Miami-Dade County Retail Market Report 3Q Real Capital Partners Real Estate Services. *Data Source CoStar Miami-Dade County Retail Market Report

Transcription

1 Miami-Dade County Retail Market Report 3Q 216 Real Capital Partners Real Estate Services *Data Source CoStar Miami-Dade County Retail Market Report

2 3Q 216 Miami-Dade County Retail Market Report Overview Miami-Dade County s Vacancy Decreases to 4.% Net Positive 1,155,8 SF in the Quarter The South Florida retail market experienced a slight improvement in market conditions in the third quarter 216. The vacancy rate went from 4.3% in the previous quarter to 4.% in the current quarter. Net absorption was positive 1,155,8 square feet, and vacant sublease space decreased by (7,574) square feet. Quoted rental rates increased from second quarter 216 levels, ending at $24.69 per square foot per year. A total of 34 retail buildings with 36,132 square feet of retail space were delivered to the market in the quarter, with 3,968,569 square feet still under construction at the end of the quarter. Retail net absorption was strong in South Florida third quarter 216, with positive 1,155,8 square feet absorbed in the quarter. In second quarter 216, net absorption was positive 1,243,165 square feet, while in first quarter 216, absorption came in at positive 428,242 square feet. In fourth quarter 215, positive 1,68,424 square feet was absorbed in the market. Vacancy South Florida s retail vacancy rate decreased in the third quarter 216, ending the quarter at 4.%. Over the past four quarters, the market has seen an overall decrease in the vacancy rate, with the rate going from 4.6% in the fourth quarter 215, to 4.6% at the end of the first quarter 216, 4.3% at the end of the second quarter 216, to 4.% in the current quarter. The amount of vacant sublease space in the South Florida market has trended up over the past four quarters. At the end of the fourth quarter 215, there were 273,842 square feet ofvacant sublease space. Currently, there are 316,693 square feet vacant in the market. Rental Rates Average quoted asking rental rates in the South Florida retail market are up over previous quarter levels, and up from their levels four quarters ago. Quoted rents ended the third quarter 216 at $24.69 per square foot per year. That compares to $24.9 per square foot in the second quarter 216, and $24.11 per square foot at the end of the fourth quarter 215. This represents a 2.5% increase in rental rates in the current quarter, and a 2.35% increase from four quarters ago. Inventory & Construction During the third quarter 216, 34 buildings totaling 36,132 square feet were completed in the South Florida retail market. Over the past four quarters, a total of 2,15,559 square feet of retail space has been built in South Florida. Off Cel

3 3Q 216 Miami-Dade County Retail Market Report Overview In addition to the current quarter, 2 buildings with 678,419 square feet were completed in second quarter 216, 29 buildings totaling 266,63 square feet completed in first quarter 216, and 8,378 square feet in 34 buildings completed in fourth quarter 215. There were 3,968,569 square feet of retail space under construction at the end of the third quarter 216. Total retail inventory in the South Florida market area amounted to 311,428,553 square feet in 22,435 buildings and 3294 centers as of the end of the third quarter 216. Shopping Center The Shopping Center market in South Florida currently consists of 328 projects with 13,945,25 square feet of retail space in 5,477 buildings. In this report the Shopping Center market is comprised of all Community Center, Neighborhood Center, and Strip Centers. After absorbing 748,255 square feet and delivering 151,55 square feet in the current quarter, the Shopping Center sector saw the vacancy rate go from 5.9% at the end of the second quarter 216 to 5.4% this quarter. Over the past four quarters, the Shopping Center vacancy rate has gone from 6.5% at the end of the fourth quarter 215, to 6.3% at the end of the first quarter 216, to 5.9% at the end of the second quarter 216, and finally to 5.4% at the end of the current quarter. Rental rates ended the third quarter 216 at $21.3 per square foot, up from the $2.83 they were at the end of second quarter 216. Rental rates have trended up over the past year, going from $2.56 per square foot a year ago to their current levels. Net absorption in the Shopping Center sector has totaled 2,438,474 square feet over the past four quarters. In addition to the positive 748,255 square feet absorbed this quarter, positive 523,877 square feet was absorbed in the second quarter 216, positive 388,8 square feet was absorbed in the first quarter 216, and positive 778,262 square feet was absorbed in the fourth quarter 215. Power Centers The Power Center average vacancy rate was 4.% in the third quarter 216. With negative (48,222) square feet of net absorption and no new deliveries, the vacancy rate went from 3.7% at the end of last quarter to 4.% at the end of the third quarter. In the second quarter 216, Power Centers absorbed positive 73,745 square feet, delivered no new space, and the vacancy rate went from 4.2% to 3.7% over the course of the quarter. Rental started the quarter at $2.72 per square foot and ended the quarter at $2.1 per square foot. A year ago, in third quarter 215, the vacancy rate was 4.1%. Over the past four quarters, Power Centers have absorbed a cumulative 64,925 square feet of space and delivered cumulative 57,748 square feet of space. Vacant sublease space has gone from 65,748 square feet to 2, square feet over that time period, and rental rates have gone from $21.11 to $ At the end of the third quarter 216, there was no space under construction in the South Florida market. The total stock of Power Center space in South Florida currently sits at 12,846,89 square feet in 32 centers comprised of 228 buildings. No space was under construction at the end of the third quarter 216. General Retail Properties The General Retail sector of the market, which includes all freestanding retail buildings, except those contained within Off Cel

4 3Q 216 Miami-Dade County Retail Market Report Overview a center, reported a vacancy rate of 2.8% at the end of third quarter 216. There was a total of 3,668,876 square feet vacant at that time. The General Retail sector in South Florida currently has average rental rates of $3.21 per square foot per year. There are 1,96,29 square feet of space under construction in this sector, with 29,77 square feet having been completed in the third quarter. In all, there are a total of 16,392 buildings with 131,182,487 square feet of General Retail space in South Florida. Speciality Centers There are currently 6 Specialty Centers in the South Florida market, making up 1,661,213 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 South Florida market have experienced negative (25,487) square feet of net absorption in 216. The vacancy rate currently stands at 4.6%, and rental rates average $19.65 per square foot. Malls Malls recorded net absorption of positive 845 square feet in the third quarter 216. This net absorption number, combined with no new space that was built in the quarter, caused the vacancy rate to go from 3.5% a quarter ago to 3.5% at the end of the third quarter 216. Rental rates went from $39.33 per square foot to $41.52 per square foot during that time. In this report the Mall market is comprised of 48 Lifestyle Center, Regional Mall and Super Regional Malls. 2,58,865 square feet and the average price per square foot equated to $32.55 per square foot. That compares to 28 transactions totaling $2,972,3 in the first quarter 216. The total square footage in the first quarter was 1,42,618 square feet for an average price per square foot of $ Total retail center sales activity in 216 was down compared to 215. In the first six months of 216, the market saw 6 retail sales transactions with a total volume of $981,821,6. The price per square foot averaged $ In the same first six months of 215, the market posted 88 transactions with a total volume of $1,557,933,92. The price per square foot averaged $ Cap rates have been higher in 216, averaging 6.25% compared to the same period in 215 when they averaged 6.7%. One of the largest transactions that occurred within the last four quarters in the South Florida market is the sale of Lincoln Rd in Miami Beach. This 74,532 square foot retail center sold for $37,,, or $4, per square foot. The property sold on 9/1/215, at a 3.38% cap rate. Sales Activity Tallying retail building sales of 15, square feet or larger, South Florida retail sales figures rose during the second quarter 216 in terms of dollar volume compared to the first quarter of 216. In the second quarter, 32 retail transactions closed with a total volume of $78,848,76. The 32 buildings totaled Off Cel

5 3Q 216 GENERAL RETAIL MARKET STATISTICS Market Existing Inventory Vacancy # Blds Total GLA Direct SF Total SF Vac % YTD Net YTD Deliveries Under Const SF Quoted Rates Aventura ,141.% 4,4 4,4 2,483 $. Biscayne Corridor 21 1,735,26 78,317 78, % (29,529) 42,75 $5.15 Brickell ,119 12,29 12,29 1.5% 2,46 43,42 $98.74 Coconut Grove ,252 35,162 35, % 26 6,626 $42.7 Coral Gables 323 2,19,73 3,347 3, % 61,712 $39.67 Coral Way 286 1,728,673 36,75 36,75 2.1% 6,51 4,526 38,322 $34.14 Downtown Miami 129 2,41,53 131,47 131,47 5.5% 9, ,64 $25.22 Kendall 524 5,444, , , % (29,367) 33,569 $36.15 Medley/Hialeah 667 5,687,487 6,89 6,89 1.1% 46,434 44, 15,22 $27.24 Miami 2,215 11,874, , ,435 5.% 7,316 8,71 97,782 $38.51 Miami Airport 453 4,875,368 23,68 24,168.5% 73,998 61,335 65,429 $41.18 Miami Beach 51 5,115, ,88 229, % 33,23 5,464 $59.29 Miami Lakes 11 2,1,54 6,38 6,38.3% (3,59) 19,619 $17.81 Miami-Dade Central County 368 1,458,228 31,11 31,11 2.1% 3,372 1,822 25,294 $19.25 Northeast Dade 84 5,536,34 13,13 14,73 1.9% 32,785 14,23 6,787 $3.5 Outlying Miami-Dade Cnty 15 97,235.% $. South Dade 634 5,357,734 77,852 77, % 61,487 14,574 5,21 $15.39 West Miami 428 2,347,785 17,72 17,72.8% 3,123 24,483 $33.85 Totals 7,95 6,447,244 1,583,269 1,599, % 374, , ,262 $38.11 SHOPPING CENTER MARKET STATISTICS Market Existing Inventory Vacancy # Blds Total GLA Direct SF Total SF Vac % YTD Net YTD Deliveries Under Const SF Quoted Rates Aventura 23 1,881,21 64,126 64, % (9,9) $31.13 Biscayne Corridor ,21 21,28 21,28 3.9% 48,276 $33.38 Brickell 6 159,464 4,98 4,98 3.1% (4,98) $ Coconut Grove ,921 13,643 15, % (11,531) $51.95 Coral Gables ,317 9,856 9, % 7,329 $45.98 Coral Way 5 453,474 5,3 5,3 1.2% 44 $21.8 Downtown Miami 4 12,988 11,665 11, % $65. Kendall 152 9,889,24 314, , % 119,317 46,81 23,879 $32.32 Medley/Hialeah 175 5,54,69 186, , % 31,121 27,421 4,195 $26.45 Miami 166 2,134, ,85 129, % (5,1) $29.39 Miami Airport 148 6,239,67 163,52 163,52 2.6% 26,167 9,566 $27.85 Miami Beach ,758 18,951 18, % (5,61) $44.24 Miami Lakes 39 2,712, , , % 3,85 18,47 $25.6 Miami-Dade Central County 39 1,339,134 47,298 66,58 4.9% 5,45 $17.11 Northeast Dade 254 5,727,96 21,53 21, % 111,677 38,58 $3.38 Outlying Miami-Dade Cnty 5 24, % (2,928) $22.8 South Dade 99 4,42, , , % 35,732 7,2 $19.59 West Miami 126 4,57, , , % 21,258 2,226 $29.63 Totals 1,46 46,827,691 1,611,378 1,635, % 379, , ,933 $37.48 Off Cel

6 3Q 216 TOTAL RETAIL MARKET STATISTICS Market Existing Inventory Vacancy # Blds Total GLA Direct SF Total SF Vac % YTD Net YTD Deliveries Under Const SF Quoted Rates Aventura 128 6,444,513 71,576 71, % (1,89) 4,4 2,483 $31.13 Biscayne Corridor 22 2,278,227 99,345 99, % 18,747 42,75 $47.41 Brickell 65 1,2,583 17,27 17,27 1.7% (2,934) 548,42 $11.85 Coconut Grove 15 1,654,856 66,362 68, % (14,816) 6,626 $44.23 Coral Gables 38 3,632,61 41,63 41,63 1.1% 8,356 $4.65 Coral Way 339 2,423,419 46,484 46, % 12,35 4,526 38,322 $32.58 Downtown Miami 141 2,744, ,72 143,72 5.2% 16, ,64 $26.92 Kendall 86 19,35,34 492, , % 151,295 46,81 57,448 $33.56 Medley/Hialeah ,83, , ,819 2.% 75,454 71, ,158 $38.34 Miami 2,411 14,5,371 75,3 761, % 57,13 8,71 97,782 $37.44 Miami Airport ,658, ,19 286, % 12,514 61, ,995 $31.14 Miami Beach 64 7,361,74 332,581 34, % ,454 $64.49 Miami Lakes 183 4,722,47 117,84 117,84 2.5% 26,576 37,666 $24.26 Miami-Dade Central County 438 3,264,16 79,78 98,468 3.% 39,522 1,822 25,294 $16.18 Northeast Dade 1,149 11,945,769 36,39 361,743 3.% 145,981 52,81 6,787 $3.42 Outlying Miami-Dade Cnty 25 32,9 9.4% (2,928) $22.8 South Dade ,342,616 37,391 37, % 61,243 14,574 75,41 $18.88 West Miami 614 6,45, ,49 129,49 2.% 24,381 26,79 $3.67 Totals 1, ,522,565 3,532,786 3,67, % 673, ,48 2,454,946 $37.35 Off Cel

7 3Q 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