Lately, I’ve been giving my listeners an update on my thoughts about the major commercial real estate market segments in South Florida. So now it’s time to turn our attention to my South Florida retail market analysis.
When you talk about retail in South Florida, you have to talk about new development versus redevelopment.
I’ve been involved with both, and I can tell you the latest trend is infill development projects like Sunset Harbour Shops in Miami Beach, which features ground-floor retail under a parking garage.
By the way, that’s our focus, too. Our firm – Aztec Group – is looking for opportunities to invest in the retail infill trend. We’re doing development, preferred equity, and permanent financing.
Anchor tenants are changing. For years, it was Publix and Winn-Dixie. Now it’s the people in ground-floor restaurant leasing that are printing money. And Walmart’s are great for those who want to do deals on multiple sites. The institutional investors can’t get enough.
The tenant composition is changing, too. Today, retail developers want tenants who are less vulnerable to Internet competition. Healthcare, food and beverage, pet supplies – to name a few.
And power centers are dinosaurs now. The major anchor tenants – the Best Buys of the world – want to downsize. They don’t need as much retail space or stock on the floor.
In Miami-Dade County, retail rents are rising, and occupancy is strong. A side benefit is going to be less traffic on the roads. When the retail gets close to where you are, you won’t have to drive as far.
Click here to listen to my full South Florida retail market analysis.
