Miami developer Harvey Hernandez faced a tough market competition with out-of-state high-rise builders for land deals in the city last year. However, the sellers’ attitude towards development sites has significantly changed, and they are now willing to negotiate 5 to 10 percent price discounts and better terms. Land prices in Miami’s urban core fell after the second quarter of last year due to a dwindling inventory of suitable sites for condominium and multifamily developments and rising interest rates, pushing land prices down significantly. Additionally, developers are facing a bump in the cost of construction insurance, causing many deals to reassess their viability. Miami is experiencing a slowdown in land sales, with neighborhoods like Edgewater, Brickell, and Wynwood running out of sites primed for development, and few available assemblages that command a hefty price. Sellers are now willing to work with buyers on terms, not just price.

(source: therealdeal.com)