st quarter of this year to over 80 sales per month. The spike in March pre-foreclosure activity is believed to be attributable to continuing high unemployment and µZDON-DZD\V¶ RZQHUV ZKR FKRRVH WR GHIDXOW DQG DOORZ IRUHFORVXUH ZKHQ their mortgage balances exceed the property value). The up-tick in foreclosure sales (auction) activity may be attributDEOH WR WKH &RXQW\¶V QHZ RQOLQH DXFWLRQ V\VWHP. Overall foreclosure activity in the downtown area relative to total occupied housing units remains in line with City of Miami and Miami-Dade County trends.

Foreclosure Activity by Stage of Process Miami Downtown Study Area 300

PreForeclosure Filings

Auction 243

Foreclosure Recordings

250 202

200 167

166 149

150 142

130

100 55

50

164

51

61

74 57

61

145

148

141 120

80

70 52

57

119

66

0

Source: Miami-­‐Dade Public Records; MLxchange; Realist; Focus Real Estate Advisors, LLC.

E X H I B I T I.7 F O R E C L OSU R E A C T I V I T Y ± D O W N T O W N A R E A , A PR I L ± D E C E M B E R, 2009

Miami DDA-Residential Market Trends Update (2010 Q1)

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