BROWARD COUNTY -DADE COUNTY 441

AVENTURA GOLDEN W OKEECHOBEE ROAD BEACH 95

SUNNY NORTH ISLES MIAMI BEACH 75 826 BEACH

NW 37TH AVENUE A1A NORTH MIAMI

BAY 441 HARBOR BAL ISLANDS HARBOUR MIAMI SHORES INDIAN SURFSIDE CREEK NW 103RD STREET VILLAGE

95

JOHN F. KENNEDY NORTH BAY LITTLE CAUSEWAY VILLAGE HAITI

LIBERTY A1A CITY BISCAYNE BAY 821 MIAMI DESIGN 112 DISTRICT JULIA TUTTLE 195 CAUSEWAY MIAMI BEACH

836 395

GRANADA AVENUE SOUTH

SW 72ND AVE () BEACH

41 41

MIAMI

1

COCONUT GROVE CORAL SW 56TH STREET (MILLER DRIVE) GABLES

KEY BISCAYNE

821 BISCAYNE BAY

SW 136TH STREET SW 144TH STREET

1

821

ATLANTIC OCEAN SW 248TH STREET

1

1 BY THE NUMBERS

1 AVENTURA

2,525,621 sf 2.79% $31.43 $24-$37.50 in 15 VACANCY AVERAGE AVG. ASKING centers RATE ASKING RENT RENT RANGE

2 NORTH MIAMI / THE BEACHES

$17-$35 1,187,282 sf 5.33% $27.50 AVG. ASKING in 10 VACANCY AVERAGE centers RATE ASKING RENT RENT RANGE

3 EAST CENTRAL

10.6% $21.33 $8-$40 3,087,456 sf AVERAGE AVG. ASKING in 21 VACANCY ASKING RENT RENT RANGE centers RATE

4 NW MIAMI-DADE

12.44% $25.09 $17.50-$35 1,860,266 sf AVG. ASKING in 16 VACANCY AVERAGE centers RATE ASKING RENT RENT RANGE

5 HIALEAH

$14-$35 3,446,586 sf 3.46% $24.74 AVG. ASKING in 23 VACANCY AVERAGE centers RATE ASKING RENT RENT RANGE 2 6 WEST MIAMI-DADE / DORAL

6.14% $25.41 $16-$35 6,656,648 sf AVG. ASKING in 54 VACANCY AVERAGE centers RATE ASKING RENT RENT RANGE

7 SOUTH MIAMI

$36.99 $30-$45 2,393,202 sf 3.89% VACANCY AVERAGE AVG. ASKING in 18 ASKING RENT centers RATE RENT RANGE

8 KENDALL

$29.55 $18-$50 5,971,521 sf 6.6% in 45 VACANCY AVERAGE AVG. ASKING centers RATE ASKING RENT RENT RANGE

9 CUTLER RIDGE / PERRINE

5.71% $22.57 $17-$30 2,434,542 sf AVG. ASKING in 22 VACANCY AVERAGE RENT RANGE centers RATE ASKING RENT

10 HOMESTEAD / NARANJA

5.46% $20.38 $11-$30 1,792,361 sf AVG. ASKING in 12 VACANCY AVERAGE centers RATE ASKING RENT RENT RANGE

11 MIAMI-DADE COUNTY

$26.50 31,355,485 sf 6.3% in 236 VACANCY AVERAGE centers RATE 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, The county’s average asking rent is $26.50 in early 2013, MORE RETAIL nearly 3% higher than in early DEVELOPMENT AND 2012, and following a 2% increase the year before. But countywide A NEW CINEMA IN vacancy increased slightly to 6.3%, TOWN compared to 5.7% a year before.

Average shopping center rents Eight submarkets show slight in Miami-Dade County increased and not-so-slight increases in rent slightly over the course of 2012 and from a year before. In the other into 2013, continuing a steady, if two submarkets, average rent slow and uneven recovery. Several decreases reflect fluctuation in big-box retailers are stepping up available spaces and the challenge activity and securing sites, while of submarkets with relatively low developers are ramping up a household incomes. cadre of new retail projects, as vacancy pressure over asking SUBMARKET HIGHLIGHTS: rents continues to dissipate. • Hialeah had the highest increase, Nonetheless, countywide vacancy with average asking rent going increased slightly, with three big- up 19% to $24.74, while vacancy box retailers closing stores and of 3.5% is the lowest of any inline tenancy still showing brisk submarket. This submarket has the turnover in some submarkets. second lowest average household income, behind East Central,

Vacancy Rate Change Avg. Asking Rent Submarket in 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 submarkets in terms of rent and commercial corridor and several occupancy. Both had rent increases thriving intersections. Shopping of 5.4% and 6.3%, respectively, centers in the west portion of this becoming the only two submarkets submarket have been consistently whose average rent crosses the $30 increasing in occupancy and rents. mark. Both submarkets also had slight increases in vacancy, but with • North Miami/Beaches vacancy rates under 4%, they’re submarket, which has the smallest still the two strongest, tightest inventory, had the second highest submarkets, each benefitting from increase in average asking rent, relatively small inventory, strong 8.4%. The average doesn’t include demographics and major traffic the newest, highest-priced center arteries. in this small submarket (on Alton & Fifth, in Miami Beach), because it • East Central, which has the has no available space. Thus, the lowest level of disposable income increase reflects only improved in the county, had a 5.2% drop in demand for the submarket’s other average asking rent to $21.33, lower priced centers, which are after two consecutive years of a mostly located along Biscayne 4% increases each. This decrease Boulevard, north of 103rd Street. is largely due to management transition in one of the submarket’s • South Miami and Aventura, largest centers, which is keeping are consistently the strongest the center from being actively

Miami-Dade County Snapshot

Average Total Number Vacancy Asking Inventory of Submarket Rate Rent 2012-13 (sq. ft.) Centers 2012-13 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 ,0 87, 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% 5 marketed. Vacancy decreased just north of in West slightly in this submarket, but Miami-Dade. Target is proposing at 10.6% it is one of the most three new stores: one in a new challenged submarkets, and many proposed shopping center in West centers outside of the gentrifying Miami-Dade, and two other sites orbit of are still formerly slated for Lowe’s Home struggling with weak tenancy. Improvement. BJ’s Wholesale Club and Costco have each One retailer new to South staked a site for a new store in West , value grocery chain Okey Miami-Dade. Whole Foods Market Dokey, made an entry in South has two stores under construction, Florida with seven stores in Miami- one in downtown Miami and one in Dade County, which occupy inline North Miami, while Fresh Market space of 5,000 to 7,000 square built a new store in feet. The chain’s future is uncertain, shopping mall. Publix completed however, as the company abruptly three new stores – just north of stopped expansion and laid off real downtown Miami, in Pinecrest and estate staff. Also new to the market in Hialeah -- and is proposing two is Silverspot Cinema, a high-end new stores, in Homestead and in movie-and-restaurant operator West Miami-Dade. Saks Off Fifth that will open in the Metro Miami opened in an Aventura shopping mixed-use complex in downtown center, dd’s discount signed for Miami, and in the former Borders two new stores in East Central and Books & Music space in Village of Cutler Ridge shopping centers, Merrick Park. Two other retailers Marshalls added a new location in new to , but not a Hialeah shopping center, and hh yet having announced locations gregg plans two more Miami-Dade in Miami-Dade, are Garbanzo stores, one in an existing Kendall Mediterranean Grill and Fallas shopping center and another in a Discount Stores. new proposed West Miami-Dade center. L.A. Fitness plans two new Several big-box retailers are locations, both in proposed new stepping up activity, both in new- centers. (Locations of proposed store construction and in filling new boxes are in the Submarket empty anchor boxes. Walmart, Analysis section on page 9.) on an aggressive expansion path, opened one new Neighborhood Meanwhile, three big box stores Market store in Miami-Dade County closed: Sears Essentials in the over the past 12 months, and Northwest Miami-Dade submarket, plans three Supercenters, one Staples in central West-Dade Neighborhood Market and four and Barnes & Noble in Aventura. full-line Walmart stores, for a total The closings reflect struggles in of eight more stores over the next these retailers’ sectors. The office 24 months. Ikea plans to build its supplies sector has been hammered second South Florida store on a site by competition from online sales 6 and the downturn in the economy, Neighborhood Market, in Hialeah resulting in the consolidation of Gardens. Citi Centre, Office Depot and Office Max, a project proposed in 2011, has announced in February 2013. broken ground. This mixed-used Brick-and-mortar book retailers are project by Swire Properties will similarly struggling against Internet include more than 500,000 square competition. Borders Books & feet of retail space, and has begun Music filed Chapter 11 bankruptcy construction on the west Brickell in early 2011 and closed its stores area, just south of downtown Miami. in South Florida. Barnes & Noble survives and continues in business, Coral Reef Commons, to be despite the closing of its Aventura anchored by LA Fitness and store, which reportedly didn’t have Walmart, is a newly proposed to do with industry woes, but with shopping center in the Cutler Ridge the specifics of the landlord-tenant submarket. River Landing, a relationship in that location. Sears, mixed-use project that will include like other value department stores 475,000 square feet of value retail such as JC Penney, is struggling in a six-story building, is proposed to remain competitive against in Miami’s , west of discounts and special sale events downtown Miami. Other proposed from more upscale chains such projects that haven’t broken as Macy’s and off-price retailers ground at the time of this report such as TJ Maxx and Marshalls. are: Fontainebleau Park Plaza, Department store chain Kohl’s, a 235,000 square foot center to be in the same tier as Sears and JC anchored by Walmart Supercenter, Penney, is rumored to be a takeover and Fontainebleau Square, a target in 2013. mixed-use project with 340,000 square feet of retail, both in the NEW DEVELOPMENTS: West-Dade submarket; Gables New shopping center construc- Station, in the South Miami tion over the past 12 months has submarket; and Shops at Beacon been moderate, with only two Lakes and Doral Commons (fka centers of 50,000 square feet or Beacon Commons), both in Doral. more completed. But, a significant Biscayne Landing, a long-dormant amount of new retail development project proposed in North Miami, is on the drawing board, ranging has been revived with a mixed-use from traditional suburban shopping plan that includes 800,000 square centers and enclosed malls, to feet of big-box retail. urban mixed-use projects and tourism destinations. In addition, Mall in Kendall is adding a new wing of The two completed over the past more than 100,000 square feet, year were Publix Biscayne18, and in Bal in downtown Miami, and Vicenza Harbour plans an expansion Plaza, anchored by Walmart of 200,000 square feet. In the 7 tourism front, a long-stalled hotel- an upscale retail destination with marina-retail project proposed on more than 500,000 square feet Watson Island reportedly has of retail covering a multi-block been revived with the addition of area from North a new co-developer, New York- to NE Second Avenue, between based Related Companies, owned Northwest 38th and 42nd Streets. by Miami Dolphins owner Stephen The developer is proposing to Ross, who will join Flagstone create a pedestrian retail street Development, which controls the bisecting this district and anchored project’s site. Plans for this project at each end by a department store. call for more than 200,000 square Retailers already staking locations feet of high-end retail. And Miami in the district include Louis Vuitton, Beach is reviewing proposals for Hermes and Prada. (Urban street redevelopment of its convention retail is discussed more at length center, with bids proposing 80,000 in Terranova’s Urban Street Retail to 200,000 square feet of retail. Report.) (Proposed projects are listed in the Submarket Analysis section on DEMOGRAPHICS: page 9.) Miami-Dade County’s total population in 2013 is estimated at Additional retail development is 2,605,371, higher than 2,521,036 emerging throughout Miami-Dade estimated in 2012, and projected to County. The Design District, an grow 6.7% in the next five years. inner-city area north of downtown Miami, is undergoing a wave of However, Miami-Dade’s average redevelopment by a multi-property household income has decreased owner (Dacra), who plans to to an estimated $58,947, compared transform the neighborhood into to $61, 443 at year-end 2011. It is Average HH Avg. Asking Submarket Population Income Rent 2013 $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 REDEVELOPMENTS, ADDITIONS, $66,091 and Palm Beach County’s RENOVATIONS: $72,573. • The former Loehmman’s Fashion Island, on the NEC of Biscayne Shopping center inventory Blvd. and NE 187th Street, has in Miami-Dade County totals been renamed Town Center 31,355,485, square feet in 236 Aventura, upon a renovation that centers, excluding enclosed malls, includes Saks’ Off Fifth in the lifestyle/entertainment centers former Loehmann’s space. and centers smaller than 50,000 square feet. Miami-Dade County’s ANCHOR MOVES: 2013 ratio of shopping center • Loehmann’s relocated from the square feet per person is 12 to 1, former Loehmann’s Fashion Island based on a population of 2,605,371 to Biscayne Retail Plaza, on the and total inventory of 31,355,485 NEC corner of Biscayne Blvd. and square feet. This compares to a 199th Street. Broward County ratio of 20.4 to 1 • Barnes & Noble closed in and a Palm Beach County ratio of Loehmann’s Fashion Island. 22 to 1. Miami-Dade’s population is 67% Hispanic and 19% African DEMOGRAPHICS: American, and median age is 38. This submarket has the highest median age of all submarkets at SUBMARKET 47. Its 2013 population is estimated to be 115,046. The population is ANALYSIS: 42% Hispanic and 16% African American. Average household 1 AVENTURA income is $68,315. Population in This small submarket, which this submarket grew 6% between includes Sunny Isles Beach, is 2010 and 2013, and is projected typically among the strongest to grow another 9% in the next five in Miami-Dade, benefitting from years. Daytime population in this exposure to Biscayne Boulevard submarket is 50,228. 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 2 NORTH MIAMI/ that could add up to 200,000 square feet of retail, depending on the THE BEACHES selected redevelopment plan. The Occupancy remained steady city hasn’t made a final selection in this tight submarket, while plan at the time of this report. average asking rent increased 8.4% to $27.50, up from $25.37 ANCHOR MOVES: at year-end 2011. This increase • Whole Foods Market is under doesn’t include the submarket’s construction on a former Office highest-priced center, a Publix- Depot site at 12100 Biscayne Blvd. anchored center in Miami Beach which opened in 2009, because DEMOGRAPHICS: that center is full. What most This submarket has an estimated benefits this submarket is its 2011 population of 229,417. The small inventory, most of which population is 40% Hispanic and is located along Biscayne 31% African American. Median Boulevard. This high-traffic age is 41 and average household road is undergoing a wave of income is $63,412. Population revitalization emanating from growth in this submarket was 3% downtown Miami about 13 miles between 2010 and 2013, and is south, including construction of projected to gain 5% in the next five a new Whole Foods Market in years. Daytime population in this North Miami. 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 south side of NW 12th Street (NW Occupancy improved slightly N. River Drive), at its junction with in this submarket, which has NW 14th Ave., in Miami’s Health a 2013 vacancy rate of 10.6%, District. slightly lower than 11.3% at REDEVELOPMENTS, ADDITIONS, year-end 2011. Average asking RENOVATIONS: rent decreased to $21.33, down • 5.2% from $22.49 a year before, Miami Merchants Mart, on NW reflecting the challenge in the 79th Street between 30th and 32nd submarket’s older properties. By avenues, is proposed by Gadinsky contrast, a new Publix-anchored Real Estate for redevelopment center was completed on the into a 202,000 square foot center northern fringe of downtown that will include a big-box anchor, Miami, and Walmart continues a junior box and small shops. No to pursue approval to build a tenants have been announced. store in an undeveloped parcel ANCHOR MOVES: of Shops at Midtown Miami, one • of the submarket’s landmark Walmart is proposing a 160,000 properties, completed in 2006. square foot store next to Shops at New construction such as these Midtown Miami, on 3401 N. Miami two projects have improved Ave., but is having difficulty getting the submarket’s average rent, approval for store design. • but older centers continue to dd’s Discount will open a store struggle with very high vacancy. in Biscayne Plaza, on the NWC of Biscayne Blvd. and NE 79th Street, COMPLETED PROJECTS: and in Northside Shopping Center, • Publix at 18Biscayne was at 7900 NW 27th Ave. completed on Biscayne Boulevard, • Presidente Supermarket plans between NE 17th Terrace and 18th to build a free-standing store on the Street, featuring a 49,200 square NWC of NE Second Avenue and foot Publix and 8,000 square feet of 79th Street. additional retail. OTHER TENANT MOVES: PROPOSED PROJECTS: CVS will build a new store on an • East Hialeah Marketplace, a outparcel in Biscayne Plaza, on 300,000 sq. ft. center to be anchored the NWC of Biscayne and NE 79th by Walmart Supercenter, is Street. proposed on the SWC of NW 79th DEMOGRAPHICS: Street and 32nd Ave. Walmart, totaling 186,856 square feet, is With an estimated 2013 population scheduled to open Spring 2014. of 412,612, this is the most populous • River Landing, a mixed-use of all submarkets. This submarket project that would include 475,000 skipped the population boom that square feet of value retail in a six- much of South Florida saw in the story building, is proposed on the 1990-2000 decade, but new condo 11 development over the past decade SWC of Miami Gardens Drive and has led to a 3% population increase NW 57th Ave. between 2010 and 2013, and is projected to increase another 5% in DEMOGRAPHICS: the next five years. The population This submarket has an estimated is 58% African American and 37% 2013 population of 131,356. The Hispanic. Average household population is 81% Hispanic and income of $40,925 is the lowest of 11 % African American. It is one all submarkets, and median age of of the youngest submarkets, with 35 is among the youngest. Daytime a median age of 35, and has population in this submarket is an average household income estimated at 165,195. of $60,463. Population in this submarket grew 6% between 4 NORTHWEST 2010 and 2013, and is projected to grow another 9% in the next five MIAMI-DADE years. Daytime population is this Vacancy increased noticeably submarket is estimated at 43,827. in this submarket, largely due to the closing of a Sears Essentials 5 HIALEAH store. This pushed vacancy to This is a dense market, with 12.4%, from 5.4% at year-end a stable, largely blue-collar 2011. Average rent still increased Hispanic population. It had the 2.6% to $25.09, up from $24.45. highest increase in average This is a small pocked of Miami- rent, now at $24.74, up 19% Dade County, just south of from $20.77 at year-end 2011. the Broward County line, and Population density and a close to the two of the region’s relatively small inventory helps interconnecting expressways: two Publix-anchored centers in I-75 and Palmetto Expressway. this submarket achieve asking The submarket also contains rents that surpass the $30 many bedroom communities mark. A new Walmart-anchored such as Country Club of was completed in Hialeah and Royal Oaks. Gardens, a western portion of the submarket, while Publix PROPOSED PROJECTS: completed a new Publix Sabor • The Shops at Aviation and store east of the Palmetto, in , a grocery- Commerce Center a former Presidente-anchored anchored 70,626 square foot center, project, and Marshalls opened a is proposed by CPF Investment new store in East Hialeah. Group on the SEC of NW 57th Ave. and 142nd Street. COMPLETED PROJECTS: • Vicenza Plaza, a 74,650 square ANCHOR MOVES: foot center anchored by Walmart • closed in Miami Sears Essentials Neighborhood Market, was Gardens Shopping Center, on the completed on the NE corner of 12 Okeechobee Road and Hialeah $25.13 at year-end 2010. Vacancy Gardens Blvd. increased to 6.1%, compared to 5.4% at year-end 2011, largely REDEVELOPMENTS, ADDITIONS, due to the closing of a Staples RENOVATIONS: store. Walmart is planning two • Marshalls will open in Flamingo new stores in this submarket, Plaza, at 1025 E. Ninth Street. while Target and BJ’s Wholesale • Publix Sabor opened in Hialeah Club are each planning one. Plaza, on the SWC of Gratigny Road and W. 12th Avenue. PROPOSED PROJECTS: • Fontainebleau Park Plaza, DEMOGRAPHICS: a 235,000 square foot center This submarket has an estimated to be anchored by Walmart 2013 population of 293,037. Supercenter, is proposed by Population growth was 3% between Courtelis Company on the NWC of 2010 and 2013, and is projected to and NW 92nd Ave. increase another 5% in the next five Other announced retailers include years. The population is 3% African LA Fitness and hhgregg, American and 93% Hispanic, the • Fontainebleau Square, a mixed- most Hispanic of all submarkets. use project with 340,000 square Median age is 41 and the average feet of retail and a 155-unit elderly household income of $42,034 is the housing facility is proposed on the second lowest in the county, behind NEC of W. Flagler Street and NW East Central. Daytime population in 102nd Ave. this submarket is 184,207. • Doral Commons, a 123,429 square foot grocery-anchored 6 WEST MIAMI- shopping center, is proposed by Courtelis Company on the NEC of DADE/DORAL NW 74th Street and 107th Avenue. This is the largest submarket in No tenants or ground-breaking date terms of inventory and number have been announced. of centers, covering a large • Shops at Beacon Lakes, a swath of central Miami-Dade 410,000 square foot retail center to that includes some of the oldest be part of a commercial mixed-use centers on the submarket’s project, is proposed by Prologis on eastern fringes, and some of the the NEC of NW 137th Avenue and newest construction in the west, 12th Street. No tenants or ground- including Doral. This widespread breaking date announced. range makes this submarket the one that most consistently ANCHOR MOVES: and closely approximates • Ikea plans a new store of 417,000 countywide rents and occupancy. square feet north of the Dolphin Its average asking rent in 2013 Mall, on the NEC of NW 18th Street is $25.41, virtually unchanged and 117th Avenue. from $25.14 at year-end 2011 and • Target has bought a site on the 13 NWC of SW 137th Ave. and 8th opened a new free-standing Street, that was once owned by store in Pinecrest, on the site of a Lowe’s Home Improvement. No former car dealership. New retail opening date has been announced. construction in this submarket • Walmart is proposing a store on takes place mostly in infill and a leased site at 6991 SW Eighth redevelopment sites. Street, a site that was formerly Everglades Lumber. PROPOSED PROJECTS: • BJ’s Wholesale Club is proposing • Metropolitan Miami, a high-rise, a store on a vacant site on the SE mixed-use project with office, hotel, quadrant of SW 24th Street (Coral retail and entertainment, is under Way) and 72nd Ave. construction on a three-block site • Staples closed in Trail Plaza, on at NE Third Avenue, in downtown the SWC of SW Eighth Street and Miami’s central business district. 67th Ave. A Whole Foods store of 37,000 is under construction, projected to DEMOGRAPHICS: open in late 2013. On a separate This submarket has an estimated building in the same complex, 2013 population of 403,154. The Silverspot Cinema will open a population is 88% Hispanic and 12-screen movie theater. 3% African American. Median • Gables Station, a mixed-use age is 41 and average household project with 300,000 square feet of income is $60,794. Population in vertical retail, is proposed on the this submarket grew 4% between NE corner of Le Jeune Road and 2010 and 2013, and is projected U.S. 1. No ground-breaking date or to grow another 6% in the next five tenants have been announced. years. Daytime population is this • Brickell CitiCentre, a mixed- submarket is 221,386. use project that will include more than 500,000 square feet of 7 SOUTH MIAMI retail and entertainment, is under construction by Swire Properties Average asking rent increased on a multi-block parcel on South in this submarket, which Miami Avenue between Southwest consistently is the strongest 7th and 8th streets. The project is in Miami-Dade County, due designed to include luxury retail, to to a small inventory, strong be handled by the owners of Bal demographics and the portion of Harbour Shops. the U.S. 1 corridor that traverses • , a mixed-use project it. Its average asking rent of 4585 Ponce that will total 46,000 square feet $36.99 in early 2013 is up 5.5% of ground floor retail, is nearing from $35.08 at year-end 2011, completion of its first phase, at the and is the highest average rent intersection of Ponce de Leon and of the county’s 10 submarkets. Le Jeune Road in Coral Gables. Vacancy also increased slightly will anchor to 3.9%, up from 2.7%, due to Epicure Gourmet Market the project’s ground-level retail. turnover of inline space. Publix 14 ANCHOR MOVES: 8 KENDALL • Silverspot Cinema will replace Occupancy continued to hold Borders Books & Music in Village steady in this robust submarket, of Merrick Park, on San Lorenzo as average asking rent increased Avenue between Le Jeune Road 4.4% to $29.55 in early 2013, and Ponce de Leon Blvd. following a 3.4% increase the • Publix opened a free-standing year before. Vacancy rate of store at 13401 S. , on 6.6% isn’t much changed from the site of a former auto dealership. 6.1% a year before, and includes • Trader Joe’s will open a free- a former Syms store box and standing store on the former a former Living Well Lady Borders Books & Music at 1905 S. junior box. Also contributing to Dixie Highway. vacancy are some new centers on the western fringes of the DEMOGRAPHICS: submarket, which have a lot This submarket has an estimated of vacant inline space. One 2013 population of 332,814. The new project of 47,900 sq. ft. is population is 72% Hispanic and proposed in this submarket. 6% African American. Median age is 44, the second highest behind PROPOSED PROJECTS: Aventura, and average household • Garden Village Shopping income is $69,890, the second Center, fka West Kendall highest behind Kendall. Population Village, is proposed on the SWC in this submarket grew 5% between of Kendall Drive and SW 154th 2010 and 2013, and is projected to Ave. Announced tenants in the grow another 7% in the next five nearly 50,000 square foot property years. Daytime population is this include Fuddruckers, The Learning submarket is 234,030. Experience and Century Bank.

REDEVELOPMENTS, ADDITIONS, RENOVATIONS: • , 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 PROPOSED PROJECTS: Kendall Drive and SW 127th Ave. • Coral Reef Commons is proposed by Ram Realty on the DEMOGRAPHICS: SWC of 152nd Street and 124th This submarket has an estimated Ave., with Walmart and L.A. Fitness 2013 population of 283,486. The as anchors. population is 74% Hispanic and 3% African American. Median ANCHOR MOVES: age is 39 and average household • Fresh Market opened a store in income is $71,033, the highest The Falls, a Bloomingdale’s and of all submarkets. Population in Macy’s anchored mall on the SWC this submarket grew 4% between of U.S. 1 and SW 136th Street. 2010 and 2013, and is projected • A Walmart store of 100,000 to grow another 6% in the next five square feet is under construction at years. Daytime population in this 21151 S. Dixie Highway, on the site submarket is 97,210. of a former car dealership. • Dd’s Discount will open in Cutler 9 CUTLER RIDGE/ Bay Towne Center, at 20841 S. Dixie Highway, in a portion of a PERRINE former Old Time Pottery building. Vacancy went down, but so did average asking rent in this VACANT BOXES: submarket, which is uneven in its Badcock Furniture at Promenade strength and recovery. Vacancy Plaza, on the NW corner of SW of 5.7% in early 2013 is lower than 152nd Street and 112th Ave. 8.2% a year before, but average asking rent dropped to $22.57, DEMOGRAPHICS: down 3.5% from $23.40. One new This submarket has an estimated shopping center is proposed 2013 population of 246,637. The in this submarket, a new free- population is 62% Hispanic and standing Walmart has broken 21% African American. Median ground, and dd’s discount has age is 35 and average household signed a lease for a new store. income is $68,899. Population in This submarket encompasses this submarket grew 6% between a transition area between the 2010 and 2013, and is projected thriving Kendall area to the north to grow another 8% in the next five and the slower Homestead/ years. Daytime population is this Naranja submarket to the south. submarket is 59,009. 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.

16 10 HOMESTEAD/ and 23% African American. With a median age of 32, this is the NARANJA youngest of all submarkets. Average Vacancy and average asking household income of $46,837 rent remained stable in this is the third lowest, behind East far-south submarket, where Central and Hialeah. Population in a spurt of new residential this submarket grew 8% between construction in the 2000s first 2010 and 2013, and is projected to fueled population growth and grow another 11% in the next five new retail construction, but then years. Daytime population is this a downturn, as the housing and submarket is 34,039, the lowest of banking industries collapsed. all submarkets. 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 free- SURVEY PARAMETERS standing store on the SEC of East This is the 18th annual Miami-Dade Palm Drive (SW 344th Street) and County report on shopping centers, Tennessee Road (167th Ave.) in based on a two-phase survey of centers of 50,000 square feet or more, excluding Florida City. regional enclosed malls and lifestyle centers. The survey was conducted throughout December 2012 and January DEMOGRAPHICS: 2013. Average rental rates are weighed asking net rates on existing available This submarket has an estimated inline space only. Total inventory 2013 population of 157,812. includes the gross leasable area on the The population is 63% Hispanic ground floor only, plus upper level space in vertical centers.

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Terranova Corporation, 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 space in Lincoln Square, a new development $139 million acquisition of a three-building, just north of , Miami Beach, FL. 60,000 sq. ft. portfolio on Lincoln Road in • Represented landlord in a 10-year lease Miami Beach, FL. It was the largest retail with Brasserie Lincoln for 4,150 Square feet acquisition in Florida in 2012, and added to on Lincoln Road in Miami Beach, FL. the joint venture’s existing portfolio of three • Represented landlord in a 20-year lease with other Lincoln Road buildings, making it the Chase Bank to build a new 4,370 square foot largest retail owner on Lincoln Road. branch with drive-thru on an outparcel in Polo • Represented landlord in a 15-year lease with Club Shoppes, a Publix-anchored center in Epicure Gourmet Market for 24,000 square Boca Raton, FL. feet at 4585 Ponce, a mixed-use project in • Represented landlord in a 10-year lease Coral Gables, FL. with Brasserie Lincoln for 4,150 square feet • Represented landlord in a 10-year, 21,895 on Lincoln Road, Miami Beach, FL. square foot lease with dd’s discount in • Represented landlord in a 3,700 square foot, Biscayne Plaza, Miami, FL. 7-year lease with Armani Jeans for a new • Represented landlord in a 15,659 square store on Lincoln Road, Miami Beach, FL. It foot lease with Navarro Discount Pharmacy in will be the second Armani Jeans boutique in Westfork Plaza, Pembroke Pines, FL, and a the U.S., after New York Fifth Avenue. 10-year, 15,029 square foot lease with Baptist • Represented tenant BurgerFi in a lease Outpatient Services. for a 1,933 square foot restaurant in Tower • Represented landlord in a 10-year, 12,899 Shops in Davie, FL, and for a 2,616 square square foot lease with Learning Experience on the ground floor of , a new foot space on Miracle Mile, Coral Gables, FL. 49-story condominium at 244 Biscayne Blvd. Terranova also represented the landlord in the in downtown Miami, and in an additional 6,500 Miracle Mile transaction. square feet for various other tenants including • Represented seller in the $25.45 million sale 100 Montaditos and Orangetheory Fitness. of Parkhill Plaza in Miami, FL, after leasing • Represented landlord in a 5-year lease and managing the Winn Dixie anchored with Performance Bicycle for its first South center for 10 years, generating a $19.4 million Florida location, a 7,125 square foot store profit for the seller. in Shadowwood Shopping Center, in Boca • Exclusive tenant representative in South Raton, FL Florida for California-based Anna’s Linens • Represented landlord in a 10-year lease with and for South Florida-based BurgerFi, a fast Asian restaurant Khong for a 5,610-square foot expanding gourmet burger chain. 1018 www.terranovacorp.com | 305.695.8700 801 Arthur Godfrey Road, Suite 600 Miami Beach, FL 33140

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