Miami’s warehouse district, once largely abandoned and best known for its graffiti and street artist murals, has emerged as one of South Florida’s hottest spots for new residential and office developments.
Wynwood, an area without apartment construction until 2017, has more than 1,300 apartment developments, according to the data company.
Supply has nearly doubled, with an additional 1,393 units being built.
Demand for Wynwood apartments is particularly keen among a large number of people People who resettled in South Florida during the pandemic From the Northeast, Midwest, and West Coast. Mark Blatnik, for example, said he moved there from Chicago in 2021 because “Miami was dealing with the pandemic in the opposite way the city of Chicago was.”
Blatnik has moved into a Wynwood building with a rooftop pool deck and shared workspace. He uses the software to work remotely as his salesman. Like many neighbors, Bratnik chose Wynwood for its good restaurants and “edgy, cool energy,” he said.
Wynwood’s new office projects are also enjoying strong demand thanks to the relocation of businesses to Florida from high-tax states such as New York and California. Today, the neighborhood is home to his 1.3 million square feet of office space, a 30.3% increase over the past year alone. An additional 233,000 square feet of office space is under development, according to CoStar Group.
For tenants who have moved to Wynwood, Large tech companies and start-ups Founders Fund, etc.
and Blockchain.com. PricewaterhouseCoopers recently signed a lease on 545 Wyn, his 2020-completed glass-enclosed 10-story office tower by Chicago developer Sterling Bay.
Other large developers building nearby include Kushner Cos. and CIM Group. “It’s a market that didn’t exist a couple of years ago, but now top accounting, top consulting, big tech are all looking at it,” says Grant, senior vice president of the real estate firm He Killings. Mr Worth said.
CBRE Group Ltd.
Still, demand may not keep up with Wynwood’s rapid growth, according to some real estate investors, including Starwood Capital Group CEO Barry Sternlicht. “There are probably too many projects in the pipeline,” said Sternlicht, concerned about inflation and an unstable economy. You can put a damper if you want“I see cranes on every block of Wynwood. It scares the living sunlight out of me.”
According to CoStar, rental rates for apartments in Wynwood are eight times higher than in Chicago and nine times higher than in New York.
But Wynwood’s office vacancy rate It’s currently hovering around 35%, according to CoStar, partly due to the large number of new spaces that have recently entered the market.real estate agency
Project vacancy in Wynwood’s office market is expected to drop below 15% within the next 6-9 months as tenants just entering the market take up space.
Wynwood residents are also coping with growing pains as their expanding neighborhood becomes more gentrified. Many apartment residents complain about noise from bars, restaurants and other entertainment venues.
Mr. Bratnik says he heard air horns blasting in the middle of the night from a bar across from his building. “Everyone who lives on the outside of the building complains about the noise,” he said.
As growth accelerates, some of the developers who originally discovered Wynwood fear the district will lose its artistic appeal.
Early projects sought to preserve the murals that made Wynwood popular. For example, one of his first residential developments, Wynwood 25, has murals of his three adolescent children painted by artist Miles McGregor, also known as Elle MacGregor, on several of the buildings. It spans the floors of
In 2009, Wynwood pioneer New York developer Tony Goldman invited an internationally renowned street artist to paint the walls of an abandoned warehouse. That year he developed Wynwood Walls, an open-air mural museum in the heart of the neighborhood.
But today, maintaining an artsy vibe in a neighborhood is getting more expensive, says Jessica Goldman Slevnick, co-chairman of Goldman Properties and daughter of Tony Goldman. “Construction costs have skyrocketed and we are concerned that some developers who have purchased land at high prices may try to cut art from their budgets or make architecture less interesting. ‘ she said.
In the mid-to-late 1900s, Wynwood was known as Miami’s bargain clothing district. At the time, many retailers used hand-painted signs and graphics to advertise their business.
As the clothing manufacturing industry moved offshore, graffiti covered some of the abandoned warehouses, and in the early 2000s, the neighborhood was transformed into a gritty outdoor mural space and nightlife destination. started to evolve.
The recent explosion of development at Wynwood has been made possible by changes in zoning laws that allow increased density and height. “People wanted to work here, they wanted to live here, and zoning didn’t let them do that,” says developer Joe Furst.
To maintain the neighborhood’s art-focused identity, the Wynwood Design Review Board was created by businesses and developers associated with the neighborhood. The group encourages developers to incorporate art and creativity into their buildings.
Mrs Goldman Slevnick said: “It’s just all happening at the same time.”
Write to Deborah Acosta: [email protected]
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