Kevin Tomlinson: Miami Beach Macro Market Update; On Point Venetian Island Estate Wows

Kevin Tomlinson Broker Associate, Calibre International Realty

Miami Beach Real Estate Market Overview

Before I show you this sexy house that I’m “featuring” these days, I’d like to talk market conditions. My background is in marketing and analysis. I love macro and micro analysis of the Miami Beach real estate market. I’ve been a real estate executive for about 25 years, and in that time I’ve seen boom, leveling off, and slow markets. Miami Beach has never “crashed” even during the 2008-2009 drama.

There is no doubt that the market is in flux. But Miami Beach is its own market; separate and apart from Miami proper. I’ve noticed that every 5-8 years the Miami Beach market “takes a breath.” There was no selling season this year. Quiet. After doing some extensive macro analysis, the very top of the market was June/July of 2015. Since then, sales have been light and inventory has piled up. Owners have yet to realize the new market and properties are sitting on the market.

As a “new generation” professional, I believe in being honest and transparent with my buyers and sellers. In all my time as an agent, I’ve never suggested to a seller a higher list price just to obtain the listing – which MANY agents still do to the detriment of the client. Pricing properties correctly is more important than ever. As most everyone knows by now, it is a market truism that the LONGER the property is on the market, the LOWER the sales price will likely be. My goal to optimize my seller’s bottom line and to make sure the property is not on the market longer than 120 days. Definite and specific.

306 W. San Marino Drive, Miami Beach

In my many years of writing this blog, I’ve almost made it a no-no to write on real estate for sale. But this home is special and has a few nuances that make it stand out. I walked into this newly built, never lived in estate and immediately felt that intangible aura of quality. That is very rare. We are all used to all those new “white boxes” that they are colloquialized as, this isn’t one of them.

This baby is different. Designed by Max Strang, the floor plan is open as one would expect. The sight lines when you walk in the front door are magnificent and expansive. The sliding glass doors go from end to end of the first floor using the Fleetwood 7 panel sliding door system. I felt like I was in a California home which is what makes this home stand out. It “feels” different. I know other “spec” home builders who basically use the same floor plan and reduce or increase it depending on the lot size. There are many, many copies of one home here in Miami Beach.

The finishes and fixtures are what really what got me. The interior door systems are European and high-end. The bathrooms by Lacava & Watermark are stunning and low profile. With the furniture that is in place, the home has a mid-century feel to it, further distancing it from the “white box” category.

City of Miami Beach Reduces Lot Coverage to 50 percent

Probably the most nuanced aspect of this home is the size. At 7,076 interior sf and a lot size of 10,500 this equals roughly 70% lot coverage. Since this home was built the city of Miami Beach has downsized lot coverage for new homes to 50% lot coverage, in this lot size range. (Larger lots get less lot coverage.) Now, the largest home you can put on a 10,500 sf lot is a 5,250 sf home. As the Miami Beach market continues to sophisticate, a 5,250 sf home will seem small to the luxury Miami Beach home buyer. At $15M and considering all this home has going for it, I would expect, if the owner is moderately reasonable, this home should be next to sell.