In Miami real estate, you either sprint or fall on your face. There's no such thing as steady growth. So goes the case with Wynwood.
planning by artists and local investors transformed the neighborhood
from empty warehouses into a district with stunning street art, popular
restaurants and bars and emerging retail.
It's expected that property
values would grow to reflect the promise. Instead, many recent deals
have given Wynwood higher valuations than established retail markets in
wealthy areas, such as Coral Gables and Las Olas in Fort Lauderdale.
My print edition centerpiece in the South Florida Business Journal explores where the neighborhood is heading.
fear of many is the higher property valuations will lead to expensive
rents that will price out the artists and local businesses that made
Wynwood so successful. I interviewed several property owners that said
they would keep key local groups like Panther Coffee and artists, but
they're investing tens of millions of dollars because they expect a
substantial return from new tenants. Will those big money tenants change
the hipster character of Wynwood? Can they sell enough goods to justify
$80 per square foot in rent?
the new zoning that Miami could finalize for Wynwood will increase the
ability of developers to build apartments, condos and hotels there.
They're targeted the young, creative professional class. However, it's
important that homes in Wynwood are priced below those in areas such as
downtown, Brickell and Edgewater. Construction costs aren't going to
differ much between those neighborhoods so Wynwood developers will need
to find a way to be less expensive for residents.
tell you this about Wynwood, bring it up to any real estate
professional in Miami and they're either all in or they won't touch it.
There's no such thing as middle ground, or a steady pace, in Miami.