Miami-Dade County Retail Market Report 4Q Real Capital Partners Real Estate Services. *Data Source CoStar Miami-Dade County Retail Market Report

Transcription

1 Miami-Dade County Retail Market Report 4Q 216 Real Capital Partners Real Estate Services *Data Source CoStar

2 4Q 216 Miami-Dade County s Vacancy Decreases to 4.% Net Absorption Positive 1,155,8 SF in the Quarter The Miami-Dade County retail market experienced a slight decline in market conditions in the fourth quarter 216. The vacancy rate went from 2.9% in the previous quarter to 3.2% in the current quarter. Net absorption was positive 86,315 square feet, and vacant sublease space increased by 3,298 square feet. Quoted rental rates increased from third quarter 216 levels, ending at $34.87 per square foot per year. A total of 7 retail buildings with 571,66 square feet of retail space were delivered to the market in the quarter, with 2,44,732 square feet still under construction at the end of the quarter. Net Absorption Retail net absorption was slightly positive in Miami-Dade County fourth quarter 216, with positive 86,315 square feet absorbed in the quarter. In third quarter 216, net absorption was positive 32,134 square feet, while in second quarter 216, absorption came in at positive 234,392 square feet. In first quarter 216, positive 15,992 square feet was absorbed in the market. Tenants moving out of large blocks of space in 216 include: Bloomingdale s moving out of 251,83 square feet at Aventura Mall; TigerDirect, Inc. moving out of 68,882 square feet at Mall Of The Americas; and Publix moving out of 61,667 square feet at Hialeah Mercado - CVS. Tenants moving into large blocks of space in 216 include: Bloomingdale s moving into 228,318 square feet at Bloomingdale s; Saks Fifth Avenue moving into 17, square feet at Brickell City Centre Retail; and Publix moving into 58,48 square feet at 1579 W 49th St. Vacancy Miami-Dade County s retail vacancy rate increased in the fourth quarter 216, ending the quarter at 3.2%. Over the last four quarters, the market has seen an overall no change in the vacancy rate, with the rate going from 3.2% in the first quarter 216, to 3.1% at the end of the second quarter 216, 2.9% at the end of the third quarter 216, to 3.2% in the current quarter. The amount of vacant sublease space in the Miami-Dade County market has trended up over the past four quarters. At the end of the first quarter 216, there were 149,616 square feet of vacant sublease space. Currently, there are 167,833 square feet vacant in the market. Off Cel

3 4Q 216 Largest Lease Signings The largest lease signings occurring in 216 included: the 5,5-square-foot-lease signed by Burlington Coat Factory at Point Royale Shopping Center; the 5, square-foot deal signed by Burlington Coat Factory at River Landing Shops; and the 29,111-square-foot-lease signed by Orchard Supply Hardware at 8855 SW 24th St. Rental Rates Average quoted asking rental rates in the Miami-Dade County retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the fourth quarter 216 at $34.87 per square foot per year. That compares to $34.19 per square foot in the third quarter 216, and $32.49 per square foot at the end of the first quarter 216. This represents a 2.% increase in rental rates in the current quarter, and a 6.83% increase from four quarters ago. Inventory & Construction During the fourth quarter 216, seven buildings totaling 571,66 square feet were completed in the Miami-Dade County retail market. Over the past four quarters, a total of 932,47 square feet of retail space has been built in Miami- Dade County. In addition to the current quarter, 12 buildings with 115,38 square feet were completed in third quarter 216, eight buildings totaling 151,328 square feet completed in second quarter 216, and 94,975 square feet in eight buildings completed in first quarter 216. There were 2,44,732 square feet of retail space under construction at the end of the fourth quarter 216. Some of the notable 216 deliveries include: Brickell City Centre Retail, a 55,-square-foot facility that delivered in fourth quarter 216 and is now 4% occupied, and East Coast Building Retail, a 55,442-square-foot building that delivered in second quarter 216 and is now 28% occupied. Total retail inventory in the Miami-Dade County market area amounted to 128,717,345 square feet in 1,248 buildings and 144 centers as of the end of the fourth quarter 216. Shopping Center The Shopping Center market in Miami-Dade County currently consists of 147 projects with 47,28,82 square feet of retail space in 2,97 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing 15,65 square feet and delivering 26,15 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 3.5% at the end of the third quarter 216 to 3.5% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 3.9% at the end of the first quarter 216, to 3.6% at the end of the second quarter 216, to 3.5% at the end of the third quarter 216, and finally to 3.5% at the end of the current quarter. Rental rates ended the fourth quarter 216 at $28.43 per square foot, up from the $28.1 they were at the end of third quarter 216. Rental rates have trended up over the past year, going from $25.96 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 389,626 square feet over the past four quarters. In addition to the positive 15,65 square feet absorbed this quarter, positive 139,84 square feet was absorbed in the third quarter 216, positive 164,226 square feet was absorbed in the second quarter 216, and positive 69,946 square feet was absorbed in the first quarter 216. Off Cel

4 4Q 216 Power Centers The Power Center average vacancy rate was 1.6% in the fourth quarter 216. With positive 3,1 square feet of net absorption and no new deliveries, the vacancy rate went from 1.7% at the end of last quarter to 1.6% at the end of the fourth quarter. In the third quarter 216, Power Centers absorbed negative (41,29) square feet, delivered no new space, and the vacancy rate went from.5% to 1.7% over the course of the quarter. Rental started the quarter at $25.24 per square foot and ended the quarter at $23.71 per square foot. A year ago, in fourth quarter 215, the vacancy rate was 1.%. Over the past four quarters, Power Centers have absorbed a cumulative (22,113) square feet of space and delivered cumulative square feet of space. There was no sublease space over that same period, and rental rates have gone from $29.55 to $2.16. At the end of the fourth quarter 216, there was no space under construction in the Miami-Dade County market. The total stock of Power Center space in Miami-Dade County currently sits at 3,363,733 square feet in 9 centers comprised of 49 buildings. No space was under construction at the end of the fourth quarter ,776,553 square feet of General Retail space in Miami-Dade County. Specialty Centers There are currently 3 Specialty Centers in the Miami-Dade County market, making up 694,85 square feet of retail space. In this report the Specialty Center market is comprised of Outlet Center, Airport Retail and Theme/Festival Centers. Specialty Centers in the Miami-Dade County market have experienced negative (8,176) square feet of net absorption in 216. The vacancy rate currently stands at 5.9%, and rental rates are negotiable. General Retail Properties Malls recorded net absorption of positive 235,11 square feet in the fourth quarter 216. This net absorption number, combined with the 55, square feet that was built in the quarter, caused the vacancy rate to go from 2.1% a quarter ago to 3.7% at the end of the fourth quarter 216. Rental rates went from $48.28 per square foot to $5.38 per square foot during that time. In this report the Mall market is comprised of 21 Lifestyle Center, Regional Mall and Super Regional Malls. General Retail Properties The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within a center, reported a vacancy rate of 3.% at the end of fourth quarter 216. There was a total of 1,821,447 square feet vacant at that time. The General Retail sector in Miami-Dade County currently has average rental rates of $38.12 per square foot per year. There are 1,114,98 square feet of space under construction in this sector, with 39,961 square feet having been completed in the fourth quarter. In all, there are a total of 7,944 buildings with Off Cel

5 4Q 216 Sales Activity Tallying retail building sales of 15, square feet or larger, Miami-Dade County retail sales figures rose during the third quarter 216 in terms of dollar volume compared to the second quarter of 216. In the third quarter, 12 retail transactions closed with a total volume of $394,191,877. The 12 buildings totaled 1,136,357 square feet and the average price per square foot equated to $ per square foot. That compares to 14 transactions totaling $186,173,931 in the second quarter 216. The total square footage in the second quarter was 416,4 square feet for an average price per square foot of $ retail sales transactions with a total volume of $69,825,88. The price per square foot averaged $ In the same first nine months of 215, the market posted 46 transactions with a total volume of $1,338,345,45. The price per square foot averaged $ Cap rates have been higher in 216, averaging 6.23% compared to the same period in 215 when they averaged 6.%. One of the largest transactions that has occurred within the last four quarters in the Miami-Dade County market is the sale of The Palms at Town & Country in Miami. This 667,757 square foot retail center sold for $285,26,877, or $ per square foot. The property sold on 7/29/216. Total retail center sales activity in 216 was down compared to 215. In the first nine months of 216, the market saw 33 GENERAL RETAIL MARKET STATISTICS Market Existing Inventory Vacancy # Blds Total GLA Direct SF Total SF Vac % YTD Net Absorption YTD Deliveries Under Const SF Quoted Rates Aventura ,241.% 2,483 $. Biscayne Corridor 23 1,752,456 84,587 84, % (34,799) 42,75 $49.91 Brickell ,816 11,643 11, % 2,693 5, $96.9 Coconut Grove ,424 39,811 39, % (4,389) 6,626 $42.7 Coral Gables 323 2,183,796 34,81 34,81 1.6% 57,978 15, $4.44 Coral Way 286 1,728,629 34,518 34,518 2.% 8,688 4,526 38,322 $33.13 Downtown Miami 129 2,41,53 279, , % (138,541) 149,64 $25.58 Kendall 525 5,455, , ,26 2.4% (28,944) 58,769 $34.21 Medley/Hialeah 677 5,756,865 62,978 62, % 48,79 47,51 15,22 $26.9 Miami 2,227 11,97, , , % (8,136) 89,21 173,838 $36.89 Miami Airport 453 4,845,941 34,677 34,677.7% 58,66 68,958 97,929 $38.92 Miami Beach 513 5,145,79 27, , % 64,426 5,464 $61.14 Miami Lakes 19 2,5,478 7,665 7,665.4% (4,794) 19,619 $17.79 Miami-Dade Central County 377 1,486,245 23,61 23,61 1.6% 47,217 17,922 18,517 $19.87 Northeast Dade 88 5,574,115 93,463 95,63 1.7% 68,55 39, ,587 $28.21 Outlying Miami-Dade Cnty 15 97,235.% $. South Dade 633 5,439,885 7,61 7,61 1.3% 72,69 17,414 1,93 $14.52 West Miami 429 2,39,947 35,266 35, % (14,423) 24,483 $27.53 Totals 7,944 6,776,553 1,814,991 1,821,447 3.% 194,37 284,99 1,114,98 $38.12 Off Cel

6 4Q 216 SHOPPING CENTER MARKET STATISTICS Market Existing Inventory Vacancy # Blds Total GLA Direct SF Total SF Vac % YTD Net Absorption YTD Deliveries Under Const SF Quoted Rates Aventura 23 1,881,21 8,653 8, % (25,617) $34.49 Biscayne Corridor ,21 23,178 23, % 46,126 $3.26 Brickell 6 159,464 6,83 6,83 4.3% (6,83) $ Coconut Grove ,921 7,19 7,19 1.4% (2,748) $66.3 Coral Gables ,317 1,365 1,365.3% 15,82 $45.65 Coral Way 5 453,474 8,2 8,2 1.8% (2,46) $27.1 Downtown Miami 4 12,988 1, 1, 8.3% 1,665 $65. Kendall 152 9,91,889 33,45 341, % 115,973 7,689 $32.56 Medley/Hialeah 173 5,57,881 24,254 24, % 16,263 31,3 4,195 $26.57 Miami 168 2,173,473 14, , % (16,534) $24.23 Miami Airport 15 6,316, , , % 37,47 9,566 $27.76 Miami Beach ,758 2,944 2, % (7,594) $6.42 Miami Lakes 39 2,713,36 89,931 95, % 4,314 27,292 $23.3 Miami-Dade Central County 4 1,35,427 52,63 7, % 685 $17.24 Northeast Dade 254 5,727,96 187, , % 119,432 38,58 $3.14 Outlying Miami-Dade Cnty 5 28, % (7,73) $23.89 South Dade 98 4,359, ,275 15, % 57,214 7,2 $22.5 West Miami 125 4,342,856 18,35 114, % 8,6 2,226 $3.25 Totals 1,47 47,28,82 1,586,265 1,642,64 3.5% 389, , ,73 $28.43 TOTAL RETAIL MARKET STATISTICS Market Existing Inventory Vacancy # Blds Total GLA Direct SF Total SF Vac % YTD Net Absorption YTD Deliveries Under Const SF Quoted Rates Aventura 129 6,467,613 8,653 8, % (24,367) 2,483 $34.49 Biscayne Corridor 222 2,295,477 17,765 17, % 11,327 42,75 $45.99 Brickell 66 1,58,28 319, , % 199,972 55, 5, $1.6 Coconut Grove 149 1,648,28 66,48 66,48 4.% (12,532) 6,626 $44.32 Coral Gables 38 3,625,784 36,146 36,146 1.% 85,813 15, $4.91 Coral Way 339 2,423,375 47,197 47, % 11,592 4,526 38,322 $31.75 Downtown Miami 141 2,744, , , % (129,83) 599,64 $27.37 Kendall ,67, ,2 58, % 16,56 7,689 58,769 $33.7 Medley/Hialeah ,853, , , % 67,671 78,54 365,158 $38.46 Miami 2,424 14,572, , , % (32,846) 89,21 173,838 $35.28 Miami Airport ,76, , , % 7,462 68,958 47,495 $3.7 Miami Beach 67 7,393, , , % 11, ,454 $67.16 Miami Lakes 182 4,718,784 97,596 13, % 35,52 46,911 $22.63 Miami-Dade Central County 448 3,33,416 75,673 94, % 52,92 17,922 18,517 $17.88 Northeast Dade 1,153 11,983, , , % 25,889 78,48 323,587 $29.55 Outlying Miami-Dade Cnty 25 36,66 5.% (7,73) $23.89 South Dade ,364, , , % 92,17 17,414 8,95 $2.14 West Miami 616 6,733,83 143, , % (5,823) 2,226 24,483 $29.2 Totals 1, ,717,345 4,7,376 4,175,29 3.2% 728, ,47 2,44,732 $34.87 Off Cel

7 4Q 216 HISTORICAL RENTAL RATES VACANCY BY AVAILABLE SPACE TYPE Percent of All Vacant Space in Direct vs. Sublet VACANCY BY BUILDING TYPE Percent of All Vacant Space by Building Type GLA BY BUILDING TYPE Ratio of Total GLA by Building Type FUTURE SPACE AVAILABLE Space Scheduled to be Available for Occupancy* Off Cel