Developments such as Bayside Marketplace are
bringing new retail and entertainment options to
Miami’s core.
ence in our urban core,” Robertson
notes about the UBS lease renewal.
The overhang of condo overbuilding that has been the subject of numerous national news reports is actually
transitioning to good deals on downtown apartment rentals, which Robertson points out is something Downtown
Miami never had before. Despite some
calculations that as many as 40,000
units remain unsold throughout Mi-
ami-Dade County, renters are able to
take advantage of pricing as low as
$1,000 per month.
While condo foreclosures are practically a daily occurrence, bulk sales of
units are also under consideration.
“Institutional money considers the
fundamentals of Miami-Dade to be
stronger” than other Florida markets,
says Adam Cappel, president of Miami-based CondoReports.com, who estimates nearly 200 condo and townhome
projects countywide with availability of
at least 20 units each.
The availability of urban condos,
whether for sale or rent, is driving new
retail development in Miami’s core.
Developments such as Bayside Marketplace and Mary Brickell Village have
brought new shopping, dining and
nightlife to Downtown Miami, creating
a dual-purpose district that operates
well beyond normal business hours.
The popular South Beach area still
holds most of the attention of shoppers, with rental rates proving the
point. Asking retail rents in Miami-Dade range from $30 per square foot
along Biscayne Boulevard to as high as
$130 per square foot on South Beach’s
fashionable Lincoln Road, according
to Cushman & Wakefield of Florida.
While retail occupancy remains well
within the 90% range throughout the
local market, rents have shown nominal declines this year with class B assets
already experiencing erosion, observes
Greg Masin, senior director with Cushman & Wakefield in Miami. “The leverage,” he says, “has clearly shifted to the
tenant.”
From an industrial standpoint,
Miami has an overall vacancy rate of
8.1% through the first quarter. Asking
rents averaged $6.64 per square foot,
according to Cushman & Wakefield.
The North Dade submarket, at $5
per square foot, is finding new strength
as a value alternative for companies
seeking access to major transportation
centers in South Florida, says Brian
Smith, senior director for industrial
brokerage services with Cushman &
Wakefield in Miami. “A tenant can
drive a harder bargain in North Dade,”
he says.—REFLA
