Can South Florida Condo Demand Endure? Related Group’s Nick Pérez Weighs In

The executive shares insights on what upscale buyers want now in this vibrant market.

Nick Pérez has seen success in all three types of branded residence formats. Image courtesy of The Related Group
Condo demand in South Florida is poised for a robust evolution in the coming years, said Pérez. Image courtesy of The Related Group

Condo demand across South Florida remains robust thanks to favorable tax policies, the influx of high-income households and a business-friendly environment. The limited single-family stock available is also pushing buyers toward condominiums, especially in waterfront and urban settings, according to Nick Pérez, president of the condominium division at The Related Group.

Related is a leader in the region’s condominium market and currently has two luxury projects underway in the Miami metro: Icon Beach Residences and Viceroy Brickell. Prices for the first one will span $825,000 to $2.8 million, while prices for the units within the hotel-branded development begin in the $600,000s in the current pre-release time. We asked Perez why the company is so bullish on the South Florida condo market and what makes this upcycle different than previous ones.

What’s driving condo demand in South Florida today?

Pérez: Demand for luxury homes across South Florida and the state as a whole continues to outpace pretty much any other market in the nation. With more blue-chip businesses like Apple and high-income households drawn to the state due to its friendlier tax policies and year-round sunshine, Florida continues to establish itself as a robust business and lifestyle hub. We expect this will translate to continued demand for housing, especially amongst the higher price points. 

Unlike in previous cycles, supply remains very, very tight. With almost no single-family stock available, most buyers are opting for condominiums, especially in areas that are waterfront and in urban centers.

Is the work-from-home/hybrid trend altering the way people are shopping for condos?

Pérez: The work-from-home/hybrid trend is reshaping condo shopping behaviors. We are witnessing buyers increasingly prioritizing properties that accommodate their evolving lifestyle needs. Beyond seeking extra spaces for home offices and meeting rooms, buyers are yearning for versatile rooms that seamlessly integrate work and leisure activities. For instance, buyers are seeking units with dens, offering the flexibility to establish a home office or create a space for recreation and relaxation.

Our developments are designed to meet these demands, incorporating dedicated coworking spaces complete with conference rooms that suit the needs of modern professionals. Residents enjoy the flexibility of accessing these spaces around the clock, offering a fully equipped workspace outside the confines of their homes and providing them with rooms to host in-person business meetings. Complemented by on-site culinary offerings such as cafes and restaurants, these designated areas enhance the working environment, providing residents with diverse spaces to fulfill all their professional needs within the building premises.

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What features and amenities are buyers seeking in their ideal homes?

Pérez: Our buyers are looking for convenience and flexibility. Want to spend all weekend on the property enjoying the amenities and services? We can do that. Want to instead go out and enjoy the world’s best restaurants, nightlife and shopping? That’s OK, too. We’re accommodating this variety of lifestyles and activities, blending work and leisure through the amenities we offer. This is evident in some of our developments like Icon Beach Waterfront Residences and Viceroy Residences Brickell. 

  • Icon Beach Residences
  • Icon Beach
  • the fitness center at Icon Beach
  • the outdoor pool at Icon Beach
  • the cinema at Icon Beach

Why did you choose to partner with a hotel brand? Is this a way to stand out in the market?

Pérez: From established hospitality flags to automobiles and even restaurant groups, local developers are expanding the definition of what it means to be a branded residence, making it more important to differentiate our offerings.

What makes you feel at ease at a hotel? Having services at your fingertips, knowing anything you want or need can be taken care of in a matter of minutes. That’s why we’re working with the Viceroy brand to make sure our development, Viceroy Residences Brickell, truly feels like one of their hotels.

As the first-ever fully residential property from the renowned hospitality brand, Viceroy Brickell boasts 37,000 square feet of hotel-grade amenities and services all managed by the Viceroy Hotel and Residences hospitality team. The property features a pool-side cafe and cabanas for those looking for an all-inclusive resort-like experience, custom treatment rooms for residents seeking indulgent pampering and a sophisticated wine cellar and tasting room for the oenophiles seeking a unique experience. Offsite, residents will have complimentary membership to the Gran Bay Club in Key Biscayne, providing them with a private ocean oasis outside of the development for those who prefer beachfront relaxation. 

Viceroy Brickell will add to a growing pipeline of branded condo development in South Florida, even though it was initially designed as an apartment project. How are sales going?

Pérez: We always knew there was potential this property would one day become a condominium, which is why we designed it to such high standards. With its sister tower—Baccarat Residences Miami—more than 95 percent sold, we knew we were onto something and opted to make the transition to condominiums. 

Partnering with the renowned hospitality brand allowed us to provide residents with a lifestyle that goes beyond traditional apartment-style living…The demand at Viceroy Brickell is highly encouraging. We have strong interest from prospective buyers who are drawn to the condo’s unique combination of branded hospitality, premium amenities, waterfront location and the overall lifestyle offered by the Viceroy Hotel and Residences management team. 

Brickell has always been a thriving neighborhood in South Florida with world-class shopping, restaurants and businesses so we anticipate a healthy pipeline throughout the sales processn and this response shows the increasing demand for upscale, branded condo developments in South Florida.

Are there any other Miami neighborhoods or South Florida areas that are seeing increased interest in condominium development?

Pérez: Emerging cities such as Hollywood are seeing increased interest in condo development because they’ve been previously overlooked. As the shortage of space for new condo development on waterfront land increases in hot spots like Miami and Fort Lauderdale, developers are starting to pivot to these hidden gems to continue to meet the growing demand for luxury condos in South Florida.

Icon Beach Waterfront Residences in Hollywood is a trailblazer… We worked with BH Group to develop a 37-floor, 350-unit condo across from Hollywood’s Diplomat Beach Resort. We identified this area as a new hot spot for high-end development projects as the city invests more in its downtown corridor… Icon Beach Residences is set to redefine Hollywood into a prime destination—and one that will soon compete with more established markets like Fort Lauderdale and Palm Beach.

How do you anticipate condo demand to evolve in South Florida in the coming years?

Pérez: Companies migrating to Miami have skyrocketed over the past few years. I believe we will see a continuation of this trend, with new businesses migrating to Miami along with other cities in South Florida. This will further establish South Florida as a global city and cause the demand for luxury condos to remain strong, positively contributing to the economic growth of the area.

Condo demand in South Florida is poised for a robust evolution in the coming years. With a diverse mix of demographics, including both retirees and young professionals, the region offers a compelling blend of lifestyle amenities and economic opportunities. Economic trends favor continued growth, while lifestyle preferences for urban living and wellness-focused communities drive demand. Factor in South Florida’s resilience and appeal, and the future looks promising for condo development in the region.

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