South Beach Slowdown: Leasing Deals Fall As Rental Rates Rise In Year 2013 Published on 2/11/2014 5:45:00 PM
Leasing activity in the South Beach neighborhood of Miami Beach decreased by one percent in 2013 on a year-over-year basis compared to the same January through December period in 2012 as the median rental rate increased by seven percent, according to a new report from CondoVultures.com.
Tenants leased less than 2,400 residential properties in the South Beach market between January and December of 2013 compared to more than 2,415 properties in the same 12-month period of 2012. A year earlier in the year 2011, tenants leased nearly 2,110 residential properties in the South Beach neighborhood of Miami Beach, according to an analysis by the Rental Division of the licensed Florida brokerage CVR Realty™.
Compare this to previous years when tenants leased more than 2,100 residences in 2010 and more than 1,900 residences in 2009 in South Beach, according to an analysis based on Florida Realtors association data.
At the current leasing activity, South Beach has about 96 days of residential product available for rent, according to the report.
As of February 11, 2014, more than 635 properties are available for lease in South Beach where tenants rented an average of about 200 properties per month in the year 2013, according to the data.
CondoVultures.com is scheduled to profile condo trends in the fourth quarter of 2013 in the 10 largest coastal markets in the tricounty South Florida region of Miami-Dade, Broward, and Palm Beach counties beginning the week of January 22, 2014.
The Condo Vultures® Market Intelligence Report™ is scheduled to publish a series that analyzes the markets of Greater Downtown Miami, South Beach, Bal Harbour / Surfside / Bay Harbor Islands, Sunny Isles Beach, Aventura, Hollywood / Hallandale Beach, Downtown Fort Lauderdale and the Beach, Pompano Beach, Boca Raton / Deerfield Beach, and Downtown West Palm Beach and Palm Beach Island.
The demand for rental units in South Beach has decreased as the median monthly lease price increased to about $2.35 per square foot in 2013 from about $2.20 per square foot in the same period in 2012 and about $1.99 per square foot in 2011, according to the report.
In previous years, the monthly median rental rate for a residential lease in South Beach was about $1.87 per square foot in 2010 and less than $1.80 per square foot in 2009, according to the report.
It is unclear what impact if any lease renewals are having on the data.
The completed leases do not reflect any deals that that may have been transacted without being marketed on the Multiple Listing Service.
Of the South Beach properties currently available for rent, about 320 properties have one bedroom with a median asking price of about $3.35 per square foot per month. An additional 185 properties have two bedrooms with a median asking price of about $4.70 per square foot per month.
Nearly 100 studios are available for rent at a median asking price of about $4.34 per square foot per month. More than 30 three-bedroom units are available for rent at a median asking price of nearly $6.05 per square foot per month.
Less than 10 properties with at least four bedrooms are available for rent at a median asking price of more than $4.20 per square foot per month, according to the data.
South Beach is a 24-block long neighborhood in the barrier island city of Miami Beach that stretches from South Pointe Drive north to 24th Street, the Atlantic Ocean west to the Venetian Islands, according to the Condo Vultures® Official Condo Buyers Guide To South Beach™.
It is important to note there are various stages to a residential real estate transaction in South Florida.
A transaction begins when a property is made available for sale and ends when a title is conveyed from one party to another party as a result of the recording of a deed with the local government.
As part of the process, a property typically goes under contract and into a due diligence phase by which a deal can be canceled.
The CondoVultures.com new condo sales report is based on completed transactions where a deed is recorded and taxes paid as a result of the sale.
Condo Vultures® LLC is a real estate consultancy and marketing company based at 425 NE 22nd St., Suite 409, Downtown Miami, Florida, 33137. Condo Vultures® LLC can be reached at 800-750-0517.
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