Miami retail vacancies are at an all-time low as the market enters “a new era” with luxury retailers branching out beyond Bal Harbour, a new report from CBRE shows.
The market’s vacancy rate dropped to 3.9 percent during the second quarter of 2014, down from 4.1 percent at the end of the second quarter of 2013. CBRE considers 3.9 percent to be a record for the overall market. The rate could eventually climb, however, as nearly 1.9 million square feet of retail space was under construction at the end of the second quarter.
Year-over-year asking rental rates surged by $5.31 per square foot to $40.35 per square foot at the end of June. Some of Miami’s biggest second-quarter store openings included Gap reopening an expanded Lincoln Road location, Zara debuting its 26,000-square-foot flagship Lincoln Road store and Stein Mart launching its first Miami location in the 36,000-square-foot former Loehmann’s space in Aventura.
CBRE notes the decades-long reign of the Bal Harbour Shops as the market’s only option for high-end retailers is now being challenged. Miami’s Design District became a hub for luxury brands like Hermes, Louis Vuitton and Prada, while the Miami Worldcenter development’s retail component is anchored by Bloomingdale’s and Macy’s. Brickell City Centre is also expected to attract a slew of high-end retailers. — Eric Kalis