miamidadecountyreport_2013_web

441
BROWARD COUNTY
MIAMI-DADE COUNTY
AVENTURA
W
O
GOLDEN
BEACH
KE
95
EC
HO
E
RO
AD
SUNNY
ISLES
BEACH
NORTH
MIAMI
BEACH
826
A1A
NW 37TH AVENUE
BE
75
NORTH
MIAMI
BAY
HARBOR
ISLANDS
441
MIAMI
SHORES
BAL
HARBOUR
INDIAN
CREEK
SURFSIDE
NW 103RD STREET VILLAGE
95
LIBERTY
CITY
821
BISCAYNE BAY
MIAMI DESIGN
DISTRICT
112
WYNWOOD
836
SW 56TH STREET (MILLER DRIVE)
41
CORAL
GABLES
GRANADA AVENUE
SW 72ND AVE (SUNSET DRIVE)
41
821
NORTH BAY
VILLAGE
JOHN F. KENNEDY
CAUSEWAY
LITTLE
HAITI
195
JULIA TUTTLE
CAUSEWAY
MIAMI
BEACH
395
SOUTH
BEACH
MIAMI
1
COCONUT GROVE
KEY
BISCAYNE
BISCAYNE BAY
SW 136TH STREET
SW 144TH STREET
1
821
SW 248TH STREET
1
1
A1A
ATLANTIC OCEAN
BY THE NUMBERS
1
AVENTURA
2,525,621 sf
in 15
centers
2
$24-$37.50
AVG. ASKING
RENT RANGE
5.33%
VACANCY
RATE
$27.50
AVERAGE
ASKING RENT
$17-$35
AVG. ASKING
RENT RANGE
10.6%
VACANCY
RATE
$21.33
$8-$40
AVERAGE
ASKING RENT
AVG. ASKING
RENT RANGE
$25.09
$17.50-$35
NW MIAMI-DADE
1,860,266 sf
in 16
centers
5
AVERAGE
ASKING RENT
EAST CENTRAL
3,087,456 sf
in 21
centers
4
VACANCY
RATE
$31.43
NORTH MIAMI / THE BEACHES
1,187,282 sf
in 10
centers
3
2.79%
12.44%
VACANCY
RATE
AVERAGE
ASKING RENT
3.46%
$24.74
AVG. ASKING
RENT RANGE
HIALEAH
3,446,586 sf
in 23
centers
VACANCY
RATE
AVERAGE
ASKING RENT
$14-$35
AVG. ASKING
RENT RANGE
2
6
WEST MIAMI-DADE / DORAL
6,656,648 sf
in 54
centers
7
$36.99
VACANCY
RATE
AVERAGE
ASKING RENT
6.6%
$29.55
$30-$45
AVG. ASKING
RENT RANGE
VACANCY
RATE
AVERAGE
ASKING RENT
$18-$50
AVG. ASKING
RENT RANGE
5.71%
VACANCY
RATE
$22.57
AVERAGE
ASKING RENT
$17-$30
AVG. ASKING
RENT RANGE
HOMESTEAD / NARANJA
1,792,361 sf
in 12
centers
11
3.89%
CUTLER RIDGE / PERRINE
2,434,542 sf
in 22
centers
10
AVERAGE
ASKING RENT
$16-$35
AVG. ASKING
RENT RANGE
KENDALL
5,971,521 sf
in 45
centers
9
VACANCY
RATE
$25.41
SOUTH MIAMI
2,393,202 sf
in 18
centers
8
6.14%
5.46%
VACANCY
RATE
$20.38
AVERAGE
ASKING RENT
$11-$30
AVG. ASKING
RENT RANGE
MIAMI-DADE COUNTY
31,355,485 sf
in 236
centers
6.3%
VACANCY
RATE
$26.50
AVERAGE
ASKING RENT
“Several big-box retailers are stepping up activity
and securing sites, while developers are ramping
up a cadre of new retail projects...”
3
HIGHER RENTS,
MORE RETAIL
DEVELOPMENT AND
A NEW CINEMA IN
TOWN
The county’s average asking
rent is $26.50 in early 2013,
nearly 3% higher than in early
2012, and following a 2% increase
the year before. But countywide
vacancy increased slightly to 6.3%,
compared to 5.7% a year before.
Average shopping center rents
in Miami-Dade County increased
slightly over the course of 2012 and
into 2013, continuing a steady, if
slow and uneven recovery. Several
big-box retailers are stepping up
activity and securing sites, while
developers are ramping up a
cadre of new retail projects, as
vacancy pressure over asking
rents continues to dissipate.
Nonetheless, countywide vacancy
increased slightly, with three bigbox retailers closing stores and
inline tenancy still showing brisk
turnover in some submarkets.
Eight submarkets show slight
and not-so-slight increases in rent
from a year before. In the other
two submarkets, average rent
decreases reflect fluctuation in
available spaces and the challenge
of submarkets with relatively low
household incomes.
Vacancy Rate
SUBMARKET HIGHLIGHTS:
• Hialeah had the highest increase,
with average asking rent going
up 19% to $24.74, while vacancy
of 3.5% is the lowest of any
submarket. This submarket has the
second lowest average household
income, behind East Central,
Submarket
Change
in Rent
Avg. Asking Rent
2011
2012-13
2011
2012-13
3.4%
3.5%
Hialeah
19.1%
$20.77
$24.74
5.5%
5.3%
No. Miami/Beaches
8.4%
$25.37
$27.50
2.5%
3.8%
Aventura
6.3%
$29.57
$31.43
2.7%
3.9%
South Miami
5.4%
$35.08
$36.99
6.1%
6.6%
Kendall
4.4%
$28.31
$29.55
5.4%
12.4%
NW Miami-Dade
2.6%
$24.45
$25.09
5.1%
5.5%
Homestead/Naranja
1.1%
$20.15
$20.38
5.4%
6.1%
West Dade/Doral
1.1%
$25.14
$25.41
8.2%
5.7%
Cutler Ridge/Perrine
-3.5%
$23.40
$22.57
11.3%
10.6%
East-Central
-5.2%
$22.49
$21.33
5.7%
6.3%
Miami-Dade County
2.8%
$25.79
$26.50
4
but it has a very strong central
commercial corridor and several
thriving intersections. Shopping
centers in the west portion of this
submarket have been consistently
increasing in occupancy and rents.
•
North
Miami/Beaches
submarket, which has the smallest
inventory, had the second highest
increase in average asking rent,
8.4%. The average doesn’t include
the newest, highest-priced center
in this small submarket (on Alton &
Fifth, in Miami Beach), because it
has no available space. Thus, the
increase reflects only improved
demand for the submarket’s other
lower priced centers, which are
mostly located along Biscayne
Boulevard, north of 103rd Street.
• South Miami and Aventura,
are consistently the strongest
submarkets in terms of rent and
occupancy. Both had rent increases
of 5.4% and 6.3%, respectively,
becoming the only two submarkets
whose average rent crosses the $30
mark. Both submarkets also had
slight increases in vacancy, but with
vacancy rates under 4%, they’re
still the two strongest, tightest
submarkets, each benefitting from
relatively small inventory, strong
demographics and major traffic
arteries.
• East Central, which has the
lowest level of disposable income
in the county, had a 5.2% drop in
average asking rent to $21.33,
after two consecutive years of a
4% increases each. This decrease
is largely due to management
transition in one of the submarket’s
largest centers, which is keeping
the center from being actively
Miami-Dade County Snapshot
Total
Inventory
(sq. ft.)
5
Average
Asking
Rent
2012-13
Number
of
Centers
Submarket
2,393,202
18
South Miami
$36.99
3.9%
2,525,621
15
Aventura
$31.43
3.8%
5,971,521
45
Kendall
$29.55
6.6%
1,187,282
10
No. Miami / Beaches
$27.50
5.3%
6,656,648
54
West Dade / Doral
$25.41
6.1%
1,860,266
16
Northwest Miami-Dade
$25.09
12.4%
3,446,586
23
Hialeah
$24.74
3.5%
2,434,542
22
Cutler Ridge / Perrine
$22.57
5.7%
3,087,456
21
East-Central
$21.33
10.6%
1,792,361
12
Homestead / Naranja
$20.38
5.5%
31,355,485
236
Miami-Dade County
$26.50
6.3%
Vacancy
Rate
2012-13
marketed. Vacancy decreased
slightly in this submarket, but
at 10.6% it is one of the most
challenged submarkets, and many
centers outside of the gentrifying
orbit of Midtown Miami are still
struggling with weak tenancy.
One retailer new to South
Florida, value grocery chain Okey
Dokey, made an entry in South
Florida with seven stores in MiamiDade County, which occupy inline
space of 5,000 to 7,000 square
feet. The chain’s future is uncertain,
however, as the company abruptly
stopped expansion and laid off real
estate staff. Also new to the market
is Silverspot Cinema, a high-end
movie-and-restaurant operator
that will open in the Metro Miami
mixed-use complex in downtown
Miami, and in the former Borders
Books & Music space in Village of
Merrick Park. Two other retailers
new to South Florida, but not
yet having announced locations
in Miami-Dade, are Garbanzo
Mediterranean Grill and Fallas
Discount Stores.
Several big-box retailers are
stepping up activity, both in newstore construction and in filling
empty anchor boxes. Walmart,
on an aggressive expansion path,
opened one new Neighborhood
Market store in Miami-Dade County
over the past 12 months, and
plans three Supercenters, one
Neighborhood Market and four
full-line Walmart stores, for a total
of eight more stores over the next
24 months. Ikea plans to build its
second South Florida store on a site
just north of Dolphin Mall in West
Miami-Dade. Target is proposing
three new stores: one in a new
proposed shopping center in West
Miami-Dade, and two other sites
formerly slated for Lowe’s Home
Improvement. BJ’s Wholesale
Club and Costco have each
staked a site for a new store in West
Miami-Dade. Whole Foods Market
has two stores under construction,
one in downtown Miami and one in
North Miami, while Fresh Market
built a new store in The Falls
shopping mall. Publix completed
three new stores – just north of
downtown Miami, in Pinecrest and
in Hialeah -- and is proposing two
new stores, in Homestead and in
West Miami-Dade. Saks Off Fifth
opened in an Aventura shopping
center, dd’s discount signed for
two new stores in East Central and
Cutler Ridge shopping centers,
Marshalls added a new location in
a Hialeah shopping center, and hh
gregg plans two more Miami-Dade
stores, one in an existing Kendall
shopping center and another in a
new proposed West Miami-Dade
center. L.A. Fitness plans two new
locations, both in proposed new
centers. (Locations of proposed
new boxes are in the Submarket
Analysis section on page 9.)
Meanwhile, three big box stores
closed: Sears Essentials in the
Northwest Miami-Dade submarket,
Staples in central West-Dade
and Barnes & Noble in Aventura.
The closings reflect struggles in
these retailers’ sectors. The office
supplies sector has been hammered
by competition from online sales
6
and the downturn in the economy,
resulting in the consolidation of
Office Depot and Office Max,
announced in February 2013.
Brick-and-mortar book retailers are
similarly struggling against Internet
competition. Borders Books &
Music filed Chapter 11 bankruptcy
in early 2011 and closed its stores
in South Florida. Barnes & Noble
survives and continues in business,
despite the closing of its Aventura
store, which reportedly didn’t have
to do with industry woes, but with
the specifics of the landlord-tenant
relationship in that location. Sears,
like other value department stores
such as JC Penney, is struggling
to remain competitive against
discounts and special sale events
from more upscale chains such
as Macy’s and off-price retailers
such as TJ Maxx and Marshalls.
Department store chain Kohl’s,
in the same tier as Sears and JC
Penney, is rumored to be a takeover
target in 2013.
NEW DEVELOPMENTS:
New shopping center construction over the past 12 months has
been moderate, with only two
centers of 50,000 square feet or
more completed. But, a significant
amount of new retail development
is on the drawing board, ranging
from traditional suburban shopping
centers and enclosed malls, to
urban mixed-use projects and
tourism destinations.
The two completed over the past
year were Publix Biscayne18,
in downtown Miami, and Vicenza
Plaza, anchored by Walmart
7
Neighborhood Market, in Hialeah
Gardens. Brickell Citi Centre,
a project proposed in 2011, has
broken ground. This mixed-used
project by Swire Properties will
include more than 500,000 square
feet of retail space, and has begun
construction on the west Brickell
area, just south of downtown Miami.
Coral Reef Commons, to be
anchored by LA Fitness and
Walmart, is a newly proposed
shopping center in the Cutler Ridge
submarket. River Landing, a
mixed-use project that will include
475,000 square feet of value retail
in a six-story building, is proposed
in Miami’s Health District, west of
downtown Miami. Other proposed
projects that haven’t broken
ground at the time of this report
are: Fontainebleau Park Plaza,
a 235,000 square foot center to be
anchored by Walmart Supercenter,
and Fontainebleau Square, a
mixed-use project with 340,000
square feet of retail, both in the
West-Dade submarket; Gables
Station, in the South Miami
submarket; and Shops at Beacon
Lakes and Doral Commons (fka
Beacon Commons), both in Doral.
Biscayne Landing, a long-dormant
project proposed in North Miami,
has been revived with a mixed-use
plan that includes 800,000 square
feet of big-box retail.
In addition, Dadeland Mall in
Kendall is adding a new wing of
more than 100,000 square feet,
and Bal Harbour Shops in Bal
Harbour plans an expansion
of 200,000 square feet. In the
tourism front, a long-stalled hotelmarina-retail project proposed on
Watson Island reportedly has
been revived with the addition of
a new co-developer, New Yorkbased Related Companies, owned
by Miami Dolphins owner Stephen
Ross, who will join Flagstone
Development, which controls the
project’s site. Plans for this project
call for more than 200,000 square
feet of high-end retail. And Miami
Beach is reviewing proposals for
redevelopment of its convention
center, with bids proposing 80,000
to 200,000 square feet of retail.
(Proposed projects are listed in
the Submarket Analysis section on
page 9.)
Additional retail development is
emerging throughout Miami-Dade
County. The Design District, an
inner-city area north of downtown
Miami, is undergoing a wave of
redevelopment by a multi-property
owner (Dacra), who plans to
transform the neighborhood into
Average HH
Income
an upscale retail destination with
more than 500,000 square feet
of retail covering a multi-block
area from North Miami Avenue
to NE Second Avenue, between
Northwest 38th and 42nd Streets.
The developer is proposing to
create a pedestrian retail street
bisecting this district and anchored
at each end by a department store.
Retailers already staking locations
in the district include Louis Vuitton,
Hermes and Prada. (Urban street
retail is discussed more at length
in Terranova’s Urban Street Retail
Report.)
DEMOGRAPHICS:
Miami-Dade County’s total
population in 2013 is estimated at
2,605,371, higher than 2,521,036
estimated in 2012, and projected to
grow 6.7% in the next five years.
However, Miami-Dade’s average
household income has decreased
to an estimated $58,947, compared
to $61, 443 at year-end 2011. It is
Submarket
Avg. Asking
Rent 2013
Population
$71,033
Kendall
$29.55
283,486
$69,890
South Miami
$36.99
332,814
$68,899
Cutler Ridge / Perrine
$22.57
246,637
$68,315
Aventura
$31.43
115,046
$63,412
No. Miami / Beaches
$27.50
229,417
$60,794
West Dade / Doral
$25.41
403,154
$60,463
NW Miami-Dade
$25.09
131,356
$46,837
Homestead / Naranja
$20.38
157,812
$42,034
Hialeah
$24.74
293,037
$40,925
East-Central
$21.33
412,612
$58,947
Miami-Dade County
$26.50
2,605,371
8
also is lower than Broward County’s
$66,091 and Palm Beach County’s
$72,573.
Shopping center inventory
in Miami-Dade County totals
31,355,485, square feet in 236
centers, excluding enclosed malls,
lifestyle/entertainment
centers
and centers smaller than 50,000
square feet. Miami-Dade County’s
2013 ratio of shopping center
square feet per person is 12 to 1,
based on a population of 2,605,371
and total inventory of 31,355,485
square feet. This compares to a
Broward County ratio of 20.4 to 1
and a Palm Beach County ratio of
22 to 1. Miami-Dade’s population
is 67% Hispanic and 19% African
American, and median age is 38.
SUBMARKET
ANALYSIS:
1
AVENTURA
This small submarket, which
includes Sunny Isles Beach, is
typically among the strongest
in Miami-Dade, benefitting from
exposure to Biscayne Boulevard
and to affluent demographic
pockets. Its average 2013 rent
of $31.43 is a 6.3% increase from
$29.57 at year-end 2011, and is
currently the second highest
average rent in the county, behind
South Miami. Vacancy increased
to 2.8%, compared to 2.5% the year
before, largely due to the closing
of a big box. Redevelopment of
the former Loehmann’s Plaza
center is bringing a new anchor,
Saks’ Off Fifth.
9
REDEVELOPMENTS, ADDITIONS,
RENOVATIONS:
• The former Loehmman’s Fashion
Island, on the NEC of Biscayne
Blvd. and NE 187th Street, has
been renamed Town Center
Aventura, upon a renovation that
includes Saks’ Off Fifth in the
former Loehmann’s space.
ANCHOR MOVES:
• Loehmann’s relocated from the
former Loehmann’s Fashion Island
to Biscayne Retail Plaza, on the
NEC corner of Biscayne Blvd. and
199th Street.
• Barnes & Noble closed in
Loehmann’s Fashion Island.
DEMOGRAPHICS:
This submarket has the highest
median age of all submarkets at
47. Its 2013 population is estimated
to be 115,046. The population is
42% Hispanic and 16% African
American.
Average household
income is $68,315. Population in
this submarket grew 6% between
2010 and 2013, and is projected
to grow another 9% in the next five
years. Daytime population in this
submarket is 50,228.
2
NORTH MIAMI/
THE BEACHES
Occupancy remained steady
in this tight submarket, while
average asking rent increased
8.4% to $27.50, up from $25.37
at year-end 2011. This increase
doesn’t include the submarket’s
highest-priced center, a Publixanchored center in Miami Beach
which opened in 2009, because
that center is full. What most
benefits this submarket is its
small inventory, most of which
is located along Biscayne
Boulevard.
This
high-traffic
road is undergoing a wave of
revitalization emanating from
downtown Miami about 13 miles
south, including construction of
a new Whole Foods Market in
North Miami.
that could add up to 200,000 square
feet of retail, depending on the
selected redevelopment plan. The
city hasn’t made a final selection
plan at the time of this report.
ANCHOR MOVES:
• Whole Foods Market is under
construction on a former Office
Depot site at 12100 Biscayne Blvd.
DEMOGRAPHICS:
This submarket has an estimated
2011 population of 229,417. The
population is 40% Hispanic and
31% African American. Median
age is 41 and average household
income is $63,412. Population
growth in this submarket was 3%
between 2010 and 2013, and is
projected to gain 5% in the next five
years. Daytime population in this
submarket is estimated at 113,880.
PROPOSED PROJECTS:
Biscayne Landing, a long-dormant
project proposed on an 81-acre
site on the NEC of Biscayne Blvd.
and NE 151st Street, has been
revived by Swerdlow Group, which
reportedly plans a mixed-use
project that will include 800,000
square feet of big-box retail.
REDEVELOPMENTS, ADDITIONS,
RENOVATIONS:
• Bal Harbor Shops, a luxury mall
on the NWC of Collins Ave. and 96th
Street, is planning an expansion of
200,000 square feet that will add a
specialty department store of about
100,000 square feet and 25 to 30
new stores.
• The Miami Beach Convention
Center is poised for a redevelopment
10
3 EAST CENTRAL
Occupancy improved slightly
in this submarket, which has
a 2013 vacancy rate of 10.6%,
slightly lower than 11.3% at
year-end 2011. Average asking
rent decreased to $21.33, down
5.2% from $22.49 a year before,
reflecting the challenge in the
submarket’s older properties. By
contrast, a new Publix-anchored
center was completed on the
northern fringe of downtown
Miami, and Walmart continues
to pursue approval to build a
store in an undeveloped parcel
of Shops at Midtown Miami, one
of the submarket’s landmark
properties, completed in 2006.
New construction such as these
two projects have improved
the submarket’s average rent,
but older centers continue to
struggle with very high vacancy.
COMPLETED PROJECTS:
• Publix at 18Biscayne was
completed on Biscayne Boulevard,
between NE 17th Terrace and 18th
Street, featuring a 49,200 square
foot Publix and 8,000 square feet of
additional retail.
PROPOSED PROJECTS:
• East Hialeah Marketplace, a
300,000 sq. ft. center to be anchored
by
Walmart Supercenter, is
proposed on the SWC of NW 79th
Street and 32nd Ave. Walmart,
totaling 186,856 square feet, is
scheduled to open Spring 2014.
• River Landing, a mixed-use
project that would include 475,000
square feet of value retail in a sixstory building, is proposed on the
11
south side of NW 12th Street (NW
N. River Drive), at its junction with
NW 14th Ave., in Miami’s Health
District.
REDEVELOPMENTS, ADDITIONS,
RENOVATIONS:
• Miami Merchants Mart, on NW
79th Street between 30th and 32nd
avenues, is proposed by Gadinsky
Real Estate for redevelopment
into a 202,000 square foot center
that will include a big-box anchor,
a junior box and small shops. No
tenants have been announced.
ANCHOR MOVES:
• Walmart is proposing a 160,000
square foot store next to Shops at
Midtown Miami, on 3401 N. Miami
Ave., but is having difficulty getting
approval for store design.
• dd’s Discount will open a store
in Biscayne Plaza, on the NWC of
Biscayne Blvd. and NE 79th Street,
and in Northside Shopping Center,
at 7900 NW 27th Ave.
• Presidente Supermarket plans
to build a free-standing store on the
NWC of NE Second Avenue and
79th Street.
OTHER TENANT MOVES:
CVS will build a new store on an
outparcel in Biscayne Plaza, on
the NWC of Biscayne and NE 79th
Street.
DEMOGRAPHICS:
With an estimated 2013 population
of 412,612, this is the most populous
of all submarkets. This submarket
skipped the population boom that
much of South Florida saw in the
1990-2000 decade, but new condo
development over the past decade
has led to a 3% population increase
between 2010 and 2013, and is
projected to increase another 5% in
the next five years. The population
is 58% African American and 37%
Hispanic.
Average
household
income of $40,925 is the lowest of
all submarkets, and median age of
35 is among the youngest. Daytime
population in this submarket is
estimated at 165,195.
4
NORTHWEST
MIAMI-DADE
Vacancy increased noticeably
in this submarket, largely due to
the closing of a Sears Essentials
store. This pushed vacancy to
12.4%, from 5.4% at year-end
2011. Average rent still increased
2.6% to $25.09, up from $24.45.
This is a small pocked of MiamiDade County, just south of
the Broward County line, and
close to the two of the region’s
interconnecting
expressways:
I-75 and Palmetto Expressway.
The submarket also contains
many bedroom communities
such as Country Club of Miami
and Royal Oaks.
PROPOSED PROJECTS:
• The Shops at Aviation and
Commerce Center, a groceryanchored 70,626 square foot center,
is proposed by CPF Investment
Group on the SEC of NW 57th Ave.
and 142nd Street.
ANCHOR MOVES:
• Sears Essentials closed in Miami
Gardens Shopping Center, on the
SWC of Miami Gardens Drive and
NW 57th Ave.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 131,356. The
population is 81% Hispanic and
11 % African American. It is one
of the youngest submarkets, with
a median age of 35, and has
an average household income
of $60,463. Population in this
submarket grew 6% between
2010 and 2013, and is projected
to grow another 9% in the next five
years. Daytime population is this
submarket is estimated at 43,827.
5 HIALEAH
This is a dense market, with
a stable, largely blue-collar
Hispanic population. It had the
highest increase in average
rent, now at $24.74, up 19%
from $20.77 at year-end 2011.
Population
density
and
a
relatively small inventory helps
two Publix-anchored centers in
this submarket achieve asking
rents that surpass the $30
mark. A new Walmart-anchored
center was completed in Hialeah
Gardens, a western portion of
the submarket, while Publix
completed a new Publix Sabor
store east of the Palmetto, in
a former Presidente-anchored
project, and Marshalls opened a
new store in East Hialeah.
COMPLETED PROJECTS:
• Vicenza Plaza, a 74,650 square
foot center anchored by Walmart
Neighborhood
Market,
was
completed on the NE corner of
12
Okeechobee Road and Hialeah
Gardens Blvd.
REDEVELOPMENTS, ADDITIONS,
RENOVATIONS:
• Marshalls will open in Flamingo
Plaza, at 1025 E. Ninth Street.
• Publix Sabor opened in Hialeah
Plaza, on the SWC of Gratigny
Road and W. 12th Avenue.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 293,037.
Population growth was 3% between
2010 and 2013, and is projected to
increase another 5% in the next five
years. The population is 3% African
American and 93% Hispanic, the
most Hispanic of all submarkets.
Median age is 41 and the average
household income of $42,034 is the
second lowest in the county, behind
East Central. Daytime population in
this submarket is 184,207.
6
WEST MIAMIDADE/DORAL
This is the largest submarket in
terms of inventory and number
of centers, covering a large
swath of central Miami-Dade
that includes some of the oldest
centers on the submarket’s
eastern fringes, and some of the
newest construction in the west,
including Doral. This widespread
range makes this
submarket
the one that most consistently
and
closely
approximates
countywide rents and occupancy.
Its average asking rent in 2013
is $25.41, virtually unchanged
from $25.14 at year-end 2011 and
13
$25.13 at year-end 2010. Vacancy
increased to 6.1%, compared to
5.4% at year-end 2011, largely
due to the closing of a Staples
store. Walmart is planning two
new stores in this submarket,
while Target and BJ’s Wholesale
Club are each planning one.
PROPOSED PROJECTS:
• Fontainebleau Park Plaza,
a 235,000 square foot center
to be anchored by Walmart
Supercenter, is proposed by
Courtelis Company on the NWC of
Flagler Street and NW 92nd Ave.
Other announced retailers include
LA Fitness and hhgregg,
• Fontainebleau Square, a mixeduse project with 340,000 square
feet of retail and a 155-unit elderly
housing facility is proposed on the
NEC of W. Flagler Street and NW
102nd Ave.
• Doral Commons, a 123,429
square
foot
grocery-anchored
shopping center, is proposed by
Courtelis Company on the NEC of
NW 74th Street and 107th Avenue.
No tenants or ground-breaking date
have been announced.
• Shops at Beacon Lakes, a
410,000 square foot retail center to
be part of a commercial mixed-use
project, is proposed by Prologis on
the NEC of NW 137th Avenue and
12th Street. No tenants or groundbreaking date announced.
ANCHOR MOVES:
• Ikea plans a new store of 417,000
square feet north of the Dolphin
Mall, on the NEC of NW 18th Street
and 117th Avenue.
• Target has bought a site on the
NWC of SW 137th Ave. and 8th
Street, that was once owned by
Lowe’s Home Improvement. No
opening date has been announced.
• Walmart is proposing a store on
a leased site at 6991 SW Eighth
Street, a site that was formerly
Everglades Lumber.
• BJ’s Wholesale Club is proposing
a store on a vacant site on the SE
quadrant of SW 24th Street (Coral
Way) and 72nd Ave.
• Staples closed in Trail Plaza, on
the SWC of SW Eighth Street and
67th Ave.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 403,154. The
population is 88% Hispanic and
3% African American. Median
age is 41 and average household
income is $60,794. Population in
this submarket grew 4% between
2010 and 2013, and is projected
to grow another 6% in the next five
years. Daytime population is this
submarket is 221,386.
7 SOUTH MIAMI
Average asking rent increased
in
this
submarket,
which
consistently is the strongest
in Miami-Dade County, due
to a small inventory, strong
demographics and the portion of
the U.S. 1 corridor that traverses
it. Its average asking rent of
$36.99 in early 2013 is up 5.5%
from $35.08 at year-end 2011,
and is the highest average rent
of the county’s 10 submarkets.
Vacancy also increased slightly
to 3.9%, up from 2.7%, due to
turnover of inline space. Publix
opened a new free-standing
store in Pinecrest, on the site of a
former car dealership. New retail
construction in this submarket
takes place mostly in infill and
redevelopment sites.
PROPOSED PROJECTS:
• Metropolitan Miami, a high-rise,
mixed-use project with office, hotel,
retail and entertainment, is under
construction on a three-block site
at NE Third Avenue, in downtown
Miami’s central business district.
A Whole Foods store of 37,000
is under construction, projected to
open in late 2013. On a separate
building in the same complex,
Silverspot Cinema will open a
12-screen movie theater.
• Gables Station, a mixed-use
project with 300,000 square feet of
vertical retail, is proposed on the
NE corner of Le Jeune Road and
U.S. 1. No ground-breaking date or
tenants have been announced.
• Brickell CitiCentre, a mixeduse project that will include more
than 500,000 square feet of
retail and entertainment, is under
construction by Swire Properties
on a multi-block parcel on South
Miami Avenue between Southwest
7th and 8th streets. The project is
designed to include luxury retail, to
be handled by the owners of Bal
Harbour Shops.
• 4585 Ponce, a mixed-use project
that will total 46,000 square feet
of ground floor retail, is nearing
completion of its first phase, at the
intersection of Ponce de Leon and
Le Jeune Road in Coral Gables.
Epicure Gourmet Market will anchor
the project’s ground-level retail.
14
ANCHOR MOVES:
• Silverspot Cinema will replace
Borders Books & Music in Village
of Merrick Park, on San Lorenzo
Avenue between Le Jeune Road
and Ponce de Leon Blvd.
• Publix opened a free-standing
store at 13401 S. Dixie Highway, on
the site of a former auto dealership.
• Trader Joe’s will open a freestanding store on the former
Borders Books & Music at 1905 S.
Dixie Highway.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 332,814. The
population is 72% Hispanic and
6% African American. Median age
is 44, the second highest behind
Aventura, and average household
income is $69,890, the second
highest behind Kendall. Population
in this submarket grew 5% between
2010 and 2013, and is projected to
grow another 7% in the next five
years. Daytime population is this
submarket is 234,030.
8 KENDALL
Occupancy continued to hold
steady in this robust submarket,
as average asking rent increased
4.4% to $29.55 in early 2013,
following a 3.4% increase the
year before. Vacancy rate of
6.6% isn’t much changed from
6.1% a year before, and includes
a former Syms store box and
a former Living Well Lady
junior box. Also contributing to
vacancy are some new centers
on the western fringes of the
submarket, which have a lot
of vacant inline space. One
new project of 47,900 sq. ft. is
proposed in this submarket.
PROPOSED PROJECTS:
• Garden Village Shopping
Center,
fka
West
Kendall
Village, is proposed on the SWC
of Kendall Drive and SW 154th
Ave. Announced tenants in the
nearly 50,000 square foot property
include Fuddruckers, The Learning
Experience and Century Bank.
REDEVELOPMENTS, ADDITIONS,
RENOVATIONS:
• Dadeland Mall, on the NEC of
SR 826 and N. Kendall Drive, is
adding a new wing totaling 102,000
square feet of new stores and
restaurants, including Microsoft,
Urban Outfitters, PUMA and Bobby
Flay Burger Palace.
ANCHOR MOVES:
• Target has leased the site of the
current Kmart Plaza at 10400 S.
Dixie Highway. The retailer hasn’t
disclosed the timing of its plans for
the site.
15
• hh gregg will open a store in
Shops of Kendall, on the SEC of
Kendall Drive and SW 127th Ave.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 283,486. The
population is 74% Hispanic and
3% African American. Median
age is 39 and average household
income is $71,033, the highest
of all submarkets. Population in
this submarket grew 4% between
2010 and 2013, and is projected
to grow another 6% in the next five
years. Daytime population in this
submarket is 97,210.
9
CUTLER RIDGE/
PERRINE
Vacancy went down, but so
did average asking rent in this
submarket, which is uneven in its
strength and recovery. Vacancy
of 5.7% in early 2013 is lower than
8.2% a year before, but average
asking rent dropped to $22.57,
down 3.5% from $23.40. One new
shopping center is proposed
in this submarket, a new freestanding Walmart has broken
ground, and dd’s discount has
signed a lease for a new store.
This submarket encompasses
a transition area between the
thriving Kendall area to the north
and the slower Homestead/
Naranja submarket to the south.
As such, centers in the northern
half are stronger than centers in
the southern half. The portion
east of U.S. 1 also exhibits higher
rents, as this area contains many
affluent residential pockets.
PROPOSED PROJECTS:
• Coral Reef Commons is
proposed by Ram Realty on the
SWC of 152nd Street and 124th
Ave., with Walmart and L.A. Fitness
as anchors.
ANCHOR MOVES:
• Fresh Market opened a store in
The Falls, a Bloomingdale’s and
Macy’s anchored mall on the SWC
of U.S. 1 and SW 136th Street.
• A Walmart store of 100,000
square feet is under construction at
21151 S. Dixie Highway, on the site
of a former car dealership.
• Dd’s Discount will open in Cutler
Bay Towne Center, at 20841 S.
Dixie Highway, in a portion of a
former Old Time Pottery building.
VACANT BOXES:
Badcock Furniture at Promenade
Plaza, on the NW corner of SW
152nd Street and 112th Ave.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 246,637. The
population is 62% Hispanic and
21% African American. Median
age is 35 and average household
income is $68,899. Population in
this submarket grew 6% between
2010 and 2013, and is projected
to grow another 8% in the next five
years. Daytime population is this
submarket is 59,009.
16
10
HOMESTEAD/
NARANJA
Vacancy and average asking
rent remained stable in this
far-south submarket, where
a spurt of new residential
construction in the 2000s first
fueled population growth and
new retail construction, but then
a downturn, as the housing and
banking industries collapsed.
In early 2013, the market shows
stability and recovery, with a
vacancy rate of 5.5% not much
changed from 5.1% at year-end
2011, while average asking rent
of $20.38 is up a nominal 1%
from $20.15. New commercial
construction since 2005 has
characterized this submarket,
but it also faces the challenge
of having one of the lowest
household incomes in the
county. Walmart is proposing two
new stores in this submarket.
PROPOSED PROJECTS:
• Shoppes of Homestead, a
157,500 square foot center, is
proposed by FIRC Group at 600
U.S. 1, also called Homestead
Blvd. in that area. No tenants have
yet been announced.
• Publix is proposing a freestanding store on the SEC of East
Palm Drive (SW 344th Street) and
Tennessee Road (167th Ave.) in
Florida City.
DEMOGRAPHICS:
This submarket has an estimated
2013 population of 157,812.
The population is 63% Hispanic
17
and 23% African American. With
a median age of 32, this is the
youngest of all submarkets. Average
household income of $46,837
is the third lowest, behind East
Central and Hialeah. Population in
this submarket grew 8% between
2010 and 2013, and is projected to
grow another 11% in the next five
years. Daytime population is this
submarket is 34,039, the lowest of
all submarkets.
SURVEY PARAMETERS
This is the 18th annual Miami-Dade
County report on shopping centers,
based on a two-phase survey of centers
of 50,000 square feet or more, excluding
regional enclosed malls and lifestyle
centers. The survey was conducted
throughout December 2012 and January
2013. Average rental rates are weighed
asking net rates on existing available
inline space only. Total inventory
includes the gross leasable area on the
ground floor only, plus upper level space
in vertical centers.
T erranova C orporation ,
Florida’s leading commercial real
estate advisory firm, is involved with
over $1 billion in commercial real
estate assets for its clients and its own
portfolio. Terranova provides asset
and property management, leasing,
tenant representation, dispositions, acquisitions, financing,
construction management and development services.
Among Terranova’s recent activities:
• Joint ventured with Acadia Real Estate in the
$139 million acquisition of a three-building,
60,000 sq. ft. portfolio on Lincoln Road in
Miami Beach, FL. It was the largest retail
acquisition in Florida in 2012, and added to
the joint venture’s existing portfolio of three
other Lincoln Road buildings, making it the
largest retail owner on Lincoln Road.
• Represented landlord in a 15-year lease with
Epicure Gourmet Market for 24,000 square
feet at 4585 Ponce, a mixed-use project in
Coral Gables, FL.
• Represented landlord in a 10-year, 21,895
square foot lease with dd’s discount in
Biscayne Plaza, Miami, FL.
• Represented landlord in a 15,659 square
foot lease with Navarro Discount Pharmacy in
Westfork Plaza, Pembroke Pines, FL, and a
10-year, 15,029 square foot lease with Baptist
Outpatient Services.
• Represented landlord in a 10-year, 12,899
square foot lease with Learning Experience
on the ground floor of Vizcayne, a new
49-story condominium at 244 Biscayne Blvd.
in downtown Miami, and in an additional 6,500
square feet for various other tenants including
100 Montaditos and Orangetheory Fitness.
• Represented landlord in a 5-year lease
with Performance Bicycle for its first South
Florida location, a 7,125 square foot store
in Shadowwood Shopping Center, in Boca
Raton, FL
• Represented landlord in a 10-year lease with
Asian restaurant Khong for a 5,610-square foot
space in Lincoln Square, a new development
just north of Lincoln Road, Miami Beach, FL.
• Represented landlord in a 10-year lease
with Brasserie Lincoln for 4,150 Square feet
on Lincoln Road in Miami Beach, FL.
• Represented landlord in a 20-year lease with
Chase Bank to build a new 4,370 square foot
branch with drive-thru on an outparcel in Polo
Club Shoppes, a Publix-anchored center in
Boca Raton, FL.
• Represented landlord in a 10-year lease
with Brasserie Lincoln for 4,150 square feet
on Lincoln Road, Miami Beach, FL.
• Represented landlord in a 3,700 square foot,
7-year lease with Armani Jeans for a new
store on Lincoln Road, Miami Beach, FL. It
will be the second Armani Jeans boutique in
the U.S., after New York Fifth Avenue.
• Represented tenant BurgerFi in a lease
for a 1,933 square foot restaurant in Tower
Shops in Davie, FL, and for a 2,616 square
foot space on Miracle Mile, Coral Gables, FL.
Terranova also represented the landlord in the
Miracle Mile transaction.
• Represented seller in the $25.45 million sale
of Parkhill Plaza in Miami, FL, after leasing
and managing the Winn Dixie anchored
center for 10 years, generating a $19.4 million
profit for the seller.
• Exclusive tenant representative in South
Florida for California-based Anna’s Linens
and for South Florida-based BurgerFi, a fast
expanding gourmet burger chain.
10
18
www.terranovacorp.com | 305.695.8700
801 Arthur Godfrey Road, Suite 600
Miami Beach, FL 33140
20