Shrinking Rental Inventory in Brickell and Downtown

July 21, 2010 by Lucas Lechuga

In this episode, we discuss the shrinking rental inventory of condos in Brickell and Downtown Miami.  In recent months, it has become increasingly more difficult to find a rental in these neighborhoods than it has since the peak of the market.  For example, at this time The Plaza on Brickell, which has 1,000 total units, only has two unfurnished one bedrooms available while 1060 Brickell has zero.  We highlight eight other well known condo buildings in these areas and provide an overview of the rental availability within them.

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47 Comments on "Shrinking Rental Inventory in Brickell and Downtown"


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Anonymous
Mobi
6 years 2 months ago

You could also have mentioned the Loft 2 downtown:

498 units, only 10 available for rent right now (2%).

Very affordable building for renters but prices are going up there too.

Anonymous
Phil
6 years 2 months ago
I got suckered into reducing my tenants rent by $50 for the renewal. He cried blues and I gave in. Even though I knew rents are rising across the board, I did not have an authoritative proof on hand. I wish this video came in a month or two ago. I would have just thrown it at him and tell him sorry, cant do. My renter also realized what a bargain he had. He is also suddenly very respectful, nice towards me and set up automatic payments to deposit rent by the 1st of every month. He has not made… Read more »
Anonymous
Joe
6 years 2 months ago

Phil — Unless you had a new renter lined up, a $600 discount isn’t anything to worry about. Depending on the unit and rent involved, you probably would have lost that much with a 10-day vacancy.

Anonymous
Poor and Unemployed
6 years 2 months ago

Phil

You should be thowing the guy out and putting up the appartment for rent at at least $200 higher. No one is building anymore and Miami is a leading city in America. So shortage of rentals can be expected.

I know some owners at Brickell charging over $5000 per month for their 1 B/B apartments. There are lot of Irish, Greek and Spanish bankers looking for place to live.

Anonymous
Phil
6 years 2 months ago

Poor & Unemployed,
Thanks for the tip. Will do. Unless my renter is going to send me a Christmas Card and a gift basket for my birthday, I will be asking for a rent increase of $200 for the next term.

Anonymous
scrivener
6 years 2 months ago
Joe’s got it right. Poor and Unemployed, do the math again. (“I know some owners at Brickell charging over $5000 per month for their 1 B/B apartments” – – seriously? Come now.) “This shit’s chess, it ain’t checkers!” (“Training Day” – – for those keeping score) The tenant was not necessarily shooting for a “hand-out.” Rents may be going up – – but this was a business decision. And, more importantly, this probably also reflects the impact of supply and demand on the rental market. Let’s look at the real cost here. A $600 discount is peanuts! ($50 x 12… Read more »
Anonymous
Hugo P
6 years 2 months ago
Poor and unemployed: $5,000 for a 1 b/b in Brickell? Are you kidding me? Show me the listings. Also, I get that rentals might be unavailable now, but there are still 5,000+ units hanging in unsold inventory and 4 out of 5 are being sold ALL CASH, mostly to investors. Renters will still have a lot of options, this is a temporary situation. Finally, renewals have a huge advantage over the owners as in order for you to kick them out and come out better at the end, you have to charge a much higher rate as at the minimum… Read more »
Anonymous
Angel
6 years 2 months ago

Post #4 – $5000.00 a month in Brickell? For a huge penthouse maybe. Show me the listings.

Anonymous
phil
6 years 2 months ago

I agree with joe, scriv and hugo. If my unit was already lying vacant, i would have waited for the best deal. As long as the existing tenant proved that he/she is largely trouble free, I would keep them even at the cost of freezing rent or minor discounts.

Anonymous
lara
6 years 2 months ago

I agree. I also did not raise my rents since my tenants are paying very well and for another $100/month it is not worth it. At least for now

Anonymous
Chris
6 years 2 months ago

Good to see that the rental market is tightening. This will impact valuations before too long. As soon as owners break even on rent covering payments, taxes, and HOA. or for godness sake make a profit, then investments in these properties will make sense again. For now the owners have no choice but to subsidize renters with any luck this will finally end. Lucas and Michael: Thanks for keeping us informed!

Anonymous
Poor and Unemployed
6 years 2 months ago

Lighten up guys and girls! It was a tongue in cheek comment!

Anonymous
gables
6 years 2 months ago
comments by lara and phil confirm the rental market has not really turned in the landlords favor, despite media attempts to portray conditions otherwise. if a renter can still get a drop in rent-no matter how much the drop- it is not a strong market. until my arrival in the miami market a few years ago, i never ever considered a situation where my rent would remain the same, much less drop year over year. this has been ongoing for three years now. dont get me wrong, not predicting another collapse in the rental market, but i dont see any… Read more »
Anonymous
aalok
6 years 2 months ago

Just out of curiosity what’s going on with the building called Ivy/Mint? I’ve lived accross from the 3 set of towers and the one called Mint hasn’t had a single light thats ever lit. It’s appears completely vacant

Anonymous
why bother
6 years 2 months ago

gables, You are missing the point. Both Lara and phil said that they dont mind keeping exemplary tenants at the cost of minor concessions or rent freezes. That is the right thing to do. How did that become landlords capitulating to renters?
Your saga with your land lord must have happened between Jan and May of this year or even before when the rental market was still soft. Try now.
Now that you no longer live in that building where your landlords unit is for a short sale, can you tell us which building that is?

Anonymous
gables
6 years 2 months ago

why bother, nowhere did i say landlords capitulating to renters. dont make a strawman argument. but the situation is still in renters favor. you say try now? negotiations occurred quite recently-this summer. weakness still exists. as i said, there is no collapse, but in my own experiences, renters are still in control at the bargaining table as opposed to landlords. other areas and buildings may be different, but this has been my own personal observations in practice.

Anonymous
andi
6 years 2 months ago

oh the realtors// there is dimishing demand and huge supply// so what happens..young ones move to DT/brickell to party while surrouding areas wither way…
but do not kid yourself…folks may stretch 100-200/month for that..beyond that there unbelievable supply & grovelling owners (sometimes distressed owners) who would lap up a tenant like a candy//
By 2011-2012 we will see the bottom and price/rent ~8-12// 8 will be a good buy//
Remember rentals are turnover games and owners are bleeding every day //and would do so for the next 3-4 yrs//

Anonymous
6 years 2 months ago
Keep in mind also that we’re in off-peak months. The fact that rental supply is this low in the Summer is actually very shocking. If you think tenants are still in command with this low of supply then you must be delusional. Most of the buildings that I cited have less than 2 percent availability. Try to rent a one bedroom in one of the newer buildings in Brickell and I will bet that there will be at least one other offer. That is, if another offer hasn’t already been accepted. I’m seeing a lot of landlords now ask for… Read more »
Anonymous
Renter Tom
6 years 2 months ago
Big deal….people aren’t making diddly on rentals when you add in all the costs whether the rents go up $50/month or down $50/month. I have watched several buildings and will confirm there is less rentals on the market BUT the ones I followed have drop rental asking prices by at least 10% from 2 years ago. For rentals, it all comes down to affordability which is tied to employment and incomes. Neither of which is going up (with deflation, in real dollar terms perhaps a tad). The smart money has been renting, not buying, and the decreased rental inventory shows… Read more »
Anonymous
why bother
6 years 2 months ago

Lucas,
What is more amazing is the forever shrinking of the DOM (Days on Market). Some are getting snapped up with in 14 days of listing. Some with in a month. That means, when one tenant is leaving, usually the land lord gets anywhere between 30-45 days of notice and sometimes 60 days. So looks like the condos are getting rented back to back with out ever being vacant for a single day!

Anonymous
why bother
6 years 2 months ago

Renter Tom,
from making comments such as “death spiral”, “floplords” etc now you are down to just “Big deal….people aren’t making diddly on rentals when you add in all the costs whether the rents go up $50/month or down $50/month.”
– Wow indeed things have turned around in Miami drastically!

Anonymous
Makes Me Think
6 years 1 month ago
Why bother, I’m glad you noticed RT shift in position while he still trying to desperately cling to his position of denial. 6-12 months ago we had many clowns on here calling for the end of civilization as we know it. Today, it appears that civilization may not be coming to an end and maybe , just maybe we have seen the worst and the tide has changed. RT chimes in with the softening of his position but not completely because that would be an admission of his flawed logic all along. I am at least able to give him… Read more »
Anonymous
Joe
6 years 1 month ago
Makes Me Think — Do you even read the comments you post here before you click the “Submit” button? In your last post (#22), you simultaneously claimed that RT probably entered the market “a year too late,” but then you ended your post by saying “I’m not saying condo prices will rebound anytime soon.” Um, what? Are you saying there was a huge rally in r.e. pricing from 2009 to 2010, but now price stagnation has taken hold? I guess it’s technically possible, but it doesn’t make much sense. Anyway, anyone who thinks these rental numbers are proof of a… Read more »
Anonymous
why bother
6 years 1 month ago
Andi, you are right on 2 counts and wrong on one. 1. oh the realtors// there is dimishing demand and huge supply// so what happens..young ones move to DT/brickell to party while surrounding areas wither way… TRUE, but who cares what is happening in Kendall/Doral? I have as much interest on the misfortune of the suburban landlords as I am interested in the dwindling fortunes of the Meat Packing Industry in Kansas City. 2. but do not kid yourself…folks may stretch 100-200/month for that.. TRUE, and in this statement you have sent a powerful message. For long it was argued… Read more »
Anonymous
Makes Me Think
6 years 1 month ago
Joe, I’m not making predictions about condo prices. I’m saying a year ago when sales were near zero was probably the best time to buy a short sale. There are more buyers in the market today and banks are not as desperate as they were a year ago. I see I have to explain in details for you. I don’t think I disagree with you about the Miami market being a renters colony but you have to agree that we are not hearing the complaints about the ghost towers anymore, that I think is a positive turn of events few… Read more »
Anonymous
why bother
6 years 1 month ago
Makes Me think, There were other people too who were very positive about the prospects of downtown. Just that they were not as vocal to voice their opinions. A simple example would be Swiss Luxury.com who rarely comments but quietly goes out and buys a pent house in Marquis. There are many such people who you do not hear about in this blog as they are busy with investing, buying, living their lives. I do not agree with you regarding the condos being a bad investment. I bought all cash and I am making money on my investment. I still… Read more »
Anonymous
Makes Me Think
6 years 1 month ago
Why Bother, There are always exceptions to the rule and as I have stated here before I think Miami is becoming like a few other cities where the rules do not generally apply because it is such a desired destination. I just don’t like condos because of the HOA’s and the fact there may be so many similar units at any given time on the market. The buildings are new now but if they weren’t built in with the right materials near the salt water they can become maint nightmares in a few years. Don’t get me wrong, I do… Read more »
Anonymous
Makes Me Think
6 years 1 month ago

lots of investors are hungry of these “cheap” homes. People who have been waiting for the signs of things turning around may not get in the game they are having to compete with cash investors. I’ve noticed the same things, I competing with more and more investors paying cash and bidding higher than I’m willing to. I think lots of CA & NY folks are using their IRA money to buy some of these properties.
http://www.miamiherald.com/2010/07/22/1743211/hungry-for-homes-buyers-are-edged.html

Anonymous
Renter Tom
6 years 1 month ago
Settle down people, settle down…. I haven’t posted anything new at all. Nor has the market “turned”. I had previously posted months ago if not a year ago that I was looking. BUT there is no rush and extreme caution is needed (such as health of HOA, owners in the building not paying mortgages, etc.). If the short sales doesn’t go through, then no big deal. The condo presented a unique opportunity so I made an offer, buyer approved, taken off mls, awaiting bank approval negotiations. I’ll just keep renting either in current great condo at 1/2 price or one… Read more »
Anonymous
Makes Me Think
6 years 1 month ago
RT, I can’t disagree with too much of what you said. If you really care about debt and future taxes then why don’t you focus on the real problem causing the debt which is The US wanting to be the Police for the whole damn world, while we give Pakistan billions of dollars they assist the Taliban in killing Americans. The Government also need to address the problems of entitlements Medicare and Social Security. I’d rather my tax dollars go towards helping Americans get health insurance than spending the money on defense contract and soldiers in far away lands. Time… Read more »
Anonymous
Joe
6 years 1 month ago
Makes Me Think — Seriously, man, you need to re-read your comments before hitting the “Submit” button. You’re sounding crazier with every new post. First, your allegation that the “rules don’t apply” to Miami because it’s “such a desirable destination” is just pure nonsense. As I’ve pointed out several times, the average Miami resident TODAY is just 2% wealthier than he or she was in 1985, when Time magazine ran its famous Miami cover story. Does that sound like a booming city to you? Second, there’s absolutely ZERO evidence that large numbers of people “see Miami on TV” and then… Read more »
Anonymous
Makes Me Think
6 years 1 month ago
Joe –As I have pointed out several times, the average Miami resident TODAY is just 2% wealthier than he or she was in 1985, when Time magazine ran its famous Miami cover story. Don’t tell me buddy, I believe you. Tell the Tens of thousand of folks filling up the downtown Miami condos, Somehow they’ve missed that memo. –Second, there’s absolutely ZERO evidence that large numbers of people “see Miami on TV” and then move to Miami. None. Zero. Zip. There is absolutely ZERO evidence that you are a rational, logical, functioning, productive member of society either. None, Zero, Zip.… Read more »
Anonymous
Renter Tom
6 years 1 month ago
Makes Me Think – I agree with your comments on #30. With that said, however, (1) what if the spending on military prevented a nuke in NYC that would have cost many trillions so bringing the fight to the enemy and preventing them from organizing, planning, developing might be the best course even if ugly and (2) people can earn and pay for their own health care/insurance (god forbid someone would pay for their own scooter chair, diabetic test strips or catheters!) and the costs are going to just explode (a joke thinking it will save money!) since socialism is… Read more »
Anonymous
Joe
6 years 1 month ago
Makes Me Think — Right back to the ad hominem attacks. You’re a one-trick pony. Florida’s population growth doesn’t mean diddly squat. If anything, it proves my points — i.e., if all these wealthy people are moving into Florida, why is downtown Miami a renter’s colony rather than the “luxury” owner-occupied area it was advertised to be? And why are local governments drowning in red ink providing social services to these allegedly “wealthy” and “upscale” new residents? Seriously, in the last 20 years, a whopping 7,000,000 people have moved into Florida, but somehow, two years after the biggest r.e. crash… Read more »
Anonymous
Bo diddly
6 years 1 month ago

Joe, now you are sounding cartoonish. Chill man. OK, Miami is poor, Miami sucks. You will get your SOFI condo for $125/sf. Now go to bed peacefully. Goodnight.

Anonymous
Joe
6 years 1 month ago

Bo diddly — I’m just looking for someone to reply with some facts rather than ad hominem attacks or the nonsense from the glossy sales brochures. I wouldn’t live in Miami if I didn’t like it, but a lot of the comments here are just fantasyland.

Anonymous
Makes Me Think
6 years 1 month ago
RT, I believe like you do that everyone who is capable of going to school and working should do so otherwise there should be no services available to them. I also believe that some people do the right things but sometimes fall on hard times through no fault of their own. For those people I believe social programs should be available to them to help them on their feet when they fall. As far as nuclear weapons go, I believe one of the girpes most of the world have against us is because we want to be in parts of… Read more »
Anonymous
Makes Me Think
6 years 1 month ago

Joe–Right back to the ad hominem attacks. You’re a one-trick pony.

We get it, you’ve learn to use it 3 times in a sentence so it’s yours now. Let’s see if you can learn to use another word now.

Sounds like you are the one trick pony.

Your questions were directed to me. I answered your questions point buy point and gave you statics to back up my response.
what more do you want? Next time address you question to someone else if you don’t like my response.

Anonymous
Joe
6 years 1 month ago
Makes Me Think — You answered my questions point by point? Really? I asked for proof that people “see Miami on TV and then move here” and you replied with a chart of Florida’s overall population growth, which proves nothing. A lot of people have moved to Texas and Arizona and Nevada, too; are those places also “special, luxury destinations”? I’ve also repeatedly asked for evidence of Miami being a “special” “growing” city from an economic growth perspective; you replied by saying “people are filling downtown condos,” which, again, proves nothing. Can you name any big companies that have moved… Read more »
Anonymous
Renter Tom
6 years 1 month ago
Makes Me Think – Just a few comments: “I also believe that some people do the right things but sometimes fall on hard times through no fault of their own. ” – That is why we save for a rainy day and buy insurance for loses we can not afford. A 24 year old has plenty of money for a $100 per month cell phone plan but won’t buy $60 per month health insurance??? Americans got by without socialist big brother so why do we need him now? The problem with socialism is that it uses other people’s money to… Read more »
Anonymous
Renter Tom
6 years 1 month ago

96.5% of mortgages in the 1st quarter were Freddie, Fannie, or FHA. Despite all the cash on the sidelines the private money isn’t going to real estate. Why? Will we have another housing crisis with the Fed govt taking the hit? This is NOT a healthy number people.

Anonymous
Makes Me Think
6 years 1 month ago
Joe — it’s ludicrous to keep claiming that Miami is some of sort of economic Mecca I don’t ever recall anyone calling Miami an economic Mecca, those are your words. Miami has never been an economic mecca except for the days of cocaine cowboys, possibly. Miami/SF is very special to me and many others mainly because of it geography. It is rather unique not just special. You may not want to agree but the fact you spend so much time and every opportunity bad mouthing the place and it’s people, yet claims to wanting to spend over 1 million dollars… Read more »
Anonymous
Makes Me Think
6 years 1 month ago
RT–The problem with socialism is that it uses other people’s money to buy things we don’t need. It is economically wasteful and destroys personal responsibility and incentive. Lastly, charity should be local — one on one, face to face — private charities, church outreaches, etc. should not be crowded out by the federal govt. I agree with you, I don’t want my taxes going towards military bases and fighting wars in foreign lands protecting oil riches of governments that hate us. Most Americans don’t need to have troops in these other countries, maybe the big multi-national companies do but the… Read more »
Anonymous
Makes Me Think
6 years 1 month ago
–It can’t affect western Europe and doesn’t go to the heart of our economy (oil). One could argue that can be considered a subsidy to the oil industry. Oil security should be considered a part of doing business for the oil company that should be passed on the the users. If I don’t use much oil why should i pay the high cost to protect oil? Sounds like I’m being asked to buy something i don’t need or use, the big users of oil should pay for the military spending, otherwise it is socialism, no? I think it is unfair… Read more »
Anonymous
Joe
6 years 1 month ago

Makes Me Think — Ah, finally, some honesty! If you’re saying Miami is a “special place” for people who already have money, then we’re finally in agreement. That’s been my point all along.

By the way, I complain about Miami *because* I love it, not because I hate it. I look at Miami and see what should be a vibrant, economically successful city, but instead, I see corruption and horrible leadership and under-the-table deals and wasted tax dollars. If people who care about Miami don’t speak out, then who will?

Anonymous
why bother
6 years 1 month ago

MMT and RT, You both have valid points. Tough to argue against either of you.

But RT, where the hell can you buy Health insurance for $60/month bro? The cheapest private insurance that I know of is around $300/month.

Anonymous
owneratinfinity
6 years 1 month ago
Joe, You said, Makes Me Think — Ah, finally, some honesty! If you’re saying Miami is a “special place” for people who already have money, then we’re finally in agreement. —-> You are correct, sadly this is true. —–> Miami is a very special place for thoses folks who already have money. It’s not a place that most folks can make real money (over 100K per year). —–> I was born in miami, but I left miami when I was 19 (with my BS degree in computer science) and I went to other states with large numbers of corporate offices.… Read more »
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