A new phenomenon is sweeping the city’s real estate market, from the sky-high penthouses of Brickell to the waterfront mansions of Miami Beach. Known as “The Citadel Effect,” named so due to the impact of the hedge fund Citadel’s move from Chicago to Miami, promising to bring a few hundred employees to the city over the next year, this trend has spurred demand for high-end properties in the $4-$7 million range as more and more corporate relocations follow suit.
Undeniably, the Citadel Effect is much more than a mere blip on the radar. As a growing number of corporations look into the myriad benefits of Miami’s property landscape, the city’s economic fabric is experiencing its unique changes, positioning Miami as a burgeoning hub for finance and tech.
Shane Graber, a prominent real estate broker and founder of the Graber Realty Group, has had a front-row seat as this trend appeared and swept across Miami realty. As a seasoned veteran of the city’s property scene, Graber observed the trend closely and meticulously adjusted his firm’s strategies to the influx of affluent buyers.
“The surge in demand right now reminds me of LA and San Francisco about 30 years ago, when people thought it was expensive, but in retrospect, we all wish we had invested,” he says.
Under his guidance, since its inception, the Graber Realty Group team has become a trusted ally in the industry, catering to the diverse needs and preferences of countless clients looking for the best of what Miami has to offer.
“As real estate professionals, our success hinges on our ability to understand our clients’ unique needs and wants,” Graber says. “As of late, we’re seeing a new type of buyer with specific preferences. Our challenge and opportunity is to meet these needs while showcasing what makes Miami a great place to live.”
The allure of Miami’s homes that captivate the minds of executives and affluent buyers is undeniable. The historic charm, architectural artistry, and waterfront views make the city a wonderful choice for individuals seeking to integrate convenience with luxury structural beauty with natural grandeur.
More importantly, as Graber points out, Miami properties represent a secure investment, considering the market’s incredible resilience. Buyers interested in calling Miami home aren’t just investing in a property but in a city on the rise.
“The lifestyle here is attractive to many, especially among families with children and, of course, high net worth individuals. In fact, demand is so huge that securing a spot in the area’s private schools is becoming difficult,” he reveals.
However, aside from affluent buyers, Graber shares that there has also been an increasing number of talented young professionals in their 30s who have grown up in Miami but left to seek better job opportunities in cities like NYC, San Francisco, or Chicago. Graber calls them a “boomerang group,” signifying their massive return to the Magic City as the tech and creative sectors boom, in part thanks to company relocations.
A segment of the market that Graber is particularly optimistic about is the single-family niche, particularly in the older, more established neighborhoods near downtown – areas that typically attract young professionals who don’t want to commute from far away.
Graber’s confidence in the single-family market isn’t ungrounded. September 2023 was Miami-Dade County’s second-best September for single-family home dollar volume, reaching $983.2 million and marking a 29.4% year-over-year increase.
“Single-family homeowners will always be in a good position as many of the people living in the new condos and high-rises downtown will eventually want to settle down in a house, further increasing demand,” Graber states.
Circling back on the Citadel Effect and its multilayered impact, Graber emphasizes that this trend will completely transform Miami’s real estate market. The influx of high-profile corporations establishing their headquarters in the city won’t just bring along a larger number of executives but also young experts looking to settle down.
Graber also believes it will contribute to the city’s cultural diversity, as these professionals bring with them a variety of backgrounds and experiences – reshaping not just the real estate landscape but also the social fabric of Miami.
As he reiterates, “We’re at a pivotal moment where the market’s energy is at an all-time high. As real estate professionals, we can shape this transformation and contribute to the growth of our city by discovering exceptional properties for our clients.”
Published by: Martin De Juan