February 20, 2017 — TERRANOVA TRENDS — BY ANDREA SPEEDY Fresh off one of the busiest and largest new development cycles the area has ever seen, metropolitan Miami-Dade is continuing to thrive while many other urban markets are slowing down. Even as residential sales are leveling off, Miami’s retail component is strong, growing, and pushing to respond to ever-increasing demand for high-street locations in the city’s most popular neighborhoods.
A recent developer’s symposium held near the beginning of Q3 2016 revealed that overall retail vacancy in Miami is at an impressively low 3.1%. By comparison, Manhattan averages a vacancy rate of nearly 3.7% with retail rents that can be more than triple Miami’s prices. Throughout the greater Miami area, rental rates average between $150 and $300 per square foot for top retail high streets such as Lincoln Road, Collins Avenue, and Ocean Drive on Miami Beach; Sunset Drive in South Miami; and Miracle Mile in Coral Gables, and they’re expected to continue to fetch premium rates for years to come.
A RETURN TO URBAN LIFESTYLES
A key element driving the performance of Miami’s high streets has been a decades-long shift in residential development towards connected city-centric living. More and more of Miami’s residents are choosing to live near business, shopping, dining, and entertainment districts that are minutes from home, as opposed to a long drive away in heavy traffic. Similarly, office workers are seeking to maximize lunch-hour breaks and have the ability to run errands or meet with colleagues after work – all without worrying about parking or driving. Miami’s key high streets are among the most established, centralized destinations within their respective areas – and are therefore poised to deliver on market demand. As new residential projects continue to come online over the next few years the role of high street retail will become an even more essential part of the daily lifestyle experience.