by Zillow | Aug 16, 2024 | Industry, News Feed
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Luxury brands have always looked for ways to expand their influence and diversify their income streams. Real estate, especially the high-end residential market, fits perfectly with their brand image and gives them a chance to cater to their upscale clientele.
Moving into real estate is a natural step for luxury brands, reflecting their core values — exclusivity, quality and a premium lifestyle. By investing in residential projects, these brands can offer a more complete luxury experience to their customers.
Take Miami, for example. It’s become a hotspot for luxury brands wanting to broaden their horizons and provide their customers with an elite lifestyle. The city’s warm weather, stunning beaches and vibrant atmosphere make it the perfect backdrop for these exclusive ventures.
Origins: Where luxury meets prestige
The trend of luxury brands entering the residential real estate market can be traced back to the early 2000s. This move is part of a broader strategy to extend their brand influence beyond fashion and into other aspects of luxury living, providing their clientele with a complete lifestyle experience.
While there is no formal definition, a branded residence is generally recognized as a residential property that is associated with an established brand, such as a hotel operator. The brand provides the property with its branding, services and amenities.
Giorgio Armani was one of the pioneers, launching Armani/Casa in 2004, which focuses on interior design and furnishings for luxury residences around the world. Armani/Casa’s projects include high-end properties in cities such as Dubai, Istanbul, London and New York, showcasing the brand’s commitment to elegant and sophisticated living spaces.
Following Armani’s lead, other fashion houses began to see the potential of merging their brand identity with real estate. Versace launched its first branded residence, Palazzo Versace, on Australia’s Gold Coast in 2000. This success led to subsequent projects in Dubai and Macau, featuring opulent interiors and bespoke furnishings that embody Versace’s bold and glamorous aesthetic.
A look inside the most exclusive developments
Projects like the Estates at Acqualina, designed by Karl Lagerfeld, and the Bentley Residences, reflect how these brands integrate their aesthetic and quality into real estate.
The St. Regis Bal Harbour Resort, soaring 27 stories above the trendy Collins Ave in Miami, graces a stunning white-sand beach. This luxurious hotel sits at the crossroads of art, fashion and design. Its prestigious Forbes Five-Star and AAA Five-Diamond accolades highlight its exceptional service and amenities.
Fendi also entered the real estate market by providing interior design services for high-end residential projects. The Fendi Château Residences in Miami, completed in 2016, is a prime example of how the brand integrates its signature style into real estate. The building features Fendi-designed furnishings and common areas, reflecting the brand’s dedication to craftsmanship and innovation.
Bentley, the British luxury car manufacturer, has teamed up with Dezer Development to create the Bentley Residences in Sunny Isles Beach. The 60-story tower will have 200 luxury condos, and each unit will be designed with Bentley’s signature craftsmanship and attention to detail.
The Waldorf Astoria, a luxury hotel chain, has partnered with developer PMG to create the Waldorf Astoria Hotel and Residences in Downtown Miami. The development will feature a 100-story tower with a five-star hotel and 360 luxury condos.
These branded residential projects are not limited to interior design alone. Many luxury brands collaborate with renowned architects and developers to create buildings that stand out in the skyline. For instance, the Porsche Design Tower in Miami, completed in 2017, offers a unique blend of luxury living and automotive engineering, including car elevators that allow residents to park their vehicles directly in their apartments.
Motivations behind the move
Luxury brands venture into real estate with a clear goal: to integrate their offerings seamlessly and provide a complete luxury lifestyle experience, fostering stronger brand loyalty among their clientele. Branded residences go beyond mere living spaces; they embody prestige and exclusivity, catering to affluent buyers who seek a symbol of status and ensure consistency in their service and attention to detail for their other luxury products.
For luxury brands, developing branded residences is a strategic move to expand their global footprint, especially in emerging markets witnessing a surge in demand for luxury lifestyles.
Branded residences, enriched with concierge services, bespoke interiors, and exclusive amenities, further entice affluent buyers. This trend extends beyond fashion to automotive brands like Aston Martin, evident in their Aston Martin Residences in Miami, showcasing the convergence of luxury and real estate.
Market impact
According to the Knight Frank Wealth Report 2023, there is an expected 12 percent growth each year predicted in the branded residences market sector up to 2026.
Luxury Miami condos with strong branding fetch top dollar, drawing in wealthy buyers who crave exclusivity and prestige. These projects boast a plethora of upscale amenities, such as exclusive dining options, boat experiences, luxurious spa facilities, and personalized concierge services, taking residential living to unparalleled levels of luxury.
Florida is the top U.S. state for luxury branded residences, with 32 live and pipeline projects currently, and Miami contains 80 percent of Florida’s schemes, which currently has 11 operational schemes with 10 more on the way by 2026, according to the Global Branded Residences Report by Knight Frank.
Future trends
Going green has become a major focus in luxury real estate. Brands are all about sustainability now, using eco-friendly materials and practices to catch the eye of buyers who care about the environment. They’re talking about sustainable building materials, energy-efficient designs and tapping into renewable energy sources.
And let’s talk tech — smart homes are the new norm. You’ve got lights that know when to turn on, climate systems that adjust to your liking, and top-notch security with fingerprint entry and high-tech cameras. It’s not just about luxury; it’s about making life easier and safer. Big names, including Amazon and Google, are leading the charge, making homes smarter than ever.
Plus, wellness is a big deal in luxury living. Developers see a growing emphasis on including spas, gyms, yoga spots and wellness centers, all geared toward promoting a healthy lifestyle. It’s about living large and feeling great, catering to the tastes of today’s discerning buyers.
Understanding why luxury brands are moving into real estate is essential for agents to hear about the evolving strategies of these brands and their efforts to create more immersive and comprehensive luxury experiences. Second, it sheds light on the broader economic and cultural trends influencing high-end markets, such as the demand for unique and prestigious living spaces.
Lastly, for potential investors and affluent buyers, this knowledge can provide valuable insights into the growing intersection of luxury branding and real estate, helping them make informed decisions about their investments and lifestyle choices.
The shift into real estate is not just about selling properties; it’s about extending the brand’s reach into every aspect of a luxurious life, creating spaces where the brand’s essence is felt in every corner. This move underscores the brands’ commitment to quality and exclusivity, ensuring that their high standards are met in the homes they help create.
This trend offers a glimpse into the future of luxury living and the continuous innovation that defines the high-end market.
Chad Roffers is the chairman of international luxury real estate company Concierge Auctions. Follow him on Twitter.
by Zillow | Aug 14, 2024 | Industry, News Feed
Teachers can now afford 47.9 percent of rental apartments within commuting distance of their schools, an increase from 40.7 percent the previous year, Redfin reported on Wednesday.
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A modest increase in teacher salaries and stable asking rents have enhanced rental affordability for educators, but it remains below pre-pandemic levels, according to a new report.
Teachers can now afford 47.9 percent of rental apartments within commuting distance of their schools, an increase from 40.7 percent the previous year, Redfin reported on Wednesday.
A Redfin analysis of July rental listings across 33 U.S. metropolitans and median teacher salaries for K-12 public and private schools from 2023 reveals that, despite the progress, the market is still experiencing the aftereffects of the pandemic.
In 2019, teachers could afford 58 percent of available apartments within commuting distance of their workplaces.
In 2023, the median U.S. teacher salary increased by 3.8 percent year-over-year to $64,266, surpassing rental price growth, which has stabilized after a pandemic-induced surge. Asking rents fell in 2023 and have only risen 0.4 percent compared to the previous year.
This rent stability is due to the high rate of new apartment construction, which has kept rent growth in line. However, with apartment construction now slowing, rents may start to increase in the near future.
Many teachers continue to struggle with rental costs as the median asking rent is just $50 below its peak, and increases have not kept pace with inflation. According to the National Education Association (NEA), teachers are earning an average of 5 percent less when adjusted for inflation compared to a decade ago, contributing to a high turnover rate.
“The small improvement in housing affordability for teachers who rent is only a drop in the bucket,” Redfin Senior Economist Sheharyar Bokhari said.
“Homeownership remains out of reach for a lot of educators, who, unlike many workers today, don’t have the flexibility to work remotely from somewhere more affordable. Building affordable housing near schools should be a priority for U.S. policymakers, but that’s only half the battle, as teacher salaries have faced years of underinvestment.”
In Portland, Oregon, the average teacher can afford 91.3 percent of rental apartments near the workplace, the highest among 33 metros. Portland’s high teacher salaries and declining rents contribute to this affordability. In contrast, Miami teachers can afford only 0.2 percent of nearby apartments, the lowest among the metros Redfin analyzed.
Teacher pay has declined in four metros, with Miami experiencing the most significant decline, an 11.9 percent decrease year-over-year to $53,297 last year. Florida metros rank the lowest in teacher pay among the top 50 cities surveyed, according to the NEA, and teacher employment fell 10.7 percent last year.
Homeownership remains a challenge for teachers as well.
Teachers could afford only 14.3 percent of homes for sale within commuting distance, a slight decrease from 14.4 percent the previous year, and significantly down from 39.1 percent in 2019. Rising home prices and elevated mortgage rates contribute to this strain.
According to Redfin, median monthly mortgage payments increased 4.7 percent in July year-over-year compared to the sub-1 percent increase in asking rents. Mortgage payments were 90.7 percent above pre-pandemic levels, while asking rents were 21.4 percent above pre-pandemic levels.
Among the 50 largest metros, Cleveland offers the most affordable homebuying options for teachers, with 61.1 percent of homes within reach. In contrast, California cities like San Jose are the least affordable, with teachers able to buy just 0.1 percent of homes due to high prices, despite having the highest teacher salaries in the survey.
Recent trends show Hartford, Connecticut, and Kansas City, Missouri, experiencing the most significant declines in homebuying affordability, while San Antonio and Atlanta saw notable improvements.
Teachers in Hartford can afford 22.1 percent of homes, down 34 percent from 2023, an 11.9 percentage point drop, while Kansas City dropped 7.9 percentage points.
San Antonio teachers can afford 20.6 percent of homes, up 6.4 percentage points from the previous year, followed by Atlanta, up 4.6 percentage points.
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by Zillow | Aug 6, 2024 | Industry, News Feed
Find out how Orlando-based Premier Sotheby’s International Realty agent and Miss Florida USA, Peyton Lewis, focuses on self-awareness, growth and goals to meet challenges head on.
Inman Connect is moving from Las Vegas to San Diego in 2025 and it’ll be bigger, better and bolder than ever before. Join us for Inman Connect San Diego on July 30-Aug. 1, 2025 with the brightest minds in real estate to shape the future of the industry. Reserve your spot today for an exclusive discount.
Since the age of 14, Premier Sotheby’s International Realty’s Peyton Lewis has competed in pageants with a platform that centers on inspiring women to be financially literate, pursue their dreams and break barriers. At 26 years old, Lewis was just crowned Miss Florida USA.
Find out how this Orlando, Florida — born and raised — agent focuses on self-improvement and goal setting to meet challenges head-on.
Name: Peyton Lewis
Title: Global Real Estate Advisor
Experience: 3+ Years
Location: Orlando, Florida
Brokerage full name: Premier Sotheby’s International Realty
Background:
- Age: 26 years old
- Hometown: Born and raised in Orlando, Florida
- Education: Graduated from the University of Central Florida (UCF) with a major in Business
- Profession: Full-time real estate agent specializing in selling luxury real estate
Pageant experience:
- Started competing in pageants at age 14
- Won the title of Miss Osceola County at 18
- Crowned Miss Florida USA 2024
Q&A with Peyton Lewis
What are 3 things you’d like readers to know about you?
I am Miss Florida USA 2024. My goal is to empower women to become successful entrepreneurs and leaders in their communities, and I plan on using my platform as a real estate agent to educate people about affordable housing.
What’s 1 big lesson you’ve learned in real estate?
One big lesson I’ve learned in real estate is the importance of persistence and continuous learning. I realized this when I first started out and faced numerous challenges.
From difficult market conditions to learning the intricacies of luxury real estate, I understood that success doesn’t come overnight. It requires dedication, adaptability and a commitment to self-improvement. By attending industry seminars, seeking mentorship, and constantly updating my knowledge, I was able to overcome obstacles and achieve my goals.
What would you tell new agents before starting in the business?
Focus on building genuine relationships, and always prioritize your clients’ needs. Real estate is not just about transactions; it’s about people and their dreams.
Listen more than you talk, and strive to understand your clients’ aspirations and concerns. This approach not only builds trust but also leads to long-term success and referrals. Additionally, never stop learning. The market is constantly evolving, and staying informed will give you a competitive edge.
What do too few agents know that would make their lives easier?
Too few agents understand the power of effective time management. Organizing your day, prioritizing tasks, and setting clear goals can significantly reduce stress and increase productivity.
Implementing a daily routine that includes time for prospecting, follow-ups, and personal development can help agents stay focused and efficient. Utilizing tools and technologies for automation and organization can also free up valuable time, allowing agents to focus on what truly matters — building relationships and closing deals.
What book, movie, TV show, podcast, or other media has taught you the most?
by Florence Scovel Shinn has been incredibly influential for me. The book emphasizes the power of positive thinking, affirmations and the law of attraction.
It taught me that our thoughts and words shape our reality, and by maintaining a positive mindset, we can overcome challenges and attract success. This philosophy has not only helped me in my real estate career but also in my personal life, fostering a sense of optimism and resilience.
What is the one thing everyone should be doing to make their life/business better?
Everyone should focus on personal growth and self-awareness. Understanding your strengths, weaknesses, and motivations can significantly impact your professional and personal life.
Take time for self-reflection, set clear goals, and continually seek opportunities for improvement. Investing in yourself, whether through education, mentorship, or wellness practices, creates a solid foundation for success. When you prioritize your development, you become more confident, capable and ready to tackle any challenge that comes your way.
Email Dani Vanderboegh
by Zillow | Jul 29, 2024 | Industry, News Feed
Inman Connect Las Vegas is LIVE this week! Get all your real estate questions answered and network with thousands of industry leaders. Join us virtually from anywhere in the world — the future of real estate is unfolding now.
Several days after Move and CoStar Group’s latest filings, former Realtor.com editor James Kaminsky’s counsel filed a new statement outlining Kaminsky’s recollection of events and stating his support of CoStar’s request for expedited discovery.
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“I have not engaged in any work at CoStar that competes with Move’s News & Insights group, nor have I assisted anyone at CoStar in doing so,” the filing read. “I am currently on administrative leave. I have no access to CoStar’s computer system and am doing no work for CoStar other than assisting with the response to Move’s lawsuit.”
In the 36-page declaration of support, Kaminsky detailed his “surprise” layoff from Move, his attempts to delete “financial, personal and medical information” from Move-owned devices and email accounts before returning them to the company, and the reason for accessing documents Move said included trade secrets. The former editor also explained his decision to work for CoStar Group, saying it was a good opportunity in an “extremely tight” media job market.
“My new job at CoStar is entirely different from my prior job at Move. I readily disclosed my new job and its responsibilities to several people at Move; I was proud of it,” the filing read. “I never imagined that Move would have any issue with it at all and certainly never tried to hide it from Move.”
“Given all of the Move personnel who I met with and described my new role, I am shocked and surprised that Move informed the Court and claimed in the press that I am engaged in an effort to build a news department at CoStar to rival the News & Insights department I ran at Move,” it continued. “It is again simply not true.”
Kaminsky said Move notified him of the layoff on Jan. 10, noting that his last day with the company would be Jan. 12. In those two days, Kaminsky said he began downloading personal information from Move-owned devices, including his 2023 pay stubs, old W-2s and credit card information. He also downloaded recent performance reviews, Christmas gift cards from colleagues, pictures of his new home and medical information for his two children, both of whom have special needs.
After securing his personal information, Kaminsky said he realized he needed to “remember the high points” of his 8.5-year career at Realtor.com, so he added his personal email address to several News & Insights Google documents in anticipation that Move would shutter his work email address.
“There was nothing secretive here: I gave myself access by inviting myself to them with my named email, [redacted]” the filing read. “In my experience at the company, we would not infrequently see names appear on documents that we did not expect to be there – we would just remove them. It was not a very secure system.”
“The fact that I could grant permission to my personal email address [redacted], not a Move.com email address, to access the documents suggested to me that the documents were and are not highly significant proprietary documents,” it added. “Certainly, I did not expect that anyone at Move would be concerned by my access to these documents. The documents did not, in my view, contain highly sensitive materials.”
Kaminsky said the files at the center of Move’s theft of trade secrets claim included sheets he created outlining his team’s salary and bonuses, an ongoing list of Realtor.com News & Insights stories, a “2022 or 2023” presentation on audience and revenue projections, and two other files with passwords to third-party subscriptions, WordPress instructions, and staff contact numbers.
Kaminsky said he “briefly viewed” the document with salary information to help him calculate an appropriate asking salary during his job search and clicked the document with audience and revenue projections, not knowing what it contained. However, after looking, he said it contained an audience presentation that “[jogged] his memory” about previous work accomplishments. He said he accessed both of those files before starting his position with CoStar on March 11.
The next time he accessed a Move-owned file was on May 31, when he needed help calculating the correct tax withholding for his CoStar paychecks. During the search for old paystubs in the emails he’d forwarded himself from his Move email account, he came across emails notifying him of the Move-owned documents to which he added his personal address and opened them.
“I recall being surprised that I still had access to the documents and that the links were still active,” the filing read. “I clicked through the documents to see what they were and to satisfy some basic curiosity. None of the documents were relevant to my work at CoStar.”
Kaminsky said he rapidly clicked through some of the documents, noting that a few were hundreds of pages long. Although he accessed those documents, Kaminsky said he never used them for his work at CoStar or shared them with CoStar colleagues or leadership, as his job with CoStar focuses on managing a team that writes listing descriptions for high-end condominium and co-op buildings in NYC.
“My job at Move was to manage a department in which we identified, wrote, and published news articles designed to draw traffic to the Realtor.com website regarding a wide range of economic and business issues relating to residential real estate and more pop culture articles about celebrities and their homes,” the filing read. “The writings are connected on the website to listings relating to those buildings; it is not a stand-alone feature designed to drive traffic to the website.”
“To my knowledge, CoStar does not track traffic at this time to this portion of Homes.com,” it continued. “I have never seen any statistics about audience traffic, and I have never been asked to focus on growing Internet traffic.”
Kaminsky said he accessed one final document on June 9, the day Move said it became aware of Kaminsky’s actions. That document, he said, was titled, “News & Insights content decks.” The link, and several others, was dead, he said.
“To be clear, I no longer have access to any of the four documents that, in its Motion for Preliminary Injunction, Move alleges contain trade secret information. I did not print the documents, save them externally or otherwise preserve them in my records,” the filing read. “I have never shared the records with anyone at CoStar, or used them in any capacity in the course of my work for CoStar or in any way in competition with Move.”
“To establish that I have no access to any of the documents Move alleges contain trade secrets, I have already provided my work and personal computers and electronic devices to a forensic examiner who I understand CoStar and my counsel retained for the purpose of establishing the facts relating to the Complaint and the Motion for Preliminary Injunction and supporting our defense against the baseless claims Move has asserted against CoStar and me,” it added.
CoStar has put Kaminsky on administrative leave as the Virginia-based company battles Move over its July 23 ex-parte request (i.e., the expedition of an order without giving the other party time to oppose) for an Order of Protection preventing the disclosure of confidential and trade secret information during the discovery process. Especially sensitive documents, Move said, should only be available to Move’s counsel and CoStar Group’s outside counsel.
CoStar answered back by requesting expedited discovery and the rescheduling of the preliminary injunction hearing from Aug. 15 to Sept. 19. In its filing, CoStar’s counsel said the expedited discovery would allow both parties to access unredacted versions of previous filings and accompanying exhibits so each side can submit a “more fulsome briefing” ahead of the preliminary injunction hearing.
CoStar leadership, including General Counsel Gene Boxer, has framed Move’s lawsuit as a “PR stunt” in the midst of an intensifying battle over website traffic performance. Meanwhile, Realtor.com has been reserved in its commentary over the suit, with a spokesperson saying the company doesn’t file lawsuits “frivolously” and will “litigate in the courts, not the media.”
A judge reviewed Move and CoStar’s ex-parte requests on Monday. A ruling is expected soon.
Read Kaminsky’s statement below:
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