Miami can (almost) stick a “no vacancy sign” on its retail spaces as availability fell to all-time low in the third quarter.
By the second quarter, retail vacancies had already fallen to 3.9 percent with asking rates of up to $40.35 per square foot, according to data from a CBRE retail market report. Vacancies have now decreased to 3.8 percent, with asking rates at $45.18 per square foot, the report said.
The jump in asking rates represents a $7.43 increase year over year and is seen as a result of Miami’s steady stream of tourists. “This is a world destination for tourists and we’re seeing the luxury retail market get better and better,” said Zach Winkler, a CBRE senior associate, to Miami Today.
Absorption in the third quarter totaled 450,914 square feet and 615,498 square feet year to date, which is attributed to the opening of a 417,000-square-foot IKEA store in Doral. Demand for luxury retail space in places like the Design District is also fueling the vacancy drop, Winkler told the paper. [Miami Today] — Chris Guanche