The Real Deal Miami

Are Lincoln Road rents worth it?

With rents reaching $300 per square foot, retailers view spaces as more than just stores

August 11, 2014 05:15PM

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Lincoln Road

Lincoln Road

Lincoln Road has become one of the most expensive retail corridors in all of South Florida, with high-end brands paying as much as $300 per square foot for space on the street, according to a report by Cushman & Wakefield. But is it worth it?

According to Frank Begrowicz, an associate director with Cushman & Wakefield’s Miami office, renting space on Lincoln Road is about more than simply being at the center of South Florida’s shopping scene. There’s also a a marketing component to being on Lincoln Road, he told WLRN.

A retailer’s sales may make up just $200 of the $300-per-square-foot rent, Begrowicz said. Shop owners “chalk the other $100 [per square foot] up to advertising to a customer from a market where it might be cost prohibitive for you to transact today.”

And while $300-per-square-foot rent might be steep for South Florida, it’s nothing compared to New York City’s Madison Avenue where the average asking price for retail space is $2,500 per square foot. [WLRN] Christopher Cameron

  • Al Czverik

    Lincoln Rd in the “old days”, looks nice

  • mondocondo

    Rent should be in proportion to the sales productivity of the Lincoln Avenue store, unless the retailer wants to rationalize some of the cost a brand promotion. Comment in the article on higher rents here and there, Fifth Avenue, Las Vegas strip, Rodeo Drive, are completely irrelevant. Cheers

  • real

    not enough money for high end retails stores to be there. its tourists who shop occasionally buy, the locals rather go to Aventura mall or bal harbor. these big New York guys think just because the hype of Miami they assume they can buy buildings at the same price of new York. They are crazy a lot of the owners there are small sotres even big names wont make enough to justify their rent they will be coming back with a small profit