Who says development is stalled in a state that is still trying to absorb the condo and office inventory that rose from the dirt during the last construction boom?
The next wave of development is getting underway in Miami. This time, the focus is not on one product type—but on many product types rolled into one package. Indeed, mixed-use is the name of the development game in Miami these days. Perhaps developers see it as a way to hedge their bets and spread their risks as they eye future opportunities.
It’s a bona fide trend or a genuine comeback. Several large-scale mixed-use projects have been announced for Miami in recent months. The catalyst? Significant investments from multinational companies. That’s right: foreign dollars flushing the Gateway to Latin America with construction cash.
Genting Malaysia Berhad recently purchased 14 acres in downtown Miami. The parcel includes the building housing The Miami Herald. Genting's total investment is $236 million. Dubbed Resorts World Miami, the $3 billion development will include up to 8 million square feet of hotel, convention, entertainment, restaurant, retail, residential and commercial facilities—all designed as part of a master-plan. Genting has a history in Miami, having owned a controlling stake of locally based Norwegian Cruise Line since 2000. The plan is to develop Resorts World Miami into a full-scale destination resort in an urban setting, midway between South Beach and Miami International Airport.
Then there’s Brickell CitiCentre. Swire Properties, the Miami development arm of a Hong Kong conglomerate which developed Brickell Key into one of Miami's most exclusive residential and office addresses, is turning its focus to mixed use development in the Brickell Financial District. The firm has assembled nine acres for Brickell CitiCentre, a $700 million development which will ultimately include large-scale retail space as well as hotel, office, and residential. Arquitectonica has signed on as the lead architect, and construction could begin as early as later this year. The project will come online in about four years.
Another example is Espacio USA's 1400 Biscayne Center. The US subsidiary of Madrid, Spain-based development giant Espacio entered the Miami market last summer with the $32 million purchase of three acres of land including the 131,00-square-foot 1400 Biscayne Blvd. building. Espacio plans to develop a large-scale mixed-use complex combining office, residential and retail space—directly across from the Genting property.
Are these multinational developers missing it? Or is the debut of these massive projects so far out that they are merely leveraging lower construction costs to assure greater profits in an market that is expected to roar back in the next several years?
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