Despite the pandemic, the real estate market is holding steady in Wynwood. There may be a delay in some hotel projects and other commercial developments, but things are likely to pick back up early to mid-next year, some experts say.
More than 1 million square feet of projects are presently underway, said Kelly Penton, a former City of Miami employee who is director of public relations firm Kivvit. Penton said a comprehensive rezoning plan for the 50-city-block district will allow for a new hotel, office and residential options in the neighborhood while ensuring its character is preserved.
“The real estate market continues to be very strong in Wynwood due to the Neighborhood Revitalization District rezoning of the area that was led by the Wynwood Business Improvement District and the city,” she said.
Strata Wynwood is a multi-use development currently under construction by CIM Group and One Real Estate Investment. The property includes 257 rental apartments ranging from studio to three bedrooms with ground-floor retail at 2201 N Miami Ave. Nick Inamdar, principal/owner of Magellan Housing, which is developing Strata, said. “I think all real estate in Miami will be hot
Wynwood has been one of the city’s most scorching neighborhoods. Retail properties have traded with regularity in the neighborhood and the nearby Design District, but the flow of deals fell short of the historic average in the past year, according to CoStar statistics. Market pricing sits at $609 per square foot, which is well above the region’s average.
The pandemic has led to uncertainty in commercial real estate, and retailers may be susceptible to continued turbulence in the coming months.
“While commercial and hotel developments have been slowed due to the pandemic, residential projects continue to move forward,” Mr. Inamdar said. “As the neighborhood matures into its next iteration, [Strata Wynwood] will reboot Wynwood into a thriving community with numerous purposes beyond restaurants and tourist venues.”
Office rents in Wynwood and the Design District have been on the decline, said Laura Veitia, vice president of Urban Resource real estate and property management, but they picked up some in August after the lockdown.
“For rental apartments, Wynwood is able to attract a premium for their apartments over neighboring areas like Midtown,” Ms. Veitia said. “Offices may have been a little too early, but they are trying to attract tenants that would normally go to Brickell.”
She also said that for retail, the rental price rate has grown about 2% annually since 2018, with a decrease in 2020 due to COVID-19. The rates are likely to increase in 2021 at a slightly higher rate than two years ago, she said.
Among businesses most attracted to Wynwood are breweries and artisans. However, the effects of the pandemic are likely to linger for the foreseeable future.
“Wynwood continues to be a sought-after location for innovative and creative companies,” Ms. Penton said. “Just a few months ago, Spotify announced it is opening its Latin American headquarters in the area and the global architecture firm Gensler stated it will be moving its Miami office from downtown to Wynwood.”
In October, Miami city commissioners approved a streetscape master plan for Wynwood that sets new requirements to make the neighborhood more pedestrian-friendly and safer for cyclists.
According to Aleksander Sanchez, project coordinator for the Wynwood BID, plans for the area include the residential building Wynwood Green at 56 NW 29th St. developed by Lennar, and the office building 545Wyn at 545 NW 26th St., developed by Sterling Bay.
“The pandemic has not slowed down this development boom,” Mr. Sanchez said.