IRR-Miami Mid-Year Viewpoint 2015 Local Market Report - Retail
Retail was one of the few property classes in the Miami market to hold its relative value during the downturn, but rebounded more slowly during the recent upswing. Retail expansion is now well underway, with the largest urban project in South Florida (Brickell City Center) set to deliver a wave of new space in downtown Miami. The much awaited Miami WorldCenter could be right behind. Investors have plowed money into "chic" retail on Lincoln Road, Wynwood, and the Design District - and spiking rents have followed the investment dollars.
Next up in the Retail Chic lineup is Little River. Rents are up over 100% in these markets in 3 years; and tenants are feeling the squeeze. Retail in Miami is aided by consistent external purchasing from tourism and foreign visitor-ship, but the niche markets could be volatile in 2015-2016.
Core markets with housing growth (Doral, Hialeah, Miami Springs, North Miami, Miami Shores, Cutler Bay, Kendall, Aventura) are all opportunity markets where rents will rise in proportion to local fundamentals. Little Havana will be the breakout market in 2015. The regional malls are the darlings of the market, and the expansion of Aventura Mall and renovations at Bal Harbour have gotten far too little attention in the wake of the big announcement of the American Dream Miami entertainment theme mall in Northwest Dade in early 2015. But the core malls east of I-95 are fortress-squared. American Dream is the biggest threat to the Dolphin and International Malls along 836, and Sawgrass in Broward. The Mall Wars have officially begun.
Download the full version PDF of this Local Market Report below. It includes graphs and tables.
IRR Mid-Year Viewpoint 2015 comprises a National Overview report and 300+ two-page Local Market Reports for all key property types as well as additional resources, including metrics methodology, graphs, and tables; these free reports may be downloaded from IRR’s site here.