A stable economy and growing rental rates
have pushed Miami and Fort Lauderdale to the top in the newest retail
market outlook study. The Ten-X report included the top “buy” and “sell”
markets for retail real estate properties, including those two South Florida
cities.
Rents are expected to rise in Miami from $22.81 last year to $26.78 in
2019, according to the report. Ten-X expects the same will happen in Fort
Lauderdale, where retail rents were $17.38 in 2015 and are expected to rise to
$20.16 per square foot by 2019. Vacancies are also expected to drop in
both cities. Across the United States, Ten-X reported that absorption is
outpacing the new supply of retail space. The Real Deal recently
surveyed the country’s retail property markets and spoke with dozens
of developers, brokers, analysts and other players about the latest industry changes
in a special issue. In Miami, those shifts included a move from indoor malls to
street retail, citing significant investment in the Design
District. Nearby in downtown Miami, more than 1.4 million square feet will
come online within the next three years – much of that coming from Brickell
City Centre and Miami Worldcenter. The report also named Austin, Northern
Virginia and Los Angeles as top “buy” markets. Ten-X economist Peter Muoio said
the retail sector is inching toward pre-recession levels, “though select markets,
particularly in the Northeast and Midwest have lagged in recent months, the
overall forecast for retail real estate remains strong in the coming years.”
The top five “sell” markets were Central New Jersey, Detroit, Baltimore,
Cleveland and Memphis, according to the report. While the real estate research
company predicts positive growth in the coming years, it said that the rate
could slow to about 1 percent by 2019. – Katherine Kallergis
Original Content The Real Deal
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