I keep hearing people talk about how the Downtown Miami real estate market is saturated with condo rentals. My answer to this… that’s false, just look at the numbers. Numbers don’t lie. The chart above lists the most popular condo towers in Downtown Miami and lists each respective total units, available rentals (as of 3/11/15), % of available rentals, average rental list price, number of closed rentals within the past 6 months and average rental rate within the past 6 months. These numbers clearly show that the rental market in Downtown Miami condo towers is not saturated.
There are a total of 5,261 units in the 11 condo buildings mentioned above with less than 3.8% rental availability. 5 years ago, many complained how all of these condo towers were “empty” and the buildings were “dark” at night. How far we have come in just 5 years. I would like someone to show me another major metropolitan market that currently has 95% PLUS occupancy rates.
If we were to look at absorption rates (if no more inventory was added to the market, how long would it take to absorb all current inventory), a building like Marina Blue would run out of available rental units in less than 6 weeks, One Miami (8 weeks), Vizcayne (7 weeks), Ten Museum Park (7 weeks), just to name a few. Does this seem saturated to you? Having less than a 6-month supply of rental inventory makes it a landlord’s market.
Furthermore, what is additionally important to consider from the perspective of a Miami condo investor is the vacancy rate of your condo. If you look at the chart above, most, if not all, of these available rentals are being marketed 30-60 days prior to the expiration of the current leases. This means that most of these available units will secure a lease before the current tenants move out, which will give most Landlords a near zero vacancy rate. Downtown Miami condos are popular and rent relatively quickly with very low, if any, vacancy rate.
I cannot stress this enough….work with a Miami real estate agent who is specifically experienced in the Miami condo market and well versed in assisting owners with the rental of their condo unit(s). If you are looking to purchase a Downtown Miami condo or need assistance renting your condo in Downtown Miami, please contact Michael Light, a Miami condo specialist. You may reach me on my cell at (786) 566-1700, at my office at (305) 350-9842 or via email at michael@miamiluxuryhomes.com.