TERRANOVA 2011-12 RETAIL REPORT

TERRANOVA www.terranovacorp.com | 305.695.8700 801 Arthur Godfrey Road, Suite 600 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 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 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 chains, , 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. Fifth & Alton in Miami Beach, the highest-priced center in this small Homestead/Naranja is the submarket of only 9 properties. weakest submarket in terms of rent, Having no available space, Fifth & but nonetheless is showing signs of Alton wasn’t included in the 2011 improvement and stability: A slight average, thus the average reflects increase of 1% in average rent, only comparatively lower-priced and a drop in vacancy to 5%. The centers, even if demand for space biggest challenge in this submarket in the submarket has improved is sagging retail momentum from overall. the collapse in the housing market.

South Miami, consistently the NEW CONSTRUCTION strongest submarket in terms of New retail supply is trickling in rent and occupancy, slid back slowly. Over the past 12 months, nearly 5% from last year’s average one new shopping center, Publix- rent, but it is still the highest of anchored Market Square, with all submarkets, and is the only 55,800 square feet was completed submarket whose average crosses in Kendall. Publix Biscayne, the $30 mark. Centers in this with 57,200 square feet, is nearing submarket also gained occupancy completion in downtown Miami;

Miami-Dade County Snapshot

Total Average Number Vacancy Inventory Submarket Asking of Centers Rate 2011 (sq. ft.) Rent 2,393,202 18 South Miami $35.08 2.7% 2,525,621 15 Aventura $29.57 2.5% 5,971,521 45 Kendall $28.31 6.1% 1,025,973 9 No. Miami / Beaches $25.37 5.5% 6,656,648 54 West Dade / Doral $25.14 5.4% 1,860,266 16 Northwest Miami-Dade $24.45 5.4% 2,434,542 22 Cutler Ridge $23.40 8.2% 3,093,010 21 East-Central $22.49 11.3% 3,371,936 22 Hialeah $20.77 3.4% 1,792,361 12 Homestead / Naranja $20.15 5.1% 31,125,080 234 Miami-Dade County $25.79 5.7% and Vicenza Plaza, to be anchored announced any tenants and doesn’t by a Walmart Neighborhood have a projected ground-breaking Center, broke ground in Hialeah date. And two retail projects that Gardens. were proposed last year in Doral – Shops at Beacon Lakes and The pace of new project Doral Commons (fka Beacon construction remains slow going Commons) – are in a holding forward, as developers grapple pattern. with an uncertain economy. La Plaza at Flagler, to be anchored DEMOGRAPHICS by Walmart, is proposed in west Miami-Dade County’s total Miami-Dade, and is the only of population in 2011 is estimated at various proposed projects that has 2,521,036, higher than 2,460,194 announced an anchor. estimated in 2010, and continuing a reversal of the population decline Shoppes of Homestead, observed in 2008, in the apogee of proposed to have 157,000 square the banking and housing industry feet, is marketing pre-construction collapse. space, but hasn’t announced a ground-breaking date or anchor The county’s population is projected tenants. CitiCentre, a to grow 4% in the next five years. large mixed-use project that will However, Miami-Dade’s average include more than 500,000 square household income has decreased feet of retail, has been announced to an estimated $61, 443 in 2011, in the west Brickell area, just compared to $65,268 in 2010. It south of downtown Miami. also is lower than Broward County’s Gables Station, proposed in the $68,601 and Palm Beach County’s South Miami submarket, hasn’t $76,792. (Average household

Average Avg. HH Submarket Population Asking Rent Income $35.08 South Miami 320,231 $72,166 $29.57 Aventura 99,015 $ 67, 4 8 0 $28.31 Kendall 284,951 $73,344 $25.37 No. Miami / Beaches 222,191 $63,441 $25.14 West Dade / Doral 399,210 $65,277 $24.45 Northwest Miami-Dade 123,091 $67,188 $23.40 Cutler Ridge 238,353 $71,217 $22.49 East-Central 407,712 $42,933 $20.77 Hialeah 275,288 $46,162 $20.15 Homestead / Naranja 150,994 $ 47,6 0 4 $25.79 Miami-Dade County 2,521,036 $61,443 incomes in Broward and Palm a year before. A smattering Beach counties also decreased from of new restaurants, yogurt 2010.) places, fitness facilities and tutoring facilities contributed Total shopping center inventory in to the improvement in this Miami-Dade County at year-end submarket. The improvement 2011 totals 31,125,080 square feet in inline occupancy over in 234 centers, excluding enclosed the past 12 months followed malls, lifestyle / entertainment the absorption of empty centers and centers smaller than boxes in the previous year 50,000 square feet. Miami-Dade by newcomers hhgregg and County had absorption of 282,554 Nordstrom Rack. square feet since year-end 2010. TENANT MOVES: Miami-Dade County’s 2011 ratio Pei Wei Diner replaced Ruby of shopping center square feet Tuesday and Chipotle Mexican per person is 12.3 to 1, based on a Grill replaced Einstein Brothers population of 2,521,036 and total Bagels in Loehmann’s Fashion inventory of 31,125,080 square feet. Island, on the NEC of Biscayne Blvd. This compares to a Broward County and NE 187th Street. This center ratio of 20.4 to 1 and a Palm Beach also will be adding gym facility County ratio of 22 to 1. Miami- Orange Theory, Menchie’s Dade’s population is 63% Hispanic Frozen Yogurt, Misha’s and 18% African American, and Cupcakes, Bagelworks and median age is 38. a Fred Astaire dance studio. Heavy Burger replaced Avenue 29 and Bella Luca Restaurant 1 AVENTURA replaced Chef Allen’s in Concorde Plaza, at 19080 NE 29th Ave. This small submarket, which Famous Footwear and Philip includes Sunny Isles Beach, is Ho Chinese restaurant opened in typically among the strongest RK Town Center South, at 16850 in Miami-Dade, benefitting Collins Ave. Mish Mash Bagel from exposure to Biscayne opened in Waterways Shoppes, at Boulevard and to affluent 3575 NE 20th Street. Pinkberry demographic pockets. It has Frozen Yogurt opened in a the second highest average rent former Elite Realty space in in the county, behind South Aventura Commons, at 21300 Miami, and the highest yearly Biscayne Blvd. Blockbuster increase of all submarkets. Video closed, Yo-Le Frozen Its average asking rent of Yogurt replaced Quizno’s and $29.57 at year-end 2011 is up a Herbalife replaced Natural Foods solid 7.3% higher than $27.55 in Shops at Skylake, on the SEC at year-end 2010. Vacancy of Miami Gardens Drive and NE dropped to 2.5%, from 5.8% 16th Avenue. TD Bank replaced Mercantile Bank, Learning anchored shopping center in Express replaced Tae Kwon Do Miami Beach was completed and Medifast Weight Control in 2009. Vacancy of 5.5% at will open in Promenade Shops at year-end 2011 is down from Turnberry, on the NEC of Biscayne 10% a year before, due to Blvd. and Ives Dairy Road. Duffy’s a surge of leasing by non- Sports Grill replaced The Water anchor tenants, including Club in Intracoastal Mall, on the restaurants, yogurt places and NEC of NE 163rd Street and 35th a regional pharmacy chain. Avenue. This center also added Ironically, because of the Seahorse Grill, Hiro’s Yakko- small number of centers in San, Suretto’s Gelato, Sally this submarket – only 9 – the Beauty Supply, B Yoga and improvement in occupancy Dollar Tree. Bank United closed results in a lower average in Aventura Shopping Center, at asking rent of $25.37, a drastic 2968 Aventura Blvd. Famous 22% drop from $32.51 a year Trainers opened in a former before. This doesn’t indicate Bingo Hall in RK Village Shops, at a downturn in the submarket. 18180 Collins Ave. For Eyes will It reflects a drop in availability replace Republic Federal Bank in of higher-priced space, which Aventura Square, on the NEC of has been filled. Biscayne Blvd. and NE 191st Street. ANCHOR MOVES DEMOGRAPHICS Fresh Market opened a free- This submarket has the highest standing store at 1800 West Avenue median age of all submarkets, at in Miami Beach. 47. Its 2011 population is estimated at 99,015. The population is TENANT MOVES 39% Hispanic and 15% African Totalbank, Red Mango, American. Average household Brooklyn Water Bagel and income is $67,480. Population in Fusion opened in Fifth and this submarket grew 4% between Alton, at the intersection of Alton 2000 and 2011, and is projected to Road and Fifth Street in Miami grow another 4% in the next five Beach. A Fiat dealership replaced years. Daytime population in this Blockbuster Video, Navarro submarket is 46,480. Discount Pharmacy replaced Piccadilly Cafeteria, and Five Guys 2 NORTH MIAMI/ Burgers & Fries will replace Book & Card Outlet in Shops at Arch THE BEACHES Creek, on the NWC of Biscayne Occupancy continued to Blvd. and NE 130th Street. Mario improve for a second year in the Baker will move from its this tight submarket, where original location at 13695 W. Dixie the first major grocery- Highway to Biscayne Commons, on the NEC of Biscayne Blvd. and NE 146th Street. This center also added a cadre of new tenants added Chocolate Lounge, which over the past 12 months. The replaced Paul’s Café, and is adding rest of the submarket varies in Sunshine School Uniforms strength property by property, and Burger Bar, which will take with some centers still the former Pizza Fusion space. exhibiting very high vacancy. Jivana Nail & Spa opened in RK A new Publix-anchored center Towne Center of North Miami, on is planned on the northern the SEC of Biscayne Blvd. and NE fringe of downtown Miami. 123rd Street. Frozen Yogurt Bar replaced Ben & Jerry’s in Keystone PROPOSED PROJECTS Plaza, on the NEC of Biscayne Blvd. • Publix at 18Biscayne is and NE 135th Street. Holy Bagels proposed on Biscayne Boulevard, and Pizzeria and Gabe’s Grill between NE 17th Terrace and 18th will open in Avanti Center, at 15900 Street. Plans call for a 49,200 Biscayne Blvd. square foot Publix and 8,000 square feet of additional retail. The DEMOGRAPHICS center is projected to open in early This submarket has an estimated 2012. 2011 population of 222,191. The population is 40% Hispanic and ANCHOR MOVES 28% African American. Median age • Walmart plans to build a is 41 and average household income 160,000 square foot store next to is $63,441. Population growth in Shops at , on 3401 this submarket was virtually flat N. Miami Ave. between 2000 and 2011, but is • dd’s discount is opening in projected to gain 1% in the next five Biscayne Plaza, on the NWC of years. Daytime population in this Biscayne Blvd. and NE 79th Street, submarket is estimated at 104,921. and in Northside Shopping Center, at 7900 NW 27th Ave. 3 • Presidente Supermarket EAST CENTRAL plans to build a free-standing store Average asking rent in this on the NWC of NE Second Avenue submarket increased for the and 79th Street. second year in a row, going up 3.6% to $22.49, compared OTHER TENANT MOVES to $21.70 at year-end 2010. Shops at Midtown Miami, on 3401 Occupancy, however, is more N. Miami Ave., added World of challenged: 11.3% compared Beer, Houlihans, Giraffas, to 9.2% a year before. Market Maidenform, Game Stop and leader in this gentrifying Supercuts. Athlete’s Foot submarket is the Shops at replaced Simon’s Shoes and Midtown Miami (2006), which Golden Krust opened in Stadium is adding Walmart in one of its Corners, on the SWC of NW 199th underdeveloped parcels, and Street and 27th Avenue. Planet Fitness opened in California Club decrease in 2011 to $24.45 Mall, on the SWC of Ives Dairy is due to lack of availability Road and NE 19th Ave. Radio in one of the submarket’s Shack closed in Shores Square, highest-priced centers, thus on the SEC of Biscayne Blvd. and eliminating that center from NE 91st Street. Simply Fashion the average. will close in Shoprite Center, on the NWC of NW 119th street and 7th TENANT MOVES Avenue. Anna’s Linens replaced Party City in Miami Gardens Shopping DEMOGRAPHICS Center, on the SWC of Miami With an estimated 2011 population Gardens Drive and NW 57th Ave. of 407,712, this is the most populous Elevation Burger will open in of all submarkets. This submarket Red Palmetto Shops, on the SWC skipped the population boom that of NW 57th Ave. and 163rd Street. much of saw in the Panera Bread will replace Dairy 1990-2000 decade, but new condo Queen, Party City replaced development over the past decade Country Club Subs and U.S. has led to a 5% population increase Century Bank replaced Bank of between 2000 and 2011, and is America in Country Club Plaza, on projected to increase another 3% in the SWC of Miami Gardens Drive the next five years. The population and NW 67th Ave. Metro PCS is 56% African American and 34% opened in Country Club North, in Hispanic. Average household the NWC of Miami Gardens Drive income of $42,933 is the lowest of and NW 67th Ave. Wingstop all submarkets, and median age of and Gyroville will open in Vista 35 is among the youngest. Daytime Shopping Center, on the SEC of population in this submarket is Miami Gardens Drive and NW estimated at 151,240. 67th Ave. T-Mobile replaced Dry Clean USA in Royal Oaks Plaza, on 4 NORTHWEST NW 154th Street, just west of the Palmetto Expressway. Menchie’s MIAMI-DADE Frozen Yogurt opened in Cypress Occupancy continued to Village Shopping Center, on NW improve in this relatively 154th Street, east of the Palmetto. small pocket of Miami-Dade County, just south of the DEMOGRAPHICS Broward County line. Vacancy This submarket has an estimated decreased to 5.4%, compared 2011 population of 123,091. The to 7.8% a year before, as more population is 71% Hispanic and inline space got filled. Average 15 % African American. It is one rent, which had shown a of the youngest submarkets, with noticeable increase of nearly a median age of 35, and one of 8% between 2009 and 2010, is the highest average household holding strong. A slight 1.2% incomes, $67,188. Population in this submarket grew 21% between Gratigny Road and W. 12th Avenue, 2000 and 2011, and is projected is under redevelopment to become to grow another 7% in the next five a Publix Sabor-anchored center. years. Daytime population is this submarket is estimated at 40,411. OTHER TENANT MOVES Goodwill opened in Flamingo 5 HIALEAH Park Plaza, on the SWC of W. 16th Avenue and 44th Place. Menchie’s This is a dense market, Frozen Yogurt opened in Hialeah with a stable, largely blue- Mercado, on the NEC of W. 16th collar Hispanic population. Avenue and 49th Street. IHOP Occupancy has continued to and T-Mobile will open in what improve in this submarket, used to be a former Hollywood after new anchors – Walmart Video-turned-Ace Hardware space and L.A. Fitness – replaced in Paraiso Plaza, on the SEC of empty boxes on West 49th Hialeah Gardens Drive and W. Street. Vacancy rate is now 84th Street. US Tops opened in 3.4%, compared to 4.6 year- Flamingo Plaza, at 1025 E. Ninth end 2010. Average rent of Street, Hialeah. $20.77 is down 1% from $20.98 a year before, a drop DEMOGRAPHICS that reflects minor fluctuation This submarket has an estimated compared to last year, rather 2011 population of 275,288. than a significant change in Population growth was virtually supply and demand. Wal- flat between 2000 and 2011, and mart is opening a new store is projected to remain stable in in this submarket before year- the next five years. The population end, and is slated to anchor a is 3% African American and 90% proposed new center. Publix Hispanic, the most Hispanic of opened a new free-standing all submarkets. Median age is 41 store in this submarket, and and average household income is building another one in a of $46,162 is the second lowest in former Presidente-anchored the county, behind East Central. project. Daytime population in this submarket is 168,941. PROPOSED PROJECTS • Vicenza Plaza, a 74,650 square 6 foot center is under construction WEST MIAMI- on the NE corner of Okeechobee DADE/DORAL Road and Hialeah Gardens Blvd., This is the largest submarket with Wal-mart Neighborhood in terms of inventory and Center as the anchor. number of centers, covering a large swath of central REDEVELOPMENTS/ADDITIONS Miami-Dade that includes • Hialeah Plaza, on the SWC of some of the oldest centers on the submarket’s eastern REDEVELOPMENTS, ADDITIONS, fringes, and some of the RENOVATIONS newest construction in the • Las Americas Central Plaza, west, including Doral. This on the NEC of and SW widespread range makes 122nd Avenue, is adding an out this submarket the one that parcel that will be occupied by La most consistently and closely Capital de Los Jugos. approximates countywide • Doral Shops at MIBP, on the rents and occupancy. Its SWC of NW 41st Street and 114th average asking rent in 2011 is Avenue, added on $25.14, virtually unchanged an outparcel. from $25.13 at year-end 2010. Vacancy also remained stable ANCHOR MOVES at 5.4%, compared to 5.5% a • Kohl’s replaced Dillard’s in year before. Burlington Coat , 1275 NW Factory will take a vacant 107th Ave. Home Depot Expo, and low- • Burlington Coat Factory price grocer Aldi is moving will replace Home Depot Expo in into an former Office Depot. Airpark Plaza, on the NWC of NW 57th Ave. and 57th Ave. PROPOSED PROJECTS • Aldi is opening in a former • La Plaza at Flagler, a 235,000 Office Depot space in Westchester square foot center to be anchored Shopping Center, on the NEC of by Walmart, is proposed on the Coral Way and SW 87th Ave. NWC of and NW • Wal-Mart Supercenter 92nd Ave. opened in The Westchester (fka • Shops at Beacon Lakes, a Westchester Mall), on the SEC of 410,000 square foot retail center Coral Way and SW 87th Ave. to be part of a commercial mixed- use project, is proposed by Flagler OTHER TENANT MOVES Development and AMB Corp. on Petco replaced Pier One Kids the NEC of NW 137th Avenue and in Bed Bath & Beyond Plaza on 12th Street. The project is on hold the NEC of NW 107th Ave. and as of year-end 2011. Proposed NW 19th Street. Anna’s Linens anchors include Target. replaced Aaron’s Rent To Own, • Doral Commons, a mixed- Expo Home Décor replaced Toys use project approved to include R’ Us Express, US Tops replaced a 553,000 sq. ft. retail center, is Rainbow, BoxyLetter replaced US proposed by Flagler Development Pak & Ship and Yogurt World Group on NW 74th Street between will open in Flagler Park Plaza, on NW 97th and 107th Avenues. City the NWC of Flagler Street and SW of Doral has approved site plan, no 82nd Ave. Yogurtland replaced tenants or ground-breaking date Mayra Boutique, Pizza Rustica have been announced. replaced Archie’s Pizza and Salad Creations opened in Doral Plaza, on the NWC of NW 41st 57th Ave. LED Restaurant & Street and 97th Ave. T-Mobile Lounge, Starz Dance Studio, will replace Speedy One-Hour Creation Learning Academy Photo in Bird-Ludlam Shopping and Crossfit Fortress opened in Center, on the SWC of San Miguel Shopping Plaza, on the and SW 67th Avenue. Menchie’s SWC of SW 8th Street and 139th Frozen Yogurt replaced GNC in Avenue. University Center North, in the NEC of SW 107th Ave. and 16th Street. DEMOGRAPHICS This center also added Five Guys This submarket has an estimated Burgers and Fries. Mama 2011 population of 399,210. The Self Serve Frozen Yogurt will population is 83% Hispanic and open in Bird Square Plaza, on the 3% African American. Median NEC of Bird Road and SW 147th age is 41 and average household Ave. Pizza Rustica opened in a income is $65,277. Population in former mortgage broker space in this submarket grew 13% between University Shopping Center South, 2000 and 2011, and is projected to on the SEC of SW 107h Ave. and SW grow another 4% in the next five 16th Street. Subrageous replaced years. Daytime population is this Quizno’s in Bird & Galloway, on the submarket is 202,645. SWC of Bird Road and SW 87th Avenue. T-Mobile opened in Plaza 7 Del Rey, on the SWC of Flagler SOUTH MIAMI Street and SW 100th Ave. Dancer- With a relatively small Xise replaced Dry Clean USA in inventory, this submarket Coral Way Plaza, on the NWC of consistently exhibits the Coral Way and SW 87th Ave. Ace highest average rent in Miami- Hardware replaced Blockbuster Dade County. Average rent Video and AT&T in of $35.08 at year-end 2011 is Shops, on the SWC of Tamiami almost 5% lower than $36.77 Trail and SW 137th Ave. La at end year-end 2010, but is Provence Bakery & Café will still the highest average rent replace Quizno’s Subs in Shoppes of all 10 submarkets. With at Doral, on the NEC of NW 41st vacancy decreasing to 2.7% Street and 107th Avenue. Baru from 4.4% a year before, the Urbano, a restaurant and bar, submarket is poised to begin opened in Doral Shops at MIBP, trending upward again. Publix on the SWC of NW 41st Street and opened a new free-standing 114th Ave. Aaron’s Rent to Own store in Coral Gables, and and Fresh Berry Frozen Yogurt is proposing another one in opened in Parkhill Plaza, on the Pinecrest, on the site of a NEC of Flagler Street and NW 97th former car dealership. New Ave. Yogurama replaced Pak retail construction in this Mail in Red-Bird Shopping Center, submarket takes place mostly on the NWC of and SW in infill and redevelopment Highway, on the site of a former sites. Shopping centers in this auto dealership. southeastern submarket serve • Publix opened a free-standing some of the most affluent store at 114 Ponce De Leon Blvd. in neighborhoods of Miami- Coral Gables, on the border of City Dade, and many of them of Miami (3690 W. Flagler St. in capture traffic from busy U.S. Miami). 1. OTHER TENANT MOVES PROPOSED PROJECTS Energy Kitchen replaced Cine • Metropolitan Miami, a high- It Burgers and Phil Funs Studio rise, mixed-use project with office, replaced Art & Frame Mart in hotel, retail and entertainment, Suniland Shopping Center, on is under construction on a three- the SEC of SW 112th Street and block site at NE Third Avenue, U.S. 1. Taverna Opa!, Brother in downtown Miami’s central Jimmy’s BBQ and Sushi business district. Whole Foods Doraku are opening in Mary plans a 37,000 square foot store Brickell Village, at 900 South to open in late 2013. On a separate Miami Ave. Brazilian fast-food building in the same complex, restaurant Giraffas, Pinecrest Silverspot Cinema will open a Health & Fitness and Kidville 12-screen movie theater. opened in Plaza, at 9569 • Gables Station, a mixed-use S. Dixie Highway. opened project with 300,000 square feet in Miracle Marketplace, at 3301 SW of vertical retail, is proposed on the 22nd Street. Party City replaced NE corner of Le Jeune Road and Boaters World in Colonial Palms U.S. 1. No ground-breaking date or Plaza, on the SEC of U.S. 1 and SW tenants have been announced. 136th Street. Homework Done • Brickell CitiCentre, a mixed- Right and My Derma Clinic use project that will include more opened in 136th Street Plaza, on than 500,000 square feet of retail the NEC of 136th Street and U.S. 1. and entertainment, is proposed by Maurice Jewelers opened in a Swire Properties on a multi-block former Washington Mutual space parcel on South in Pinecrest Plaza, at 11701 S. Dixie between Southwest 7th and 8th Highway. Yogurt & U replaced streets. General Nutrition Center in Key • 4585 Ponce, a mixed-use Biscayne Shopping Center, at 606 project with 35,000 square feet of Crandon Blvd. ground floor retail, is proposed at the intersection of Ponce de Leon DEMOGRAPHICS and Le Jeune Road in Coral Gables. This submarket has an estimated 2011 population of 320,231. The ANCHOR MOVES population is 71% Hispanic and • Publix is proposing a free- 6% African American. Median age standing store at 13401 S. Dixie is 44, the second highest behind Aventura, and average household SW corner of SW 117th Avenue and income is $72,166, the second 104th Street. Other tenants include highest behind Kendall. Population Walgreens, Chase Bank, in this submarket grew 15% Haircuttery, Metro PCS and between 2000 and 2011, and is Menchie’s Frozen Yogurt. projected to grow another 5% in the next five years. Daytime population REDEVELOPMENTS, ADDITIONS, is this submarket is 218,997. RENOVATIONS • Walgreens will relocate to an 8 KENDALL outparcel and Publix will expand in Miller Road Plaza, at 9420 SW Vacancy increased slightly to 56th Street. 6.1% in this submarket, but average asking rent increased ANCHOR MOVES 3.4% to $28.31, compared to • Navarro Discount Pharmacy $27.38 a year before. A vacant will replace Office Max in Kendale Office Max space has been Lakes Plaza, on the NWC of Kendall absorbed, and two recently Drive and SW 137th Ave. completed centers have • Syms closed in Kendale Lakes been filling up. On the other Plaza. hand, Syms closed, and some new centers on the western OTHER TENANT MOVES fringes of the submarket Happy Playz, an indoor have a lot of vacant space, playground, replaced Gilbert’s as they did last year. This and Pinkberry Frozen Yogurt submarket is achieving new opened in The Prado, on the equilibrium as it absorbs five NWC of S. Dixie Highway and SW new projects that have come 136th Street. All Stars Yogurt on line since 2008, as well replaced in Miller Square as the redevelopment of the Shopping Center, on the SEC of formerly enclosed Kendall Miller Drive and SW 137th Ave. Town & Country. Moda Express replaced Amy’s Hallmark and World Fitness PROPOSED PROJECTS Nutrition replaced Postal & • West Kendall Village, with Parcel Etc. in Hammocks Town 50,000 square feet, is proposed Center, on the NEC of SW 104th on the SWC of and Street and Hammocks Blvd. Zoom SW 154th Ave. Announced tenants Tan opened in Kendall Plaza include Fuddruckers, The Learning 162, on the NWC of Kendall Drive Experience and Century Bank. and SW 162nd Ave. Yogurtini replaced Carvel in Shoppes at COMPLETED PROJECTS 104th, on the NEC of SW 104th • Market Square, a 55,800 Street and 147th Ave. Fine Line square foot center anchored by Barber Shop replaced Ace of Publix, is near completion on the Phades, Miami Cigar Lounge will replace Oasis Liquors and Street and 137th Ave. Yogurtland Pepe Le Pooche Resort & Spa opened in Shops of Kendall, on the will replace a nail salon in Kendall SEC of Kendall Drive and SW 127th Corners, on the NWC of Kendall Ave. Nouvelle Day Spa closed in Drive and SW 127th Ave. Sir Pizza Kendall Village Center, on Kendall replaced Yummy Yamy’s Pizza Drive and SW 124th Ave. Gold in West Sunset Square, on the Buyers replaced Oxxo Cleaners, NWC of SW 157th Ave. and 72nd Cyber Cuts replaced Game On Street. Yogurt Party will open in and BurgerFi will replace Juice Crossings Shopping Village, on the Blendz in Carter Square, on the SEC NEC of SW 112th Street and 134th of Kendall Drive and SW 137th Ave. Ave. Blockbuster Video closed Party King replaced Loehmann’s in West Miller Plaza, on the SWC of in Kendall Value Center, on the Miller Drive and SW 147th Ave, and NEC of Sunset Drive and SW 117th on 8950 SW 137th Ave. Family Ave. Christian Store took a portion of the former Barnes & Noble DEMOGRAPHICS and Cora Rehab replaced First This submarket has an estimated Horizon Home Loans in Greenery 2011 population of 284,951. The Mall, on the SWC of Kendall Drive population is 74% Hispanic and and SW 77th Ave. Smashburger 3% African American. Median will replace McDonald’s Express, age is 39 and average household Yogurberry and H&M income is $73,344, the highest Nutrition replaced King Dollar, of all submarkets. Population in and Eastern National Bank this submarket grew 12% between replaced Wolf Camera in Kendall 2000 and 2011, and is projected to Mall, on the SEC of Kendall Drive grow another 5% in the next five and SW 107th Ave. The Palms at years. Daytime population in this Town & Country added Charming submarket is 88,104. Charlie, Bath & Body Works, Hair Cuttery, Lupita’s Closet 9 CUTLER RIDGE/ Pet Boutique and Tutti Frutti Frozen Yogurt to its Publix- PERRINE anchored portion. In the new, Average rent of $23.40 is redeveloped portion of the center relatively unchanged from (The Palms at Town & Country II), a year before, despite an Cadillac Ranch, Romeo and increase in vacancy to 8%, Juliet Italian Ice Cream have compared to 5.4% a year opened, Carmine’s La Trattoria before. Two boxes are in is under construction and World the market, as K&G Fashion of Beer has signed a lease. superstore closed, while Misha’s Cupcakes, Yogenfruz, negotiations for an empty Alhambra Restaurant and Office Depot fizzled. Further, Zoom Tan opened in London Blockbuster Video closed two Square, on the SEC of SW 120th stores in this submarket. Still, low-price grocery store Aldi The Shoppes at Quail Roost, on the opened in this submarket, as SEC of Quail Roost Drive and SW did several new restaurants 127th Ave. Metro PCS opened in and yogurt shops, while Promenade Plaza, on the NWC of Walmart is proposing a new SW 152nd Street and 112th Ave. supercenter. This submarket Valsan opened in Quail Roost encompasses a transition Plaza, on the SEC of Quail Roost area between the thriving Drive and SW 117th Ave. T Mobile Kendall area to the north will open in Town & Country Plaza, and the slower Homestead/ on the SEC of SW 152nd Street and Naranja submarket to the 137th Ave. Yogurt Fusion opened south. As such, centers in the in Corsica Square, on the NWC of northern half are stronger SW 152nd Street and 157th Ave. than centers in the southern half. The portion east of U.S. VACANT BOXES 1 also exhibits higher rents, Badcock Furniture at as this area contains many Promenade Plaza, on the NW affluent residential pockets. corner of SW 152nd Street and 112th Ave. Office Depot at 20841 ANCHOR MOVES S. Dixie Highway, in the Cutler Bay • K&G Fashion Superstore Town Center. closed at 20821 S. Dixie Highway, in Cutler Bay Towne Center. DEMOGRAPHICS • Wal-mart is proposing a This submarket has an estimated 100,000 square foot store at 21151 2011 population of 238,353. The S. Dixie Highway, on the site of a population is 54% Hispanic and former car dealership. 24% African American. Median • Aldi replaced Office Max at age is 35 and average household 19650 S. Dixie Highway, next to income is $71,217. Population in Badcock Furniture. this submarket grew 24% between 2000 and 2011, and is projected to TENANT MOVES grow another 7% in the next five Blockbuster Video closed in years. Daytime population is this Quail Heights Plaza, on the NEC submarket is 53,050. of Quail Roost Drive and SW 117th Ave., and in Country Walk Plaza, 10 HOMESTEAD/ on the NWC of SW 152nd Street and 137th Avenue. Sushi Sake NARANJA and Yogurt by U opened in This far-south submarket is Coral Reef Village, on the SEC of characterized by a population SW 152nd Street and 137th Ave. growth of more than 50% Royal Palm Grill replaced Lots since 2000, but also one of the of Lox Bagels in Old Cutler Town lowest household incomes in Center, at 20425 . the county. Its retail product Cecy Fruit Juice will open in is now stabilizing, after being hard hit by the downturn in replaced the Naranja Public Library the housing industry. Average in Naranja Plaza, at 27000 S. Dixie asking rent at year-end 2011 Highway. (The library relocated to is $20.15, up a nominal 1.1% 14850 SW 280th Street.) Estrella from $19.93 a year before, but Insurance opened in Village of vacancy dropped noticeably to Naranja Shoppes, on the NEC of 5.1%, from 8.5% a year before, S. Dixie Highway and Naranja the second vacancy drop in Lakes Blvd. Redland Creamery the past two years. Homestead replaced Carvel Ice Cream and Pavilion, a 399,000 square Knead a Pizza replaced Florida foot center completed in City Sports Grill in the Walmart 2008, is almost leased up. New Shopping Plaza at S. Dixie Highway commercial construction also and the Florida Turnpike. Genghis has characterized this area, Grill will open in Homestead where the new Homestead Pavilion, on the SWC of Campbell Baptist Hospital opened in Drive and Florida Turnpike. 2007, two new centers were completed in 2009, two new DEMOGRAPHICS Publix-anchored centers This submarket has an estimated opened in 2007 and 2005, a 2011 population of 150,994. The new Best Buy in 2008, and a population is 56% Hispanic and Lowe’s and a Home Depot in 22% African American. With 2007. A 14-screen Flagship a median age of 32, this is the Cinema, the first movie theater youngest of all submarkets. Average in the city, was completed in household income of $47,604 is the 2006. This submarket has had third lowest, behind East Central the highest population growth and Hialeah. Population in this since 2000, but also has one of submarket grew 51% between the lowest household incomes. 2000 and 2011, and is projected to grow another 10% in the next five PROPOSED PROJECTS years. Daytime population is this • Shoppes of Homestead, a submarket is 29,256, the lowest of 157,500 square foot center, is all submarkets. proposed by FIRC Group at 600 U.S. 1, also called Homestead Blvd. SURVEY PARAMETERS in that area. This is the 17th annual Miami-Dade County report on shopping centers, ANCHOR MOVES based on a two-phase survey of centers • Publix is proposing a free- of 50,000 square feet or more, excluding regional enclosed malls and lifestyle standing store on the SEC of East centers. The field survey was completed Palm Drive and SE 12th Avenue. in October 2011, and the telephone portion in November 2011. Average rental rates are weighed asking net OTHER TENANT MOVES rates on existing available inline space Metro PCS opened in an out only. Total inventory includes the gross parcel in Homestead Plaza, at 120 leaseable area on the ground floor only, SW 312th Street. Cash Kings plus upper level space in vertical centers. ABOUT TERRANOVA

Terranova Corporation, South Florida’s leading third-party commercial real estate advisory firm, is involved with commercial real estate assets for its clients and its own portfolio, valued at over $1 billion. The company offers complete commercial real estate services, including asset and property management, leasing, tenant representation, acquisitions, dispositions, financing, construction management and development services.

Terranova recent activities include: • Represented landlord in a 10-year lease with Café an 11,400 square foot lease in Plaza at Delray, Delray Muze for 4,150 square feet on in Beach, FL. Miami Beach. • Represented landlord in a 5-year, 9,455 square foot • Represented seller in the $25.45 million sale of lease with Skechers in Palm Plaza, in Miami Lakes, Parkhill Plaza in Miami, after leasing and managing FL. the Winn Dixie anchored center for 10 years, • Represented landlord in a 5-year, 3,561 square foot generating a $19.4 million profit for the seller. lease with Rent-A-Center in El Mercado, Hialeah, • Joint ventured with Acadia Real Estate for the $52 FL, and a 5-year, 4,000 square foot lease for Rent- million acquisition of three retail buildings totaling A-Center in Biscayne Plaza, Miami, FL. Also at El 61,000 square feet on Lincoln Road, South Florida’s Mercado, represented landlord in a 5-year, 3,200 premier urban retail street, and assumed leasing and square foot lease with Payless ShoeSource. management of the property. • Represented landlord in a 24,036 square foot office • Represented landlord in a 10-year, 21,895 square lease for NewsBank, at Wachovia Financial Center in foot lease with dd’s discount in Biscayne Plaza, Naples, FL. Miami, FL • Represented landlord in a 6-year, 144,000 square • Represented landlord in a 15,659 square foot lease foot lease for Econocaribe Inc. at AG Warehouse in with Navarro Discount Pharmacy in Westfork Plaza, Miami, FL. Pembroke Pines, FL, and a 10-year, 15,029 square • Represented landlord in a 5-year, 5,250 square foot foot lease with Baptist Outpatient Services. lease for Kendall Regional Urgent Care Center in • Also at Westfork, represented landlord in a 10-year Doral Isles, Doral, FL 7,519 square foot lease with Salonz Beauty Suites • Represented landlord in a $22.5 million refinancing • Represented landlord in three leases on Miracle deal for Suniland Shopping Center after extensive Mile in Coral Gables, FL: a 5-year, 2,840 square foot renovation and improvements in tenancy were lease with 100 Montaditos; a 10-year, 3,953 square made. foot lease with Men’s Wearhouse; and a 10-year, • Exclusive tenant representative in South Florida 4,100 square foot lease with Panera Bread. for California-based Anna’s Linens and for South • Represented retailer Anna’s Linens in a 5-year, Florida-based BurgerFi, a fast expanding gourmet 7,900 square foot lease in Flagler Park Plaza, Miami, burger chain. FL; a 9,000 square foot lease in Miami Gardens • Represented landlord in an office lease of 2,284 Shopping Center, Miami, FL; an 11,800 square foot square feet for Park Avenue Numismatics at Beach lease in Lantana Shopping Center, Lantana, FL; and Tower, on Meridian Avenue in Miami Beach, FL.

TERRANOVA 2011-12 RETAIL REPORT

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