Northwest Miami-Dade
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TERRANOVA 2011-12 RETAIL REPORT TERRANOVA www.terranovacorp.com | 305.695.8700 801 Arthur Godfrey Road, Suite 600 Miami Beach, FL 33140 BROWARD COUNTY MIAMI-DADE COUNTY 441 AVENTURA GOLDEN W OKEECHOBEE ROAD BEACH 95 SUNNY NORTH ISLES MIAMI BEACH 75 826 BEACH NW 37TH AVENUE NW 37TH 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 WYNWOOD MIAMI BEACH 836 395 GRANADA AVENUE SOUTH SW 72ND AVE (SUNSET DRIVE) AVE 72ND SW 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 BY THE NUMBERS 1 AVENTURA 2,525,621 sf 2.54% $29.57 $12-$42.50 in 15 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 2 NORTH MIAMI/ THE BEACHES $16.50-$30 1,025,973 sf 5.53% $25.37 AVG. ASKING in 9 centers VACANCY RATE AVERAGE ASKING RENT RENT RANGE 3 EAST CENTRAL 3,093,010 sf 11.29% $22.49 $8-$42.50 in 21 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 4 NW MIAMI-DADE 1,860,266 $24.45 $18-$39 SF in 16 5.43% VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 5 HIALEAH 3,371,936 3.39% $20.77 $13-$30 sf in 22 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 6 WEST MIAMI-DADE/ DORAL 6,656,648 5.4% $25.14 $17.50-$40 sf in 54 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 7 SOUTH MIAMI 2,393,202 2.69% $35.08 $30-$45 sf in 18 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 8 KENDALL 5,915,721 6.1% $28.31 $16-$45 sf in 44 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 9 CUTLER RIDGE/ PERRINE 2,434,542 8.18% $23.40 $12-$35 sf in 22 AVG. ASKING VACANCY RATE AVERAGE centers ASKING RENT RENT RANGE 10 HOMESTEAD/ NARANJA 1,792,361 5.11% $20.15 $12-$30 sf in 12 VACANCY RATE AVERAGE AVG. ASKING centers ASKING RENT RENT RANGE 11 MIAMI-DADE COUNTY 31,125,080 5.7% $25.79 sf in 234 VACANCY RATE AVERAGE centers ASKING RENT “As new logos and shingles emerge on the retail landscape, vacancy pressure over asking rents appears to be dissipating...” STABILIZING at the end of 2010. The countywide vacancy rate also improved slightly RENTS, DWINDLING as of year-end 2011, dropping to VACANCY AND 5.7%, from 6.4% a year before. SIZZLING BURGERS Improved occupancy resulted Occupancy and average asking rent largely from increased leasing of in Miami-Dade shopping centers inline space, as anchor-filled centers are holding steady going into 2012, became more attractive and easier sustaining the improvement they to market. Big-box activity had began to exhibit a year before been strong in 2010 and continued and settling into the county’s new in 2011, but to a lesser degree than normal. Active lease-up of inline in 2010, as most available boxes space throughout 2011 led to the had been absorbed. improvement, fueled by more than a dozen new players in the local Boosting inline occupancy are retail scene, now peppered with new several new restaurant chains, restaurants, stores and services. particularly in the better-burger category, a hot trend that is sizzling Average asking net rent for inline like a quarter pound of organically- space county-wide is $25.79 at grown, freshly smashed Angus beef year-end 2011, up 2% from $25.29 patty on the grill. Frozen yogurt a year before. The slight increase chains also keep proliferating like follows a smaller one of nearly 1% bacteria on an agar plate, with names Vacancy Rate Change in Avg. Asking Rent Submarket Rent 2010 2011 2010-2011 2010 2011 5.8% 2.5% Aventura 7. 3 % $ 27. 55 $29.57 9.3% 11.3% East-Central 3.6% $21.70 $22.49 5.6% 6.1% Kendall 3.4% $ 27. 3 8 $28.31 5.4% 8.2% Cutler Ridge 1.3% $23.09 $23.40 8.5% 5.1% Homestead/Naranja 1.1% $19.93 $20.15 6.4% 5.4% West Dade/Doral 0.0% $25.13 $25.14 4.7% 3.4% Hialeah -1.0% $20.98 $20.77 7.9% 5.4% NW Miami Dade -1.2% $24.76 $24.45 4.4% 2.7% South Miami -4.6% $36.77 $35.08 N. Miami / The 10.0% 5.5% -21.96%* $32.51 $25.37 Beaches 6.4% 5.7% Miami-Dade County 2.0% $25.29 $25.79 * The drastic drop in this very small submarket is mostly due to lack of available space in its highest-priced center. New-to-Market Tenants Opening in Miami-Dade County Name Description Colombian chain of restaurant-bars with an Baru Urbano urban flair Franchise chain of bagel cafes, build around a Brooklyn Water Bagel proprietary method to replicate Brooklyn water New York Chain of barbecue meat sandwiches Brother Jimmy’s BBQ now expanding out of state New burger concept by local chef Allen Susser Burger Bar by Chef (ran famed-but-now-gone Chef Allen’s in Allen Aventura) Another entry in the better-burger category. BurgerFi Based in Delray Beach, BurgerFi stands for “burgerfication” Growing restaurant chain with a diverse menu in Cadillac Ranch a rock-n-roll theme environment New burger chain from local restaurateur CG Burger Carmine Giardini Growing chain of affordable fashion-accessories Charming Charlie stores Chain of burger restaurants boasting organic Elevation Burger grass-fed, free-range cow meat Energy Kitchen Chain of healthy-fast-food restaurants Giraffas Brazilian chain of quick-service restaurants hhgregg Fast growing national electronics chain Learning Express Franchise chain of specialty toys Orange Theory Fitness Growing chain of workout and training facilities National chain of burger restaurants, touting Smashburger grilled freshly-smashed-meat patties Growing Florida chain of craft beer pubs that World of Beer teams with neighboring restaurants to deliver the food. Chain of tanning salons based in Naples, FL, Zoom Tan and now expanding in Southeast Florida such as Menchie’s, Yogurbella and and franchised also are popping up Yogurt +U taking the guilt out of more frequently. sweet, creamy indulgence. Tutoring facilities, both individually-owned The ever-strong cell phone service providers such as T-Mobile and submarkets show slight and not-so- Metro PCS remain hooked to the slight increases from a year before; retail scene, and individual, local in the other four submarkets, pet-care providers are almost average rent decreases reflect becoming a shopping center improved occupancy in their high- staple. By contrast, the video rental priced centers, thus eliminating category continues to diminish, higher-priced spaces from the most recently with the bankruptcy averages. of Blockbuster Video in September 2010, and which closed seven stores Aventura had the most noticeable in Miami-Dade. improvement, with average asking rent increasing 7.3% to $29.57, New anchors now open for business while vacancy dipped to 2.5%. This include Aldi, an alternative, low- submarket has traditionally been priced bulk-packaging grocery strong, due to its small inventory, chain that just entered the South favorable demographics and Florida market, and hhgregg, exposure to the high traffic volume an electronics retailer that is of Biscayne Boulevard. As such, introducing both competition and it isn’t surprising that it would be complementation to the Best Buy among the first to recover. chain, until now the surviving leader in the electronics category, East Central, which has the after the Circuit City bankruptcy lowest level of disposable income in liquidation in 2009. Meanwhile, the county, had the second highest retail staple Walmart also increase in rent, going up nearly pursued aggressive expansion in 4% to $22.49. (This followed a 2010 and 2011, opening two new 4% increase the year before.) The stores in 2011 – in West Miami- increase is largely due to leasing Dade and Hialeah -- and planning activity at Shops at Midtown three more in Miami-Dade County. Miami, the retail component of a Others big box retailers such as mixed-use retail and residential dd’s discount, L.A. Fitness project that has been elevating the and Burlington Coat Factory rental peak of the submarket as also filled up boxes left vacant by it has been filling up with strong, defunct and retrenching chains. national tenants since opening in 2006. However, East Central as As new logos and shingles emerge a whole has the highest vacancy on the retail landscape, vacancy rate,11%, as many centers outside pressure over asking rents appears of the gentrifying orbit of Midtown to be dissipating, so that average Miami still are struggling with weak countywide rent for inline space in tenancy. Miami-Dade County is unlikely to dip under the $25 mark. Individual North Miami/ The Beaches submarkets also seem to have submarket showed a drastic reached their own floors: Five 22% drop in average asking rent, accompanied by a drop in and now show a remarkably low vacancy to 5.5%, from 10% a year vacancy rate of 2.7%, a level that is before. The drop in rent is due to likely to push up asking rents for the lease-up of Publix-anchored newly available inline space.