Land Runs Scarce on Brickell - Successful Developments Are No Cakewalk
May 29, 2012 May 29, 2012
Even as the development of new residential condo towers near Brickell goes well, this success apparently comes at a price, and it's more literal now than ever. Prices continue to increase for buildable land in Brickell due to ongoing development, authority figures say.
Prices continue to go up. "There aren't that many sites left along Brickell Avenue," CBRE Investment Properties senior vice president Richard Tarquino reasoned. He stated that the increasing demand for land is due to the fact that the number of successful developments in the area is also increasing. This creates a high and low for the housing markets in Brickell. One example is the recently started project along 1100 Millecento. This is aside the much-talked about Brickell CitiCentre by Swire Properties.
There have been "ups and downs through the years" Mr. Tarquino continue to say. Brickell is slowly becoming a small city in itself, "becoming a more walkable area," he adds. Not only are the establishments becoming more packed together, but retail venues are also continually increasing. These are apart the fact that the development is still ongoing.
Seeing as how the high demand meets the lowering supply of land, it only stands to reason that the prices will remain on a steady incline until it hits a ceiling. It's either that or the land will run out first. Mr. Tarquino, points out the well known Brickell Avenue condos Brickell House and My Brickell as one of the many new developments in the area, although he does not summarily dismiss the development as a bad thing. If it's any comfort, a few undeveloped parcels in Brickell land remain untouched for the time being. The prices still vary according to site, block and availability in the general area, as reported by Cushman & Wakefield's executive VP Mark Gilbert. As an alternative, some developers are beginning to turn their eyes to already developed sites that do not take their land to its full potential. There may yet be a potential venture in reusing this land.
Do you think land and condo prices are overpriced in Brickell? Or do you think this is just the beginning of the boom? Comment below and let us know what you think.