How Miami’s multibillion-dollar battle led the Corcoran’s boss to buy its culture

INTERMEDIATE: America’s great wealth migration has officially reached its “mecca” stage.

As tech giants like Mark Zuckerberg and Larry Page lead the outflow of billions of dollars to high-tax locations in California and New York, Corcoran Group CEO Pamela Liebman says the transformation of Miami into a global headquarters is no longer a trend of “development” but rather a permanent structural change.

Speaking exclusively to Fox News Digital, the real estate mogul reveals why elites are abandoning the West Coast for the “strong” culture and business-friendly climate of South Florida, saying: “When people see names like these flocking to a city like Miami, it helps to establish what has become a global city as a mecca for these very wealthy people.”

“Miami is the true home of luxury living,” he added. “I came back here in 2020. I’m a big believer in Miami… it’s established itself as a world-class and global city with tons of recognition… that’s not going to go away.”

INSIDE MIAMI’S 50 HOMES WHERE SMART MONEY BUYS DECADES OF PROTECTION FOR THEIR CHILDREN

Liebman and his team recently launched sales at the first-ever residential development in Miami’s famed Design District. Miami Design Residences by Chipperfield – a 26-story tower with 143 condos and a flagship hotel by Fouquet – marks a historic transformation in an area previously reserved for luxury retail and fine dining. The surprising catch: Units start at $1.8 million, a reasonable price for the high-demand, low-end market.

The longtime CEO told Fox News Digital that he believes in the project so much that he bought the unit for himself along with other “world names in fashion.”

“We are working on many projects, and I have not bought so many units in all my years. I bought them, but this project did not make sense to me,” he said. “This building is going to have an amazing sense of community. It’s going to be great. It’s going to be one of those buildings, in my opinion, that you can look back on and say, ‘Wow, I’m so glad I bought early,’… And, I’m putting my money where my mouth is.”

While Miami’s heat continues to rise, as Liebman notes that first-quarter home sales are up 17% and sales of homes over $5 million are up nearly 10%, he admits there’s a “tissue of two markets” between luxury and middle-class homebuyers.

The difference compares to the “painful” reality of insurance, taxes and high mortgage rates for the middle class, he says, as today’s consumers “choose” and “order,” not as reckless as the peak of 2021.

“It is very difficult, very difficult for consumers who are not in the luxury category, and that is the majority of the market. But they feel they have a low price. That pressure is real. And a lot has to do with standards, insurance costs, limited supply, the lack of construction of that type of product, an old product that faces tons of work and testing … And this dollar is only the point,” said Lieb only.

“What we hope is that opportunities will emerge. We see a platform to discuss areas that have been in the market for a long time,” he said as a silver coin. “So I think the advantage now goes to the prepared buyer who knows where to look and can act quickly.”

STEP INSIDE THE $44M FOUR-BEDROOM PENTHOUSE WHERE STARBUCKS CHIEF HOWARD SCHULTZ STARTS RETIREMENT

Interest stability is “the new foundation,” according to the CEO, but 6% rates are still an obstacle that prevents sellers from being locked in, since they will not give up 3% mortgages to get higher.

“We’re seeing consumers start to adjust their expectations. So the psychology is changing from waiting and seeing, ‘Okay, how can I make this work?’ And when that happens, we see the work in progress. But that said, a true inventory operation, I think that probably needs to see something that starts with five [percent rate],” Liebman said.

“They will not move until these rates drop meaningfully. So I think that nearer the time, it melts more slowly than the flood, but people have to make decisions and their lives change. And you can’t completely let your life be determined by the mortgage,” he continued. “If there’s one thing I can hope for about the housing market, it wouldn’t be that the luxury market is always on the upswing … but we’ve been seeing average Americans feeling good about their housing situations.”

While critics have been waiting a long time for the “Florida plane” to backfire, Liebman notes that the global perception of fame has changed significantly for the guard. For the veteran CEO, the proof is not only in the balance sheets but in the way he reacts when he travels internationally.

“When I used to go and say I’m from New York, everyone would say, ‘Oh, New York, New York. I always want to go to New York.’ And now I say I’m from Miami and their eyes light up,” he said.

This “buzz” is mainly focused on the change in health care, community-driven life – a big difference from the boring grind of the companies of the traditional areas of the north. As cities like San Francisco, Seattle and Chicago deal with commercial vacancies and population loss, Liebman suggests that the Miami model offers a blueprint for recovery: build what the modern consumer actually wants rather than relying on past glories.

“Miami does a good job of leaning into their strengths. San Francisco, it’s an amazing city. New York, one of the biggest cities. Chicago, it’s a strong place there. But I think cities need to lean into their strengths and decide, ‘Why was it such a great city? And how can we keep that? How can we bring people back?’ “He said.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

He notes that the success of the Design District residence is proof that creating a sense of culture is a great magnet for money.

“All cities must decide how to build their communities or rebuild their communities,” Liebman concluded. “This is a game changer for the Design District. The Design District has been a game changer for Miami. This is a residence that should not be overlooked.”

READ MORE AT FOX BUSINESS