The Real Deal Miami

Improvement for Miami retail market

June 10, 2011 11:19AM

A strengthening local economy in Miami-Dade County has bolstered the
retail sector, which should see a decrease in store closures this year,
according to a report from Marcus & Millichap. The report predicts a
gradual improvement in tenant demand for 2011, with a 60 basis-point
drop in vacancy to 7.2 percent. Last year, that number dropped 30 basis
points. Rents are expected to increase 0.9 percent in Miami-Dade, up to
$23.29 per square foot. In the first quarter, there was net absorption
of 231,000 square feet, which pushed down the vacancy rate to 7.5
percent. And while demand has increased, downsizings and store closures
have also eased, with tenants vacating 1.4 million space, a drop from
2.6 million square feet in previous year. TRD