The Real Deal Miami

JLL: Miami retail development trend near a peak

Chicago-based firm says retail development still growing in Broward and Palm Beach
Fifth and Alton

Miami Beach retail building at 5th Street and Alton Road.

Retail development has surged in South Florida, but the trend may be near a peak in Miami-Dade County, according to a research report by Chicago-based commercial real estate firm JLL.

Retail space occupancy rates average 95.9 percent in Miami-Dade, compared to 92 percent in Broward County and 91.3 percent. About 1.3 million square feet of retail space is under construction in Miami-Dade, where the existing inventory measures almost 50 million square feet.

“The Miami market continues to soar, and developer are in full swing as a result,” JLL reported. “Miami’s numbers are the closest to a peak of any market in Florida, leading many to believe that some kind of correction is in store.”

While the retail development in Miami-Dade may be nearing a peak, it is still growing in Broward and Palm Beach counties.

“The Fort Lauderdale market has seen tremendous rent growth … This and a gentrifying population are driving a great deal of new development projects in the market,” JLL said in its report on the retail market.

“Palm Beach [County] has seen steady appreciation in rents as occupancy has stabilized and residential growth has resumed at a healthy pace,” JLL reported.”Strong economic growth has helped to propel growth in the real estate market.” — Mike Seemuth