Market Reports

Reviewing Miami’s Retail Scene: An Overview of the Present Atmosphere

by John Nelson June 19, 2023

Miami is a vivacious city renowned for its scenic beaches, sunny climate and dynamic nightlife. The South Florida city is also a hub for a flourishing retail industry, which serves an eclectic blend of both locals and visitors. Miami’s retail market is characterized by its diversity, with a broad spectrum of retailers ranging from luxurious, high-end boutiques to small, locally owned businesses. This range of retailers is a reflection of the city’s diverse population, which includes a sizable Hispanic community, as well as individuals from all corners of the globe. Consequently, Miami’s retailers must be adept at catering to a wide range of tastes. One of the most notable trends in the Miami retail market in recent years has been the growth of e-commerce. Like many other cities around the world, Miami has seen a significant increase in online shopping. This has presented both challenges and opportunities for retailers in the city. On the one hand, the rise of e-commerce has led to increased competition for brick-and-mortar retailers in Miami. Online retailers such as Amazon and Walmart have made it easier than ever for consumers to shop from the comfort of their own homes, and this has put pressure on …

June 19, 2023

Florida Market Reports Office Southeast Southeast Market Reports

Tampa Bay’s Popularity Breathes New Life Into Local Office Market

by John Nelson April 17, 2023

Once bypassed by national developers and investors for larger, metropolitan cities like Miami, the real estate community is now realizing what locals have known for years: Tampa is trending. Tampa Bay’s recognition as one of the country’s top places to live has trickled into the region’s office market, which as of the first quarter of the year, has continued to reap the benefits. While some credit the Tom Brady effect to Tampa’s rise into the national spotlight, the Tampa Bay region is seeing growing demand in other economic sectors beyond sports, including housing, business and leisure. In fact, Time Magazine just featured Tampa as one of only four U.S. cities in its highly coveted 2023 list of the “World’s Greatest Places.” Flurry of activity to start 2023 For the first time in five quarters, the Tampa Bay office market recorded positive absorption of more than 55,000 square feet thanks to more companies moving into space rather than vacating it, JLL’s first-quarter Office Insight Report for 2023 shows. This can be largely attributed to Reliaquest’s move into its 140,000-square-foot headquarters located at Thousand & One Water Street, where it is currently occupying 120,000 square feet, and which made up the lion’s …

April 17, 2023

Florida Market Reports Retail Southeast Southeast Market Reports

The Story of Tampa’s Urban Renewal is Told Through Retail, Mixed-Use Hubs

by John Nelson October 24, 2022

What was once a vacant landscape has undergone a modern-day renaissance, transforming into a thriving, energetic hub infused with dynamic retail, local chef-driven eateries and desirable living and working environments. Tampa has evolved into a top “a place to see” and “place to be” for both out-of-state guests and residents alike. What is one the main driving forces behind this urban revitalization? The rise of high-density mixed-use developments and lifestyle centers that create central spaces for people to live, work, play, shop, dine and explore new experiences. Recently, Florida has benefited from a massive influx of residents and development activity as a result of the COVID-19 pandemic. Varying demographics and age groups flocked to the Sunshine State in search of more space, agreeable weather and an expedient reopening as far as retail, restaurant and entertainment. Along with the mass of new residents, Tampa quickly rose to become the second most popular city in the country for prospective homebuyers, reflecting a new interest to settle down in the area. The retail sector also boomed state-wide, but specifically in Tampa, with retail rents growing 7.8 percent over the last 12 months and ranking among the top 10 fastest growing markets, according to …

October 24, 2022

Florida Market Reports Retail Southeast Southeast Market Reports

Impressive Metrics for Orlando’s Retail Market May Mask Looming Storm Clouds

by John Nelson September 27, 2022

The retail market in the Orlando MSA is doing well, on the surface. According to the numbers, the region has recovered from the effects of the COVID-19 pandemic. Orlando’s economy is heavily driven by tourism and when travel stopped and the initial state-wide shutdown orders went into effect on April 3, 2020, the impacts were profound and widespread, since four of the top 10 employers in Central Florida are in hospitality or retail, as well as Orlando International Airport. Since then, life in Central Florida has largely returned to normal. Tourism is back, hotel occupancy is up and people are dining out again. Retail numbers for the second quarter are actually better than in the first quarter of 2019, according to CoStar Group. The availability percentage at the beginning of 2019 was 5.9 percent, compared to 4.7 percent at the end of the second quarter. The average rent is up as well, rising from $21.94 per square foot to $25.52. Consumer habits have changed as e-commerce is still enormously popular, although it’s now more about convenience than mitigating risks. For those who can, working from home has become the preferred mode. As a consequence of the remote work trend, local …

September 27, 2022

Florida Market Reports Office Southeast Southeast Market Reports

Activity in Orlando’s Office Market is Fueled by Flight to Quality, Tech Industry

by John Nelson September 20, 2022

The Orlando office market is finally seeing positive absorption across all major submarkets. An impressive second quarter recorded 122,423 square feet of positive absorption, bringing the total for the first half of the year to 156,778 square feet. As companies have been making decisions on their return to the office, the Orlando market has seen increased activity with numerous large, long-term leases signed, predominantly fueled by smaller local users and corporate relocations from other markets. Kimley-Horn’s relocation and expansion to 60,000 square feet in downtown Orlando marked one of the largest transactions in the past five years. While still up 20 basis points year-over-year, total vacancy saw its first drop in the last four quarters. Vacancy was consistently holding at 13.3 percent from third-quarter 2021 until it fell 30 basis points this quarter to 13 percent. The major driver of the drop was vacant sublease space being withdrawn or leased. Although firms are still seeking sublease route for their office space, we believe more space will be given back in the near term. We are seeing an increased pattern of flight to quality, where corporate users are focusing their attention on submarkets and assets that provide higher quality workplaces and …

September 20, 2022

Florida Industrial Market Reports Southeast Southeast Market Reports

Low Vacancy, New Development, Rent Growth Reflect Industrial Demand in Orlando

by John Nelson September 13, 2022

Still going strong after two years since the onslaught of COVID-19, Orlando’s industrial market has seen a steady increase of robust leasing activity and development, with no signs of stopping. The growth is attributable to record-low vacancy, emerging construction and increasing demand from existing tenants expanding their businesses and new tenants in the market. Economic conditions affecting the market are similar to last year, as labor shortages and supply chain issues remain. However, the industrial sector overall has not been adversely affected. Orlando continues to be the place for existing business advancement and new business development. The city’s population growth outpaces that of any other city in Florida due to its central location, warm weather year-round, no state tax and relative affordability. As such, the market is seeing large enterprise retail and consumer goods companies claiming their stake in the Sunshine State. Robust leasing activity The total industrial leasing volume in the Orlando market for the second-quarter 2022 was 4.5 million square feet, 43 percent of the total leasing volume seen in 2021. Eight leases over 100,000 square feet were signed to date in 2022. The largest lease in the first half of 2022 was the new 294,787-square-foot Coca-Cola lease …

September 13, 2022

Florida Market Reports Office Southeast Southeast Market Reports

Tenants Continue Moving to South Florida in Search of Class A Office Space

by John Nelson June 20, 2022

There is no denying in-migration is a driving factor in South Florida. Over 650,000 people moved to Miami at the height of the pandemic — nearly 89,000 came from out of state and a quarter of those came from New York. Year-over-year job growth is up 6 percent and is back at peak levels seen prior to the pandemic, while over 27 percent of employment is in office-using sectors for the first time ever. CBRE’s Spring 2022 Occupier Sentiment Survey revealed that most companies are back to developing long-term plans to expand or contract their office space now that employees are returning — at least some of the time — after two years of mostly remote work. For the second quarter in a row, net absorption in Miami totaled over 200,000 square feet, with the majority occurring in Miami’s central business district (CBD). Driven by expansions, Class A product accounted for approximately 85 percent of total absorption in the first quarter. The growth of Miami is starting to solidify as new-to-market tenants that looked to relocate to Miami during the pandemic are starting to move into their office spaces. Since 2020, over 1.3 million square feet of office leasing activity …

June 20, 2022

Strong rent growth has spurred investor appetite for Florida’s multifamily market and has boosted out-of-state and international multifamily investment and development. —Jeffrey Margolis, Partner, Berger Singerman LLP

Features Florida Market Reports Multifamily Southeast Southeast Market Reports

Florida Apartment Market’s Strong Real Estate Fundamentals Attract National, International Investors

by Jaime Lackey June 13, 2022

There is an overall sentiment that the Southeast multifamily real estate market, and specifically Florida, is doing better than any other region in the United States. Despite record inflation, rising interest rates, increased construction costs and supply chain issues, investors, developers and lenders are becoming increasingly bullish when it comes to the Florida multifamily market. A rising population count resulting in a swift pace of rent growth and tight apartment vacancy have led to increased out-of-state and international interest and capital being invested in the state. With competitive yields and better returns compared with alternative investments, investors view Florida multifamily projects as a sound opportunity. Florida has been less stringent when it came to COVID-19 policies and lockdowns compared with restrictions adopted in the Northeast and on the West Coast. Limited and lenient state-wide restrictions in Florida during the health crisis allowed the state’s economy to recover more quickly than most major U.S. markets. In addition to an established migration of retirees, Florida has attracted a younger population, with workers looking for warmer climates and relaxed COVID-19 policies. Similarly, massive migration from other regions is being fueled by the ease of doing business, a favorable regulatory environment, business-friendly tax rates, …

June 13, 2022

Florida Industrial Market Reports Southeast Southeast Market Reports

Miami’s Industrial Market is in a Position of Strength Heading into Summer 2022

by John Nelson June 13, 2022

Amid a record-breaking year for Miami-Dade County in 2021, industrial market fundamentals grew even stronger in the first quarter of 2022. Last year, the national industrial market saw unprecedented activity resulting from unlimited investment capital from Wall Street, private equity firms and REITs deploying significant capital into buying existing income-producing property and development sites. In the first quarter of 2022, market fundamentals continued to heat up in Miami-Dade County and are expected to continue to attract investors and developers that are looking to capitalize on a growing population and soaring demand for warehousing space. The ongoing global supply chain challenges are forcing existing tenants’ requirements to include additional warehouse space for storage. Simultaneously, new-to-market tenants are continuing to flock to the area, despite a shrinking supply of available space. Together, this confluence of activity triggered a record low vacancy rate of 2.7 percent in Miami-Dade County in the first quarter, a 150-basis-point decrease year-over-year. Rental rates also reached a record high of $11.80 per square foot triple-net, which is an increase of 8.3 percent year-over-year. We expect continued growth in port markets, as well as increased leasing activity from third-party logistics and e-commerce tenants. In 2021, Amazon leased multiple locations …

June 13, 2022

Florida Market Reports Retail Southeast Southeast Market Reports

The Sky is Not Falling for Miami’s Retail Market as Healthcare, Dining Activity Soars

by John Nelson June 6, 2022

When the world shut down in March 2020, “Chicken Littles” everywhere proclaimed the end of one of the primary asset classes in commercial real estate: retail. Retail tenants largely abandoned expansion plans and entered survival mode by shifting focus to seeking rent abatements and lease restructurings. Landlords in weak financial positions fought to meet significant debt obligations, while those in stronger positions took the opportunity to evict struggling tenants and refresh inventory, hoping that more creditworthy tenants would come calling. Fast forward two years and any lingering uncertainty about the survival of retail has waned, and, today, we seem to be in one of the stronger landlord markets in recent memory. What drove this radical shift from fear and hesitation to boundless market optimism? Increased competition among tenants with strong financial backing. Two factors have changed the landscape: private equity-sponsored healthcare companies and capital-rich restaurant groups. Medtail in Miami Healthcare businesses appeared to thrive during the pandemic as most were able to remain operational through state and local “shut down” orders. Many of these businesses used the pandemic as an opportunity to pounce on large spaces vacated by big box retailers and service-oriented businesses, like nail salons, barbershops and dry …

June 6, 2022

Newer Posts

Older Posts