- Developers are increasingly opting to sell fully entitled Miami sites due to rising construction costs, interest rate volatility, and growing economic uncertainty.
- Evolve Cos., Scott Robins Cos., and Philip Levine are among several developers that have recently listed projects for sale instead of proceeding with development.
- Experts point to ongoing inflation, increased insurance costs, and new tariffs as major reasons behind the pause in Miami’s once-robust development pipeline.
Shovel-Ready, But Sidelined
More Miami developers are choosing to sell their entitled sites instead of moving forward with construction, per Bisnow. Rising costs and market uncertainty are pushing many to cash out while prices remain strong. Brokers say many had hoped to break ground by now but can’t justify the investment.
Case In Point
Evolve Cos., based in North Carolina, listed two Miami properties it bought in 2022. The first, Wynwood 35, was set to become a 141-unit, eight-story apartment building. The 41K SF site is now for sale at $14M. The second site in Midtown, purchased for $9M, was approved for 150 units. It’s now listed at $12M.
“They like Miami and South Florida,” said George Belesis of Dwntwn Realty Advisors. “But these sites didn’t fit into their main business strategy.”
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More Listings To Watch
- Wynwood Easel, located at 35-83 NW 27th St., hit the market in March for $26M. Developers Scott Robins Cos. and Philip Levine originally proposed a hotel and retail project. They later updated their plans to include 203 apartments and 15K SF of retail.
- Listing agent Tony Arellano said the partners always planned to entitle and sell the site after assembling it.
What’s Driving The Sell-Off?
Rising construction costs, higher interest rates, and new tariffs have made many projects financially unviable. The US recently imposed a 10% universal tariff, 25% duties on steel and aluminum, and a 145% tariff on Chinese imports. These moves are increasing material costs and delaying development plans.
“Developers are seeing lower returns than they need,” said Brad Capas of CBRE. “If they can’t get to a 6.5% return on cost, they’ll walk away.”
Big Picture
Miami’s hot development market is hitting a pause. Entitled sites are entering the market faster as some developers decide to exit rather than take on more risk. While Miami’s long-term outlook remains positive, short-term uncertainty may lead more owners to list instead of build.
Why It Matters
This trend signals a slowdown in Miami’s building boom. It also creates fresh opportunities for buyers who are willing to wait for more favorable conditions. As uncertainty continues, more sites could hit the market, reshaping Miami’s development pipeline.
