Dive Brief:
- A Miami developer has announced plans to break ground on the city's tallest tower, a 1,094-foot-tall, 92-story mixed-use high-rise, in January 2019, according to The Next Miami.
- The Florida East Coast Realty project, known as One Bayfront Plaza, will include 1,052 apartments, 200 hotel rooms, 532,000 square feet of office space and 200,000 square feet of retail.
- The building, which wil include a connection to a nearby Metromover station, maxed out the Federal Aviation Administration's height allowance for Miami.
Dive Insight:
The developer seemingly isn't concerned about a reported glut of upscale condominiums in Miami. Last August, The Related Group decided to delay construction on its Auberge Residences & Spa Miami project after a disappointing presales period. Related took deposits on only 15% of the units, while it was looking for presales to hit two-thirds of the building.
The abundant supply of luxury housing even has the Federal Reserve considering a bigger rate hike in order to cool the market down to avoid a bubble. Adding to the board's concern is a reported 2.4% uptick in mortgage delinquencies for the first time in years. As a precautionary measure, the Fed has advised commercial lenders to take a vigilant stance on their credit standards.
In Boston, mall developer Simon Property Group also put its plans for a 52-story condominium project on hold until demand catches up to supply. The project would have increased housing stock by 542 units and added about 45,000 square feet of retail and dining space.