South Florida tenants will have to settle for slower rent growth
Beleaguered South Florida tenants still will be paying more in the coming year, but a new forecast shows rent growth is likely to slow.
Rents in the tricounty region are projected to increase 3.2 percent through next August — down from 4.2 percent over the past year, real estate website Zillow said. The national average for the year ahead is 1.7 percent, same as it was this year.
South Florida’s Zillow rent index — the median price paid for renting apartments, condominiums and single-family homes — was $1,885 in August. That’s up 21 percent since August 2011, according to Zillow.
The sharp increases have led to affordability problems.
Pines City Center in Pembroke Pines is expected to break ground later this year after the developer announced that it bought a 17-acre tract for $15.9 million.
The Terra real estate firm said the land will be part of the first phase of the 47-acre project at the southwest corner of Pines Boulevard and Palm Avenue. Publix Supermarkets will anchor the 200,000-square-foot first phase, which should open in 2017, Terra said.
The second phase will include 100,000 square feet of commercial space, 385 apartments and a movie theater.
“We’re seeing a surge in demand for new retail and lifestyle offerings in the area,” said David Martin, president and co-founder of Coconut Grove-based Terra, in a statement.
Dunkin’ Donuts has opened inside the BJ’s Wholesale Club in Pembroke Pines — and the two retailers will be teaming up at other locations in South Florida.
The new chain location, at 13700 Pines Blvd., is owned and operated by franchisee Mike Fallah. It will be open from 8 a.m. to 8 p.m. daily, and guests don’t need BJ’s memberships. The menu includes hot and iced coffees, lattes, cappuccinos, teas, sandwiches and baked goods.
A Dunkin’ Donuts spokeswoman said the chain will open other restaurants inside BJ’s in the coming months. Details have not yet been released.
South Florida homeowners continue to regain equity lost during the last decade’s housing crisis, as the number of “seriously underwater” mortgages has declined sharply over the past three years.
At the end of the second quarter, 17.3 percent of homeowners with a mortgage — 262,591 people in Palm Beach, Broward and Miami-Dade counties — owed at least 25 percent more than the property was worth, according to the RealtyTrac Inc. research firm in Irvine, Calif.
While that’s still higher than the national average of 11.9 percent, it is down from 22.4 percent (332,186 homeowners) at the end of the second quarter of 2015, RealtyTrac said.
Amid a strengthening dollar and shaky economies across the world, Downtown Miami has stood its ground.
A report released Thursday by the Miami Downtown Development Authority that tracked the period between January 2015 and January 2016 outlined a shift in transactions across the downtown condominium market, suggesting that the days of risky financing are over.
Facing a teetering economy at home, wealthy Brazilians have been pouring money into what they increasingly see as the safest place to invest: South Florida real estate.
So are Argentinians, Colombians, Mexicans, Venezuelans, French and Turks — almost anyone with money to shelter, a direct flight to Miami and a shaky economy to flee.
Their cash has helped drive the latest twist in Miami’s ever-evolving transformation — from a 19th century rail stop to a tourist-and-retiree hub to a haven for Cuban refugees to now a harbor for global investors. No American skyline has undergone a more drastic face-lift from foreign cash in the past decade: Luxury condo towers and swanky retailers crowd a downtown once marred by empty lots.