The Real Deal Miami

Construction slowdown could help market

June 02, 2009 02:28PM

Despite first-quarter expectations for additional store closings and declines in tenant demand in Broward County, some positive signs have emerged in the area, according to a second-quarter retail report from Marcus & Millichap. Construction has slowed considerably, with developers completing 450,000 square feet of space in 2009, down from 1.7 million square feet in 2008. Construction has been delayed on several large projects in the area, including the 600,000-square-foot Village at Gulfstream Park and the 157,000-square-foot Cobblestone Plaza. This slowing in construction will mean less inventory on the market, which could allow vacancy to stabilize and rents to rebound. Vacancy rates are expected to only rise 170 basis points in 2009, down from a 340 basis point jump in 2008. TRD