According to a new report by Colliers International, Miami-Dade County is leading the country in retail rent growth.
In the second quarter of 2019, rental rates increased steadily while leasing activity stayed strong and vacancy rates stabilized, the report says. Roughly 460,000 square feet were leased in the Miami-Date retail market at an approximate average of $37 per square foot in Q2—nearly 2% higher than Q1.
The largest lease of the quarter went to Pinstripes, a bowling alley and bistro at a former Sears location in Aventura. Other major lease spaces in the region include clothing retailers, beauty and health stores, and fitness centers.
An estimated 3.7 million square feet of space are currently under construction in the county, with the Northeast Dade and South Dade submarkets showing the largest amounts of construction at over 500,000 square feet each.
“Retail demand in Miami-Dade County demonstrates itself through increased rental rates and construction, as well as record-setting sales price per square foot,” says the report. Average sale price per square foot has climbed to $355, in part due to significant sales in the desirable Lincoln Road and Miami Design District areas.
The report attributes Miami’s success to strong population growth, record setting tourism, a large construction pipeline and the ability to adapt to the changing retail landscape. Last quarter, Florida set an all-time record for visitors following a record year in 2018, contributing to rental growth through increased consumer spending. ComReal has previously reported on this significant trend.
The report concludes, “With the convergence of traditional retail to mixed-use developments offering office, hospitality and experiential retail, South Florida will continue to see increased demand and healthy rent growth.”
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