I know I have written about the condo market just a few weeks ago, but it’s too fluid and juicy not to touch up on, especially as more and more projects continue to be announced. According to Cranespotters.com, there were 49,000 new condos built east of Interstate 95 during the last condo boom. We just hit a milestone in our current condo boom with 35,000 new condos announced this month, as the Related Group announced a new condo-hotel project in Hollywood on the Intracoastal Waterway.
Miami-Dade County still leads the way, with 79 percent of all condo units planned in South Florida. During the previous boom, the county accounted for 70 percent of the condos built. The Brickell and Downtown Miami submarkets will be home to a proposed 18,300 new units, while the beaches are slated for 4,500 new units. In the last cycle, Brickell and Downtown Miami absorbed 22,000 new units, while the beaches absorbed 12,000. Broward County is slated for 4,450 units, but unlike the last boom, the great majority of these units (3,250) are allocated to the Hollywood and Hallandale markets, due south of downtown Fort Lauderdale. The last cycle saw Broward County absorb 10,500 new condos with about 5,000 in Hollywood and Hallandale. Palm Beach comes in last with 3,050 units, with 2,125 announced for West Palm Beach. By comparison, the last cycle witnessed 4,450 units with West Palm Beach absorbing 3,400.
One thing that hasn’t changed is that Related Group is still the most prolific developer in the region. Last cycle, Related built 24 condo towers with nearly 9,150 units. Today, Related is proposing 34 new towers with 8,400 units. As I wrote previously, units in this cycle tend to be larger and more upscale than what was delivered in the last cycle. This is evidenced by the lower unit number per project ratio outlined above.
My company, ONE Sotheby’s International Realty, has become a powerhouse in the pre-construction sales market with nearly $3 billion of inventory spread over nine projects, and we are set to announce five additional new projects we will be representing. The boom continues to march on. I will keep you posted as the cycle progresses.