Rise Realty Blog Page #2 (Broward County)

April 23, 2018

Good Morning! Monday Motivation:

"Don't wait on perfect conditions for success to happen; just go ahead and do something"--- Dan Miller

Miami Boasts Less Retail Space Availability Than New York, Los Angeles, Data Show

The demand comes with one of the fastest-growing rental rates in the past five years, a CBRE report finds

• For years, Miami has been working to grow, attract investment and claim its spot among the big metropolitan players like New York and Los Angeles from tech to real estate.

• Ana Barcelo, CBRE's first vice president and high-street retail expert in Miami says, “The rental rates have increased rapidly due to new acquisitions and recent sales. But regardless of that, we are still boasting one of the lowest vacancy rates only because Miami is still a very hot market"

• Another sign South Florida has joined big-league retail markets is the push for high-street retail, or luxury stores lining a street instead of being in an enclosed mall. Lincoln Road and Worth Avenue being the traditional ones, now there's Miami Design District. 

• Rental rates in the Design District range from $55 PSF to $215 PSF NNN, according to a February CBRE Viewpoint report. That’s higher than the asking rent range for Miami’s Brickell District, although it’s not as high as the asking rent range for Lincoln Road at $150 to $275 PSF, according to the report.

• High-street retail has become so popular with international shoppers that it’s led to an adage.

South Florida's tight industrial real estate market is setting records as demand rises without much new in the pipeline

• More than 11.5 million SF of industrial space in South Florida was leased in 2017, pushing down vacancy rates and strengthening the industrial real estate market.

• With higher rents for stores, retailers hold some of their products in nearby warehouses to significantly reduce their store square footage â€” and in turn their total rent, said Easton, who also is chairman and chief executive officer of Easton Group.

• More than 7 million SF was leased in Miami-Dade County â€” the best year since 2011, according to a Cushman & Wakefield 2017 market reports. In Broward County, leasing hit more than 2.9 million square feet for warehouse distribution space, and in Palm Beach County, about 1.6 million square feet was leased.

• The market is expected to remain strong, and Miami-Dade rents are expected to rise even with new supply coming online and temporarily pushing up vacancies.

• Airport West area is now the biggest industrial center in Miami-Dade, according to Jose Juncadella, co-founder, principal and broker for commercial real estate agency Fairchild Partners Inc. in Coral Gables. â€œIt has close to 60 million square feet of industrial space. Then the Medley and Hialeah markets (are next) with about 40 million square feet,†he said.

• Fort Lauderdale’s Cypress Creek area is one of South Florida’s largest business districts, yet its office market hasn’t bounced back as strongly as others in the region.

• A proposed zoning change could transform the office district into a vibrant neighborhood with a multitude of housing, dining and entertainment options. 

• As South Florida’s eighth-largest office market, and the second-largest in Broward County, Cypress Creek is home to prominent companies such as Microsoft, Citrix Systems, Hotwire Communications and Zimmerman Advertising.

• About 66,500 people work there, but only 3.5 percent of them live in the area, according to a 2015 report by the Broward Metropolitan Planning Organization (MPO) and the South Florida Regional Transportation Authority (SFRTA). 

• The Uptown Urban Village rezoning would occur in the 353-acre area just west of Interstate 95 along Cypress Creek Road to Powerline Road. It would allow an additional 2,560 residential units, 250,000 square feet of offices, 225,000 square feet of commercial space, 50,000 square feet of industrial space, 450 hotel rooms and 6.5 acres of park space. The master plan would also redesign the streets and sidewalks to encourage walk-ability and mass transit.

• “Just like Flagler Village has its own unique vibe, I think Uptown will be the new hot spot, a mixed-use base with commercial, residential and entertainment,†said City Commissioner Heather Moraitis

• Envision Uptown organizers hope to convince SFRTA to allow a transit-oriented residential development on the parking lots surrounding its Tri-Rail station there. 

• Building apartments and retail in Cypress Creek with the new zoning would improve the demand for office space, leading to higher rents, said Ian Weiner, president of Boca Raton-based PEBB Enterprises

• “Office tenants want retail and restaurants and apartments close by for their employees,†said Ian Weiner. “[They] want the amenities more than anything.â€

• The Marriott-branded Courtyard Miami Downtown hotel could be replaced by an 82-story mixed-use tower.

• The property currently has a 13-story, 231-room hotel that was built in 1975, which would be demolished.

• AVR Realty wants to build a 1.53 million-SF tower that would rise 898 feet. It would feature 637 residential units, 266 hotel rooms, about 25,500 square feet of convention and meeting space within the hotel, 9,245 square feet of commercial/restaurant space, and 553 parking spaces.

• The residential units would range from 787 to 1,818 SF.

• This project would be near a Metro Mover station and the James L. Knight Center, which hosts events. 

• Rialto is the commercial real estate management arm of Miami-based Lennar Corp.

• Crocker Partners, Rialto Capital and Siguler Guff formed a joint venture that acquired the Boca Raton Innovation Campus, a 1.8 million-SF office campus known as where IBM created the personal computer.

• The managing members of Boca T-Rex Borrower, the entity that owns the property, were recently changed to executives with Rialto when its mortgage was modified. 

• Bank of America increased the loan from $71.3 million to $148 million.

• This gives, Boca Raton-based Crocker Partners, control of 2.9 million SF of office space in Boca Raton, accounting for about 25% of the city’s office market.

• “Boca Raton Innovation Campus is an important economic contributor to the city and a solid fit for our portfolio,†said Crocker Partners Managing Partner Angelo Bianco. "As long-term owners, we intend to see that BRIC is well positioned to attract a new generation of companies.â€

It will have up to 22 F&B tenants ranging from 100 SF to 400 SF

• The Citadel, a 62,000-SF mixed-use building at 8300 Northeast Second Avenue, just signed leases with Stanzione 87, Bianco Gelato and Smashing Avo’s.

• The food hall will take up about one-third of the building, with the rest going to Entercome Communications Corp. 

• The food hall will have up to 22 food and beverage tenants ranging from 100 to 400 SF, Hamann said. Stanzione, a Neapolitan-style pizzeria, is based in Brickell, Bianco Gelato has a location in Coconut Grove, and Smashing Avo’s is a new concept from the owners of Threefold Cafe in Coral Gables. 

• The food hall will be on the first floor of the Citadel, a space that will also have retail, with Entercom on the second floor and a bar/space for events on the rooftop.

• Entercom, one of the country’s biggest radio broadcasting companies, will be moving from Miami Gardens to Little Haiti when the Citadel opens.

• Two others are planned for Miami Beach, Time Out Market and the Lincoln Eatery.

Crescent Heights is offering Miami Beach land so it can build a taller building at Fifth and Alton

• Russell Galbut is offering the city of Miami Beach up to 4 acres of land in exchange for the ability to build a taller tower on a nearby site.

• The properties in question are part of the Wave mixed-use development, and include the three blocks between Alton Road and West Avenue from Fifth to Seventh streets where the South Shore Hospital shell remains.

• The proposed rendering shows a 42-story building at 500 Alton Road and park space fronting West Avenue behind a planned apartment building with ground floor retail.

• Plans for the Wave include apartments, 63,000 square feet of commercial space and a 122,000-square-foot outpatient and medical complex for Baptist Health South Florida, the latter of which is under construction.