Miami Is Planning On Becoming The Next Great Tech Hub

San Francisco was awesome—until it wasn’t. Silicon Valley and San Francisco became the epicenter of the technology revolution that changed the world. Moving to San Francisco was like the Gold Rush all over again. It was the mecca for young people to earn their fortunes. They could find themselves the CEO of a fast-growing company going public and reap multimillions or billions in a hot IPO.

As time passed and greater numbers of fortune seekers arrived, the rents and home prices became exorbitant and taxes relentlessly increased. As the costs rose, the quality of life deteriorated. Commuting was miserable. The streets were dirty and residents had to deal with a frightening level of crime and open drug usage.

Residents could deal with it all—until the pandemic hit. Then, they were left with all of the bad stuff—stuck in a cramped over-priced apartment and unable to avail themselves to all of the amenities, cultural events, restaurants, concerts and nightlife that the city used to offer. Slowly, then suddenly, people started leaving.

The first wave of high-profile people and companies departing California included Elon Musk, the wealthiest man in the world for a brief moment, supplanting Jeff Bezos. Musk, the CEO of Tesla, grew weary of fighting petty political bureaucrats and jumping through oppressive regulatory hoops. Musk told the Wall Street Journal, “For myself, yes, I have moved to Texas.” He continued, “We’ve got the Starship development here in South Texas where I am right now. We’ve got big factory developments just outside of Austin for Giga Texas as well.”

The New York Times reported, “California, with its steep housing costs, raging wildfires and strict business regulations, has been losing residents to other states, with Texas as the most popular exodus destination. Of more than 653,000 people who left California last year, about 82,000 went to Texas, more than any other state, according to census figures.”

Hewlett-Packard, the eponymously named company of the two original founders and grandfathers of Silicon Valley, who started their company in a Palo Alto garage back in 1939, will relocate its headquarters from San Jose, California to Houston. Coincidently, Drew Houston, the CEO of Dropbox, said the company is moving to Austin. Oracle, led by billionaire Larry Ellison, moved its headquarters to Austin because of California’s high tax rate, exorbitant living costs and the ability to have remote workers.

After a while, Miami, seemingly out of nowhere, started capturing the attention of the California tech migrants. Venture capitalist Delian Asparouhov may have started a relocation movement from Silicon Valley to Miami in a tweet, writing, “ok guys hear me out, what if we move silicon valley to miami?” Francis Suarez, the Republican mayor of Miami, answered back, “How can I help?”

“The tweet got 2.3 million impressions,” Suarez said. “It was organic, it struck a nerve—lightning in a bottle.”

Since the initial tweets, Suarez has been actively courting top-tier tech executives. He has communicated with Elon Musk, Twitter CEO Jack Dorsey, former Google CEO Eric Schmidt and Peter Thiel, the chairman of Palantir.

The mayor is on a charm offensive. Suarez is hyping the fact that Miami will offer a business-friendly environment and be responsive to the needs of the incoming tech companies. Suarez, to demonstrate his sincerity, promises to hire the city’s first technology officer to provide “concierge services” to the companies once based in Miami. This is part of the strategy to show that they want to help companies, while California doesn’t show them the love and attention—except when it comes to raising taxes.

It’s likely that we’ll see this story playing out all across the country. Unless city and state-elected politicians make changes, the flight out of high-taxed, expensive cities will continue unabated. As corporations and well-paid, white-collar workers leave, the cities will bear the brunt of plummeting tax revenue. The decline will force mayors to drastically cut costs. This will include massive layoffs of teachers, police officers, firefighters, garbage collectors and other municipal workers. With less services, the cities become dirtier, crime increases and living conditions worsen. This will prompt even more people to move. A cascading downward spiral could occur, making places, like San Francisco, dangerous and inhospitable.

The absence of a state income tax, plus warm weather and a business-friendly mindset, has already prompted hedge fund billionaires and native New Yorkers Paul Singer and Carl Icahn to relocate their respective businesses to Florida. Leon Cooperman, the billionaire former hedge fund manager and CEO of Goldman Sachs Asset Management, previously moved to Florida. He said of his move, “I suspect Florida will soon rival New York as a finance hub,” due in part to the “Tax and Spend” policies of New York.

A number of bankers told their boss, Ken Moelis, the CEO of his eponymous investment bank Moelis, that they wanted to leave New York City for Florida. In response to their request, Moelis replied, “We’re a talent business. I want to attract, I want to motivate and I want to retain the greatest talent in the world. And if that talent wants to do it in Florida, that’s where we’ll support them.” Moelis, according to a Bloomberg interview, will consider opening or expanding offices, as his employees decide to relocate to cities where tax rates are lower, the climate is warmer and the government is friendly to business.

Charles Gasparino, the long-time chronicler of Wall Street, wrote in the New York Post, “Many other banks and financial businesses are now seeking to move out of the once-friendly confines of New York City, which isn’t so friendly anymore.” He added, “The trend has been a slow burn over the past two decades, but now it has kicked into high gear thanks to [Covid-19], spiraling costs and a feckless political class that runs this city and state.” Gaparino said about JPMorgan’s CEO, “[Jamie] Dimon, I am told, vetoed a plan several years back to move a swath of the bank to south Florida because he didn’t think the schools were good enough. Now, he appears to have changed his mind and is considering plenty of relocations outside New York City.”

Forward-looking places, like Miami, that have business-friendly mayors, like Suarez, low taxes and incentives for people to move—including beautiful warm weather and beaches—will see their cities flourish.

Source: Forbes

New Developments on Tap for Miami’s Sizzling Luxury Market

These five projects cater to buyers heading to the Sunshine State for more space, better weather and modern amenities

As the Miami and South Florida market continues to heat up, buyers increasingly are seeking larger homes, an enduring trend since the beginning of the coronavirus pandemic last year.

“Covid has really impacted how families view their homes and how they use the space,” said David Martin, CEO of the Miami-based development firm Terra.

“We’re seeing a lot of buyers from California and New York,” he said. “They want their condos, and they want the amenities, and they want larger apartments.”

He described the new sweet spot for apartments as 2,200 to 3,500 square feet, up from 1,500 to 2,500 square feet. At Mr. C Residences in Coconut Grove, which Terra is developing, buyers are purchasing multiple units in the 20-story condo tower and combining them to up their square footage. The project launched sales in the first quarter of last year with 118 units, and 60% percent of the condos have now been sold, Mr. Martin said. Most of the new combined units are in the $2 million to $3 million range.

“I’ve never experienced a market this strong,” he said. “Miami has always been a kind of live-and-play place. Now the city is becoming a center for business and commerce, rather than just tourism. We’re seeing multi-sector job growth.”

For the $5 million-plus single-family market in Miami-Dade County sales in November, December and January were “up over 400% year-over-year,” said Ron Shuffield, president of EWM Realty International. ‘

A year ago, for the $5 million-plus market, “we had seven years of supply,” Mr. Shuffield said. “Now we’re down to nine months of supply for single-family homes and 36 months for luxury condos. That inventory is decreasing daily.”

For single-family homes over $1 million, Miami-Dade County recorded an average 189 sales per month in November, December and January, compared to 87 a year ago, a 117% increase, he said. For condos over $1 million, there was an average of 115 sales per month during that same timeframe, compared to 65 a year ago, a 77% increase.

There has been an “increase in demand and a shrinking of supply,” Mr. Martin said. “We’ll start to see a steady growth in pricing.”

As buyers weigh their options with existing and new inventory, let’s take a look at five new projects that are launching sales now and in coming months.

The Villa Collection at the Ritz-Carlton Residences, Miami Beach, 4701 Meridian Ave., Miami Beach

_{Rendering: Courtesy of The Villa Collection at the Ritz-Carlton Residences, Miami Beach}

Amid booming demand for Miami Beach single-family homes with dockage, the Villa Collection at the Ritz-Carlton Residences, Miami Beach simultaneously broke ground and launched sales in late January. The first villa deliveries are slated for early in 2022’s second quarter. Located in the heart of Mid-Beach and minutes from downtown Miami and South Beach, the 15 free-standing two-story villas are part of the Ritz-Carlton Residences, Miami Beach, which features 111 luxury condos spread across a 7.5-acre site with unobstructed lake, ocean and city views. With interiors and exteriors designed by Italian architect Piero Lissoni, the 15 single-family homes feature floor-to-ceiling windows, custom architect-designed Boffi kitchens with Gaggenau appliances, bathrooms lined in marble and anchored by stand-alone tubs, and expansive private terraces wrapped in glass. Other features include two-car garages, fenced yards and private infinity-edge pools in a lavishly landscaped tropical waterfront setting. Eight of the waterfront villas will have private boat dockage and seven will offer scenic secret gardens.

Number of units: 15 two-story villas
Price range: Starting from $4.375 million
Developer/Architects: 4701 North Meridian LLC, with GFI Development Company as the development manager/Choeff Levy Fischman Architecture and Design, and Piero Lissoni
Home sizes: Ranging from 3,263 to 4,643 square feet, with five different floor plans providing three-, four- and flexible five-bedroom options
Amenities: A residential art studio, 36 private boat slips, an on-site captained Frauscher day yacht, a half-acre rooftop pool deck with private cabanas and a poolside private residents-only restaurant, a community garden, a club room and a waterfront social room for entertaining, a kids’ room, a library, pet grooming facilities, a yoga studio with Pilates equipment, a cinema-style screening room, a state-of-the-art spa and fitness center, and a meditation garden.
Website: theresidencesmiamibeach.com

_{Rendering: ARX Solutions}

Baccarat Residences Brickell, 444 Brickell Ave., Miami

The 75-story luxury Baccarat-branded development will bring upwards of 300 units and 40 riverfront villas and is one of three towers making up a four-acre mixed-use enclave in the heart of the Brickell Financial District. The entire project will bring up to 1,400 units, with plans to potentially include hotel and office components. The condo project will offer high design, exceptional service, and amenities that reflect the storied French crystal company’s more than 250-year heritage, according to the Related Group, the developer. The aesthetic will fuse 18th-century Paris and 21st-century Miami, with a 1930s Art Deco influence. Décor elements include a curated collection of furnishings and accessories from top auction houses, custom upholstery and millwork, specialty finishes with European plaster and hand-carved stone, custom Baccarat lighting, and aged French oak flooring. Sales are launching in March/April, with the groundbreaking set for early next year and completion in 2025.

Price range: Expected to be in the $800-per-square-foot range
Developer/Architect: Related Group/Arquitectonica
Apartment sizes: One- to four-bedroom units, with 1,337 to 3,000 square feet for the tower residences and more than 7,000 square feet for the penthouses; 1,150 to 1,400 square feet for the riverfront duplexes
Amenities: Permanent art collection with rotating installations, access to 1 Beach Club at 1 Hotel South Beach, extensive fitness and wellness facilities, waterfront pool deck with cabanas, yacht dockage, and a riverfront promenade.
Website: relatedgroup.com

Onda, 1135 103rd St., Bay Harbor Islands, Florida

_{Rendering: Onda Bay Harbor/Tecma Solutions SpA}

This Miami-Dade County luxury boutique development will offer 41 residences and penthouses in a seven-story condo tower. Standout features and amenities will include expansive waterfront views, a private marina, a gym and spa, and a rooftop pool.

Additional design features include floor-to-ceiling impact-resistant sliding glass doors and windows, Italian flooring throughout, spacious tiled terraces or private gardens for most units, private and semi-private residential elevators, open-plan layouts with up to nine-foot ceilings, and energy-efficient air conditioning and heating systems with ultra-quiet technology. The fully accessorized Snaidero kitchens will feature top-of-the-line Miele appliances, and the bathrooms will have Italian marble and wood cabinetry. Onda will have four penthouses, two of which will have private pools. Sales launched earlier this month, with the ground-breaking expected by the end of 2021 and completion slated for mid-2023.

Number of units: 41
Price range: $1.8 million to $8 million
Developer/Architect: Valerio Morabito of Morabito Properties and Ugo Colombo of CMC Group/Arquitectonica
Apartment sizes: Two-, three- and four-bedroom options, ranging from 1,809 to 3,525 square feet, and four penthouses up to 5,073 square feet
Amenities: A rooftop deck and pool with a summer kitchen and a bar; a gym and spa with exercise equipment, sauna and steam, a yoga studio, a treatment room, and changing facilities; a private marina with 14 slips for boats ranging from 30 to 55 feet and a water sports launch dock with available kayaks, paddleboards, and inflatables; covered valet drop-off, personal parking spaces in an enclosed garage, electric vehicle charging stations and bicycle storage; and secured individual residential storage space.
Website: ondaresidences.com