For the better part of a decade, Miami felt unstoppable. Cranes filled the skyline. Capital flowed in from every direction. Developers raced to get in the ground as fast as possible.

Today, the mood has shifted—and savvy investors should be paying close attention.

A growing number of Miami developers are quietly listing fully entitled sites for sale instead of moving forward with new construction. Why? Rising construction costs, volatile interest rates, inflation pressures, and now a wave of new tariffs have thrown a wrench into the economics of even the best-laid plans.

For developers who need certainty (or immediate returns), it’s an exit.

For those with patience, capital, and a long-term view, it’s an opening.

Shovel-Ready… But Sidelined

Fully approved, development-ready sites are hitting the market faster than we’ve seen in years. Many of these owners originally planned to break ground by now—but with construction costs surging and financing conditions tightening, they’re making a different play: cashing out while pricing is still relatively strong.

Case in point:

• Evolve Cos., based in North Carolina, listed two Miami properties it acquired in 2022.

  • Wynwood 35, a planned 141-unit apartment project, is now for sale for $14M.

  • A second Midtown site, entitled for 150 units, is asking $12M after being bought for $9M.

“They still like Miami,” said George Belesis of Dwntwn Realty Advisors. “But these sites didn’t fit into their evolving business strategy.” Translation: the math no longer penciled out.

More Listings to Watch

• Wynwood Easel, located at 35-83 NW 27th St., hit the market in March for $26M. Originally envisioned as a hotel and retail combo by Scott Robins Cos. and former Miami Beach mayor Philip Levine, the project was later reworked for 203 apartments and 15,000 SF of retail.

According to broker Tony Arellano, the goal was always to entitle and sell—but the current market dynamics make that decision even easier.

Why the Sell-Off Now?

The trifecta weighing down developers:

• Rising construction costs

• Higher interest rates

• New tariffs (including 25% duties on steel and aluminum, and a stunning 145% tariff on Chinese imports)

Simply put, input costs are surging, and yields are getting squeezed. As CBRE’s Brad Capas puts it, “If developers can’t get to a 6.5% return on cost, they’ll walk away.”

Add in increased insurance premiums and general market uncertainty, and suddenly shovel-ready doesn’t mean “start digging.” It means “reassess everything.”

The Big Picture

Miami’s building boom isn’t over—but it’s hitting a pause.

Fully entitled sites are entering the market at a pace we haven’t seen since the last cycle correction. Sellers want liquidity. Buyers willing to underwrite cautiously and hold strategically have a rare window opening in front of them.

At Kaufman Development, we believe these moments of dislocation are where the real opportunities get made. Distress isn’t something to fear—it’s the launchpad for the next wave of successful projects.

Those who move thoughtfully today will own tomorrow’s skyline.

Stay smart, stay patient—and when the right deal crosses your desk, be ready to move.

— Daniel Kaufman

President, Kaufman Development