Top Stories

HOUSING

Allure of Brickell, downtown Miami drives up rental rates

 

Rents are rising in Miami, especially in the sizzling Brickell/downtown areas where vacant units are snapped up quickly amid strong demand for the urban lifestyle and amenities.

 

Brett Smith, a 25-year-old Brickell resident, stands on the balcony of his condo.  His rent just went up 15 percent.
Brett Smith, a 25-year-old Brickell resident, stands on the balcony of his condo. His rent just went up 15 percent.
PATRICK FARRELL / MIAMI HERALD STAFF

mbrannigan@MiamiHerald.com

The rising rents also reflect that condo sales prices have rebounded sharply in Miami from their recession lows, especially in the downtown Brickell area. Most of the overhang of new condominium inventory has been snapped up more quickly than many had expected, with much of it going to cash-rich foreign investors, who rent the units out.

Raquel Colp, the sales and leasing executive for Axis Brickell, which is still working through sales of about 44 developer-owned units, said rents have to keep pace with the higher market selling prices of condo units, since investors expect a certain rate of return.

Colp recently was preparing a lease renewal letter for a tenant in a two-bedroom condo that was renting for $1,925 a month and wondering: “We’re looking to renew, but how do you tell someone the rent is going up $375?” she said. “$2,300 would be close to the bottom pricing for a two-bedroom condo,’’ she added.

One tenant at Axis recently managed to reduce the rent on a two-bedroom unit by $100 a month to $2,600 a month from the asking price of $2,700 a month “because they paid five months upfront,” Colp said.

Occasionally, existing tenants can negotiate breaks. Melissa Samowitz, who in August renewed the lease on her one-bedroom, 1 1/2-bath condo unit at Latitudes on the River in downtown Miami for a second year, said the couple who owns the unit sought to boost the rent $100 a month to $1,625.

“We pushed back, because we’re good tenants,” said Samowitz, 26, who works at a software company in Weston. The compromise: A $50 a month increase.

“I know if we moved, we would be paying a lot more,” Samowitz acknowledged. “Most one bedrooms are $1,800 or so.” And the neighborhood is in high demand, she said: “There’s restaurants popping up. The place is booming.”

Focus president Werley said discounts and come-ons to lure renters in downtown Miami are “at historic lows.”

“Incentives for all intents and purposes disappeared in downtown sometime in 2011,” he said. “You don’t need to offer special deals.”

James Brinker, a real estate agent with CVR Realty in Miami, agrees that high occupancy rates and strong demand give landlords the stronger hand.

“You have to pay market price,” Brinker said. “There’s not a lot of negotiation.”

Brinker said he recently checked the Multiple Listings Service for rental units between $1,500 and $2,000 a month in the 33132 ZIP code that covers part of downtown. “Only six listings showed up. It blew my mind.”

Read more Top Stories stories from the Miami Herald

Miami Herald

Join the
Discussion

The Miami Herald is pleased to provide this opportunity to share information, experiences and observations about what's in the news. Some of the comments may be reprinted elsewhere on the site or in the newspaper. We encourage lively, open debate on the issues of the day, and ask that you refrain from profanity, hate speech, personal comments and remarks that are off point. Thank you for taking the time to offer your thoughts.

The Miami Herald uses Facebook's commenting system. You need to log in with a Facebook account in order to comment. If you have questions about commenting with your Facebook account, click here.

Have a news tip? You can send it anonymously. Click here to send us your tip - or - consider joining the Public Insight Network and become a source for The Miami Herald and el Nuevo Herald.

Hide Comments

This affects comments on all stories.

Cancel OK

  • Videos

  • Quick Job Search

Enter Keyword(s) Enter City Select a State Select a Category