The Brickell Rental Market Under a Microscope

March 2, 2011 by Lucas Lechuga

The rental market is a very interesting segment of the real estate market, not only for potential tenants on the prowl for a new pad but also current landlords and would-be investors trying to assess the demand for rentals across various neighborhoods and, more specifically, across various condo developments.  Only a few years ago, the supply of rentals in Miami far outpaced demand.  As a result, rental prices plunged and renters ruled the day.  Fast forward to the present and an entirely different rental market is upon us in Miami.  Nowadays, rental inventory is being absorbed quickly and overall rental prices are on the rise.  For those living in Miami, I’m sure this a message that you have not only read in the local paper but have also heard directly from friends and family who have experienced it firsthand.

Obviously, not all neighborhoods and condo developments are created equal.  Factors such as price, location, views, quality and recommendations from peers help determine rental demand.  As a result, one would assume that demand can vary greatly from building to building and even neighborhood to neighborhood.  Which condo developments are the leaders when it comes to rental demand and which are the laggards?  More importantly, which buildings should we expect to see prices climb in the near future?

In this first segment, I decided to analyze the Brickell rental market to answer the above questions.  Below, you will find a spreadsheet containing rental data for various condo developments in Brickell.  Click the link below the spreadsheet to view it in its entirety.


Brickell Rental Market as of March 01, 2011

Columns C through G show the number of available rentals pertaining to each condo development grouped by number of bedrooms.  Column I displays the total number of rentals available in each condo development while column J shows the total number of units within that development.  I debated whether or not to include column K, the number of available rentals over the total number of units in the development expressed as a percentage, because the figure can be deceiving in buildings where developer inventory remains which has neither been sold nor rented.  This is the case in buildings such as Icon Brickell and Infinity at Brickell.  Regardless, I decided to include the figure because it can provide additional insight in buildings where this is not the case.

The main objective in creating this spreadsheet was to calculate months of inventory for each condo development.  This can be seen in column M.  Months of inventory was calculated by dividing total units available for rent by the monthly average number of units rented over a 3-month period from November 16, 2010 to February 15, 2011.  You may be wondering why I did not include closed rental data from the past two weeks in determining the monthly average.  I have noticed that it can take real estate agents days, and even weeks, to change the status of a rental in the MLS from pending to rented.  As a result, I felt that the average would be skewed to the downside and not be an accurate representation of the Brickell rental market.  Furthermore, if I had to venture a guess, I would also say that it is highly likely that around 10 percent of the total number of units available for rent are in fact no longer available. In this case, the listing agent has yet to change the status from available to pending.

Regardless, a lot can be ascertained from the spreadsheet above.  In my opinion, any building with 1.5 months of inventory or less has a solid rental market.  1060 Brickell, The Plaza on Brickell and Vue at Brickell are standouts with absorption rates hovering around one month.  I expect rentals prices in these developments to continue to rise in the near future.  For those in the market to lease a condo in one of these developments, I advise that you act quickly and put your best foot forward when making an offer.

According to the spreadsheet, there is currently 2.29 months of rental inventory available in Brickell.  Some may expect this number to increase as more units from Icon Brickell and Infinity at Brickell hit the rental market.  Of course, this will all depend on how quickly the units become available and at what pace demand absorbs them.  Only time will tell, but I plan to watch Brickell rental market closely and post updates on a monthly basis.

I would love to hear your thoughts and comments.

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57 Comments on "The Brickell Rental Market Under a Microscope"


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Anonymous
Gixxer1000
5 years 6 months ago
As a renter at 1060 I think this data sums up my experience. First I decided that I wanted to rent in Brickell. Then I walked around Brickell to see what buildings were in the best location for me. I was more concerned with Mary Brickell Village, Publix and the metro so I looked at buildings on the west end (Axis, 1060, etc.). I also looked at a couple closer to the water (Icon, 500, Plaza, etc.) for comparison. The combination of the location, layout and amenities led me to choose 1060. So I figured because there were so many… Read more »
Anonymous
Chris
5 years 6 months ago
I think there are two additional factors to take into account. A) Many rentals don’t get listed on MLS. We see this in our building often, where rentals aren’t advertised through brokers and as such never end up on the MLS. Not sure how many there are, but certainly enough not to be ignored. B) Units where an association is renting a delinquent unit under the new law also wouldn’t show up. I know for a fact that there are 8 of these in our building, going at market rents or better. I am sure there are many in other… Read more »
Anonymous
night0wl
5 years 6 months ago

If rents are any indication…it still doesn’t make sense to buy in these buildings. $2000 a month rent points to a healthy sales price around $200-$250k depending on your tax situation, current rates, and HOA dues. I believe 2 bedrooms are selling in excess of that by at least 20% right now….so that to me indicates MIA still has 20% downside in values to go before this makes any sense at all.

Forget about the premium that should exist for being a landlord, this is just break even!

Anonymous
owneratinfinity
5 years 6 months ago

Not to open up the “renters” can of worms again….

But now that renters are starting to move in on my floor, already there are issues, like them allowing their little loud dogs running down the hall barking.

However, I wonder if the problem is not a renter thing, but rather just how peolpe are today. Folks just are not considerate of others and they don’t like to follows building rules.

Anonymous
robert
5 years 6 months ago
I like the area, I live at the Axis and the noise level from the bars feels really loud in my unit. When I go to visit my friend who lives at 1060 Brickell we cant even sit outside in the balcony because the noise is so loud that we cant carry a conversation. When I went to visit another friend who lives at the Vue at Brickell and he told me “the noise level in his condo from Segafredo is awfull”. All of us had called the police and reported to the city but to not avail nothing has… Read more »
Anonymous
Joe
5 years 6 months ago

owneratinfinity — You’re probably getting hit with the double whammy: Renters aren’t as respectful as onwers, and Miami is generally a rude place to begin with (i.e., consistently ranked among the rudest places in America).

Anonymous
owneratinfinity
5 years 6 months ago
Robert, When I first moved in my condo over a year ago I raised holy hell about the noise with the police and I met with several members of the city including Marc S, the commissioner for Brickell. I spend a ton of time on trying to get them to enforce the noise rules. Segafredo’s outside speakers are the problem for my infinity building. The rule is that if you can hear it from over 100 feet away they have to turn it down. I wasted a LOT of time with the city of miami with this and they still… Read more »
Anonymous
owneratinfinity
5 years 6 months ago

Robert.

When Marc fails you and he will—-

If you want to get a bunch of peolpe together, I will join you all at the miami city hall and we can picket there, with signs, saying ENFORCE THE NOISE RULES!! Also I we can contact the local news stations and they can put on the local news.

This battle can be won, however it will just take a lot of time and effort and will require a strong leader and a great effort from all.

Anonymous
owneratinfinity
5 years 6 months ago
Joe, You are 100% right, I come from the mid-south and folks are different there. When the folks on my floor break the rules I do plan to ride the building management to enforce them on my floor. If I was a renter I would not care as much, however being a owner I have skin in the game. The more you allow residents to break the rules the more they will do it. It’s the nature of some peolpe. Plus I think many of folks who live in condos and apts are used to noise from other residents, so… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
Let me start of by saying that the music was a little loud last night, especially for a Wednesday. But you guys seem to be taking it a little far. To say that the noise is so loud that you can’t even carry on a conversation is completely untrue and makes it seem like you’re just saying things out of anger. Obviously everyone is different. The windows at 1060 do a fairly good job blocking out the noise and I added thicker curtains that also help reduce sound noise. And the only reason I even noticed the noise was because… Read more »
Anonymous
Joe
5 years 6 months ago
Once again, here’s Gixxer 1000 — the guy with a whopping 5 months of living in Miami — coming in to tell others they’re wrong. I don’t have sympathy for people who buy a house next to an airport and then complain about the noise, but when people are being taxed through the nose for “luxury” living, then they have a right to expect some peace and quiet at 3:00 AM. Noise was a huge, huge issue in South Beach for years, especially in SoFi. I believe the residents had some success, but it took many years and countless dozens… Read more »
Anonymous
owneratinfinity
5 years 6 months ago
The only business that effects my building is Segafredo’s,since it’s directly under my building. The pub is not a problem, cause they don’t play their outside speakers that loud. The businesses at mary brickell don’t effect my building yet they break the 100 noise rule too. Of course I knew that Mary Brickell would be noisy that is why a bought a few blocks away in Infinity When I bought, I thought that Segafredo’s was a restaurant, never did I think that it turns into a night club at night and by 1:00am they would have their outside patios speakers… Read more »
Anonymous
owneratinfinity
5 years 6 months ago
Joe, Agreed.. the reason these business have gotten away with it so long is because many of these buildings have been empty for a long time and now they are being filled with mostly young renters. Young renters don’t have any skin in the game, it’s a short temp thing for them. Plus generally they are used to noise and are more likely to like and accept the noise. Generally it will be the older owners that will not accept the noise, however there are just not enough of older owners living in these buildings yet. Like you said it… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
“Plus I think many of folks who live in condos and apts are used to noise from other residents, so they don’t notice it or think it’s an issue.” “However someone like me who came from a Single family house really notices the noise from folks on my floor.” These comments really sum up your position. The complaints you have aren’t with the actually buildings in Miami, theyre with living in multifamily structure in an urban core. These issues are always present. I’ve lived in DC and NY in buildings that are more expensive, upscale and have less renters than… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
“Young renters don’t have any skin in the game, it’s a short temp thing for them. Plus generally they are used to noise and are more likely to like and accept the noise.” I hate to tell you this but it’s not just young renters. Do you really think the Venezuelans and Brazilians buying these condos who are used to places like Caracas and Sao Paulo are going to turn around and complain about the noise of these places? Who do you think are the people out there at 3 am? I’d expect it to get worse before it gets… Read more »
Anonymous
gables
5 years 6 months ago
Gixxer, you are basically saying yes we have laws in place which protect the residents from the exact issues they are complaining about, but no we don’t see a need to enforce those laws because it would inconvenience the law breakers. If somebody spends $300k on a luxury building in a very residential area with rules against noise, how can you blame them when they become upset about noise that should not exist? The rules exist and should be enforced-or take them off the books. In coral gables, they are very quick to shut down excessive noise after 11 pm.… Read more »
Anonymous
owneratinfinity
5 years 6 months ago

What 4 buildings are you talking about?

Anonymous
owneratinfinity
5 years 6 months ago
Gables, Yes, that is correct, there are 1000s of condos in the area, all we want is the noise laws that are currently on the books to be enforced. And just FYI Segafredo’s have got many tickets about the noise but that make them change their ways. Gixxer1000 You seem to think that Infinity is this extremely luxurious building, but there is a reason that it’s selling at an average of $250 sqft and that reason is location. Infinity is a very nice building. Move it to a better location and it would be at $350+ sqft. You could have… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
If people want to continue to complain that is their right. As owneratinfinty has pointed out there are business that can afford to pay these fines. And if you look at the code there is nothing that is stopping the commission from changing the hours at their discretion. This isn’t as cut and dry as speeding. We’re talking about an ordinance that regulates whether or not something is affecting “quiet, comfort or repose” of people. It’s very subjective. It would be different if it was clearly stated that the noise cannot exceed 50 db, but it isn’t written that way.… Read more »
Anonymous
Gixxer1000
5 years 6 months ago

owneratinfinity,

“What 4 buildings are you talking about?”

I’m talking about Axis, 1060, Vue and Infinity. They’re really the only buildings that are affected. And even among those buildings it’s mainly low floors and units facing MBV or Segafredo’s.

Once you narrow it down to those units and then down to the people within those units who actually care you see why you’re not getting the response you want.

If it makes you feel any better I got an email that residents on the west side of 1050 were trying to file some type of complaint.

Anonymous
owneratinfinity
5 years 6 months ago

It also effects the rental building Broadway, within these 5 buildings ithe noise effect 100s and 100s of units. (Segafredo effects over 200 in my building alone)

Please let me know if they (the 1050 folks) are interested in including peolpe from other buildings in their complaint, thanks

Anonymous
gables
5 years 6 months ago
Gixxer, At least you can rationalize like a Miamian who has lived here for years. The rules are in the books and should be enforced. As I said, if you don’t like the rules you can have them changed. But if a person moves into an area with certain rules on the books, it is not outrageous to expect them to be enforced-like in coral gables. you spend time at UM with plenty of people involved in community planning. Residential, business, industrial and mixed use, etc. there are reasons communities are planned in certain ways-for the enjoyment of all users.… Read more »
Anonymous
owneratinfinity
5 years 6 months ago
Gables, Yes that is right if a person moves into an area with certain rules on the books, it is not outrageous to expect them to enforce, ,,,that is all we are asking for, and I did know about the 100 foot rule before I bought my place, however I was surprised how hard it was for MArc S and the rest of city to understand the rule and once they understood the rule, they still didn’t enforce it. They care more about the businesses then the property owners that pay high property taxes. I think in few years if… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
owneratinfinity, I didn’t include Broadway because you make it seem like renters are all noisy and rude so why would they care. But regardless you’re talking about the noise affecting 100’s of units. Just because the noise can be heard from those units doesn’t mean the people living in the unit actually care. You live in one of those units and you care, I live in one of those units and I don’t. If there were hundreds of people complaining they would probably be addressing it, which leads me to believe that the vast majority of the people either don’t… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
gables, I work in development so being optimistic is a job requirement. And no one is talking about not following the rules. The problem with you’re argument is that there are plenty of people who want these bars and nightclubs. I’m one of them. I chose to live closer to them so I deal with the noise. If the noise bothered me then I’d move across the street. This has nothing to do with the laws being enforced. The laws are vague and open to interpretation. If you wrote a law that said you can fine me for going over… Read more »
Anonymous
owneratinfinity
5 years 6 months ago
G, I find it hard to believe that you’re 35 or under and you’re this prude about other people, noise, pets, etc. You must have never lived in a metropolitan city you’re entire life. ===> Like I have said many times before I have never owned a condo before, I have only owned single family houses since I was 18 years old. All of them were in quiet areas. I never lived in a city before. ===> So I never experienced living with city folks in such a close setting like this before ===> I do love living in a… Read more »
Anonymous
gables
5 years 6 months ago
gixxer “I work in development so being optimistic is a job requirement. And no one is talking about not following the rules.” also “Then if they are found in violation they can issue them a fine. Most establishments seem to see this as the cost to doing business so you’re not going to get any help there.” you don’t see the irony? fines are not meant to be part of doing business-allowing them to be a routine cost of doing business is a really third world view of business-government relationships. and it is this lack of integrity (on both parties)… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
How are people saying the rules do not apply to them? They get issued a fine and they pay it. That IS part of the rules. It just so happens that they can make profit even after paying the fines. It sounds like your the one who doesn’t want to play by the rules. You want the rules to be more strict, but right now they aren’t. This isn’t a third world view this is a business view. You don’t think top corporations don’t look at things this way. If its more profitable to pay a fine than to no… Read more »
Anonymous
gables
5 years 6 months ago

gixxer, you are too young to understand this. but that line of thinking is exactly how the financial crisis came into existence. it is an issue of ethics. and that is why several of the high end business schools, such as harvard, are revamping their curriculum to emphasize ethics in the business world. UM has not really embraced this role of ethics yet, but they will in due time.

Anonymous
Gixxer1000
5 years 6 months ago
That’s funny because I have friends that attend those “high end business schools”. If you think they think any different then you are pretty naive. I posted this scenario on my facebook page and 2 people from HBS, 1 from Wharton and 1 from Columbia all said they’d continue to operate the nightclub as is. Only 1 of them even brought up the ideal of trying to figure out at what level could you possiblly make everyone happy. The rest simply looked at it from the numbers and if it was only a small amount of residents complaining and the… Read more »
Anonymous
Gixxer1000
5 years 6 months ago

But back on topic the thing I noticed from Lucas’ spreadsheet is that there are a few amount of 3 and 4 bedrooms. I’ve heard that the developer of 900 Biscayne will be doing 700 Biscayne this year because they found a shortage in 3 and 4 bedroom units downtown.

Anonymous
owneratinfinity
5 years 6 months ago
Today, I noticed that the developer of my building sold one of it’s largest units (cash deal) (2734 sf which includes it’s loft open area) for $792,000 ($290 per sf). The unit is on the 46th floor I am surprised that they sold it for that much money. It’s seems like is a lot of money for a middle of the road building in brickell. If it was me I would of spent that kind of money on a unit in South beach – south of fifth. Also, I noticed that the developer sold two more units just like mine… Read more »
Anonymous
gables
5 years 6 months ago
gixxer, that is alot of excuses and rationalization. it does not change the fact ethics were a major issue in the crisis we endured, and the top business schools recognized this as an issue and are taking steps to address it on the education end. it will take several years to have an impact, however. you conveniently fail to admit the rules are on the book, and not nearly as vague as you imply (ever dream of being a laywer?). There is an 11pm limit on loud noise, and that is being broken and not enforced. your view is the… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
owneratinfinitty, Fortune International Realty has a very strong network with Latin Americans. They have partnerships with local people and brokers who push Miami. As far as the increases a lot has changed in the last year or two. Here are some quotes from people on this board back in January 2009: “Are we still looking at $125 a sq. ft. for beautiful Miami Condo’s?The ACE predicted it…….Renter Tom …confirmed it…….AJ….seconded it……Lara ………..motioned it….and even MUIR agree’s with it.When you have this many experts in one place…..they ALL can’t be wrong.” “gables – I thought at $200 sq ft i would… Read more »
Anonymous
Gixxer1000
5 years 6 months ago
gables, “There is an 11pm limit on loud noise, and that is being broken and not enforced. your view is the laws are optional and need not be followed.” What are you talking about. I recognize the rules on the books. The rules are if you are found “guilty” of breaking the rules you are given a FINE. Where have I ever advocated that these business shouldn’t be given a fine if found guilty????? My argument is that if they can afford the fine then they continue business as usual. So if you want to stop them you need to… Read more »
Anonymous
owneratinfinity
5 years 6 months ago
Gixxer1000, you said, Fortune International Realty has a very strong network with Latin Americans. They have partnerships with local people and brokers who push Miami. ====> yes they are going a great job selling quickly selling the building. They are the same ones that sold your 1060 building qiickly back in 2009. ====> I got my first neighbor this week to move in to the unit next to me. Sadly for me, they are worst possible peolpe for me to live next to, they are very loud and worst then that they all are chain smokers that are always on… Read more »
Anonymous
gables
5 years 6 months ago
gixxer, you should not need to write laws that are so specific. it is absurd. then people complain about too many laws and too much detail-all because of viewpoints that say if i can technically find a loophole then i am legal. i know this keeps lawyers in business, but it is absurd nonetheless. you subscribe to a point of view that if i have enough money (thus can pay the fines), then i really do not have to follow the laws. it forces us into the use of jailtime to have people follow the rules, which again is really… Read more »
Anonymous
gables
5 years 6 months ago
owner, glad you brought up my quote. Today I can still buy units at $200 sf in the buildings I have been interested in. And many units over the past year could be bought for less than that price. But my rent also decreased by 15% over that time as well. But i will say the HOA and other fees have not resulted in the disasters they could have become-at least not yet-which is good for the miami market. So today i can buy the same unit at the same price as two years ago (while living the past couple… Read more »
Anonymous
owneratinfinity
5 years 6 months ago

gables. I understand

Anonymous
owneratinfinity
5 years 6 months ago

gables, I just remembered, I also got the $6500 tax credit from the IRS, so I actual bought the place for $6500 less then purchase price, if you think of it like that.

And as long as I stay in the property for at least 3 years as your perm residence I don’t have to pay the credit back. That is the most generous thing the IRS has even done for me.

Anonymous
What Do You Think
5 years 6 months ago
Hi, Guys I took a tour this afternoon to see what you are talking about. It is surprising to know that a corner restaurant that size away from other buildings can make the noise that you all are talking about. I went in there and talked to a waiter and the manager. I told them that I came to see the restaurant because lots of people are complainging online about the noise they are making after midnight. They flatly denied it and suggested that it must be one at the Beach. I said, “No” and pointed to them the Infinity… Read more »
Anonymous
owneratinfinity
5 years 6 months ago
Thanks for effort…. Over a year ago I dealt with the manager there and the city, and it was a waste of time, nothing was done, because I was only one that was complaining from my building.My building was real empty back then. However, now where are many more peolpe in my building now that does not like the noise. Including a girl that I just met today. She can hear the music from their lower floor condo unit that she is renting on the west side of the building. I think in about 6 months, once the building is… Read more »
Anonymous
Drew
5 years 6 months ago

I’m glad you can cook, because you definitely can’t write! Who the f#ck are “peolpe?”

I hope she’s as impressed with your glorious 50th floor view as you are.

Anonymous
owneratinfinity
5 years 6 months ago

Drew, So Negative.. So sad…

Anonymous
DJ
5 years 6 months ago

Jesus, listening to owner complain about smoke and noise coming into his unit reminds me of some neurotic character from a woody allen movie.

Anonymous
owneratinfinity
5 years 6 months ago

DJ, insulting others, does that make you feel better?

Anonymous
What Do You Think
5 years 6 months ago

Dear Infinity,
Don’t worry about what others say. Carry it on please. We all need a comic relief.

Anonymous
owneratinfinity
5 years 6 months ago

Thanks, but I don’t worry about the haters. I am just happy that I am not them.

Anonymous
gables
5 years 6 months ago

owner, have you had your buildings management and/or board address the issue? this does fall somewhat into an area of their responsibility.

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