Magic City Tech Boom? Microsoft In Negotiations At 830 Brickell And Elon Musk Wants To Build Tunnels Under Miami

Miami, the magic city, is on track to become the next Silicon Valley as the fallout from the COVID-19 pandemic has brought people flocking to South Florida. Florida saw the second highest population growth over any other state in 2020, following Texas, adding over 240,000 new residents in a single year. The influx of new residents is being driven by those looking to take advantage of remote-working opportunities or seek a state that has let business remain open and has pro-business tax structure. This has led to Miami and Palm Beach real estate pricing and absorption reaching near record highs.

Not only are the new residents flocking from the high-tax New York, at the same time as South Florida’s population boom, the San Francisco Bay Area has seen an exodus of venture capitalists and tech entrepreneurs. Mayor Francis Suarez has opened up the city to tech entrepreneurs and has expressed interest in bringing innovative companies to the magic city and making Miami a global tech hub. Mayor Suarez recently announced he will be appointing a Chief Technology Officer for the city.

Miami’s office market is being a surge in demand and setting record high pricing. Microsoft (NASDAQ: MSFT) is one of the major tech firms looking to move to Miami, the multinational software provider is actively in negotiations to lease 30,000 square feet of space at OKO Group’s 830 Brickell, a 56-story office tower adjacent to Brickell City Centre which is currently under construction. Pricing is still relatively cheap compared to other major markets, asking rates at 830 Brickell are reportedly in the $70’s PSF range. Ken Griffin’s Citadel Securities hedge fund is also reportedly looking at office space in 830 Brickell as is the Chicago-based law firm Baker McKenzie.

The biggest news came when Tesla and SpaceX founder Elon Musk tweeted that he had talked with Florida Governor Ron DeSantis about building a tunnel system underneath Miami to eliminate traffic and pollution. Mayor Suarez tweed that “we will do it,” and invited Musk to visit him at City Hall. In the past Miami has had success building tunnels at a comparatively low cost. The initiative would be led by Elon Musk’s Boring Company, who is getting ready to reveal the Vegas Loop to the public, a 4,475’ tunnel loop under the Las Vegas Convention Center. In the Las Vegas Loop passengers will reach speeds up to 155 mph and will ride in Tesla Model X’s, Model 3’s, and a 16-passenger modified Model 3. Las Vegas in now working with the Boring Company to build a citywide network of tunnels.

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Governor Ron DeSantis Announces $250 Million In CARES Act Funding Allocated For Rental And Mortgage Assistance

Florida Governor Ron DeSantis has announced that the state will allocate $250 million in CARES Act funding to rental and mortgage assistance due to the COVID-19 pandemic shutdown. $120 million of the funds will be allocated to Florida Housing Finance Corp. which will provide rental assistance to households who live in affordable housing rentals within the Florida Housing Finance Corp. portfolio and have been impacted by COVID-19. Qualified renters will be able to use the funds from July 2020 through December 2020. The announcement comes just days before Florida’s moratorium on evictions and foreclosures expires and a rush of evictions and foreclosures are expected in July.

An additional $120 million will be allocated for rental and homeowner assistance programs for those impacted by COVID-19 providing aid for rent assistance, mortgage payment assistance, downpayment and closing assistance, mortgage buy-downs, new construction, rehabs, emergency repairs and homeownership counseling. The final $10 million will be used for operating costs of the programs and technical assistance.

Malls Across Miami Are Reopening Today As Miami Enters Phase 1 Of Reopening From The COVID-19 Shutdown

“Although we live in a city without seasons, this feels like Spring,” said Miami Design District visionary Craig Robins as Miami enters Phase 1 of its reopening plan. As per approval by Governor Ron DeSantis, Miami-Dade and Broward County can begin to reopen as of today, May 18, 2020, following the COVID-19 lockdown that has marred the United States since early March. Golf courses and marinas opened several weeks ago with restrictions, and now retail, restaurants, barbershops and salons may open - with restrictions. Bars, nightclubs, movie theaters and beaches are not part of the Phase 1 reopening plan and have no set reopen date.

Following the opening of Palm Beach County over the past several weeks, malls in Miami are welcoming back patrons in Miami Design District, Brickell City Centre, Bal Harbour Shops and Aventura Mall, in addition to Broward County’s Sawgrass Mills mall leading the charge. While the malls may be open, individual businesses within them are making their own decisions as to which day and how they will relaunch operations. Robins indicated that Miami Design District will see most of their tenants open by Wednesday, May 20 along with parking, public art and centralized services. Shoppers will also be able to pick up a mask at any MDD information desk. Bal Harbour Shops and Brickell City Centre opened May 18.

Restaurant openings have been a hot topic of discussion as they begin opening their dine-in services back up at 50% capacity and with six foot social distancing between parties. Bar counters are closed to seating and a maximum of four people can be seated at a table unless they are members of the same household, which are capped at six. Patrons must wear face masks when they are not at their table and employees must wear masks at all times. All menus must be single use and restrooms must limit their capacity to one person at a time. Retail has similar restrictions limiting capacity to 50% and requiring all customers and employees to wear a mask at all times.

Authorities will monitor and assess how Phase 1 of reopening progresses over the next several weeks before approving a move to Phase 2 or instituting new restrictions to help stop the spread of the COVID-19 pandemic.

Miami City Commission Approves $6.9 Million To COVID-19 Rent & Utility Assistance For Low-Income Households

The Miami City Commission voted unanimously to approve $6.9 million in rent and utility assistance for low-income residents who recently lost their jobs due to the COVID-19 pandemic. Independent contractors such as realtors are not eligible for the loans, neither are those receiving rental subsidies or are behind on their payments. Those eligible for the payments are one-person households earning less than $38,400 per year, two-person households earning less than $43,920 per year, three-person households earning less than $49,380 per year, and four-person households earning less than $54,840 per year. The $6.9 million which was approved also includes $2 million in federal and state grand money for households which earn less than 60% of the Miami-Dade County median income. Each eligible household will be limited to receive a maximum of $1,500 and applicants must show proof that they have los their jobs after March 1 and have paid rent through February 2020. The payments will be sent directly to landlords and utility companies. The funds will only be available until enough applications have been received to deplete the available funding and the application period ends at 5 P.M. on May 8.

Miami has been in an affordable housing crisis due to rapidly rising rents and property values. 35.4% of city residents reportedly spend more than 50% of their household income on their housing. On April 2 Florida Governor Ron DeSantis issued an executive order which barred evictions and foreclosures for 45 days, but it is expected that there will be mass eviction cases filed due to unpaid rent when the order expires.

South Florida COVID-19 Update (Last Updated: 3/23/2020)

(Last Updated 10:39 AM 3/23/2020):

BREAKING: 

• Miami-Dade County and the City of Miami Beach have ordered all hotels, motels and short-term rentals to begin immediately shutting down and vacate their guests, with full-closure by 11:59 PM on Monday, March 23. (3/21/2020)

• Miami-Dade Mayor Issues Executive Order Closing All Non-Essential Business 9 PM Thursday. (3/20/2020)

• All U.S. Citizens traveling around the world should return home ASAP or be prepared to stay abroad for an indefinite period. (3/19/2020)

Continue to check back for updates to below as we continue to track COVID-19 across South Florida:  

Unfortunately there is just no avoiding it, COVID-19, the deadly strain of Coronavirus is here in Miami and spreading. Across the United States, social distancing has become a top priority in the government’s efforts to slow down the spread of the virus. COVID-19 spreads through droplets that can extend out six feet from the body via cough or sneeze. The White House has advised the public to avoid gathering in groups of more than ten people and has asked municipalities where the virus has spread to close public places such as bars and restaurants.

The Cities of Miami Beach and Fort Lauderdale addressed the public regarding new measures taken due to large and rowdy spring break crowds and ongoing concerns over COVID-19 outbreak. Miami Beach is closing beaches, limiting hours at restaurants and has enforced a curfew that will be going into effect in Miami Beach's entertainment district starting at 10 p.m.

“It simply can’t be business as usual in our City,” said Miami Beach Mayor Dan Gelber. “COVID-19 is a threat as much here as anywhere. We simply cannot endure these kinds of gatherings and crowds. Our measures are intended to send a clear message that Spring Break is cancelled and that everyone, even young people home from school, need to embrace these health and safety concerns. We are proud of our hospitality industry, and concerned with the toll it will have on our businesses and workers but we cannot elevate those concerns above very real health risks.”

“I want to be clear, this isn’t an overreaction, but a way to stop further cases of COVID-19 in our community,” Fort Lauderdale Mayor Dean Trantails said. “We must all do our part to save the lives of our residents, visitors and first responders.”

Remember, the majority of infections are mild. 81% will experience flu-like symptoms, 14% will experience severe symptoms and only 5% will need intensive care. The mortality rate is below 3%. The most important thing you can do is think about the others that you may affect if you become a carrier. If you suspect you have been exposed to someone with the virus or are showing symptoms, then you should self-quarantine yourself immediately for 14 days. You should limit your exposure to the elderly or those with pre-existing conditions. Governor Ron DeSantis previously acknowledged that Florida is experiencing "community spread," so taking the time to limit your exposure to others will help keep you healthy, others healthy and curb the nations growing public health crisis.  

"It is a very uncertain time, especially in the real estate world. You having so many moving parts, whether it is lost time and rising construction costs in development or commission based pay many that realtors rely on getting held-up as society grinds to a halt," said Demetri Demascus, Editor of PROFILEmiami and a local real estate investor, developer and broker. "Everything is a chain reaction. If tenants cannot pay their rent, will a landlord be able to pay their employees or their own bills? We have to be extremely cautious about how we proceed across all aspects of life and business right now.” 

While many businesses with lots of interaction between the staff and customers have had to shutter for the time being in order to protect customers and employees, in other cases, local business’ have been taking measures to keep business as usual while also keeping their office and employees safe, sanitary and healthy.

"We are monitoring the Coronavirus situation closely, and will continue to do so as the situation evolves. In the meantime, we have asked our team to put their health and safety first as not only will this help keep our team safe, but our families as well. We have also asked for all non-essential travel plans to be delayed, all team-members to practice good hygiene, stay home if they are sick and we have increased sanitization frequency of our office," said Jacques Bessoudo, Managing Partner of Galium Capital, a Miami-based Private Equity group focused on investing in commercial real estate.

Stats:

• Number of Cases in Florida: 830+ (3/23/2020)

• Fatalities in Florida: 13+ (3/23/2020)

• Number of Global Cases: 351,000+ (3/23/2020)

• Global Fatalities: 15,321+ (3/23/2020)

• Number of U.S. Cases: 35,075+ (3/23/2020)

• Fatalities in the U.S.: 458+ (3/23/2020)

Miami-Dade County:

• Miami-Dade County # Cases: 177+ (3/23/2020)

• BREAKING: Miami-Dade County and the City of Miami Beach have ordered all hotels, motels and short-term rentals to begin immediately shutting down and vacate their guests, with full-closure by 11:59 PM on Monday, March 23. (3/21/2020)

• BREAKING: Miami-Dade Mayor Issues Executive Order Closing All Non-Essential Business (3/20/2020)

• CONFIRMED CASES IN BRISTOL TOWER BRICKELL & SOHO BEACH HOUSE (3/19/2020)

• Officials have ordered the closure of all restaurants, bars, movie theaters, concert houses, auditoriums, playhouses, clubs, gyms, arcades, bowling alleys, etc. which will go into effect 11 PM Tuesday. All grocery stores, pharmacies, take-out and delivery services will remain open at this time (3/17/2020)

  • All bars and nightclubs will be closed for 30 days.

  • Restaurants will only be able to operate at half capacity.

  • Exceptions granted if they have a capacity of 10 people or less.

  • Mayor Carlos Jimenez signed the emergency order, but remains in self-quarantine after being exposed to a Brazilian government official who tested positive following a visit to South Florida.

• Miami-Dade Public Schools are now closed through at least April 15. (3/19/2020)

  • Miami-Dade Public Schools have closed this week and next. (3/16/2020)

• Key Biscayne and North Miami Beach have implemented curfew between 10 PM and 5 AM (3/19/2020)

• Officials have closed the beach from 5th to 15th Street, including Lummus Park.

• All city parking garages are closed to non-residents.

• In addition, all non-essential retail stores will be required to close at 10 p.m. daily. (3/16/2020)

  • Businesses excluded from this directive include: Pharmacies, grocery stores, convenience stores, private offices, banks, hotels, hospitals, medical service providers, medical supply stores, hardware stores, gasoline service stations and automotive supply and repair centers.

• An entertainment district curfew will go into effect at 11 p.m.

• All restaurants are asked to keep occupancy at 50% or less, and have under 250 people in each establishment at any given time.

• Ultra Music Festival has been cancelled.

• Miami Music Week has been cancelled.

• ArtScape Concert has been cancelled.

• The Miami Open Tennis Tournament has been cancelled. 

• University of Miami & FIU have moved classes online until the end of the spring semester. (3/20/2020)

• University of Miami Spring Commencement postponed until December. (3/20/2020)

• The Hardrock Seminole Hotel & Casino has suspended entertainment operations. 

• Calle Ocho Festival has been cancelled.

• Mayor Francis Suarez has confirmed that he has COVID-19.

Broward County:

• Broward County # Cases: 180+ (3/23/2020)

• Broward County Public Schools are now closed through at least April 15. (3/19/2020)

• Officials have closed the beach from Harbor Beach to Oakland Park Boulevard.

• Restaurants and bars must close by 10 p.m.

• Restaurants and bars are asked to operate at 50% capacity and have no more than 250 people at any time.

• The Tortuga Music Festival, which was set to run from April 17-19, has been postponed.

• The Wharf Fort Lauderdale is closed until further notice.

• The listed measures will remain in effect until April 12.

Palm Beach County:

• Palm Beach County # Cases: 59+ (3/23/2020)

• Town of Palm Beach implements curfew until further notice from 9 P.M. - 6 A.M. (3/18/2020)

• Palm Beach County Public Schools are now closed through at least April 15. (3/19/2020)

• Beaches will be closed on Tuesday 3/17/2020

• Nursing Homes and Assisted Living Facilities are closed to visitors.

• Drive-through testing underway at FoundCare (2330 S. Congress Ave, West Palm Beach - call 561-967-0365 to see if you qualify and for appointments)

National:

• United States of America # Cases: 35,075+ (3/23/2020)

• United States of America Fatalities: 458+ (3/23/2020)

• Income tax filing deadline moved to July 15 (3/20/2020)

• BREAKING: The Federal Government has announced it will issue stimulus checks to qualified families and individuals.

  • $1,200 Per Adult Making Under $99,000 or $2,400 for Families Who File Jointly (Less Than $1,200 For Those Making More Than $75,000)

  • $500 Per Child

• BREAKING: All U.S. Citizens traveling around the world should return home ASAP or be prepared to stay abroad for an indefinite period. (3/19/2020)

• Foreclosures and HUD evictions have been halted for 60 days.

• CDC recommends ban on events of 50+ people. 

• The Players Championship was cancelled & PGA Tour is suspended.

• NBA, NHL, MLB and MLS have suspended their seasons. 

• All ski resorts have closed.

Health & Safety Tips:

• Social Distancing: Keep a Six Foot Distance From Others

• Try to Stay Home as Much as Possible

• Postpone or Cancel Meetings

• Wash Hands Frequently for 30 Seconds and Use Hand Sanitizer 

• Support Local Businesses: Buy Gift Cards to Use for Later

• Wipe Down Gym Equipment Before & After Use

• Take Vitamin C and Other Immune Boosters

• Cover your mouth when you cough or sneeze. Wash your hands after.

• Do Not Stock Up On Toilet Paper. It is a domestically manufactured good.

• Only Wear a Mask If You Are Infected.