Miami-Dade retail vacancy rates climb

Retail space vacancy rates continue to rise in Miami-Dade County as reduced consumer spending cuts into retailers’ performance. According to the most recent quarterly report from brokerage firm Marcus & Millichap, retail vacancy rates this year climbed 90 basis points to 7.6 percent at the end of September, and countywide vacancy rates will surpass 8 percent by the close of 2009, the highest year-end level this decade. Kirk Felici, regional manager of the firm’s Miami office, said retail investment trends and transactions involving single-tenant assets are proceeding at a slow pace, while sales of multi-tenant properties have come to a standstill. Asking rents are projected to fall 4.3 percent this year to $23.55 per square foot. Effective rents are forecast to recede 6.1 percent to $20.25 per square foot. In 2008, asking rents advanced 1.4 percent, and effective rents fell 1.7 percent. TRD