Public-Private Partnerships Fuel $3.5 Billion South Florida Development Surge

South Florida municipalities are deploying public-private partnerships to execute development projects that local budgets cannot support independently, with land sales reaching $3.56 billion in early 2025 across Miami-Dade, Broward, and Palm Beach counties. According to Larry Mastropieri, Broker/Owner of The Mastropieri Group, the partnerships allow cities to contribute land or long-term lease agreements while private developers provide capital, construction, and operational management. Projects span affordable housing, sports facilities, entertainment venues, and tourism infrastructure.

"Cities with limited budgets and rising development costs use these partnerships to move forward without raising taxes," according to market analysis from MIAMI REALTORS, which tracks regional transaction activity. The largest housing-focused P3 involves SG Holdings’ $3 billion development on 63 acres of predominantly public land in Miami’s Little River district. The project will deliver more than 5,700 affordable and workforce housing units alongside retail space under a 99-year lease with Miami-Dade County.

In Cutler Bay, developer Terra is constructing 724 workforce units across two phases at the South Dade Government Center site, utilizing Live Local Act provisions that permit zoning flexibility in exchange for affordable housing commitments. The Magnus Brickell project in Miami represents collaboration between Related Group, Miami-Dade County, and public schools, producing a 29-story tower with 465 units including 163 workforce homes and land dedicated for a new K-8 school. Fort Lauderdale’s The Era broke ground in March 2025 on 400 apartments with 210 units reserved for workforce housing, supported by 15-year and 30-year tax reimbursements from city and county governments.

Sports and recreation infrastructure projects include the Sports Performance Hub in Homestead, led by former NBA player Manu Ginóbili and backed by Riccardo Silva, representing a $280 million investment including a 10,000-seat stadium, hotel, academy, and sports courts. Miami-Dade County proposed a 47-acre Regional Multi-Sport Park near Trump National Doral featuring tournament soccer fields, stadium seating, pickleball courts, and tennis facilities. Fort Lauderdale’s The Fort opened in February 2025 with 43 pickleball courts, luxury suites, dining, retail, and live music programming developed through P3 structure with the city.

Padel court projects are expanding with Miami Beach approving Padel X to construct climate-controlled padel courts atop two city parking garages at 640 17th Street and 550 Lenox Avenue under 10-year lease arrangements. South Miami is considering a Van Veggel Ventures proposal for five padel courts on the South Miami Parking Garage at 5829 S.W. 73rd Street, with construction completion projected under 10 weeks if approved.

Tourism and entertainment ventures include the Beckham Hotel proposal submitted to Miami Gardens near Hard Rock Stadium and a planned performing arts center at 18600 N.W. 25th Avenue. Riviera Beach seeks proposals to expand Marina Village Phase II, a 90-acre waterfront site, with office space, retail, entertainment venues, and hotel development intended to attract tourism investment. Fort Lauderdale’s Napster Studios headquarters, planned as a 162,000-square-foot film and content creation campus on a vacant Superfund site at 1300 N.W. 31st Avenue, could support over 1,000 jobs long-term.

MIAMI REALTORS data shows land sales concentrated in Homestead, Palm Beach Gardens, and The Acreage, where builders including Lennar and DR Horton are acquiring large parcels. Development activity focuses particularly on affordable areas like Florida City. The sharp increase in land investment indicates developer confidence in South Florida’s growth trajectory as cities pursue infrastructure expansion without heavy public spending. Cities with the most active P3 portfolios in 2025 include Miami, Fort Lauderdale, Homestead, Cutler Bay, Miami Gardens, Riviera Beach, and South Miami.

Separately, South Florida municipalities approved millions in performance-based economic incentives to attract corporate headquarters and high-wage employment. ServiceNow received approval for up to $2 million in West Palm Beach incentives in exchange for creating more than 800 jobs averaging $170,000 salary, plus $50 million capital investment. Banco Santander was awarded $5 million to support 250 new jobs averaging $115,000 annually in Miami’s Brickell Financial District while retaining 702 existing positions. BioStem Technologies received $300,000 for relocating corporate headquarters to Boca Raton, committing to 100 new jobs averaging $81,000 and $49.5 million in capital improvements.

These wage levels substantially exceed county averages: Miami-Dade at $88,800, Palm Beach County at $86,500, and Broward County at $77,000 according to U.S. Bureau of Labor Statistics data. P3 projects typically boost nearby property values by adding housing inventory, employment, entertainment, and public services. However, increased density and traffic represent potential considerations depending on project scale. The development surge positions South Florida for what market participants characterize as one of the region’s largest infrastructure expansions in decades, with P3s serving as the primary execution mechanism for projects exceeding traditional municipal budgets.