The trend of new multifamily construction in South Florida is shifting, with many developers now seeking to sell their development sites after a period of significant growth during the pandemic. The rapid expansion led to increased costs for land, financing, and construction, which has since resulted in a slowdown.
Tony Arellano, a commercial broker, explained that developers are offering more concessions to tenants as they work to lease units in their buildings. A surge of completed projects in 2023 and 2024 has contributed to suppressed rent growth, and some neighborhoods are experiencing declining rents.
Developers have denied that rising costs are the main reason for listing their sites for sale. Miguel Pinto of Apex Capital Realty said, “Some of these guys bought at the top of the market. They were overleveraged, and they thought everything ws going to keep being peachy, that the rents would be peachy, that with Trump being in power, interest rates would have dropped,” adding: “None of that has happened.”
Not all owners are publicly listing their properties but remain open to selling if offered a suitable price. Sebastian Faerman from Fortune Christie’s noted that developers who have not started construction recently are unlikely to begin building during this cycle.
Some properties are owned by investors whose strategy is not to build but rather to buy land, secure entitlements—sometimes using state workforce housing laws like the Live Local Act—and then sell at a profit.
In Wynwood, Clara Homes listed its site—previously home to Austin Burke menswear—for nearly $11 million after purchasing it for $7.7 million and securing approval for a 22-story project under the Live Local Act. James Curnin of Clara Homes stated inventory levels were not behind the decision: “I just want to move to bigger and better things,” he said. He also pointed out delays in site plan approvals as an issue faced by many developers.
Other notable transactions include billionaire Adam Neumann’s Flow taking a majority stake in Chetrit Group’s Miami River development—a project under observation for years by industry watchers.
Recent sales activity includes Patrick K. Willis selling his Fort Lauderdale mansion for $27.4 million to Michael Andretti, former race car driver and racing company owner. On the commercial side, Favo Capital acquired a 22-story apartment tower in Hollywood for $190 million through an all-stock deal involving GCF Development.
Developer Todd Michael Glaser and the Posner Group have put their Miami Beach estate on the market for $169 million after buying it last month for $105 million; it is also available for rent at $495,000 per month while plans proceed for potential redevelopment into a spec mansion with an estimated future value up to $300 million.
According to recent data from the Demographic Estimating Conference, Florida’s population reached 23 million last year and is expected to exceed 24 million by 2027; however, overall growth rates are projected to slow over the next few years.
