Last week the South Florida Business Journal (SFBJ) reported lease rates for retail space soared in Miami-Dade. The publication cited CB Richard Ellis’s (CBRE) first quarter retail market study stating that asking rates were 18% higher, year over year. Miami-Dade has been making headlines as one of the strongest markets in the country so asking rates will likely continue to go up.  Vacancies may shift as large developments come online.

In contrast to Miami-Dade, the article quoted a 7 percent decline in Broward County and 1 percent decline in Palm Beach County for asking rates. Ken Krasnow, managing director for CBRE of South Florida, said that many tenants have moved to newer Class-A spaces.

Tenant shifts are not new when retail development picks up but it does force many retail development and management companies to upgrade properties and review strategies.

Community support is always a critical component for retail property success. Shopping destinations are an entertainment source and gathering places in the community. Consumers have evolved. A feeling of connection and continual engagement has become increasingly important to stay competitive. As a result, you can expect Community Relations and leadership in collective marketing efforts to become more important factors in retail real estate management. These are interesting times as we monitor and analyze the impact of changes taking place in the tri-county retail property market.

Read the complete SFBJ article, Lease rates for retail space soar in Miami-Dade.

(photo inset: Palm Beach Outlets)