http://www.miamiherald.com/news/local/community/miami-dade/article195303434.html#emlnl=Breaking_Newsletter

https://therealdeal.com/miami/2018/01/18/miami-makes-shortlist-for-amazon-hq2/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=7a7991a7ba-SF_WEEKEND_12_3_164_3_2016&utm_medium=email&utm_term=0_6e806bb87a-7a7991a7ba-385827893

The buzz as of late is Miami making the short list of US cities vying for the coveted home to Amazon’s second headquarters, but is Miami really a contender? Let’s consider the basic factors the corporate giant is looking for?

-International airport? Check with M.I.A. and Ft. Lauderdale International.

-1MM people? I think we’ve got that covered with Miami reaching almost 3MM.

-Incentives? Not yet, as Miami has not offered any subsidies.

-Educated workforce? Not quite with most of the talent in South Florida fleeing to other cities for better paying jobs.

-Low cost of living? Definitely not here as many have traded in sunshine for lower cost of living in other places across the U.S.

Based on those factors alone I’m not sure that Miami will be the next home for Amazon, but this exercise certainly highlights issues the city’s been struggling within for quite some time and it starts with something very basic…housing. If housing is too expensive people will leave, and if people leave the corporations won’t come, and if the corporations won’t come than the jobs will go elsewhere and thus is the perpetual cycle that Miami faces. With less available land and growing concerns over sea level rise resiliency it’s no wonder politicians aren’t pulling any stops in trying to lure business to Miami. Sure it’s the portal to Latin America, but other cities on the Eastern seaboard can get there too. Recently in the South Florida Business Review, there was mention of port hubs seeing incredible amounts of demand thus catapulting the already hot industrial market.

While Miami would be the nostalgic win with Bezos coming back to his hometown romance and novelty usually don’t have a place in the corporate rat race.

https://therealdeal.com/miami/2017/12/26/could-tax-reform-kill-the-jumbo-mortgage-market/

With prices on the rise and the increased scrutiny of large cash purchases thanks to the release of the Panama Papers, how will Miami’s residential market be affected by the new tax bill and its limits on the mortgage industry and property tax deductions? Given that many developers and brokers schedule sales trips targeting international customers looking to diversify their wealth, flee economic turmoil and/ or just purchase a vacation home in Miami the tax reform bill may put another damper on those transactions. As if the luxury market needed anymore obstacles to overcome, the recent reform limits the jumbo loan market (mortgages over $424,100) and the property tax deduction. Sure the limits are still quite high for the average middle class homebuyer, but in Miami with more expensive neighborhoods than not, could this cause another slow down? It will be curious to see how this shakes out in the next year or two as the tax reform gets applied. 

 

https://therealdeal.com/miami/2017/12/14/neighborhood-dive-coconut-grove-reinvents-itself-into-a-luxury-enclave/?utm_source=The+Real+Deal+E-Lerts&utm_campaign=2a4f4c2dbe-SF_WEEKEND_12_3_164_3_2016&utm_medium=email&utm_term=0_6e806bb87a-2a4f4c2dbe-385827893

As someone who grew up going to the Grove as a kid going to the bed races and then a college student drinking at the bars, I’m glad to see the Grove make a comeback with new restaurants, parks and access to the waterfront, but it’s not without some growing pains. The Grove at times seems like a ghost town with businesses opening and closing overnight or worse yet storefronts sitting vacant for months at a time. Construction has made the tree lined streets you used to bike a hazard and traffic is unbearable with even less available parking. But it’s great, right? We have towers upon towers upon towers going up, and for who? I’m not quite sure especially with the rumored tax bill. Miami’s never been a skyscraper city, mixed use hasn’t quite caught on and in the lazy, laid back, artist community that was Coconut Grove even less. What happened to beautification projects, protecting the canopy, complaining about peacocks and exploring the waterfront for residents to enjoy? The latest was a construction moratorium that was supposed to be in effect for the holidays to help ease congestion and assist the businesses, but there are still cranes, cement trucks and construction men all around the Grove. Residents aren’t quite sure what the City may have meant by moratorium, or if this may have been just another oversight. 

https://www.fastcompany.com/40491567/the-future-of-retail-in-the-age-of-amazon

As we embrace Black Friday and Cyber Monday, who will win? Brick and mortar retail or online retailers? From a real estate perspective retail as a market is hurting with big anchor shops reducing their stores or closing down altogether, and mall managers and leasing agents having to get creative. Amazon is a force to be reckoned with, but in a past post we discussed the Miami Dream—a mega mall to the likes to Mall of America in Minnesota, and I happened to ask a customer and fellow real estate agent from Minneapolis what his thoughts were. It interesting he didn’t allude to the doom and gloom that we read about where retail is dying. No instead he focused on how the different city plays such a huge part, it’s cold in Minneapolis—like really cold and quite often—whereas in Miami we’ve got great weather and limitless options to how we can spend our time. Curiously this article discussed how Amazon was embraced by the mega-mall and how retail will survive as long as companies stay true to their core values which are embedded in quality service (something the internet can’t deliver with the same level of finesse). It’s curious to read how Target refreshed itself and purposely created what happens to us all when we go there, “I just need milk, lens solution, and some towels for some guests (actually walks out with that plus a Starbucks coffee, 3 outfits, gift wrap, dog food, bedding, vacuum, pizza and make-up).” It’s wild, but it happens to everyone I know, and it’s crazy to read how they executed for exactly that to happen. But, they stuck to their core values of good design at a lower price and have remained relevant and profitable. My boss hasn’t been known to be the most conventional real estate agent, but he’s remained successful because he’s true to who he is and his customers appreciate that. More often than not he’s asked what does he do, and he always tells folks the silver bullet is themselves—most don’t get it. I was glad to see that this wasn’t an anti-Amazon article, but rather a David versus Goliath. If retail and shop owners remain nimble and true to their customers they might survive and not get railroaded by the internet.

 

 

 

https://therealdeal.com/miami/2017/11/10/miami-is-the-least-affordable-city-for-renters-in-the-us-report/

Miami has always been in a league of its own—from the weather, to the Hispanic flavor, the beaches, the fraud, the drugs and just what I like to refer to as “the fast life.” We always love to tour those relocating from other places and show them the other areas that make Miami the Magic City, but there’s always the disclaimer that this town’s got a different way to take your money everyday. We were referring to all the glitz, glam and fun stuff you can do to entertain yourself. But, nowadays added to that list is rent. Yep, no glamour just housing. For a number of years Miami has held on to being listed as one of the most expensive cities to live in along with the usual suspects such as New York and San Francisco. But Miami has upped the ante and taken reigned as the most expensive city to lease in. You may recall a past post where we discussed how tenants aren’t moving, rather renewing their lease year after year after year. This is precisely why. With high rental rates (and they’ve leveled off some), it’s become too expensive for folks to try somewhere different or upgrade to that bigger, newer, nicer place. I certainly thought after Hurricane Irma a little adjustment would be felt, but just a little slowdown in activity versus a price correction. It’s no wonder developers and condo kings are targeting out-of-towners, and working a lot harder to meet past goals.

http://www.miamiherald.com/news/politics-government/election/article183336291.html

Election time and everyone who didn’t have an opinion suddenly has one. Most recently is the passing of the Miami Forever Bond, which allows the City to borrow $400 million dollars to fund issues concerning sea-level rise, affordable housing, parks and recreation, streets and public safety.

Coincidentally, we attended a real estate conference just 2weeks ago where a candidate for the mayoral race, and newly acting mayor, was part of a panel discussing sea-level rise mainly comprised of officials and professionals working in the City of Miami Beach. The interesting part is while the candidate plugged in his support for the bond as part of his campaign, there wasn’t any mention that these monies were going to anything but sea-level and climate change issues. Was that convenient or just an oversight given this was at a real estate conference sponsored by a large and popular real estate periodical? We may never know, but politicians are too scripted and shrewd to have mere oversights. Personally, I didn’t vote for the bond since there’s no plan in place on how to spend all that money, and Miami has a notorious reputation for spending.