Posts Tagged : GlobeSt

The Heat Is On For Retail Developers In Miami

AUGUST 25, 2017
BY JENNIFER LECLAIRE

FATcity’s retail component will breathe new life into Andrews Avenue.

MIAMI—Yes, the heat is on—but maybe not for the reasons you think. While retailers in many parts of the country are struggling, Miami has a different challenge.

GlobeSt.com caught up with Sabrina Stimming, senior vice president and director of leasing at CREC, to discuss this issue in light of the 2017 ICSC conference in Orlando. You can still read part one: Why South Florida Is Bucking E-Commerce Erosion Trends.

 GlobeSt.com: What sources or forces are driving South Florida retail traffic?

Stimming: Now more than ever, retailers need a reason to drive consumers to brick and mortar stores. The Internet’s growing effect on retail and e-commerce has given consumers the ability to purchase almost anything online.

In addition, Millennial tastes are strongly influencing retail traffic in South Florida. While Millennials generally lack brand loyalty and happily engage in e-commerce, they appreciate great dining and entertainment. And, they are very mindful of health and wellness.

As a result, restaurants and fitness tenants are high on the list for landlords seeking to drive foot traffic. Hybrid entertainment and retail concepts, such as CMX Cinemas that recently opened in Brickell City Centre, Bowlero at Dolphin Mall, and Top Golf slated to open in Miami Gardens are also gaining popularity.

Globest.com: What “hot” South Florida developments gain interest from retailers?

Stimming: New developments continue to emerge in South Florida. Recent and proposed projects that are catching the eye of retailers include: Cityplace Doral (a 300,000-square-foot lifestyle project that recently opened anchored by Fresh Market and Cinebisto); Shops at Beacon Lakes in Doral (a 430,00-square-foot power center development that CREC is joint leasing, which will be anchored by a 65,000-square-foot Top Golf); and Aventura Mall (both Turnberry’s 315,000-square-foot expansion of the mall, which will have Florida’s first Topshop and Topman, and Seritage’s 315,000-square-foot redevelopment of Sears).

The “heat” is on in prime development spots. These include Wynwood, particularly for restaurants, and Downtown Dadeland, across from the Dadeland Mall, spurred by the addition of several, award-winning and chef-driven restaurants such as Barley, Ghee’s Indian Kitchen, Pubbelly Sushi and Harry’s Pizzeria.

Does Sumitomo’s $220M Grab Point To More Big Office Buys?

Does Sumitomo’s $220M Grab Point To More Big Office Buys?

JUNE 9, 2016 | BY JENNIFER LECLAIRE

MIAMI—“The fact that the Miami Tower’s price doubled in less than decade is proof that the investor appetite for existing office space is driving property values to record levels.”

The sale price on the 631,672-square-foot office asset: $220 million.

MIAMI—The Japanese corporation Sumitomo recently paid $220 million for the iconic, light-changing Miami Tower in Downtown Miami. Call it the latest sign that the investor appetite for Miami’s commercial real estate market is still intensifying.

Domestic and international investor interest continues to drive property values to record levels. For example, the Miami Tower was last sold for $105 million five years ago. The sale price doubled in about five years.

“The fact that the Miami Tower’s price doubled in less than decade is proof that the investor appetite for existing office space is driving property values to record levels,” Ezra Katz, CEO of Aztec Group, tells GlobeSt.com. “As Miami’s booming condo market outbids office developers for available land, the amount of inventory is not keeping up with the rising demand for office space. We expect that office rents and sale prices will continue to rise as supply becomes more constrained and investor demand increases.”

The past year has seen a series of similar office deals, including the $140 million sale of 777 Brickell, the $112 million sale of 800 Brickell, and the $142 million sale of Espirito Santo Plaza, all trophy assets in Miami’s financial district.

Miami’s booming condo market has also impacted the ability of institutional investors and office developers to compete for land, since condo developers will outbid them every time. As a result, Miami’s office market is seeing steady rising rental rates and increased demand, but little new office inventory to meet the rising demand.

These market fundamentals point to the reasons why Sumitomo would pay top dollar for an office asset like Miami Tower, and all signs point to other office properties trading hands as deep-pocketed investors seek top-performing assets to add to their portfolios as market conditions continue to strengthen favoring landlords.

“Sumitomo’s pickup of Miami Tower is another example of an institutional buyer targeting a performing asset amidst high barriers to new office development across South Florida,” Warren Weiser, chairman of CREC, tells GlobeSt.com. “Building a stand-alone office tower from the ground-up in today’s market has become cost prohibitive just as demand for Miami real estatesoars. This is putting existing buildings benefitting from quality locations and strong income in-place at a premium.”

CREC VP Reveals Firm’s 2016 Strategy
jbusby

Joshua Busby, VP

ORLANDO— We’ve been talking with Josh Busby, a vice president at Continental Real Estate Companies, about commercial real estate trends. Over the past months, he’s told us what Central Florida retail markets are the hottest, described how big the retail void really is, and went beyond specialty retail grocers to discuss what else is hot in retail.

In this final installment, we asked Busby about his own form. What are some opportunities for growth and expansion over the next 12 to 24 months?

“With each new project we are appointed to lease, sell or manage at CREC, we are strengthening our existing relationships in the Central Florida market and building on those to create new business opportunities,” Busy tells GlobeSt.com. “The firm is positioned to finish this year strong with significant market share growth in the region and will enter 2016 with a great deal of momentum.”

Specifically, Busy expects investor and tenant interest will grow further in Central Florida’s key submarkets next year. He also predicts the market should capture additional national and international investor interest, particularly from South America.

“Orlando’s position as a top tourist destination, reaching record visitor numbers over the past year, and the establishment of a Major League Soccer team, Orlando City Soccer Club, are factors helping to draw more investor demand,” Busby says. “When a shopping center in the region hits the market for sale, offers come in from all over the country and around the world.”

And Busby sees another factor working in Orlando’s favor: The price wars for well-positioned assets that Miami is experiencing, which he says is driving more investors to turn north towards markets like Orlando in search of quality assets at more accessible prices.

“With all commercial real estate sectors, from retail to office and multifamily, experiencing strong performance in the region, Central Florida is poised for further growth and investment in the year ahead,” Busby says. “We are positioning CREC to continue to expand the firm’s real estate portfolio and benefit from the added market demand.”