Growing Demand Drives Up Brickell Land Values
By Patricia Hoyos
Increasing demand and scarce supply are making land and commercial sites in Brickell more and more valuable.
"There aren’t that many sites left along Brickell Avenue, so prices are going up," said Richard Tarquino, senior vice president for CBRE Investment Properties.
Land prices went down significantly in 2008 and 2009 but have since experienced a boost. Brickell is in a different place than it was back then, said Mark Gilbert, executive vice president for Cushman & Wakefield’s Southeast Capital Markets Group. Condominiums have been substantially absorbed, and the 35-story 1450 Brickell and 47-story Wells Fargo, two of the urban core’s three newest office buildings, are almost fully leased.
"Brickell has gone through its ups and downs through the years," said Mr. Tarquino, "and it has grown into a little city unto itself that’s becoming a more walkable area. You are getting more retail venues. It’s very easy for people to live in the downtown area and also work there. That is something that wasn’t there previously."
Prices are now being propelled upward as Brickell continues to become a true urban neighborhood with new residential projects in the pipeline, Mary Brickell Village adding more tenants and Swire’s mixed-use CitiCentre project promising to fulfill the area’s need for a retail component.
"Prices for parcels vary from site to site, block to block," Mr. Gilbert said. "It depends on the size of the parcel and the development on the parcel."
Brickell has few undeveloped parcels, so many developers are turning their eyes to sites with buildings that don’t use their land to their full potential to tear them down for future development.
Parcels in the Fifth Street and 10th Street corridor from Miami Avenue to the water near Swire’s planned 9-acre CitiCentre, in particular, can expect to see their prices increase.
"I think that any parcel close to it is going up [in price] substantially," Mr. Gilbert said. "Everyone is benefitting from the rising tide."
"I think one of the things that we have seen," he added, "is that parcels do not have to be waterfront anymore for residential developments to be successful."