ISG World Miami Report (English)

DECEMBER 2014

A N I N - D E PT H A N A LY S I S O F SO U T H F L O R I DA’ S N E W CO N D O M I N I U M M A R K E T

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MIAMI

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Rise Of A Global City

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FI

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PERCEPTION vs. REALITY RENTAL TRENDS

International Report

arts&culture ISG CITY WATCH

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Cover Credit:

FROM THE ISG PRINCIPALS Welcome to the ISG Miami Report, we are honored to present our current research on the state of the South Florida market. This edition is the most extensive and in-depth Miami Report to date.

The speed at which the South Florida Market is evolving is breathtaking.

Our intention these last five years has been to define the state of the market and to inform our fellow business associates how these dynamics affect our business environment and define our region.

In this report, we have once again assembled all of the recent data on our current market conditions.

We have examined new and pre-construction developments sub market by sub market, studied MLS trends, and have included (for the first time) an analysis of the rental market, which is playing such a big part in our economic growth.

Our latest edition covers more than statistics. We have diligently charted the many influences that propel Miami’s emergence as a Global City. The future is both exciting and dynamic. In this issue we feature the various areas that demonstrate the evolution of Miami.

In this regard, we have also examined the subjective factors that are impacting the worldwide surge of interest in South Florida. In the course of our research, one theme begins to emerge “MIAMI IS THE REASON”.

The rationale may vary and be as diverse as the people looking to settle here. It may be the politics, security, culture, economic stability, education, climate or simply the lifestyle, but it is MIAMI as a whole that is the star.

Has Miami already achieved the status of “Global City”? Perhaps, not yet. We have much to do in areas like infrastructure, transportation and education before we can rightly take our place as a Global City.

However, no one can deny that we are certainly on the right track to distinction.

We, at ISG, invite you to follow us as we chronicle the journey of a city on the rise to global prominence.

We hope that you will find our material helpful in telling our story to a global audience and useful in promoting your business interests. ISG is committed to continuing to produce the high level of marketing information for which the Miami Report is known.

Sincerely,

Craig Studnicky & Philip Spiegelman ISG Principals

Michael Ambrosio ISG President

T A B L E O F C O N T E N T S

4.

FEATURED STORY

6.

WEALTH REPORT

8.

FINANCIAL

12.

NEW CONSTRUCTION

24.

WORLD CLASS PENTHOUSES

26 .

MLS RESALE INVENTORY

32.

RENTAL TRENDS

40.

POPULATION STATISTICS

42.

INTERNATIONAL MARKET

48.

TRANSPORTATION

54.

CULTURAL AND ECONOMIC GROWTH

68.

ISG CITY WATCH

70.

SOUTH FLORIDA 2020

82.

ON THE GROUND REPORT

FEATURED STORY

PERCEPTION REALITY

“Generally speaking, the market has continued a slow and steady recovery that is markedly different from past down cycle recoveries. History would suggest a more vertical recovery especially given the severity of the economic decline. This recovery has been a decidedly different experience as the slope of recovery has been shallow and the expected acceleration has not materialized.”

Stuart A. Miller Quote Chairman of Lennar Chairman Miami Herald, Monday October 13, 2014

Examining the Difference Between “Proposed” and “For Sale” in the South Florida New Condo Market Once again, buzz is brewing about the number of proposed new condos set to hit the Miami / South Florida market. Concern comparisons are even being made to the bubble stories of 2005.

The Miami Herald published an article in May of 2005, “PROJECTING”, that 62,000 condos were planned for development within the Brickell Ave. / Downtown Miami corridor. In actuality, just 17,502 of those proposed 62,000 condos were developed...less than 40% of what was projected.

In tracking the data of Miami / South Florida’s current cycle, we found that the number of proposed new condos is, once again, different from the number of condos that have actually been brought to market for sale thus far.

Additionally, proposed condo projects may, eventually, be brought to market, once various governmental and business issues get resolved. But it is critical to note the 4

ISG MIAMI REPORT

difference between a condo project released to market (“For Sale”) versus a proposed project that remains subject to the following: - Land Use Approvals - Zoning Approvals - Entitlement Approvals - Backing of Reputable Developer - Suitable Financing - Changing Business Plans Currently, the estimated number of new “Proposed” condos East of I-95, in Miami-Dade, Broward, and Palm Beach is 38,000 (according to the South Florida Business Journal, October, 2014).

Of those, 16,033 have been brought to market for sale, since the last business quarter of 2011 (42% of the 38,000 “Proposed”). To date over 62% of this inventory has been sold.

With less than 6,200 new condo units remaining to be sold, South Florida currently has less than 18 months of new condo inventory for sale according to historical absorption patterns.

2 0 0 5

PROPOSED

2 0 1 4

PROPOSED

62,000 38,000 DOWNTOWN MIAMI AND BRICKELL ONLY

A C T U A L FOR SALE

MIAMI-DADE, BROWARD & PALM BEACH COUNTY EAST OF I-95

A C T U A L FOR SALE

17,502 16,033 SOLD

62% SOLD

2014 NEW CONSTRUCTION CONDO OVERVIEW South Florida Condominium Analysis East of Interstate 95

CONSTRUCTION STATUS

TOTAL TOWERS

TOTAL UNITS

TOTAL SOLD

PERCENT SOLD

TOTAL UNSOLD

Delivered

8

1,133

1,046

93%

84

Under Construction

44

8,540

7,209

84%

1,331

Pre-Construction

35

6,360

1,745

27%

4,615

Totals

87

16,033

10,000

62%

6,030

sources: multiple listing service (mls), tax records and on-site sales

ISG MIAMI REPORT

5

WEALTH REPORT The Cities that matter to UHNWI’s - Global Survey MOST IMPORTANT NOW

2014 Miami Ranking: 7 2013 Miami Ranking: 8 2011 Miami Ranking: 29 2009 Miami Ranking: 29

7. Miami

1. London

$800 psf

$6,000 psf

2. New York $4,000 psf

(NYC / Manhattan)

10. Paris $4,400 psf

5. Geneva $3,000 psf

For the past eight years, Knight Frank distributes an annual Wealth Report a collection of data about the Global “UHNWI” community (ultra high-net-worth individuals), defined as those with US $30 million or more in net assets.

Sources: Knight Frank Wealth Report

Forbes, June 2014,

Business Insider March 2014

6

ISG MIAMI REPORT

TOP 5 CITIES

NORTH

6. Shanghai $2,000 psf

9. Beijing 8. Dubai $2,500 psf

$1,500 psf

4. Hong Kong $4,500 psf

3. Singapore $1,500 psf

AMERICA

When examining North American cities of importance to UHNWI, Miami comes in at #2 – second only to New York City.

1. New York 2. Miami 3. Washington, D.C. 4. San Francisco 5. Toronto

ISG MIAMI REPORT

7

“ 53 banking offices hold $12 billion in domestic deposits and $6.7 billion in non-resident alien deposits on Brickell Avenue, and nearly $7 billion in foreign money sits on the balance sheets of Greater Miami banks.�

Miami Today, Dec. 11th, 2013

8

ISG MIAMI REPORT

WALL STREET OF THE SOUTH Miami is the second most popular banking hub in the U.S. after New York City. Currently home to over 60 international banks and nearly 100 alternative investment companies*, Miami’s thriving financial district is attracting financial institutions from around the world.

Additionally, many of the nation’s wealthy financial leaders are heading to the Sunshine State – with their clients’ funds - to semi-retire while they work, live, and play. So why are banks and hedge funds setting up shop in Miami and investors from around the world depositing their millions here?

One major reason are the tax breaks– no individual state income tax or estate tax exists in Florida. Another reason is Miami’s obvious connection to Latin

America. As the gateway to the rest of the country, Miami and its financial center on Brickell Ave. is at the center of Latin American investments.

Mark Spitznagel, founder and CIO of Universal Investments – the largest Hedge Fund to move to Miami in recent years, said to Florida.gov, “Florida and Miami Dade County’s business-friendly policies offer the perfect environment for Universal as we expand.”

Even the financial tycoons who aren’t bringing their actual businesses to Miami are bringing their money here in a major way – through large real estate purchases. Goldman Sachs CEO Lloyd Blankfein and Apollo Global Management’s Leon Blac have both reportedly purchased eight-figure residences in Miami Beach.

*Miami Downtown Development Authority (DDA)

“Miami Is Wall Street South” Business Insider, February, 2014

Rendering of proposed new Fairholme Capital HQ, designed by Arquitectonica

ISG MIAMI REPORT

9

“ Downtown Miami is home to the second largest concentration of international banks that manage $26 billion worth of international bank assets and finances $54 billion worth of trade.”

August, 2014

A SAMPLING OF HEDGE FUNDS & FINANCIAL INSTITUTIONS W I T H H E A D Q UA RT E R S I N M I A M I Banco Colpatria Red Multibanca

Encore Housing Opportunity Fund

Colpatria SA

WE Family Offices

Banco Davivenda SA

Atyant Capital (Boca)

Banco de Bogata SA

FINSER International Group

Banco de Credito del Peru

Riverloft Capital Management

Banco de Nacion Argentina

Universa

Banco de Brasil

City National Bank

Banco Industrial de Venezuela

USB

ESL Fund

TotalBank

Fairholme Capital

US Century Bank

Bayview Asset Management

10

ISG MIAMI REPORT

MAJOR CORPORATIONS In addition to the aforementioned

and more than $209 million in capital

added offices or relocated to Miami, the

Fortune 500 companies located in

banks and hedge funds that have state of Florida has seen quite a bit of

corporate growth in a number of other

areas

as

well.

Once

again

taking advantage of our tax breaks, proximity

to

Latin

America,

and

ideal climate, numerous corporations are relocating to the Sunshine State.

According since

2013,

to

Enterprise

21

Florida,

companies

have

announced locations, relocations or expansions of corporate headquarters in Florida, accounting for nearly 3,000 jobs

investment. There are currently 16

Florida including the international rental

car conglomerate Hertz, which recently moved their operations here.

Additionally,

Miami

serves

as

the international hub for many large corporations. Global Trade Magazine

points out that 1,400 multinational corporations

use

Miami

as

their

Latin American headquarters including

Exxon, AIG, Microsoft, Visa, Walmart and many more.

ISG MIAMI REPORT

11

12

ISG MIAMI REPORT

NEW CONSTRUCTION

ISG MIAMI REPORT

13

Brickell Total New Construction Condo Units Available for Sale since Jan. 2012

Developer Units Sold

1100 Millecento

Developer Units Unsold

100% SOLD

382 Total Units

1010 Brickell

90% SOLD

Brickell City Centre Tower I - Reach

70% SOLD

390 Total Units

COMING SOON

390 Total Units

Brickell City Centre Tower II - Rise Brickell Heights East Brickell Heights West Brickell House

BRICKELL

90% SOLD

358 Total Units

COMING SOON

332 Total Units

100% SOLD

BrickellTen

60% SOLD

Brickell Flatiron

30% SOLD

Cassa Brickell

352 Total Units

374 Total Units 155 Total Units 548 Total Units

60% SOLD

The Edge on Brickell

35% SOLD

Echo Brickell

86% SOLD

Le Parc

85% SOLD

Nine at Mary Brickell Village

85% SOLD

81 Total Units

130 Total Units 180 Total Units 128 Total Units 390 Total Units

MyBrickell

100% SOLD

SLS

100% SOLD

453 Total Units

SLS Lux

55% SOLD

450 Total Units

The Bond

86% SOLD

192 Total Units

323 Total Units

5,608 Units total • 3,815 Units Sold • 1,793 Unsold Avg. Absorption: 1,900 Units Annually over the last 10 years 14

ISG MIAMI REPORT

Biscayne Corridor Consists of Wynwood, Design District, Edgewater, Midtown & Downtown Miami Total New Construction Condo Units Available for Sale since Jan. 2012

Developer Units Sold

250 Wynwood

W YNWOOD

Baltus House

DESIGN DISTRICT

23 Biscayne Bay

Biscayne Beach

82% SOLD

One Paraiso

97% SOLD

Paraiso Bayviews

55% SOLD

Paraiso Bay Tower I

95% SOLD

388 Total Units 368 Total Units

1000 Museum

40% SOLD

397 Total Units 83 Total Units

34% SOLD

Canvas

5% SOLD

Centro

85% SOLD

Paramount, Miami Worldcenter Signature Tower

300 Total Units

276 Total Units

COMING SOON

Krystal Towers

90 Total Units

330 Total Units

Hyde Midtown

Aria DOWNTOWN MIAMI

399 Total Units

100% SOLD 25% SOLD

96 Total Units

164 Total Units

72% SOLD

Ion

MIDTOWN

167 Total Units

100% SOLD 98% SOLD

Icon on the Bay

11 Total Units

97% SOLD

Bay House

The Crimson EDGEWATER

82% SOLD

Developer Units Unsold

647 Total Units 513 Total Units 350 Total Units COMING SOON

COMING SOON

153 Total Units 466 Total Units

5,198 Units total • 2,590 Units Sold • 2,608 Unsold Avg. Absorption: 1,300 Units Annually over the last 10 years ISG MIAMI REPORT

15

The Beaches Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale and Hollywood Beach Total New Construction Condo Units Available for Sale since Jan. 2012

Developer Units Sold

321 Ocean

95% SOLD 15% SOLD

13 Total Units

Beach House 8

100% SOLD

8 Total Units

88% SOLD

MIAMI BEACH / SOUTH BEACH

Glass

26 Total Units

100% SOLD

Faena House

90% SOLD

30 Total Units

100% SOLD

One Ocean

47 Total Units

10 Total Units

93% SOLD

Marea South Beach

50 Total Units

100% SOLD

114 Total Units

Ritz-Carlton Residences

45% SOLD

111 Total Units

1 Hotel and Homes

61% SOLD

Peloro On The Bay

*

45% SOLD

Fendi Chateau Surf Club Four Seasons Private Residences

60% SOLD

Oceana Bal Harbour

50% SOLD

BAL HARBOUR

*

21 Total Units

The Bath Club Estates

Edition Residences

SURFSIDE

Developer Units Unsold

159 Total Units 58 Total Units 150 Total Units 239 Total Units

New Construction Standing Inventory

2,970 Units total • 2,228 Units Sold • 742 Unsold Avg. Absorption: 1,300 Units Annually over the last 10 years 16

ISG MIAMI REPORT

Developer Units Sold

400 Sunny Isles

100% SOLD

Armani Casa

80% SOLD

Chateau Beach

98% SOLD

Jade Signature

80% SOLD

SUNNY ISLES BEACH

Parque Towers

80% SOLD

Mansions At Acqualina

96% SOLD

Porsche Design Tower

93% SOLD

Turnberry Ocean Club

84 The Total Units 192 Total Units

79 Total Units 139 Total Units 39 Total Units 154 Total Units 100% SOLD

80% SOLD 100% SOLD

Hyde Resort and Residences

100% SOLD

HOLLYWOOD BEACH

Sage Beach

71% SOLD

84 Total Units 182 Total Units

Apogee Beach *

68 Total Units 320 Total Units

10% SOLD

BeachWalk

Park Towers

250 Total Units

90% SOLD

*

HALLANDALE BEACH Gulfstream

230 Total Units

50% SOLD

Muse

Regalia

Developer Units Unsold

49 Total Units 40 Total Units

24 Total Units

Condo Residences Only

*

ISG MIAMI REPORT

17

Aventura Total New Construction Condo Units Available for Sale since Jan. 2012

Developer Units Sold

AVENTURA

Echo Aventura

85% SOLD

Bellini

70% SOLD

Prive

40% SOLD

Developer Units Unsold

190 Total Units 70 Total Units 160 Total Units

420 Units total • 274 Units Sold • 146 Unsold Avg. Absorption: 265 Units Annually over the last 10 years

North Miami Beach, Key Biscayne & Coconut Grove Total New Construction Condo Units Available for Sale since Jan. 2012

Developer Units Sold

NORTH MIAMI Beach

The Harbour

60% SOLD

Marina Palms Towers I & II

79% SOLD

KEY BISCAYNE

Oceana

Grove at Grand Bay COCONUT GROVE

One Park Grove Two Park Grove

Park Grove Club Residences

Developer Units Unsold

330 Total Units 468 Total Units

100% SOLD

154 Total Units

100% SOLD 97 Total Units COMING SOON 65% SOLD

50% SOLD

40 Total Units

73 Total Units

152 Total Units

1,314 Units total • 941 Units Sold • 373 Unsold Avg. Absorption: 200 Units Annually over the last 10 years 18

ISG MIAMI REPORT

Fort Lauderdale Total New Construction Condo Units Available for Sale since Jan. 2012 Developer Units Sold

1800 Las Olas Adagio On The Bay

75% SOLD 83% SOLD

4 Total Units 12 Total Units

COMING SOON

AquaBlu Fort Lauderdale

FORT LAUDERDALE

Developer Units Unsold

45 Total Units

AquaLuna Las Olas

50% SOLD

16 Total Units

AquaMar Las Olas

90% SOLD

20 Total Units

AquaVita Las Olas

100% SOLD

22 Total Units COMING SOON

Auberge BellaVita Las Olas Paramount Fort Lauderdale Privage Riva

COMING SOON 50% SOLD 7% SOLD 40% SOLD

171 Total Units

16 Total Units

95 Total Units 22 Total Units 100 Total Units

523 Units total • 152 Units Sold • 371 Unsold Avg. Absorption: 470 Units Annually over the last 10 years

New Construction Summary Total New Construction Condo Units to be built, sold and currently available for sale in Brickell, Biscayne Corridor (Downtown Miami, Edgewater, Wynwood, Midtown & Design District), the Beaches (South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale, Hollywood) Aventura, North Miami beach, Coconut Grove & Key Biscayne Since Jan. 2012.

16,033 Total

6,003 Unsold

10,000 Project Units Total Developer Units Sold Developer Units Unsold

62% SOLD AS OF OCT 2014

ISG MIAMI REPORT

19

A1A

75

FORT LAUDERDALE

PIKE FLORIDA’S TURN

595

HOLLYWOOD BEACH

1

A1A

HALLANDALE BEACH

AVENTURA

95

SUNNY ISLES BEACH

BAL HARBOUR SURFSIDE 1

NORTH MIAMI BEACH

95

DESIGN DISTRICT MIDTOWN BISCAYNE CORRIDOR

A1A

MIAMI BEACH /

EDGEWATER

WYNWOOD

SOUTH BEACH

DOWNTOWN MIAMI BRICKELL

COCONUT GROVE

1

KEY BISCAYNE

20

ISG MIAMI REPORT

Fort Lauderdale 29% SOLD Hollywood Beach 94% SOLD Aventura 65% SOLD Hallandale Beach 84% SOLD Sunny Isles Beach 80% SOLD Bal Harbour 50% SOLD Surfside 56% SOLD North Miami Beach 70% SOLD Miami Beach / South Beach 82% SOLD

New Construction % SOLD Summary

by Sub Markets 100% SOLD 75% - 99% SOLD 50% - 74% SOLD UNDER 50% SOLD

Biscayne Corridor 75% SOLD Downtown Miami 40% SOLD Brickell 80% SOLD Coconut Grove 67% SOLD Key Biscayne 100% SOLD Based off of current buildings on the market for sale

ISG MIAMI REPORT

21

10 Year Annual Absorption Analysis For Condos built from 2004 - 2014 Submarkets consist of Brickell, Biscayne Corridor (Downtown Miami, Edgewater, Midtown & Design District), The Beaches, (South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood Beach), Fort Lauderdale, Aventura, North Miami Beach, Coconut Grove & Key Biscayne.

Average Yearly Condo Inventory Absorption from 2004-2014

Brickell Biscayne Corridor

1,300 PER YEAR

The Beaches

1,300 PER YEAR

North Miami Beach, Key Biscayne, Coconut Grove Aventura Fort Lauderdale

200 PER YEAR 265 PER YEAR 470 PER YEAR

Total

Sources: Integrated Realty Information System (Irsi); Miami-Dade & Broward County

Property Appraiser and Multiple Listing Service (MLS)

22

ISG MIAMI REPORT

1,900 PER YEAR

4,700 PER YEAR

ISG MIAMI REPORT

23

Miami Penthouses. Stars Are Born.

As the ultra-luxury market continues to grow in South Florida, buyers are seeking spacious, one-of-a kind residences like never before, and nothing fills this prerequisite more than the unrivaled penthouses being brought to market. With sizes ranging from 8,000 to 16,000 square feet, fully equipped outdoor living spaces, expansive roof decks, and amenities such as personal fitness rooms, private spas & pools, in-residence parking, and advanced technology. With price points up to $60 million, these “mansions in the sky” are aligning themselves with the stars.

MANSIONS AT ACQUALINA SUNNY ISLES BEACH

Architect: Cohen, Freedman, Encinosa & Assoc.

AC Area: 15,219 Price: $55,000,000 Price PSF: $3,614

MUSE SUNNY ISLES

Architect: Carlos Ott / Sieger + Suarez AC Area: 6,106 Price: $18,554,000 Price PSF: $3,039 BAL HARBOUR

SURFSIDE

JADE SIGNATURE

Architect: Herzog & de Meuron AC Area: 16,915 Price: $32,500,000 Price PSF: $1,921

FENDI CHATEAU

Architect: Bernardo Fort-Brescia AC Area: 6,861 Price: $24,500,000 Price PSF: $3,571

RITZ CARLTON RESIDENCES

Architect: Piero Lissoni AC Area: 10,000 Price: $32,000,000 Price PSF: $3,200

THE BATH CLUB ESTATES MIAMI BEACH / SOUTH BEACH

Architect: Bernardo Fort-Brescia AC Area: 9,044 Price: $50,000,000 Price PSF: $5,529

FAENA

Architect: Norman Foster AC Area: 8,273 Price: $60,000,000 Price PSF: $7,252

ONE THOUSAND MUSEUM DOWNTOWN MIAMI

BRICKELL

24

ISG MIAMI REPORT

Architect: Zaha Hadid AC Area: 15,738 Price: $45,000,000 Price PSF: $2,859

ECHO BRICKELL

Architect: Carlos Ott AC Area: 10,305 Price: $37,500,000 Price PSF: $3,639

Muse Sunny Isles

Mansions at Acqualina

Jade Signature

Fendi Chateau

Ritz Carlton Residences

The Bath Club Estates

Echo Brickell

One Thousand Museum

Faena

26

ISG MIAMI REPORT

MLS-RESALE INVENTORY

ISG MIAMI REPORT

27

Brickell New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active Active Listing Price PSF

1,200 1,000 800

$425

1,049

$510

$470

$527

$600 $500 $400

804 698

600

$300

556

400 200

$200 $100

18 Months Ago 12 Months Ago

6 Months Ago Currently Active Source: Multiple Listing Service

Biscayne Corridor Consists of Downtown Miami, Edgewater, Midtown & the Design District New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active Active Listing Price PSF

1,200 1,000 800

$437

1,071

$488

$532

$564

$500 $400

814 660

600 400

$600

$300

420

200

$200 $100

18 Months Ago 12 Months Ago

6 Months Ago Currently Active Source: Multiple Listing Service

28

ISG MIAMI REPORT

Aventura New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active Active Listing Price PSF

600

$440

$427

500

436

400

$409

300 200

387

$402

$417

$430 $420 $410

255

194

100

$400 $390

18 Months Ago 12 Months Ago

6 Months Ago Currently Active Source: Multiple Listing Service

The Beaches Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood Beach New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active Active Listing Price PSF

$1,011

2,000 1,800

$1,000

1,717

1,600

$980

$957

1,400

$960

$933 1,332

1,200 1,000 800

$1,020

$907

600

$940 $920

890

$900

623

400

18 Months Ago 12 Months Ago

$880 $860

6 Months Ago Currently Active Source: Multiple Listing Service

ISG MIAMI REPORT

29

Greater Fort Lauderdale Consists of Sunrise, Plantation and East Fort Lauderdale New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active Active Listing Price PSF

900 800 700 600

844

$353

$379

$405

$439

$450 $400 $350

610

500

$500

$300

400

$250

372

300 200

$200

240

100

$150 $100

18 Months Ago 12 Months Ago 6 Months Ago Currently Active Source: Multiple Listing Service

East Palm Beach Consists of Delray Beach, Boynton Beach and West Palm Beach New Condos built Since 2006 & Available for Sale 18 months Ago, 12 Months ago, 6 Months Ago, and Currently Active Active Listing Price PSF

600

$257

500

485

400

100

$215

$260 $250 $240 $230

330

300 200

$231

$242

$270

$220

202

$210

161

$200

18 Months Ago 12 Months Ago 6 Months Ago Currently Active Source: Multiple Listing Service

30

ISG MIAMI REPORT

Days on the Market (DOM) 2012 vs 2014 MLS Analysis for Closed Sales New Condos built Since 2006

2012 Avg. DOM 2014 Avg. DOM

Brickell

120 160

Biscayne Corridor

30

110

Aventura The Beaches

32

31

90

35 160

Greater Fort Lauderdale

147

East Palm Beach

37 35

Source: Multiple Listing Service

ISG MIAMI REPORT

31

32

ISG MIAMI REPORT

RENTAL TRENDS

ISG MIAMI REPORT

33

Miami vacancy rates are still currently the third lowest in the nation.

Source: Marcus & Millichap, 2014

34

ISG MIAMI REPORT

Brickell Jan 2013 - Oct 2014 New Construction Condos Built since 2006 Avg. Price

Avg. Price PSF

$3,000

$2,500

$2,000

$2.73 $2.82

$2.68 $2.55 $2.61 $2.45 $2.38 $2.42 $2,700 $2,650 $2.31 $2.33 $2.36 $2.36 $2,610 $2,638

$2,140

$2,250

$2,370

$2,460

$2,475

$2,790

$3.00

$2.50

$2,590

$2,510

$2.00

$1,500

$1.50

$1,000

$1.00

$500

$0.50

Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14 JAN 2006 - OCT 2014

2006 Vacancy Rate

18%

2010 Vacancy Rate

9%

82%

2014 Vacancy Rate

1%

91%

99%

Occupancy Rate Vacancy Rate

Source: Multiple Listing Service

ISG MIAMI REPORT

35

Biscayne Corridor Jan 2013 - Oct 2014 Consists of Wynwood, Design District, Edgewater, Midtown & Downtown Miami New Construction Condos Built since 2006 Avg. Price

Avg. Price PSF

$2,800

$2.69 $2,700

$2,600

$2.20 $2.20 $2.25 $2.27 $2.29

$2.78

$2.45 $2.48 $2.42 $2.41 $2.40

$3.00

$2.50

$2675 $2,578

$2,600

$2,628 $2.00

$2,500

$2,504 $2,444

$2,400

$2,300

$2,200

$2,250

$2,287

$2,298

$2,302

$2,315

$1.50

$2,341 $1.00

$0.50 $2,100

Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14 JAN 2006 - OCT 2014

2006 Vacancy Rate

13%

2010 Vacancy Rate

10%

87%

2014 Vacancy Rate

3%

90%

97%

Occupancy Rate Vacancy Rate 36

ISG MIAMI REPORT

Source: Multiple Listing Service

The Beaches Jan 2013 - Oct 2014 Consists of South Beach, Miami Beach, Surfside, Bal Harbour, Sunny Isles, Hallandale & Hollywood Beach New Construction Condos Built since 2006 Avg. Price

Avg. Price PSF

$7,000

$4.21 $3.76

$6,000

$5,000

$2.76 $2.67 $2.72

$4,000

$4,327 $3,851

$3.12 $2.91 $3.06 $4,611

$4,716

$3.34 $3.35 $3.36 $4,685

$4,893

$4,709

$3.59 $5,380

$5,620

$4.50

$4.00

$5,813

$3.50

$3.00

$4,376

$2.50

$3,927 $2.00

$3,000

$1.50 $2,000 $1.00 $1,000

$.50

Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14 JAN 2006 - OCT 2014

2006 Vacancy Rate

2010 Vacancy Rate

14%14%

20%

80%

2014 Vacancy Rate

2%

86%86%

98%

Occupancy Rate Vacancy Rate

Source: Multiple Listing Service

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Aventura Jan 2013 - Oct 2014 New Construction Condos Built since 2006

Avg. Price

Avg. Price PSF

$3,500

$3,000

$2,500

$2.50

$1.88 $1.98 $2.02 $1.85 $1.77 $1.80 $1.76 $1.72 $1.74 $1.70 $2,961 $1.64 $1.69 $2,720 $2,750 $2,679

$2,000

$2,320

$2,415

$2,480

$2,502

$2,517

$2,525

$2,617

$2.00

$2,621

$1.50

$1,500 $1.00 $1,000

$500

$0.50

Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14 JAN 2006 - OCT 2014

2006 Vacancy Rate

2010 Vacancy Rate

1%

1%

99%

2014 Vacancy Rate

1%

99%

99%

Occupancy Rate Vacancy Rate 38

ISG MIAMI REPORT

Source: Multiple Listing Service

Fort Lauderdale Jan 2013 - Oct 2014 New Construction Condos Built since 2006

Avg. Price

Avg. Price PSF

$3,000

$2.50

$1.96 $1.96 $1.98 $1.76 $1.88 $1.92

$2,500

$2,000

$1,500

$1.66

$1.70

$1.73

$1.75 $1.60

$1.54 $1,785

$1,920

$2,035

$2,149

$2,234

$2,329

$2,363

$2,422

$2,484

$2.00

$2,656

$2,680

$2,720 $1.50

$1.00

$1,000

$500

$0.50

Jan/13 Mar/13 May/13 Jul/13 Sept/13 Nov/13 Jan/14 Mar/14 May/14 Jul/14 Sept/14 Oct/14 JAN 2006 - OCT 2014

2006 Vacancy Rate

13%

2010 Vacancy Rate

6%

10%

87%

2014 Vacancy Rate

90%

94%

Occupancy Rate Vacancy Rate

Source: Multiple Listing Service

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Population A great source of demand for South Florida real estate both now and in the future is the ever-increasing population of the state. In the last one hundred years, Florida’s population ranking in the U.S. has gone from 33rd to 4th. By 2015, Florida is projected to become third in population – overtaking New York.

United States Population Growth = 10 MIL

2040*

400 MIL

2020*

336 MIL 321,360,000 MIL

2015*

300 MIL

2006

200 MIL

1967 1914 *Est. Projection

40

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100 MIL

State Population Growth

1914

1967

2006

2015*

2020*

2040*

1. New York 5. Texas 12. California 33. Florida

1. New York 2. California 6. Texas 15. Florida

1. California 2. Texas 3. New York 4. Florida

1. California 2. Texas 3. Florida 4. New York

1. California 2. Texas 3. Florida 4. New York

1. California 2. Texas 3. Florida 4. New York

Florida Population Growth = 1 MIL

2040*

26 MIL

2020*

21.2 MIL

2015*

20,297,000 MIL 18 MIL

2006

6.6 MIL

1967 1914

882K Source: US Census Bureau

ISG MIAMI REPORT

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42

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INTERNATIONAL MARKET REPORT

ISG MIAMI REPORT

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South America Report

by Liliana Gomez - Director of International Sales & ISG’s International Division

In the 21 years that ISG has been selling South Florida real estate, a constant shift in the patterns and motivations of International buyers has become apparent.

In the early 1990’s, buyers consisted of wealthy families looking for vacation homes, mainly from the large cities of São Paulo, Brazil, and Buenos Aires, Argentina. By the late 1990’s, the buyer profile shifted to Bogota, Colombia, Caracas, Venezuela, and Mexico City, Mexico. These buyers were not only looking for vacation homes, but for investment properties as well.

Fast forward to 2014, and we see that buyers from every South American country and most cities, are buying real estate in Miami and South Florida.

ISG has witnessed two decades of South American real estate purchases in Miami, creating a concentration of new residents and families from these countries unlike any other city in the U.S. This critical mass of South American property owners now compares with property owners from the Northeast US and Canada, making Miami the playground for families from both Americas.

Today, the motivating factors behind the decision of many South Americans to buy in South Florida include: • Tropical Weather • Security • Nightlife • Growing Cultural Center • Prestige • World Class Shopping

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ISG MIAMI REPORT

Within different regions of South America, specific patterns are emerging that explain, in better detail, motivating factors for South Florida real estate purchases: Colombia

Colombia has changed in recent years; the economy is now soaring, and the country has almost doubled its population of millionaires in only five years.

Colombians are visiting South Florida in large numbers, buying homes for pleasure rather than just as an investment. Colombians are now looking to invest their wealth in a secure and enjoyable environment.

Source: Fundspeople.ci, October, 2013

Brazil

Brazilians have always been attracted to the U.S., particularly South Florida. One of the greatest appeals South Florida offers to Brazilians is the world-class shopping - the prices are substantially lower than in Brazil. Additionally, we are seeing a steady increase of direct flights from Brazil to Miami, which is an absolute reflection of the influx of Brazilian visitors. According to CNN, Florida is the top U.S. vacation destination for Brazilians.

Source: CNN.com February, 2012

Peru

With the emergence of an increasing segment of young and wealthy Peruvians with disposable income, interest in the South Florida lifestyle continues to grow.

Additionally, Peruvian families are purchasing homes here in order to enroll their children in well diversified universities. South Florida is more than a financial investment for this community, it a lifestyle investment.

ON THE GROUND In response to the continually growing demand for South Florida Real Estate from our neighbors in South America, ISG has offices in most of South America’s major cities.

Mexico

São Paulo

Rio

Buenos Aires

Bogotá

Caracas

Panama

Venezuela Mexico

South Florida has long been a “backyard playground” for wealthy Mexicans. Buying a second home in South Florida means enjoying all the amenities that the city has to offer, while investing in a nearby and secure area. Mexican buyers tend to select coastal waterfront communities and large apartments.

Colombia

Peru

Brazil

Argentina

Argentinians have had a long love affair with South Florida. Families who own property in Miami have witnessed an amazing cultural transformation firsthand.

The Miami real estate market provides consistent longterm stability to this growing community.

Venezuela

Venezuela has been characterized as a rich country due to its main source of income – petroleum. In the past decade, the changing political landscape of Venezuela has motivated many families to purchase both investment properties and second homes in South Florida (to be converted to permanent homes as part of a long-term strategy).

Argentina

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China A new market is emerging for South Florida real estate China. According to the National Association of Realtors, China has become the largest real estate buyer in the US overall, and those buyers are now beginning to shift their focus to Miami. “Until this year, Chinese investors were not among the top international buying groups in the Miami market. But through the first six months of

2014, Chinese buyers represented about 1.6 percent of properties sold in Miami-Dade County” according to the Miami Association of Realtors.

We will continue to see an increase in interest from China with the expansion of the Panama Canal underway and the Port of Miami positioning itself to benefit from the new trade opportunities.

MOTIVATING FACTORS FOR THE EMERGING CHINESE REAL ESTATE BUYERS:

46

1

2

3

CLIMATE, ENVIRONMENT & LIFESTYLE Miami’s low pollution (our city was named “America’s Cleanest City” by Forbes Magazine), it’s year-round air quality, vast green spaces, and clean drinking water. make it an attractive city to live in. The tropical climate is inviting for all types of outdoor lifestyle activities and events.

CHINA’S LIMITS ON REAL ESTATE INVESTMENTS The real estate market in China has seen a golden decade of fast growth. Today, the Chinese government has imposed a limit on the number of properties allowed to be owned by a single household, inside China. This policy is driving many wealthy people to look overseas for investment opportunities,.

In South Florida, pre-construction properties sell for less than 50% of the equivalent in Beijing.

TRADE The completion of the Panama Canal will make Miami aninternational trading center, connecting North America, South America, and Asia.

Currently, China is Florida’s largest importer, it’s third largest merchandising partner, and the Port of Miami’s number one customer in overall tonnage. Most experts agree, with the opening of the Panama Canal, Chinese businesses will begin opening regional offices throughout South Florida, affecting all sectors of real estate (industrial, commercial, and residential).

ISG MIAMI REPORT

Asian Capital into U.S. Multifamily 2014 TOP 5 METROS

4 Seattle

1 San Francisco

New York 3

2 Los Angeles

5

South Florida

2004

2010

2014

1. New York 2. Washington, D.C. 3. Los Angeles 4. San Francisco 5. Seattle 10. South Florida

1. New York 2. Washington, D.C. 3. Boston 4. San Francisco 5. Los Angeles 8. South Florida

1. Los Angeles 2. San Francisco 3. New York 4. Seattle 5. South Florida

Source: CBRE Capital Markets, Assets, Real Estate Industry and Trends, December, 2004 survey

Source: Business Wire, January, 2011

Source: CBRE Capital Markets, Real Capital Analytics, October, 2014

ISG MIAMI REPORT

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TRANSPORTATION

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49

AIR

Miami International Airport (MIA) is one of the fastest growing airport hubs in the world. Last year (2013), MIA set a new all-time record for annual passenger traffic with 40.5 million passengers, an increase of 3% over 2012. Of the total passengers that traveled through MIA, 50% were international, which is one of the highest international to domestic passenger percentages of any US airport.

During 2013, MIA handled 49% of the U.S. to South American passenger market, and was the largest connecting point for flights between the Americas, and for flights between the Americas and Europe.

MIA has recently completed a $6.4 billion Capital Improvements Program (CIP), the largest components of which are the new South and North Terminals. The Terminal expansion has increased gates by 23% and there are now 29 more gates with international and domestic capability.

2014 Total Passengers to/from Latin America & Caribbean

By U.S. Gateway

Miami (MIA)

15.1 MIL

New York (JFK)

7 MIL

Hartsfield Atlant (ATL)

3.8 MIL

Houston (IAH)

2.7 MIL

Fort Lauderdale (FLL)

2.5 MIL

Newark (EWR)

1.8 MIL

2014 WEEKLY TO/FROM LATIN AMERICAN/CARIBBEAN FLIGHTS:

20,200,000

Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014 / 2015 Miami Dade Aviation Department

1,120

MIA INTERNATIONAL PASSENGERS 2014

Ranking of Major US Airports - 2014 International Passengers 1

New York (JFK)

Miami (MIA)

20.2 MIL 3

Los Angeles (LAX) Newark (EWR)

4 5

Hartsfield Atlanta (ATL)

6

Chicago O’Hare (ORD) 7

San Francisco (SFO) 8

Houston (IAH) 9

Washington Dulles (IAD) Dallas Fort Worth - (DFW)

10 5 MIL

50

2014 Ranking:

2

20.2 MIL

2010 Ranking:

3

14.7 MIL

2004 Ranking:

4

9.8 MIL

ISG MIAMI REPORT

2

10 MIL

15 MIL

20 MIL

25 MIL

Source: Miami International Airport Gateway to Miami, to Florida & to the Americas 2014-2015 Report.

Miami-Dade Aviation Department

San Francisco

New Jersey

Chicago

252

392

602

Los Angeles

700

New York

1,708

Washington D.C Atlanta

784

903

Dallas

560

Houston

476

MIAMI

Mexico

296

Venezuela

66

Colombia

76

2014 Weekly Direct Flights

Surinam

5

Guyana

2

Ecuador

35

Domestic Latin America

Peru

35

Brazil

110

Bolivia

7

Paraguay

4

Argentina

42

Uruguay

7

Chile

27

Source: Miami-Dade Aviation Department Marketing Division *Caribbean Region Not Included

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All Aboard Florida is a high-quality, express intercity passenger rail that will connect Miami to Fort Lauderdale to West Palm Beach to Orlando. This rail service will provide Floridians and visitors a viable transportation alternative and will be the first privately owned, operated and maintained passenger rail system in the United States.

West Palm Beach- Approx. 1 Hour

ALL ABOARD FACTS

MiamiCentral, All Aboard Florida’s multimodal hub station in Miami is set to break ground early 2015 and will serve as the flagship of the intercity passenger rail service operation. MiamiCentral will: • Connect with existing public transit systems—MetroRail, MetroMover & MetroBus, through the new terminal • Create approximately 3.5 million square feet of office, retail, residential and hospitality space • Feature a mix of premier and unique dining and shopping options as well as entertainment venues

$6 Billion

IN DIRECT ECONOMIC IMPACT TO FLORIDA’S ECONOMY OVER THE NEXT 8 YEARS MiamiCentral Station

Source: All Aboard Florida

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ISG MIAMI REPORT

Orlando- Approx. 3 Hours

LAND

Fort Lauderdale- Approx. 25 min.

Miami

“ All Aboard Florida has officially begun construction to the Fort Lauderdale station... the station is expected to create about 800 construction jobs and have an economic impact of $333 million through 2021.”

Source: South Florida Business Journal - 10/14

Over 10,000 Jobs ON AVERAGE PER YEAR THROUGH THE RAIL LINE CONSTRUCTION (FALL 2014-FALL 2015)

UP TO

3 Million

VEHICLES REMOVED FROM THE ROADS EACH YEAR

PANAMA CANAL / PORT OF MIAMI

The $5.25 billion Panama Canal Expansion is now 80% complete. The expansion will allow the passage of bigger vessels – called Post-Panamax, which will double the canal’s capacity and change the face of global marine transit. In response to this major event, PortMiami began their own $1.3 billion expansion – positioning itself to be the first port of call for the post-Panamax ships. The largest element of this undertaking - deepening PortMiami’s harbor from 44 feet to 50-52 feet and widening part of its shipping channel, is set to be complete in 2015, while other elements such as a new underwater tunnel and rail link are already up and running.

The deepening of the PortMiami channel, could be the boost needed here to allow it to gain more relative importance with China. China is PortMiami’s No. 1 trade partner, more than doubling it’s numbers in a short time. A decade ago, China accounted for 11.44% of all PortMiami trade while today that market share is up to 26.43%, according to WorldCity analysis of U.S. Census Bureau.

PORTMIAMI / CHINA TRADE %

2014: 26.43% 2004: 11.44%

SEA

PortMiami

Super Post Panamax: 176’

Post Panamax: 136’

Panamax: 106’

50’

“ The countdown is on! The Panama Canal project is two-thirds completed. A wider and deeper canal means shippers will have new options for all water routes from Asia to markets on the East Coast, PortMiami, the first U.S. port of call from Panama, is well positioned to benefit from the new trade opportunities.”

Bill Johnson, Director of PortMiami

COMMERCE EXPANSION TRACKING FORECAST Florida East Coast Railway (FECR) $50 Million in upgrades to the 351 miles of track from Miami to Jacksonville

COMPLETED

Port Tunnel opens for traffic

COMPLETED

Government cut dredging Panama Canal Expansion Completion

SCHEDULED 2015 SCHEDULED SUMMER 2016 Source: Miami Today, Panama Canal Authority

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53

INE CUIS ION

H FAS

so ore m n eve ch and Whi . y y r t t i g c coun nd youn our ss a f y e o r n i e ope a v bus ic i is e sc Mag sive m o e l a i h p t In th ex o en d, M the rtak ng t worl e y v h e o xciti w h t e s y a l o h e s, en s ines recis that s e p u b h t b s i has row t to d. ral g vate men ears i u t y n t l i l u a t u t c cen ing c nter in re to e is be t y y r t t i i a C ing c rom is ris h. F h c t t f a o w pect y as r e v e

fi

u t l u c & s t r a

n i a t r e t en

SPO

LITY PITA HOSR T S

Y G O L O N H C T E

Edu

n o i t ca

54

ISG MIAMI REPORT

ilm e

r u

t n e m n

CULTURAL & ECONOMIC GROWTH

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“ Show me a city that does not promote the arts, and I will show you a city without an identity. It is the one piece of humanity that transcends time and ties us all together as the human race. Art is the soul and the spirit of each generation, to be passed along to the next and beyond. Through paintings, sculpture, books, architecture, music, dance, we show our creativity, our expression, who we are – it is how we remain alive. Art connects us to the past, and is a legacy we leave for the future.”

Former Miami Mayor Manny Diaz at the 2014 Mayor’s Ball in Sunny Isles

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ISG MIAMI REPORT

Miami and The Arts have never been more connected. The relationship has flourished in recent years, and is growing stronger by the day. With the Perez Art Museum (PAMM) officially open and breaking records (attendance levels hit over 150,000 visitors in its first four months, original estimates were for 200,000 visitors in its first year) and the Patricia and Phillip Frost Museum of Science well into construction (MiaSci), Museum Park in Downtown Miami is now a reality. Additionally, the progression of Miami’s local artists – from Wynwood to Coconut Grove to Design District – continues to gain immense international praise.

“Every great city needs a great museum” Jorge Perez Chairman, President & CE0 - RelatedGroup Forbes 400 Summit On Philanthropy

4 DAYS $500 MIL ECONOMIC IMPACT 75,000 VISITORS Estimated

Source: nbcmiami.com, 2013

Each Year

Source: artbasel.com, 2014

The world’s premier international art show, Art Basel, a four day event displays an estimated $3 billion worth of paintings, photographs and sculptures. The show has been breaking records since its inception in 2002. Last year, Art Basel Miami Beach – reported over $100 million in sales. But Art Basel goes well beyond art. The week leading up to and during the fair encompasses

fashion shows, dozens of additional art fairs such as Scope, ArtMiami and the Brazilian Art Fair, major food and dining events, pop-up bars, music concerts, film premieres, and stars at every turn. The economic impact on Miami of this weeklong cultural event has been estimated at $500 million, with 75,000 attendees from around the world.

Sources: Los Angeles Times, 2002, Art Basel 2014

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ENTERTAINMENT MIAMI’S ENTERTAINMENT OFFERINGS ARE SOME OF THE BEST IN THE WORLD. FROM THEATER TO MUSIC TO SPORTS TO FILM, THE CURRENT OPTIONS ARE LIMITLESS, AND THE EVOLUTION OF THIS EXCITING INDUSTRY IS BOUNDLESS.

“Second only to the Lincoln Center” Travel and Leisure.com, Nov. 2011

After a large renovation that was completed in 2006, the Adrienne Arsht Center for the Performing Arts of Miami-Dade County is now one of the largest performing arts centers in the world.

Each year, the Arsht Center presents new and exciting programming in its 570,000 square feet of downtown performance space including Broadway musicals, World Music & Dance Series Comedy Planet, Florida Grand Opera, the Miami City Ballet, the New World Symphony and more.

South Florida is host to dozens of additional performance centers, hosting the largest music acts in the world. From American Airlines Arena to Cruzan Amphitheater, Bank Atlantic Center, Jackie Gleason Theater, Revolution Ft. Lauderdale, and Seminole Hard Rock, our region offers amusements of all kinds for all tastes, every day and night of the year.

Adrienne Arsht Center for the Performing Arts

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ISG MIAMI REPORT

Marlins Park

South Florida plays host to some of the best sporting teams and venues in the world.

With the world-champion Miami Heat playing at AAA, the brand new Marlins Park, the Florida Panthers at Bank Atlantic, and Sun Life Stadium now hosting the Dolphins as well as the Miami Hurricanes, sports enthusiasts have no shortage of options.

Miami has world championship football, basketball and baseball, but one professional sport has been missing for the city’s legions of fans – soccer.

Enter David Beckham. He and his business group, Beckham Miami United, have announced plans to start a Miami MLS soccer team and build a 20,000 seat stadium using 100% private funding.

“ It can’t be that the most Latin city in this country doesn’t have a soccer team, my job is to make sure to change this.”

David Beckham Despierta America Sept 2014

As if South Florida weren’t already bursting with things to do, 20th Century Fox just announced plans to build a theme park near Zoo Miami. The as-yet-approved plan for “Miami Wilds” would feature characters from 20th Century Fox Animation movies such as Rio in addition to a water park, a 400-room hotel, a performance space, a movie theater, a bowling alley, restaurants, and retail shops.

Miami Wilds - Proposed

$2 Bil ion 3,000

FILM & ENTERTAINMENT INDUSTRY ANNUAL ECONOMIC IMPACT ON SOUTH FLORIDA

LOCAL FILM & ENTERTAINMENT COMPANIES

Sources: MiamiWalkofFame.com

film

For decades, Miami has served as the backdrop for a variety of film and television productions.

In recent years, Florida’s film industry has extended beyond the background and moved into the foreground of development, promotion and exhibition.

70,000 attendees 2014 FESTIVAL

“ Miami offers a seasoned film community and experienced crew, the locations here are like no other in the country, and the Hollywood community is very aware of the assets Florida offers.”

Chris Cooney, EUE Screen Gems COO Miami Today, March 2014

EUE/Screen Gems Studios Film Complex - Opening Fall, 2015

Film studio EUE/Screen Gems Studios has just signed a multi-million dollar lease for a large-scale production studio in Downtown Miami. The company will build out and operate two sound stages of 15,000 square feet each. “Miami is so unique, it fits readily into our production portfolio,” said Chris Cooney, EUE Screen Gems chief operating officer. “All of Latin America wants to come here. India and China want to do business here, as well as countries in Europe, including Turkey and Spain.”

Source: Miami Today, March, 2014

Luxury Dine-In Theaters

High-end movie theaters are taking Miami head-on. From Swire Properties’ planned world-class theater at Brickell City Centre to the dine-in Silverspot at Met 3 Downtown to the luxury Ipic theater coming to North Miami Beach to the planned luxury theater for the Bal Harbor Shops expansion, seeing a flick in Miami is moving way past just popcorn and candy.

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FASHION While South Florida has always been the capital of beautiful models and breathtaking photo shoots, the city has been establishing itself in the coveted world of high fashion for years. Thanks to a new crop of trendsetters receiving attention from the likes of Vogue’s Anna Wintour, this feat has finally been accomplished. One reason the city has received so much fashion attention of late is the birth of an impressive stable of fashion bloggers who have made themselves known around the world. These writers keep their thousands of followers engaged through inventive styles, witty anecdotes, front-row access, celebrity friendships, and robust social media outreach.

Elisea Holt of HOLT Swimwear, theholtstore.com

Miami plays host to three major fashion weeks: MercedesBenz Fashion Week Swim, Miami Beach International Fashion Week and Funkshion Fashion Week. The largest of the three, Mercedes-Benz Fashion Week Swim, is an international event on the calendar of every editor and fashionista, celebrating the sexiest swimwear designs and resort wear of the year.

Mega-designer Tommy Hilfiger recently named Miami his new home and will be working on a large-scale design project here.

Source: cnn.com, 2014

“Miami Beach International Fashion Week has become the largest latin american and international fashion festival in the United States”.

Source: Elite Traveler

Courtesy of Mara Hoffman

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DON’T MESS WITH TECH

2014 Highest % Growth and Most New Positions Added in the Tech Industry August 4, 2014 | Shravan Goli

1. TEXAS.................................. 5.99%

6. NEW YORK.......................... 3.08%

2. FLORIDA.............................. 5.64%

7. MASSACHUSETTS................ 2.91%

3. NORTH CAROLINA.............. 3.80%

8. NEW JERSEY...................... 2.84%

4. OREGON...............................3.57%

9. MICHIGAN............................ 2.72%

5. WASHINGTON.......................3.53%

10. MISSOURI............................ 2.10%

Source: Bureau of Labor Statistics

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S I L I C O N S O U T H Miami has seen substantial recent growth in the financial and corporate sectors, but almost nothing can compare to the technology boom that has taken over South Florida. Now nicknamed “Silicon Beach,” The Magic City has birthed over 1,000 startups in the last few years including rising stars STS, Open English and Live Ninja.

The city has also established co-working spaces to support tech growth such as The Lab Miami, Venture Hive, Rokk3r Labs - a technology portfolio company, The Launch Pad Tech Accelerator at the University of Miami, Pipeline Brickell, the Micro Venture Capital Club, and the Miami Entrepreneurship Center. Many of these startups and tech support companies have their own funding sources as well such as Endeavor’s venture capital fund, Catalyst.

Additionally, organizations such as The Miami Economic Development Council, Florida International University and the Knight Foundation are investing major backing and funding in an effort to grow and support Miami’s tech boom. Most recently, the mysterious South Florida tech firm Magic Leap received over $500 million in funding from Google to develop their high-tech product.

In May of 2014, the Technology Foundation of the Americas hosted thousands of attendees at eMerge Americas - the pre-eminent technology conference of The Americas. The second annual eMerge Americas event will take place in May 2015, where 10,000 attendees are expected. European-based Sime Northern Europe’s largest conference on Internet and digital opportunities, jumped on the Miami tech wagon last year with Sime MIA. This year, they’ll do it again in December 2014.

Besides the financial backing available to South Florida startups, the region is clearly the gateway to South America – where the amount of Internet users has doubled in the past ten years*. This gateway is not simply a cultural perception, rather in tech terms, it’s a matter of speed – the link from Miami to South America is a matter of milliseconds, whereas it would take much longer from other areas. *Pingdom.com, 2012

MICROSOFT PICKS MIAMI FOR 1ST US INNOVATION CENTER

MICROSOFT VICE PRESIDENT SANET AKERKAR TOLD THE ASSOCIATED PRESS THE COMPANY LOOKED AT MIAMI AS A GREAT HUB FOR TECH IN THE SOUTHERN UNITED STATES.

- Bringing Microsoft in is part of the broader goal of “bringing the world to Miami.”

May 30, 2014 | Arian Campo-Flores

WOULD YOU BELIEVE IT? MIAMI HAS A REAL TECH SCENE NOW

TECH COMPANIES FLOCK TO MIAMI TO REACH LATIN AMERICA.

“ We are the logical point to be the technology capital of Latin America,” said Manuel Medina, founder of Terremark, a Miami data-services company acquired by Verizon Communications for $1.4 billion in 2011.

May 30, 2014 | Arian Campo-Flores

SQUARE CO-FOUNDER: HOW I PLAN TO BOOST MIAMI’S TECH TALENT JIM MCKELVEY, SQUARE FOUNDER (VALUED AT $6 BILLION)

“...recently moved to Miami to expand his nonprofit LaunchCode, which helps train and place programmers. “We’re particularly excited about [Miami coding school] Wyncode”, McKelvey told the South Florida Business Journal, and he even discussed working with a team from Harvard here, saying, “My guess is that the Harvard team could be convinced to come to Miami, especially when the temperature starts dropping in Boston next month.”

Source: Business Journal, 2014

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H OT E L S SOUTH FLORIDA’S HOSPITALITY SCENE IS HOTTER AND MORE PROFITABLE THAN EVER. CELEBRATED HOTEL BRANDS ARE JOINING MIAMI’S ALREADY WORLD-CLASS OFFERINGS BY THE DAY, FURTHER CEMENTING OUR REGION’S ROLE AS ONE OF THE BEST TOURIST DESTINATIONS ON THE PLANET.

5-Star Hotel Analysis over the Past 20 Years South Florida Hotels Located East of Interstate 95

Sampling of South Florida’s 5-Star Hotels

45 10,281

5,643

14 7 1,254 1994

2004

2014

Number of Hotel Rooms Number of Hotels Source: GREATER MIAMI CONVENTION & VISITORS BUREAU

2,500 MORE HOTEL ROOMS DUE IN MIAMI IN 2015 Greater Miami Convention & Visitors Bureau

A N T I C I P AT E D H O T E L O P E N I N G S

The Edition - Miami Beach

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Aloft South Beach

The Thompson - Miami Beach

CUISINE WHILE THE EXPLOSION OF NEW HOTELS NATURALLY BRINGS WITH IT A CROP OF TOP-NOTCH RESTAURANTS, SOUTH FLORIDA’S DINING SCENE TODAY IS MORE INVENTIVE, MORE THRILLING AND MORE LUCRATIVE THAN EVER BEFORE.

The always-hot Miami has introduced some exciting newcomers recently such as Tongue & Cheek, Il Mulino, Bar Crudo, Naked Taco, 1826, Ceviche 105, Lure, a new chef at The Forge, Traymore, and Top Chef’s Fabio Viviani’s Siena Tavern.

These are in addition to mainstays such as Prime 112, Joe’s Stone Crab, Makoto, Cecconi’s at Soho Beach House, Khong River House, the numerous delectable restaurants at the Fontainebleau, Yardbird, the Pubbelly chain and many more.

A S A M P L I N G O F N E I G H B O R H O O D E AT E R I E S DOWNTOWN BRICKELL

T he

tin m el

g po

DESIGN DISTRICT, EDGEWATER, WYNWOOD & MIDTOWN

rant scene has exploded in the past few y u a t s e r e i’s Miam nts and visitors has brought an array of sophi ars... stica t esi de ed , t t of r

CORAL GABLES & SOUTH MIAMI

a sty

cui s

in e. ” ISG MIAMI REPORT

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Landscape of the Future In any city, there are developments that serve a singular purpose such as housing, retail, hospitality, or office space, and then there are projects that change the landscape of the city as a whole. Three current examples of such grand undertakings in Miami are the Flagler Streetscape project, the Grand Pedestrian Promenade Plan along Biscayne Blvd., and the futuristic, thousand-foot tall observation deck that is Skyrise Miami.

Grand Pedestrian Promenade - Biscayne Blvd.

• • • •

Skyrise Miami

• $430 MIL Project • 3 Observation Decks • Restaurant, Nightclub, Ballroom, Meeting Room, Interactive Exhibit • Estimated 3.2 MIL visitors per year Source: SkyriseMiami.com

Replace median parking with a pedestrian oriented green median Bicycle Lanes: Two Dedicated Bike Lanes Original Sidewalk: Expanded Total Cost from NE 8th St. to Biscayne Blvd. Way = $24 MIL Source: MiamiDDA, May 2014

East Flagler Street Redevelopment

• $13 MIL Project • Portions of historic street to be transformed into pedestrian-friendly promenade Source: Miami Today, October 2014

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E du c a ti o n In 2014, Miami-Dade County Public Schools Superintendent Alberto Carvalho was named National Superintendent of the Year thanks to his efforts in turning around the Miami-Dade Pubic School system.

SUPERINTENDENT OF THE YEAR

University of Miami – one of the top private colleges in the country - hosts more than 15,000 students from around the world, almost 30% of which are Hispanic. Every year, approximately 3,000 international students (undergraduate and graduate) and scholars (professors and researchers) from 115 countries representing every region of the world study, teach, and conduct research at the University of Miami.

Named one of the top 50 National Universities by U.S. News & World Report: Best Colleges Rankings 2014 Dr. Eduardo Padrón is the President of Miami Dade College, a national model of student achievement and the largest institution of higher education in America.

In 2009, Time Magazine included him among the “10 Best College Presidents” in the United States. Dr. Padrón’s pace-setting work at Miami Dade College has been hailed as a model of innovation in higher education. He is credited with engineering a culture of success that has produced impressive results in student access, retention, graduation, and overall achievement.

Time Magazine included President of Miami Dade College, Dr. Eduardo Padrón, among “10 Best College Presidents” in the United States On the University front, Florida International University (FIU) is the largest school in South Florida and is #5 on the list of largest public universities by enrollment in the country, #11 among international business programs in the nation and #1 in the nation in awarding bachelor’s and master’s degrees to Hispanic students.

Additionally, FIU has students from 142 countries, most notably Colombia, Venezuela, Jamaica, China, Peru, The Bahamas, and Trinidad & Tobago.

# 1 IN NATION

AWARDING BACHELOR’S AND MASTER’S DEGREES TO HISPANIC STUDENTS

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ISG CITY WATCH

Doral Nationally Ranked #2 “25 Best Cities in the United States to Live Well”

Population Growth 47,534

50,000

Overall Value Assessed Property $12 BIL*

50,000+

*

$10 Billion

$8.4 BIL

40,000 30,000

26,438

$5 Billion

$4.9 BIL

20,000 10,000

May, 2009

• Business Week ranked Doral as the number one city in Florida to start a business.

2003

2012

2014

2003

*Projected

2012

2024-34

*Projected

Source: Miami Today, 2014 City Planning & Zoning Dept.

• Amazon.com signs Doral distribution center lease, to create 500 jobs.

Source: South Florida Business, November 21, 2014

Downtown Miami Brickell 20 Min. 22 Min.

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Miami International Airport 10 Min.

Doral Design District

Trump National Doral Blue Monster Course

“ Doral is a great place to live and work... with every school in the city – public, private, charter – rated A” Nathan Kogon Director of the City’s Planning & Zoning Department Miami Today, February, 2014

Downtown Doral Charter School • Kindergarten to 12th Grade • School opens summer 2015 • English with additional Spanish and Portuguese language classes.

• More than 50% of the registration is set aside for Downtown Doral Residents • First time a Public and Private sector partner to manage charter school • College preparatory focused, teaching high standards for academics and character • Faculty made up of committed and talented leaders and teachers

Trump National Doral

Purchased by the Trump Organization in June 2012, the Doral Golf Resort & Spa has been undergoing a $250 million “Return to Grandeur.” Every aspect of the 800-acre resort has been or is being completely transformed including a completely re-designed clubhouse, new deluxe accommodations, luxurious event spaces, new restaurant concepts, redesigned championship golf courses, plus all new re-imagined recreational amenities and retail shops for guests and members to enjoy.

THE TRANSFORMATION

• New Deluxe Guestrooms designed By Ivanka Trump • Complete Redesign of Golf Course scheduled to be completed Fall 2014 • New Meeting and Event spaces totaling over 100,000 sq. ft.

• Addition of BLT Prime, a modern American Steakhouse

• Resort Clubhouse (includes dining venues and retail shops) undergoing comprehensive makeover • The New Royal Palm Pool featuring all new landscape and patio design with expanded seating capacity • New State-Of-The-Art Fitness Center

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Photo Credit:

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SOUTH FLORIDA 2020 With the extensive construction and expansion taking place in our region, what will Greater Miami actually look like by the end of this decade?

The following pages illustrate a variety of “2020’s”, broken down by neighborhood.

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Downtown Miami 2020

DOWNTOWN MIAMI: $11 BILLION IN NEW DEVELOPMENT THROUGHOUT 20 BLOCKS One Bayfront Plaza Skyrise Miami Tower Biscayne Boulevard (FECR) (Berkowitz) Beautification 4.2 million sq. ft. Grand Boulevard Landscaping & 1000 Ft. Observation Tower 72 Story Tower Mixed Use Retail and Baywalk Links Streets, Mixed-use, Hospitality Parks and Bay Office, Hotel, Retail $400 Million $2 Billion

MET (MDM) JW Marriott Hotel Beaux Arts Hotel MET Square 470 Hotel Rooms 1,700 Seat Theatre 4 Story Retail, 41,000 Sq. Ft. Restaurant Whole Foods

Flagler on the River (MELO) 32 Stories 300 Condo Residences

All Aboard Florida (Florida East Coast Industries) Mixed use 9 Acres 1.5 Million Sq. Ft. Office, Residential, Retail , and Hotel

EPIC

CENTRO (Newgard) 37 Stories 350 Loft Style Condos $90 Million

Vizcayne Two 49 Story Towers 849 Condos 55,000 s.f. Retail $265 Million

300 Biscayne (PMG) Residential and Commercial

Krystal Tower (Rodolfo Ishak) 35 Stories 153 Condos

GUSMAN CENTER MET

MIAMI DADE COLLEGE

VICEROY

MIAMI RIVER

BAYFRONT PARK

BAYSIDE MARINA

BISCAYNE BAY

CRUISE SHIP PORT

TO SOUTH BEACH

AMOUNTS ARE AN ESTIMATE

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Port of Miami Tunnel Connects I-395 and Watson Island to Port $607 Million

600 Biscayne TBD

Miami World Center (Falcone) 12 million sq. ft., 27 Acres Hotel, Retail, Civic Space, Office, Residential $4 Billion

1000 Museum (Covin) 63 Stories 83 Condos Design by Zaha Hadid $300 Million

Museum Park 29 acres.

Perez Art Museum Miami Patricia & Phillip Frost Museum of Science $500 Million

Adrienne Arsht Center 48,000 sq. ft.

Film Production Studio $13.6 Million

Resorts World Miami (Genting) 14 acres Destination Resort Hotels & Residences $3 Billion Proposed

Canvas (NR Investments) 37 Stories 513 Condos

Overtown Gateway (Peebles) 2 Phases 150 Staybridge Hotel Room Suites 635 Apartment Units 60,000 Sq. Ft. Retail 100,000 Sq. Ft. Office $200 Million Proposed

Paramount Miami World Center 749 Ft. Signature Tower 466 Condos

Omni (Genting) 1.5 million sq.ft.

Hilton Hotel, Office, Retail & Potential Casino $400 Million

MIAMI INTERNATIONAL AIRPORT

MIAMI RIVER DISTRICT

MARLINS STADIUM

FREEDOM TOWER

PERFORMING ARTS CENTER

AMERICAN AIRLINES ARENA

I-395 BISCAYNE BAY WATSON ISLAND MARINA

STAR ISLAND

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Brickell 2020

BRICKELL: $6 BILLION IN NEW DEVELOPMENT Landscape Park Public Bayfront Park Proposed

Echo Brickell (PMG & JDS) 180 Luxury Residences 57 Stories Collaboration by Carlos Ott + yoo Studio

Le Parc (ALTA & Strategic) 128 Boutique Condos 12 Stories

CORAL GABLES

BISCAYNE BAY

AMOUNTS ARE AN ESTIMATE

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Cassa Brickell (TSG) 10 Stories 81 Condos

Atton Hotel 270 Rooms 12 Stories Design by Luis Revuelta

Brickell House (New Guard) 374 Condos 46 Stories

SLS Brickell (Related) 453 Condos 120 Hotel Rooms 52 Stories Design by Phillipe Stark

Panorama Tower (Florida East Coast) 821 Condos 128 Hotel Rooms 81 Stories 82,000 Sq. Ft. Retail 38,000 Sq. Ft. Office

1100 Millecento (Related) 382 Condos 42 Stories Design by Carlos Ott + Pininfarina

The Bond (MDR) 323 Condos 43 Stories

BrickellTen (IBGroup) 155 Condos 22 Stories

1010 Brickell (Key International) 352 Condos 47 Stories Design by Sieger Suarez

Brickell Flatiron (Ugo Colombo) 548 Condos 65 Stories Design

By Luis Revuelta

NINE at Mary Brickell (Starwood Capital & Lynd) 390 Condos 48 Stories Design by ADD

Brickell Heights (Related) 2 Towers 690 Condos 48 Stories Design by Arquitectonica SLS Lux (Related) 450 Condos 85 Hotel Suites 57 Stories Design by Arquitectonica

MARLIN’S STADIUM

Brickell City Centre (Swire) 5.4 million Sq. Ft. 9 Acres 780 Condos 93 Apartments 243 Hotel Rooms 520,000 Sq. Ft. Retail 240,000 Sq. Ft. Office

My Brickell (Related) 192 Condos 27 Stories

Edge on Brickell (Grupo Habitat) 130 Condos 58 Stories Design by Luis Revuelta

One Brickell (Related) 3 Towers 80 Stories 70 Stories 55 Stories 1,200 Condos 200 Hotel Rooms 200,000 Sq. Ft. Retail Proposed

MIAMI RIVER DISTRICT

DOWNTOWN

BRICKELL KEY BISCAYNE BAY

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Biscayne Corridor 2020

EDGEWATER, MIDTOWN AND DESIGN DISTRICT: $3.5 BILLION IN NEW DEVELOPMENT Aria on the Bay (Melo) 647 Condos 50 Stories 40,000 SF Commercial Space

The Filling Station (FLS Development) 81 Condos Proposed

DOWNTOWN MIAMI

National Young Arts Foundation Proposed New Campus Designed by Frank Gehry at Historic Bacardi Building

Biscayne Line Public Bay Walk Proposed from Venetian Cswy to Julia Tuttle Cswy

MARLIN’S STADIUM

ADRIENNE ARSHT PERFORMING ARTS CENTER PÉREZ ART MUSEUM

AY EW AUS H C R C THU I BEA M CAR MA O MIA T

AMOUNTS ARE AN ESTIMATE

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District Walls On-going Art Movement

250 Wynwood (Fortis) 11 Condos 6 Stories Mixed-Use Retail

Mbay (Hyperion) 129 Condos 39 Stories Proposed

MIAMI INTERNATIONAL AIRPORT

MIAMI RIVER DISTRICT

AMERICAN AIRLINES ARENA

Wynwood Art

AY EW US CH A C EA IAN I B ET IAM N VE O M T

Bay House (Melo) 164 Condos 38 Stories

The Crimson (Mckafka) 90 Condos 20 Stories

Ion (Sakor) 330 Condos 36 Stories Design by Arquitectonica

Icon on the Bay (Related) 300 Condos 42 Stories

Biscayne Beach Club (Eastview) 399 Condos 51 Stories

WYNWOOD

NEW PUBLIC & PRIVATE PARK 1/2 ACRE

Paraiso Bay (Related) 2 Towers 720 Condos 55 Stories

Paraiso Bayviews (Related) 388 Condos 44 Stories

New Public & Private Bayfront Marina and Park

One Paraiso (Related) 276 Condos 53 Stories

SHOPS AT MIDTOWN

Hyde Midtown (Related) 40 Hotel Units 397 Condos 31 Stories *Midtown

Dacra Project (Craig Robins) 540,000 Sq. Ft. Luxury Retail *Design District Proposed

Baltus House (Related) 167 Condos 15 Stories

The District 36 (Terra) 60,000 Sq. Ft. High-End Home Furnishing Retail Proposed

MIAMI DESIGN DISTRICT

LUXURY BAYFRONT RESTAURANT JU

LIA T TO UTT MI LE AM CA I B US EA EW CH AY

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Doral 2020

DORAL: $2 BILLION IN NEW DEVELOPMENT Vintage Estates (Terra) 28-acre gated community 110 Residences Single Family

The IVI Doral 64 Condos 12-acre development

Modern Doral (Terra) 3 Phases 316 Condos Luxury Single Family 27-acre development 150,000 Retail Space

Midtown Doral (Optimus) 3 Phases Phase I + II 509 Condos Phase III TBD 150,000 Sq. Ft. Retail 90-acres

DOWNTOWN MIAMI

MIAMI INTERNATIONAL AIRPORT

AMOUNTS ARE AN ESTIMATE

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Isles at Grand Bay (Lennar) 672 Condos Luxury Single Family

Downtown Doral 5252 Paseo + 5300 Paseo (Cordina) Mixed-use Community 1 Million Sq. Ft. (Office) 180,000 Sq. Ft. (Retail) 2,840 Condos

Bel Air Doral (ZOM) 249 Condos Luxury Rental Complex Groundbreaking Aug. 2013 4.2-acres Lakefront

City Place Doral (Related) 48-acres 22 Million Sq. Ft. 300,000 Sq. Ft. Retail 280,000 Sq. Ft. Office 1,000 Residences

Oasis Park (Optimus) 150 Condos Single Family

Trump National Doral $250 Million Renovation 100,000 Sq. Ft. Event Space New BLT Prime Restaurant

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Ft. Lauderdale 2020

FORT LAUDERDALE: $3 BILLION IN NEW DEVELOPMENT Auberge Beach Residences (Related) Two Towers 17 - 22 Stories 171 Condos

Elan 16Forty (Greystar) 10 Stories 261 Condos 6,000 Sq. Ft. Gym 2,300 Sq.Ft. Retail Proposed

RIVA (Premier) 14 Stories 100 Condos

The Pearl at Flagler Village (Morgan) 7 Stories 331 Condos Henry Square (Related) 6 Stories 382 Residences 25,000 Sq. Ft. Retail

Adagio 2nd Street Residences On the Bay (Ellis Diversified) (Grupo Alco, Garcia 30 Stories Stromberg + GS4 398 Condos Studio Architects) 2,200 Sq. Ft. Retail 12 Condos Proposed

AquaBlue Ft. Lauderdale (Roy & Eisinger) 45 Condos

Paramount (Encore Housing and Kodsi) 18 Stories 95 Condos Privage (Roy & Eisinger) 22 Condos Gale Hotel & Residences (Neward Development & Menin Hospitality) 128 Condos

Aquavita Las Olas (Roy & Eisinger) Two Waterfront Buildings 22 Condos BellaVita Las Olas (Roy & Eisinger) 16 Condos W Hotel & Residences (Related NY) 171 Condos

AquaLuna Las Olas (Roy & Eisinger) Two Waterfront Buildings 16 Condos AquaMar Las Olas (Roy & Eisinger) Three Waterfront Buildings 20 Condos

BR

OW AR

D

BO

UL

EV AR

D

DOWNTOWN FORT LAUDERDALE

AMOUNTS ARE AN ESTIMATE

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MUSEUM OF DISCOVERY AND SCIENCE

BROWARD CENTER FOR THE PERFORMING ARTS

Crocker Tower (Crocker) 42 Stories 395 Condos Proposed

New River Village III (American Land Ventures) 15 Stories 209 Condos 2,245 Sq. Ft. Restaurant

Marina Lofts (Asi Cymbal) 2 Towers 28 - 30 Stories 856 Condos 29,000 Sq. Ft. Retail & Restaurant Designed by Bjarke Ingles Proposed

New River Yacht Club (Related) 26 Stories 249 Condos $36 Million

South Andrews Tower (Fred Kern) 37 Stories Office, Hotel & Residences Proposed

Airport and I-595 $42.5 Million Expansion to I-595 $791 Million runway renovation at Ft. Lauderdale Airport

ICON Las Olas (Related) 272 Residences Under Construction

LAS OLAS BOULEVARD

1800 Las Olas (Roy & Eisinger) 4 Condos

8th Avenue Residences (Rockefeller) 262 Condos 2,500 Sq. Ft. Retail

SOUTH FEDERAL HIGHWAY

RIVER FRONT

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ON THE GROUND REPORT

QA &

Alex Vidal

MANAGING DIRECTOR

RelatedISG International Realty

The State of South Florida General Realty

Q: What kind of single-family homes are people buying in South Florida now?

Q: What neighborhoods are the hottest right now for new properties?

A: We are now seeing a shift from people buying less expensive homes and paying for private schools to people buying more expensive homes in areas with stronger Public School systems.

A: Brickell, Downtown, Edgewater, the Beaches, East Fort Lauderdale and Doral area (the one “western” neighborhood drawing major interest) are all very active.

Interestingly enough, with the exception of Doral, these are all high-rise areas with little single-family home activity. Actually, most of the new construction in single family homes is concentrated in the western fringes of the tri-county area.

Q: What reasons are foreign buyers giving your agents for buying in South Florida?

A: I would have to say that the major reason foreign buyers are buying is for security - both personal and financial presently.

Q: That addresses demand. What is the status of supply right now for single-family homes?

A: As in the old cliche: Location, Location, Location.

Seriously, the supply in the re-sale single family market, especially in neighborhoods east of I-95 is very tight and there is very little inventory of homes in desirable neighborhoods.

Q: What do you see as the big differences between the market now and the boom of 2005?

A: Night and Day. In 2005, the market was driven by a predominantly speculative fever fueled by the “easy credit” provided by the financial community. In today’s market, the credit markets remain “tight”, eliminating speculation. Today, we have buyers who are looking for the financial security, stability or simply a second home in Miami.

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Q: Given the current market dynamic, have you changed the type of agent you are currently recruiting?

A: That is an interesting question. Our recruiting philosophy at RelatedISG is probably somewhat different than the industry norm especially in this new cycle. Our focus has been to recruit seasoned agents who specialize in pre-construction sales. The tightness of the resale market coupled with the demand for new Condominiums makes that type of agent the most sought after. In addition, RelatedISG is the joining of two of the most prominent South Florida companies in the new construction market. This certainly gives our agents a distinct advantage in competing in the new construction sector, which is by far the most active and the most lucrative in terms of commissions paid.

V C e l e b r a t i n g 5 Year s of IS G ’s M iami R epor t.

The Miami Report is produced for general interest only; it is not definitive and is not intended to give advice. It must not be relied upon in any way. Although high standards have been used in the preparation of the information, analysis and views presented in The Miami Report, no responsibility or liability whatsoever can be accepted by ISGWorld for the contents. We make no express or implied warranty or guarantee of the accuracy of any of the contents. As far as applicable laws allow, we do not accept responsibility for errors, inaccuracies or omissions, nor for loss or damage that may result directly or indirectly from reliance on or use of its contents. The Miami Report does not necessarily reflect the view of ISGWorld in any respect. Readers should not take or omit to take any action as a result of information in The Miami Report.

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