Downtown Miami

Downtown Miami condo market solid, report shows

This May 30, 2014 photo shows the construction of buildings in Miami’s downtown financial district of Miami.
This May 30, 2014 photo shows the construction of buildings in Miami’s downtown financial district of Miami. AP

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.

“Since the last downturn, there has come much more prudent use of leverage,” said Daryl Shevin, CFO of investment management firm 13th Floor. “It’s a combination of investor acumen and bank mandate. Overall, it’s a sign of a smart marketplace.”

Currently, 78 percent of all new transactions are all-cash, yielding a market that can more resiliently weather economic turbulence.

The pre-construction market is similarly solid, with 78 percent of existing under-construction inventory already pre-sold, and 85 percent of the inventory slated to become available in 2016 also pre-sold.

For those hoping for a respite from rising rents, relief may soon be here. More than 8,000 units are in the works, an influx to inventory that could stabilize pricing after three years of 5 percent increases in year-over-year rental rates.

“We think that for smart investors and the right groups, there are going to be many opportunities this year,” Shevin said.

Debora Lima is on Twitter @dtdlima

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