Some of Miami’s neighborhoods could see significant investment in the coming years as corporations buy up buildings further away from the financial district

South Florida is experiencing strong commercial development, with major firms like Virtu Financial, Goldman Sachs Group, and Elliott Management setting up corporate offices. This trend might be turning the area into Wall Street South—and perhaps Silicon Valley East—and making real estate a hotter commodity in the southern part of the state.

Miami, in particular, is benefiting greatly from the influx of financial companies and startups making their way to the city because they’re buying up vacant commercial properties and attracting highly paid employees. Another trend we’re starting to see is these firms purchasing buildings in areas outside of Brickell, where corporations would typically set up.

Notably, equity firm Blackstone has purchased two office towers in a traditionally economically challenged section of downtown Miami that’s only a few blocks from the Overtown neighborhood. These signs that companies are willing to invest in less-developed neighborhoods could benefit those areas, Miami, and the rest of South Florida.

What the Blackstone purchase means now

Short term, Blackstone buying two towers at 2 Miami Central and 3 Miami Central doesn’t signal a development revolution for the surrounding area. After all, it’s not like one equity firm is going to change the entire neighborhood overnight.

It’s also worth noting that Blackstone got a very good price on these buildings, paying $230 million for the pair of them. Even if Overtown doesn’t undergo a comprehensive change in the coming years, these properties may appreciate.

The buildings are also close to other nearby developments already in place or in the works. Miami Central is only a few blocks from most of Miami’s government buildings, close to Biscayne Bay, including the American Airlines Arena, and not far from the newly gentrified Wynwood neighborhood.

The elephant in the room is that these acquisitions are also in the middle of where Miami Worldcenter will sit in the future. Miami Worldcenter is a planned retail, commercial, and residential development that aims to transform downtown Miami into one of the country’s most desirable places to work and live.

Blackstone didn’t get where it is today by missing opportunities, so it’s easy to see why its investment could be a smart one.

Future developments

The planned and current investments in downtown Miami show a willingness for major corporations to invest in less-developed communities in South Florida. We’ve mentioned how Overtown may benefit from proximity to Miami Central and Miami Worldcenter, but what about other locations? 

Other economically underprivileged sections of Miami like Allapattah, Little Haiti, Model City, and Upper Eastside could see investment in the coming years, too, particularly if corporate firms take hold in the northern part of downtown Miami. After all, employees will be looking for nearby places to live, and these neighborhoods are a short distance away.

These areas might not see huge commercial development. Still, new investment in the residential side of things could make them more desirable places for families to live, much like Wynwood has experienced. That said, it’s important to keep an eye on the potential downsides of gentrification, especially since Miami has one of the most challenging affordable housing situations in the nation. Smart development and urban planning initiatives should balance the benefits of investment in these areas with the possibility longtime residents can’t afford to live there.

It remains to be seen how far the trend will go and how long it will last, but downtown Miami is experiencing significant investment. And areas surrounding Brickell and downtown could become more sought after as development continues in the city.

Staying up to date on CRE developments

Keep an eye on what’s happening in downtown Miami to ensure you’re current on the latest developments. If more financial firms buy up large buildings in areas that are generally considered less desirable, it may signal long-term changes in those neighborhoods. 

Watching how Miami Worldcenter develops and succeeds is also advisable because it may impact surrounding communities like Overtown and Allapattah, particularly on the residential side of things.

Morris Southeast Group can help you stay current on changes in Miami and the rest of South Florida. For more information, give us a call at 954.474.1776. You can also get in touch with Ken Morris directly at 954.240.4400 or