Miami’s new apartment buildings fill up as fast as elevators allow – the next Miami


Developers can’t meet demand for new Miami apartments, according to a new report from Berkadia.

The demand for rental apartments in the area is so great that the only limit to how quickly new apartment buildings in Miami are filled is the capacity of the elevators for the tenants to move in, according to the report.

The absorption far exceeds any new offering entering the market, the report adds.

Strong demand led to a significant increase in rents and occupancy rates during the last quarter.

In the second quarter of 2021 alone, net absorption of apartments in the Miami area jumped to 10,028 apartment units, even though only 4,855 new apartments were delivered during the same period.

The high level of demand caused rents in the second quarter to “jump” by 5.3% compared to the first quarter. The occupancy rate also increased by 80 basis points quarter over quarter.

Overall, the Downtown Miami / South Beach and Fort Lauderdale submarkets outperformed the metropolitan area as a whole during the quarter.

Charles J. Foschini, senior general manager of Berkadia in Miami, told and the SFBJ that sometimes the only limitation to how quickly new buildings can be filled is the capacity of the elevators. The moves create a high demand for elevators, limiting the speed at which leases can be signed, he said.

Developers are preparing to pave the way for another 17,300 apartments over the next four quarters.

The Downtown Miami / South Beach submarket has seen particularly strong demand, and developers will be focusing on this area.

More than a third of the new inventory forecast for next year is in the Downtown Miami / South Beach, North Central Miami and Coral Gables / South Miami coastal submarkets.

More than a quarter of the metro area’s new apartment stock delivered in the first half of 2021 alone was in the Downtown Miami / South Beach and Coral Gables / South Miami submarket, with developers responding to “healthy demand” In these regions.


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