Tracking the deflating demand for air rights in South Florida
Cooling condo market is exerting downward pressure on the once brisk business of trading development rights above historic buildings
October 18, 2016 08:45AMBy Francisco Alvarado
The height of the SLS Lux tower was increased by purchasing the air rights of two historic properties in Miami’s MiMo District
From the South Florida fall issue: Until recently, there was sky-high demand for the air rights of properties in Miami and nearby cities, including Coral Gables, Miami Beach and Sunny Isles Beach.
Fifteen such deals closed in the City of Miami in 2015 — down from 18 in 2014 — but still significantly higher than the 10 air-rights transfers that took place in 2013.
But as the South Florida condo market has slowed, so goes the market for air rights, which are sold by property owners to developers. In the first half of 2016, only two air-rights transactions occurred. As of September, 10 property owners in Miami were offering air rights on the market, down from 18 the year before. [more]
Source: The Real Deal