New York Developers Invest Heavily in Fort Lauderdale Real Estate
Wall Street firms are fueling a downtown development boom in Fort Lauderdale, seeing it as Florida's next luxury hub due to Miami's rising costs.
New York-based developers are making a significant push into Fort Lauderdale, acquiring substantial stakes in the city's downtown development landscape. These firms now account for approximately 4.6 million square feet of planned projects, representing nearly half of the total downtown development footprint. This surge marks a notable increase from previous years, with New York builders involved in only about 13% of completed projects between 2021 and 2024.
These developers are focusing on luxury condominiums, rental towers, and mixed-use complexes, bringing capital from Wall Street to fund their ventures. Among the prominent New York firms expanding into the area is Dependable Equities, co-founded by Brooklyn-based Isaac Schlesinger and Simon Dushinsky. The company is currently undertaking three developments in Fort Lauderdale, including Ombelle, a planned two-tower project with 754 units expected for completion around 2028. One tower of Ombelle is already 45% presold, and the development is slated to include Fort Lauderdale's first Equinox gym.
The influx of New York developers is largely driven by the perception that Fort Lauderdale offers a more affordable and less congested alternative to Miami. While the median sale price in Fort Lauderdale is still lower than in Miami, the gap has narrowed over the past year. Some developers, like Miki Naftali of New York-based Naftali Group, see Fort Lauderdale as an attractive option for those seeking a slightly more subdued environment than Miami. Naftali's firm is developing over 250 condos and a rental building in Fort Lauderdale's Flagler Village.
New York remains the primary source of interstate newcomers to the downtown area. Between 2018 and 2022, over 125,000 New Yorkers relocated to Florida, bringing an estimated $14 billion in adjusted gross income with them. Of these, approximately 41,250 settled in South Florida counties, including Broward County where Fort Lauderdale is located. The number of adults under 45 living in downtown Fort Lauderdale has also increased by 25% since 2020, signaling a growing demographic appeal.
Improvements in transportation infrastructure are also contributing to Fort Lauderdale's growing attractiveness. The Brightline train service connects downtown Miami to Fort Lauderdale in about 40 minutes, and the local airport has seen an increase in airline service. Developers anticipate further appreciation in property values over the next five to ten years as the city continues its transformation into a major South Florida hub.