Retail rents and vacancies tick up, market demand strong

Miami Today Discusses South Florida Retail Market with Lee & Associate South Florida Principal, Stephen DeMeo

Miami Today Discusses South Florida Retail Market with Lee & Associate South Florida Principal, Stephen DeMeo

'Retail rents and vacancies tick up, market demand strong'

Miami-Dade retail rents and vacancies have risen slightly but remain steady, according to local experts.

 

By Abraham Galvan –  Miami Today
October 10, 2024

 

Miami-Dade retail rents and vacancies have risen slightly but remain steady, according to local experts.

The vacancy rate is around 2.7% right now, with about 1.3 million square feet of retail space under construction and around 861,000 square feet that was absorbed over the last 12 months, said Rafael Romero, JLL’s senior vice president.

“Miami-Dade County is doing exceptionally well from a retail standpoint in contrast to Broward and Palm Beach counties that both stand at 3.6% vacancy,” he said. “Rents have increased around 5.1% in Palm Beach, versus 3.3% in Miami and 3% Fort Lauderdale. I think part of that is just having more runway for better products to be delivered over the last 12 months and having larger projects redeveloped in Palm Beach. Those things have contributed to their increases more than any other traditional factors.”

Miami-Dade continues to see the continued migration of high-net-worth individuals, Mr. Romero added.

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Broadly, the vacancy rates are mixed throughout the county, according to Stephen DeMeo, a principal at Lee & Associates.

“Around the suburbs, they have been flat with new tenants coming in," he said. "The big businesses are moving into Brickell, downtown and Wynwood, and vacancy rates and the prices (rental rates) are steady but trending a little up. I think that’s just because of the lack of inventory, the economy and people just holding tight on their leases.”

Currently, restaurant and entertainment concepts are pretty hot and heavy, Mr. DeMeo added.

“The major plazas where the clothes retailers are located are tight,” he continued. “Not many brands or tenants are moving out, especially the prime shopping centers. These popular locations don’t see too much movement because tenants want to come in here as much as possible if they’re not there already. But if there are new brands that want to come in, the challenge is finding space, especially in these tight markets like ours. It’s really the newer developments that are being built at the moment.”

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Lincoln Road in Miami Beach is also making a comeback and seeing strong momentum, with restaurants and food concepts taking the lead in terms of leasing.

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About Lee & Associates South Florida

Lee & Associates South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent’s ability to earn profit share resulting in the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making.  The Lee & Associates’ robust national network that sold and leased over $115 Billion in the last 5 years offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com or follow us on FacebookLinkedInTwitter and Instagram, our company local news.

About Lee & Associates

Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown its service platform to include over 75 offices in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers.  For the latest news from Lee & Associates, visit lee-associates.com or follow us on FacebookLinkedInTwitter and Link, our company blog.