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Inside Miami’s red-hot real-estate market, fueled by finance and tech transplants from both coasts

Miami, Florida. Danny Lehman/Getty Images South Florida has welcomed transplants in droves since the onset of the pandemic. Miami is fielding …

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miami floridaMiami, Florida.

Danny Lehman/Getty Images

  • South Florida has welcomed transplants in droves since the onset of the pandemic.
  • Miami is fielding heavy demand as remote workers and relocating companies migrate to the beach.
  • Top local brokers report record demand for Miami homes, specifically in the luxury space.
  • Visit Business Insider’s homepage for more stories.

Last March, Alex Taub, his, wife, and their daughters contracted COVID-19, and even worse, they were living in a two-bedroom apartment in New York City at the time.

The 33-year-old founder of Upstream, a professional social networking app and platform, told Insider in a first-person account that his family had moved to North Miami by July.

“Work-wise, I think I’ve had my most productive four months in a long time – mainly because of the lack of commute and distractions, and having a dedicated space in my home where I can get things done – so I can’t complain,” he wrote of his experience making the move last December. Not only do they have more space, a yard, and a pool, there’s also the sunny weather.

Taub is far from alone, as Miami has attracted a huge influx of new residents, standing out in a South Florida real-estate market that is scorching overall.

Alex Taub, UpstreamAlex Taub.

Alex Taub

Financiers and techies flocking to Florida

Among the state’s many new residents are tech workers who see the city as a place to grow both personally and professionally.

With the ability to work from anywhere, many finance and tech workers have decided to relocate outside major coastal cities, some fleeing to Rocky Mountain states like Colorado while others seek opportunity in Austin’s Silicon Hills.

But in the case of Florida, remote workers’ movement comes alongside their bosses’, as financial behemoths and tech giants move to set up shop beachside.

Manhattan-based hedge funds Elliott Management and Citadel Securities are two of the several of New York’s staple financial institutions that have decided to move at least some operations to the Sunshine State, as Insider previously reported.

Perhaps the two most prominent institutions considering a move are financial-services giants Goldman Sachs, which is reportedly entertaining plans to shift its asset management operations out of New York, and the world’s largest private-equity firm, Blackstone, which is set to open a Miami office for as many as 215 back-office employees.

Miami FloridaMiami, Florida.

Walter Bibikow/Getty Images

Big tech firms aren’t far behind, as companies such as Uber and Twitter already call Miami home, and local government continues to push for tech investment in the city, in hopes of building a reputation for Miami as the Silicon Valley of the south.

Taub sees the remote-work trend accelerating over the next few years. “Top talent will move to where they want to be because the best companies will hire the best people anywhere,” he said, adding that as an entrepreneur himself, this trend has opened his eyes as to how to build a great team remotely.

With that in mind, Taub foresees the growth of less-populated cities like Miami potentially becoming new hubs for tech and business.

Record residential demand

This influx has created a boom in Florida’s luxury home market, according to a new Redfin report. Miami saw a steep increase in demand the last three months of 2020 at the high end, per Redfin data, as luxury home sales were up 55%, and median luxury home sales were up 18%. Overall, homes sold 53 days faster than they did in 2019.

Leading Miami real-estate broker Chad Carroll told Insider that his 2020 sales volume was just over $300 million, a big year, except his volume is already north of $150 million just a month into 2021. Carroll, who deals primarily with luxury buyers in Miami, said the market shows no signs of slowing down soon.

“The demand is something we’ve never experienced before,” he said, adding that home prices are skyrocketing, prices have increased tenfold, and it’s the first time in the more than 12 years he’s lived in Florida that he’s seeing a shortage in high-end inventory.

miami manison yacht chad carrollCompass’ Chad Carrol sold this $2 million Miami mansion to a buyer looking for a place to park his yacht in June.

Courtesy Daniel Petroni for Chad Carroll with Compass

Areas like West Palm Beach, a neighborhood in commutable distance of Miami, set new records, too, with luxury home sales surging 116% in the fourth quarter, according to Redfin, a larger gain than any other major US metro and the largest increase since at least 2013. Affordable home sales in West Palm Beach also saw an increase of 10% over the same period.

While South Florida has always had high-end buyers and sellers, Carroll said, the market hasn’t had the velocity that’s happening now. Carroll is doing more $10 million and $20 million-plus sales than ever before, he said, and “developers can’t build product fast enough.”

“There are no deals right now, a transaction today is a deal tomorrow because the demand is so strong and consistent,” Jay Philip Parker, CEO of Florida’s Douglas Elliman brokerage, told Insider.

Where buyers are coming from, and where they’re going

Miami is a primary market with more to offer than many of the other secondary and tertiary markets seeing strong demand right now, according to Parker, whose experience in Florida real estate spans over 20 years.

And many of the transplants who arrived in Florida with the intention to rent have since sought to purchase homes or condos, he said, adding that the general sentiment among new residents is to stick around.

Judy Zeder, a member of Coldwell Banker’s prominent Jills Zeder Group – which surpassed $1 billion in sales volume in 2020 – emphasized the demand for local housing, particularly at ultra high-end prices.

“The highest-profile areas are the areas my group works in, Gables Estates, Coconut Grove, Pinecrest, Coral Gables, and then crossing the bridge to Miami Beach, Fisher Island, La Gorce, Golden Beach, and Indian Creek,” she said. “They are attracting the most high-net-worth buyers right now.”

indian creek village miamiIndian Creek Village, an exclusive manmade private island in Miami, is home to celebrities and billionaires.

Jeffrey Greenberg/Universal Images Group via Getty Images

The strongest influx of transplants is coming from the Northeast, Zeder added, with “good activity coming from the Midwest and Colorado, and an unusual amount coming from California.” Carroll agreed that west-coast buyers, largely from Los Angeles and San Francisco, have been flocking to Florida in numbers he’d never seen prior to the last 12 to 18 months.

Though the surge in demand for South Florida property can be attributed largely to the pandemic, Carroll said Miami demand is here to stay.

“Because real wealth and real companies are moving into the area,” he said, “the foundation of mega-wealth is going to be home-based here. Relocating companies isn’t something you do for one or two years. It’s a strategic move for the foreseeable future. You don’t uproot an entire company and peoples’ lives to move back.”

  • Top local brokers report record demand for Miami homes, specifically in the luxury space.
  • Source: https://markets.businessinsider.com/news/stocks/inside-miami-real-estate-market-wealthy-transplants-tech-finance-migration-2021-1-1030051430

    inside-miami's-red-hot-real-estate-market,-fueled-by-finance-and-tech-transplants-from-both-coasts

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    Blackstone’s betting $6 billion on the rental market – here’s why private-equity loves real estate right now

    Jonathan Gray, Blackstone president and chief operating officer Heidi Gutman/NBCUniversal via Getty Images Blackstone is all-in on rent resets…

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    Jonathan GrayJonathan Gray, Blackstone president and chief operating officer

    Heidi Gutman/NBCUniversal via Getty Images

    • Blackstone is all-in on rent resets and long-term property assets to combat potential inflation.
    • Private equity firms have trillions of dollars in cash to put to work on acquisitions.
    • Blackstone’s share price ticked over $100 for the first time this month.
    • See more stories on Insider’s business page.

    It’s been quite the month for Blackstone.

    The private-equity behemoth is part of a consortium of investors that bought Medline for about $34 billion, its share price ticked over $100 for the first time, and it’s doubling down on residential real estate with a $6 billion Home Partners of America buy.

    It’s a bet on scorching demand for housing continuing, and also a defensive move as inflation worries start to seep into investors’ minds. The average price of a home topped $350,000 for the first time inn May, according to the National Association of Realtors, logging the largest-ever increase in prices since the NAR began tracking data.

    “Whether it’s apartments, storage facilities for warehouse distribution, or single-family homes, private-equity is getting into this as an inflation hedge,” Nicholas Tsafos, a partner with accounting firm EisnerAmper, told Insider.

    Home Partners, which owns more than 17,000 homes in the US, rents out these properties, but tenants have an opportunity to someday buy the home.

    In the single-family rental arena, private-equity firms can hike rents, while also holding onto profitable, tangible assets.

    “Because interest rates are low, and with the potential for a pick-up in inflation, private-equity also feels the need to be long on hard assets,” Tsafos said. “In real estate, you buy it today and then flip it for a higher price.”

    Jon Gray, Blackstone’s president and COO, alluded to it during the firm’s earnings call in April when he said multi-family apartments that come with the ability to reset rents were key for Blackstone.

    The firm bought many houses at remarkable discounts after the housing market crashed in 2007. It accumulated a number of single-family homes through a former portfolio company Invitation Homes. Blackstone sold its final block of shares in the company in 2019.

    The private-equity shop also favors logistics spaces, such as warehousing, life sciences offices, and media and studio businesses with offices, according to a June 22 research note from UBS.

    In October, Blackstone made a handsome investment when it sold life sciences real-estate company BioMed Realty for $14.6 billion, after acquiring it for about $8 billion in January 2016.

    And it’s not just Blackstone. Fellow private-equity investor KKR is investing in My Community Homes, a platform that buys and manages single-family rental properties, according to Bloomberg.

    KKR will invest in My Community Homes through its real-estate and private-credit vehicles.

    A spokesperson for KKR was not immediately available to comment.

    The Carlyle Group said in May that it provided up to $300 million to Four Springs Capital Trust, a private REIT that acquires and manages single-tenant properties with long-term net leases.

    Four Springs will use the money to build its portfolio, which encompasses 122 properties across 29 states, Carlyle said in a press release.

    The move on real estate comes while private investment firms sit on more than $1 trillion in cash. Borrowing costs, too, remain subdued as the Fed keeps interest rates at all-time lows.

    Given the sheer amount of dry powder available, coupled with accommodative credit markets, private-equity is keen to conduct a surfeit of acquisitions, and isn’t shy about injecting large sums of equity into prospective investments.

    Medline, for example, is expected to raise roughly $17 billion from the debt markets, while the private investors are providing a similar amount in equity.

    “Big leveraged buyouts are back in vogue,” said Christopher Zook, chairman and CIO of alternative investment manager CAZ Investments. “Whether it’s KKR or Blackstone, they have large capital to put to work. So they’ve got to do a ton of deals.”

    Disclaimer: KKR holds a majority stake in Insider’s parent company, Axel Springer.

    It’s been quite the month for Blackstone.

    Source: https://markets.businessinsider.com/news/stocks/blackstone-home-partners-america-single-family-rental-real-estate-inflation-2021-6-1030556791

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    Trading the Fed, plus insights from a 99th-percentile fund manager

    Hello and welcome to Insider Investing. I'm Joe Ciolli, and I'm here to guide you through the current market and investing landscape. Here…

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    Hello and welcome to Insider Investing. I’m Joe Ciolli, and I’m here to guide you through the current market and investing landscape. Here’s what’s on the docket:

    If you aren’t yet a subscriber to Insider Investing, you can sign up here.

    Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at [email protected] or on Twitter @JoeCiolli.

    Fed-driven portfolio adjustments GettyImages 1228670990

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    The Federal Reserve left interest rates steady this past week while setting the stage for two hikes by year-end 2023. Traders, who took a wait-and-see approach before the Fed meeting, quickly sprung into action. Insider spoke with Wall Street and crypto investors to gauge how to position for the hawkish shift.

    Read the full story here:

    The Fed has left rates steady while signaling 2 potential hikes by the end of 2023. Here is what to do with your stocks, bonds, and digital assets, according to top Wall Street and crypto investors.99th-percentile insights and stock picks Dave Ellison

    Hennessy Funds

    Financial-sector stocks have outperformed the rest of the market over the last several months. Hennessy Funds’ Dave Ellison – who’s in the 99th percentile compared to peers over the past year – told Insider he expects their strong performance to continue. He shared 5 financial stocks to buy now in order to take advantage of the remaining upside.

    Read the full stories here:

    Dave Ellison has beaten 99% of his peers over the last year managing the Hennessy Small-Cap Financial Fund. He breaks down why he thinks financial stocks still have room to run – and shares 5 names to bet onSPAC shorts SPACs and hedge funds 2x1

    Brian Snyder/Reuters; Michael Loccisano/Getty Images; Samantha Lee/Insider

    Short interest in SPACs stood at $3.2 billion in mid-June, up from $2.7 billion. The uptick in SPAC shorts comes as the market works to recover from a weeks-long slowdown, and one ETF manager expects recently “de-SPACed” companies to see short activity surge soon. Exclusive data shows the 20 most-shorted blank-check companies right now.

    Read the full stories here:

    Bets against SPACs are revving back up as the market attempts a comeback. Here are the 20 most-shorted blank-check companies now.YOU’RE INVITED: A Millennial Guide to Home Ownership

    Join us and learn how to navigate the complicated process of buying a home in today’s hot market on Tuesday, June 22 at 12 p.m. ET – during a free, hour-long virtual event presented by Fidelity.

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    Stock pick central

    Seeking experts who are willing to name names? Look no further:

    Have thoughts on the newsletter? Just want to talk markets? Feel free to drop me a line at [email protected] or on Twitter @JoeCiolli.

    Source: https://markets.businessinsider.com/news/stocks/trading-fed-99th-percentile-picks-spac-short-selling-insider-investing-2021-6-1030537490

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    Artificial Organs Market | $ 10.90 billion growth expected during5 | Technavio

    NEW YORK, June 18, 2021 /PRNewswire/ — The artificial organs market is expected to grow by USD 10.90 billion during 2021-2025, according to Techn…

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    NEW YORK, June 18, 2021 /PRNewswire/ — The artificial organs market is expected to grow by USD 10.90 billion during 2021-2025, according to Technavio. The report offers a detailed analysis of the impact of COVID-19 pandemic on the artificial organs market in optimistic, probable, and pessimistic forecast scenarios.

    Technavio has announced its latest market research report titled Artificial Organs Market by Product and Geography - Forecast and Analysis 2021-2025

    Understand the in-depth market insights with value chain analysis and validation techniques:
    Download FREE Sample Report

    With the continuing spread of the novel coronavirus pandemic, organizations across the globe are gradually flattening their recessionary curve by leveraging technology. Many businesses will go through response, recovery, and renew phases. Building business resilience and enabling agility will aid organizations to move forward in their journey out of the COVID-19 crisis towards the Next Normal.

    The artificial organs market will witness a positive impact during the forecast period owing to the widespread growth of the COVID-19 pandemic. As per Technavio’s pandemic-focused market research, market growth is likely to increase in 2021 as compared to 2020.

    This post-pandemic business planning research will aid clients to:

    • Adjust their strategic planning to move ahead once business stability kicks in.
    • Build Resilience by making effective resource and investment choices for individual business units, products, and service lines.
    • Conceptualize scenario-based planning to mitigate future crisis situations.

    Key Considerations for Market Forecast:

    • Impact of lockdowns, supply chain disruptions, demand destruction, and change in customer behavior
    • Optimistic, probable, and pessimistic scenarios for all markets as the impact of pandemic unfolds
    • Pre- as well as post-COVID-19 market estimates
    • Quarterly impact analysis and updates on market estimates

    Major Three Artificial Organs Market Participants:

    Abbott Laboratories
    Abbott Laboratories offers ASSURITY MRI PACEMAKER. Its size and shape allow surgeons to make small incisions during the implantation procedure. This pacemaker requires a small pocket under the skin of the chest during implantation.

    Asahi Kasei Corp.
    Asahi Kasei Corp. offers REXEED. It is a hemodialyzer for effective removal of toxins and low molecular weight proteins.

    B. Braun Melsungen AG
    B. Braun Melsungen AG offers Diacap Pro. It is a hemodialyzer that removes wastes and excess fluid from the blood.

    If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Get report snapshot here to get detailed market share analysis of market participants during COVID-19 lockdown:
    https://www.technavio.com/report/artificial-organs-market-industry-analysis

    Artificial Organs Market 2021-2025: Segmentation

    Artificial organs market is segmented as below:

    • Product
      • Artificial Heart
      • Artificial Kidney
      • Cochlear Implants
      • Artificial Pancreas
    • Geography
      • North America
      • Europe
      • Asia
      • ROW

    The artificial organs market is driven by the increasing prevalence of chronic disorders. In addition, the growing demand for pacemakers and dialyzers is expected to trigger the artificial organs market toward witnessing a CAGR of almost 9% during the forecast period.

    Know more information on factors assisting the artificial organs market growth during the next five years, Request Free Sample Report @
    https://www.technavio.com/talk-to-us?report=IRTNTR44011

    Related Report on Healthcare Include:

    Global Breast Reconstruction Market- The breast reconstruction market is segmented by product (breast implants and tissue expanders) and geography (North America, Europe, Asia, and ROW).
    Download FREE Sample Report

    Global Dental Infection Control Products Market- The dental infection control products market is segmented by product (consumables and equipment) and geography (North America, Europe, Asia, and ROW).
    Download FREE Sample Report

    Market Drivers

    Market Challenges

    Market Trends

    Vendor Landscape

    • Vendors covered
    • Vendor classification
    • Market positioning of vendors
    • Competitive scenario

    About Us
    Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions. With over 500 specialized analysts, Technavio’s report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio’s comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.

    Contact
    Technavio Research
    Jesse Maida
    Media & Marketing Executive
    US: +1 844 364 1100
    UK: +44 203 893 3200
    Email: [email protected]
    Website: www.technavio.com/
    Report Page: https://www.technavio.com/report/artificial-organs-market-industry-analysis

    Technavio (PRNewsfoto/Technavio)

    Cision View original content to download multimedia:https://www.prnewswire.com/news-releases/artificial-organs-market—10-90-billion-growth-expected-during-2021-2025–technavio-301315548.html

    SOURCE Technavio

    Markets Insider and Business Insider Editorial Teams were not involved in the creation of this post.

    With the continuing spread of the novel coronavirus pandemic, organizations across the globe are gradually flattening their recessionary curve by leveraging technology. Many businesses will go through response, recovery, and renew phases. Building business resilience and enabling agility will aid organizations to move forward in their journey out of the COVID-19 crisis towards the Next Normal.

    Source: https://markets.businessinsider.com/news/stocks/artificial-organs-market-10-90-billion-growth-expected-during-2021-2025-technavio-1030536439

    artificial-organs-market-|-$-10.90-billion-growth-expected-during5-|-technavio

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