In the city of Miami, you’ll find the neighborhood of Brickell, which is best known for being the “Billionaire’s Row”. It has a population of more than 37,000 and has been touted as one of the best places to be in Miami.
It was once considered only a financial district, but in recent years, the construction of condominiums, bars, and restaurants has turned it into much more. The best way to describe Brickell is that it’s a bit like New York – in fact, some people say it’s a “mini Manhattan”. It’s always moving and everything you need is a walk away. It’s the sweet spot between work and play, allowing 9-to-5ers to wind down the moment they step out of the office.
Whether you’re looking for banks or big brands, there’s no doubt you’ll find it in Brickell. And with bayfront views, what’s not to love about it?
Key information to consider for Brickell investors
As a real estate investor, you’re likely all about the numbers. Below, we’ve broken down some key details to consider when deciding whether or not to invest in Brickell real estate. Bear in mind that the information found in this article may no longer be up-to-date by the time you read this, so it’s best to consult a property management firm to be certain.
- According to com, the average rental rate for a one-bedroom apartment in this neighborhood is $3,590 with a 9% year-over-year rent increase. This is more than the national year-over-year monthly rent increase of 7.80%.
- Based on data from com, homes in Brickell list for around $699,000 and sell for $606,000. By far, there’s been an upward trend in home prices – last year, Brickell’s median home sale price was a mere $500,000.
- Brickell has a sale-to-list price ratio of 96.51%. The sale-to-list price ratio compares the list price of the property to its actual sale price.
- In addition, information from Realtor.com shows that homes in Brickell stay on the market for around 74 days.
- According to com, Brickell is one of the most expensive neighborhoods in Miami.
- Most people prefer to rent in Brickell – in fact, 78.3% of properties are renter-occupied according to com.
What types of properties will you find in Brickell?
You won’t be able to find single-family homes in Brickell – it’s an urban area, so it’s mainly filled with towering buildings. With that said, if you plan to become a rental property owner, know that your choices will be limited to condominiums. Also, be prepared to spend hundreds of thousands of dollars (or even millions) to own a property, especially in the Brickell City Centre (BCC), Brickell Key, and other upscale residential districts. You could also consider fractional ownership if the price is too steep.
How much can you charge monthly for your Brickell rental?
Wondering how much you’ll get every month? Here’s a breakdown of the average rent in Brickell based on information from Zumper.com:
- Studio apartment: $2,675
- 1-bedroom apartment: $3,590
- 2-bedroom apartment: $4,600
- 3-bedroom apartment: $7,345
- 4-bedroom apartment: $13,000
A good rule of thumb is to charge 0.8% to 1.1% of the home’s value. So if your apartment is valued at $600,000, your monthly rent should be between $4,800 to $6,600. Your rental rate can also be based on other people’s rates. If you’re not sure how much to charge, don’t worry – a good property management company can help you calculate the ideal rent.
Who will you most likely rent to?
One of the most critical parts of running a rental property is knowing who your target tenants are. When you take the time to get to know your tenants, you’ll be able to provide them with the amenities they want, identify the best place to market your property, and more. Let’s take a look at some key demographics:
- The average age is 40.
- 42% of Brickell residents are married while 38.43% have never been married.
- 49% of people have children while 84.51% do not have children.
- 49% percent of the population is female while 51% is male.
- White-collar workers account for 82.17% of the working population. Around 1,600 of those are entrepreneurs and more than 5,700 are employed in private companies.
So, what’s the takeaway from these figures? Overall, it shows that Brickell is a great neighborhood for working professionals. With that in mind, you might want to tailor your marketing strategy to methods that work for the younger crowd.
What makes Brickell a great place to live?
More and more people are moving to the vibrant neighborhood of Brickell, meaning you won’t have a hard time renting out your home. Here’s why Brickell is so well-loved:
- Year-round sun. Brickell sees warm weather year-round, but there may be the occasional rain showers between May to October.
- A melting pot of cultures. The neighborhood welcomes visitors from all over the world. Plus, it’s home to many multinational companies.
- Shopping galore. You won’t run out of retail options. The neighborhood boasts a wide range of shopping centers such as the Brickell City Center and Mary Brickell Village.
- Top-rated schools. The Miami-Dade County Public School District serves Brickell. This district belongs to the top 50% of Florida public schools.
- Convenient transportation. To get around, all you have to do is get on the Miami Metrorail or the Miami Trolley. Brickell also offers bike-friendly streets.
- Walkable neighborhood. Everything is within walking distance. The neighborhood is only 1.19 square miles.
Manage your rental with a Brickell property management company
If you do decide to invest in Brickell real estate, be sure to get a property manager from Luxury Property Care. Our property management services will prove particularly useful if you don’t live in Brickell, or if you simply want someone else to do the heavy lifting for you.
Or, if you’re still conflicted, you can consult us for investment advice. As investors ourselves, we’re very familiar with the Brickell market, and we’d be more than happy to help you make an informed decision.