REAL ESTATE OVERVIEW
Net absorbion in Broward’s retail segment was minus-181,160 square feet in 4Q20
Perspectives: Outlook 2021 Asi Cymbal Owner – Cymbal Development A lot of innovations are going to be centered around working from home. We are gearing up our communities to be friendly for those who work remotely. We are creating Zoom lounges and individual private office space in many of our developments. Oasis Pointe will feature several such spaces, which we think is important.
Jill Koch General Manager, LCAM – Vesta Property Services
Colliers International. The vacancy rate increased 50 basis points to stand at 5.6% while the market welcomed 235,179 square feet of new construction and counted 627,922 square feet of retail space under construction. Despite the dire scenario, Broward County in general and Fort Lauderdale in particular can leverage a secret weapon for retail’s 2021 performance: its growing demographics. Incoming population growth, which is likely to be sustained for the next five decades, will bring retailers with it. Colliers International anticipates that as the vaccine rollout successfully expands, the retail market will start showing signs of recovery. Early signaling in that direction was showcased in early March 2021 by Cobblestone USA’s purchase of 12 acres, 24,800-square-foot Cobblestone Commons shopping plaza for $38 million after the mall filed for bankruptcy in February 2020. Moreover, retail spaces are either being redeveloped or repurposed into entertainment venues or e-commerce assets, primarily distribution centers. For instance, in January 2021, part of a Margate shopping center was sold for $11.9 million to an affiliate of Broward Meat and Fish Co., a specialty grocer that already operates in Pembrok Pines, North Lauderdale and Lauderdale Lakes. With social distancing and COVID still a real threat, there remains a great deal of uncertainty as to how developments in retail will progress. But change is in the air. “On the retail side, we were seeing that developments needed to be an experience. Town centers and public spaces with gathering places. Now, it’s unclear whether this will continue to be the case. It’s very easy to click on Amazon and get whatever you want delivered. There needs to be something extra that motivates people to get in their car and pull into that retail center. Tenant mix is more important than ever now,” Cary Goldberg, president of Diversified Realty Development Co., told Invest:. ( )
I think you’re going to see a lot of improvements in houses and you’re going to see a seller’s market. Tenants want everything better, they want improvements and the housing associations need to keep up with that — fresh paint job every seven years, new roofs and roads every 25. It’s our job in the property management world to make sure that they’re keeping up with it.
Debra Mink Managing Broker & President – Mink & Mink Inc We have not yet seen the fallout from delinquencies and delayed payments, and I don’t know who will suffer from that. There is now more of a wealth disparity after unemployment surged, disproportionately impacting middle America. At the end of 2021, I think there will be another reset of the situation.
Miguel Pilgram Owner & CEO – Pilgram Group We continue to invest in our communities, albeit with a different business model. We have added more residential because retail in this climate is not going to be the go-to income generator that it has been for the next couple of years. We have increased our residential developments from 18 to close to 45 units as we anticipate the city will deeply appreciate this new format.
Oliver Seidler Founder & CEO – PropertyForce I hope for the best, but I would not be surprised if there is some kind of correction, but nobody including me has a crystal ball. I think we’re due for a market correction, but I’ve also thought that for the past couple of years. At some point, they’re going to have to stop printing money. I think when that happens people will start to feel what’s actually happening as opposed to what’s perceived to be happening.
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