Despite online shopping shaking up Miami-Dade County’s retail landscape, a new report shows brick-and-mortar vacancy rates fell to a record low in the third quarter.
The report, authored by brokerage Colliers International, states that retail tenants chewed through 483,730 square feet of space during the third quarter, bringing Miami-Dade’s vacancy rate down 0.1 percent to a record low of 2.9 percent.
As a result, the county’s average asking rent rose from $33.27 per square foot in the third quarter of 2015 to $33.60 per square foot this year.
For retailers, Miami’s two most popular submarkets were the Biscayne Corridor, which saw 54,752 square feet of leases inked, followed by neighborhoods surrounding the Miami International Airport, where 35,226 square feet were absorbed, according to the report.
While the Zika scare hurt retailers in terms of foot traffic, leasing activity appears not to have suffered. Colliers pointed out that absorption in Wynwood and Miami Beach, the two original Zika transmission zones, hit 229,718 square feet during the third quarter, representing nearly half of the county’s overall leasing activity.
Those tight vacancies and increasing rents have pushed developers to ratchet up deliveries. According to the report, more than 2.3 million square feet of retail space is under construction in Miami-Dade. — Sean Stewart-Muniz