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POP UP MIAMI
830 LINCOLN ROAD
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contentS
8 new heights on lincoln road
6 high street heat
As rent and occupancy reach record levels, retailers are finding there’s no place to go but up
Q&A with Terranova Chairman Stephen H. Bittel
17 south florida urban street retail report
Taking to the Street: Urban Retailscape in South Florida
32 chic vibe 40 top ten restaurants
coral gables A european cafe, a fashion boutique, a wine bar... where else but the Gables
in Coral Gables, filled with cocktails, funky foods and young chefs. TRENDS
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editor’s note
Welcome to the first issue of Terranova Trends – a real estate magazine produced by Terranova Corporation, South Florida’s leading full service commercial real estate advisory firm. Our original goal with Terranova Trends was to showcase our 2013 Urban Street Retail Report. It highlights rental rates and occupancy statistics for popular South Florida urban retail streets like Lincoln Road and Miracle Mile. In addition, you will have an in-depth look at each individual major retail street to see how they stack up against one another in terms of occupancy & rents. However, as we started piecing the pages together, we realized the importance of highlighting the various cultural and architectural changes taking place on and around South Florida’s retail High Streets. In Miami Beach, Lincoln Road is spilling over and reaching new heights, with exciting expansion and redevelopment plans. We tell you about that in “New Heights on Lincoln” and “Feel the Pop”. Looking more inland, Coral Gables’ Miracle Mile is undergoing its own exciting evolution, broadening its ever charming allure for businesses, luxe shoppers and food enthusiasts. We explore that in “Chic Vibe” and “Top Ten Restaurants in Coral Gables.” You’ll also find in this issue of Trends a rare Q&A with Terranova Chairman Stephen Bittel, speaking about his past and recent High Street retail acquisitions, which made Terranova the largest single property owner on Lincoln Road. This is all information we believe is relevant to our continuously evolving industry, and are happy to share with you. Enjoy! Mindy McIlroy
Chairman Stephen H. Bittel executive Vice President / Editor-in-Chief Mindy McIlroy managing Editor Kristin Clark Research Director / Contributing Writer Alina Matas Graphic Designer Michael Dorer Research Assistant Kesley De Miranda Contributing Photographer David Rappoport Contributing Writer Emily Codik publisher Terranova Corporation advertisers 50 Eggs Cattiva Boutique Coral Gables Business Improvement District Melissa Shoes Peace Love World Serendipity Sushi Maki Sushi Samba Sugarcane Terranova Corporation 801 Arthur Godfrey Road Miami Beach, Florida 305.695.8700 leasing@terranovacorp.com TRENDS
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high street heat t
erranova made an “all in” bet in High Street Retail in February 2011, after testing this asset class for nearly ten years
on Miracle Mile in Coral Gables.
The company purchased three retail buildings on Lincoln Road in Miami Beach, paying
$52 million for 61,000 square feet, or an eye-popping $852 per square foot, higher per square foot than any other South Florida retail transaction at the time. Less than two years later, on December 2012, Terranova would double down on the bet, acquiring another 60,000 square feet on three Lincoln Road buildings. This time they paid almost triple the price per square foot of the first Lincoln Road purchase.
The mastermind behind the deals, Terranova Chairman Stephen H. Bittel, talks about his move into Lincoln Road.
Terranova Trends: Can you talk about what spurred the first Lincoln Road acquisition? Stephen H. Bittel: Opportunity, growth and uniqueness. Miami Beach is the place where creative people like to work, live and play. Lincoln Road is Miami Beach’s natural urban center. As an entertainment and fashion destination, it is already well established on a local level, and now it is garnering international attention, because it is the leading retail street in the Southeast U.S. The properties have a strategic location, the center of Lincoln Road. Location doesn’t get much better than that.
TT: For financing, did it make a difference that the properties were high street retail, versus a groceryanchored center? SHB: Would we have needed less equity if we were buying a Publix-anchored shopping center? In terms of loan-to-equity or loan-to-value ratios, probably not. We might have had a bigger universe of lenders to choose from, because there are more who are familiar and comfortable with the suburban shopping center. But again, we had significant equity in the deal, which made us attractive even in stringent capital markets.
TT: The price was extremely high by South Florida standards. Was there a bidding war? SHB: We recognized the value of these properties, so our offer was competitive from the beginning. As to what other offers the seller seriously considered, I cannot tell you.
TT: The second acquisition was for $2,317 per square foot, nearly three times the price of the first. How did Lincoln Road appreciate that much in 22 months? SHB: Lincoln Road has been upgrading significantly in infrastructure and quality of tenants. The impact of that is rippling through property values. Frank Gehry, a world renowned architect, designed the new theater for the New World Symphony, which opened last year. Trendy retailers have made significant investments in order to be there: H&M, Forever 21, Zara. Designer boutiques are opening there, like Armani and John Varvatos. All that improvement keeps attracting crowds. Some retailers are reaching sales of nearly $3,000 per square foot. And then, space is limited, which continually fuels appreciation.
TT: You were proposing a record-breaking investment, and a portion of it involved debt. How was the environment for getting financing? SHB: Any financing deal today requires more equity than before, that’s the new reality. Lenders also want to see buyers with a solid balance sheet. Terranova has a solid balance sheet, and we had access to capital, but yes, this was a larger purchase than we had ever made. An investor was looking for an opportunity to invest in South Florida. When I told him what I was looking at, he was interested right away. They brought significant capital to the deal, which helped in finalizing financing. TT: So having an investment partner made a difference? SHB: It all happened organically. Terranova already had experience in South Florida high street retail, because in 2004 we bought properties on Miracle Mile, in Coral Gables. Our partner at the time focused heavily on buying and redeveloping retail properties in major urban markets, so this fit their investment thrust, and it gave them entry into South Florida. We both felt confident and excited about the dynamics of this partnership. 6
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TT: What was the cap rate in each deal? SHB: Around four percent, with a lot of room for upside. TT: Terranova is pursuing redevelopment of three of its Lincoln properties. What do you envision? SHB: I mentioned space is limited, so we’re opening up the market. First, by creating additional space. Second, by designing the new space in a way that can accommodate bigger format flagship opportunites. Finally, we want it to fit in with the vibe of Lincoln Road and make it an even livelier urban center.
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as rent and o ccu p ancy rea ch re cord l evel s , reta i l ers are fi ndi ng there’ s no p l a c e to g o b u t u p
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new heights on Lincoln
incoln Road today i s t h e p l a ce to f i nd t h e L l atest hip fas hions, CH E C K OU T N E W R E S TA U R A N T S F RO M renowned chef s , h ear a con cert or w atch a movie, all made even b etter b y t h e p i ece of history embod i ed i n t h e A rt D e co and M ed iterranean R ev iva l f a cades . E veryb ody l oves i t B u t th ere’s one pro b l em: Th e ar ch i tect ure o f its past doesn’t contai n enoug h s p a ce to a ccommodate the fut ure t h at i s b ang i n g at t he door . “Lincoln Road is the premier retail street in the Southeast U.S., and demand for space is virtually popping the ceiling off the top of these historic structures, literally,” says Stephen Bittel, chairman of Terranova Corp., whose properties on Lincoln Road are slated for vertical expansion in order to meet the pent up demand. “Lincoln Road is transitioning to a more sophisticated phase of established fashion and retail brands, many of which require large footprints that simply don’t currently exist on Lincoln. We want to make it possible for retailers in need of flagship stores to enter the market in Miami Beach.” Putting vision into action, Terranova is pursuing the redevelopment of three of its buildings into multi-story structures that will accommodate three anchor stores of 33,000 to 44,000 square feet, on three floors. Going vertical is the only way to add space, as Lincoln Road’s occupancy has climbed to nearly full capacity. Less than 4 percent of ground floor retail space is available on Lincoln Road, mostly occupied by tenants using 2,500 square feet or less, including recently opened boutiques by John Varvatos, Armani Jeans and Fossil. With Miami ranking as the third U.S. entry point for high street retail – behind New York and Los Angeles – Lincoln Road’s annual 6.5 million tourists and its rapid sales increases are fueling a growing demand for space, particularly when it comes to flagship formats.
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Against this backdrop, only recently have large-space retailers been able to enter the market, as landlords have created space through redevelopment of existing buildings. Trendy retailer H&M, for example, entered Lincoln Road in late 2012, when it opened a two-story flagship store inside the historic Lincoln Theater, a redevelopment that included use of the theater’s original staircase. “It took us this long (to arrive in Miami) because we were waiting for the right space,” says Marybeth Schmitt, spokeswoman for H&M North America. “We really want to be here.” That followed Forever 21, which three months earlier opened a three-story, 39,000 square foot store on a remodeled Lincoln Road building. Spanish behemoth Zara, another Lincoln Road newcomer, is building a 26,000-square
foot store in a refurbished two-story space, slated to open by year end. Not to be outdone, long-time Lincoln Road tenant Gap is expanding its existing store to 20,000 square feet by expanding and remodeling its one-level store into a two-story building, after coming up with a design that passed muster with the city’s historic preservation board. And Apple, which opened a 3,000 square foot store on Lincoln in 2006, now is redeveloping the one-story building next to Gap into a two-story 10,000 square foot store where it will relocate.
C R E A TING B IG S P A C ES To design the larger spaces of 33,000 to 44,000 square feet, Terranova has hired Shulman & Associates, a Miami architectural firm whose principal Allan Shulman has designed Lincoln Road renovations and redevelopments since the mid 1990s, including the H&M store that opened last year. The architectural mastermind now is working on redevelopments of Terranova’s buildings at 830 Lincoln, 801 Lincoln and 723 Lincoln Lane. “We’re starting with good buildings,” Shulman says. “830 Lincoln at one point housed Bonwit Teller, and then Saks Fifth Avenue.” In its forthcoming vertical form, the redeveloped 830 Lincoln building will have new storefronts that will open to Lincoln Lane South, activating the unused alley with retail activity. The upper levels will tier back from Lincoln Road and become a straight glass wall on Lincoln Lane, the glass wall shielded by an arabesque concrete screen that will be lit from within. The existing Lincoln Road facade will remain intact except for cosmetic renovations. Inside, the old and the new will merge into continuous spaces. “This site was a natural solution, because the building on Lincoln Road was intact, and the back alley was empty,” Shulman says. The 801 Lincoln building, which sits on the hard corner of Lincoln and Meridian, is slated for a similar, but different,
Feel The W
POP
hen you think about fashion, styles come and go as fast as the seasons change… so why can’t the spaces that house those items do the same? Insert the Pop-up shop. These storefronts have become a retail trend quite literally ‘popping’ up across the country (no pun intended). The concept, which was introduced to the real estate industry in 1999, gained momentum a few years ago with the genius idea of allowing small and large brands alike to sign-on for short-term leases to be used as a temporary storefront. Typically these spaces are much smaller than your typical flagship and are located in high traffic areas. I know you’re thinking, what’s the point of putting such a large amount of time and resources into the launch and production of a location that would simply be temporary. Several reasons that target both the retailer and the consumer have become apparent with the success of former adopters. From a brand’s perspective, opening a storefront is a major investment that is not taken lightly. If a retailer is looking to break into a new market and is unsure of its stability or sustainability for a longterm commitment, a Pop-up is the perfect way to test the area and determine if it’s a good fit. This allows investors to make educated decisions based on concrete trial and error experiences. On the other hand, the majority of consumers are driven to shop by the desire to obtain items they want instantly. Pop-up shops create an instant buzz in the marketplace that gives a shopper a sense of urgency to get in and make purchases quickly. Because, after all, they will only be there temporarily, right?
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urban growth in this neighborhood, while it allows us to accommodate larger-scale retailers that are currently shut out of Lincoln Road,” McIlroy says. “We plan to do it in a way that combines the best of retail with the best of architectural design.”
A D ISTINC T U RBAN C ENTER
expansion. A portion of the lot will be cleared by demolishing a part of the building that faces Meridian Avenue and doesn’t contain significant architectural features. This will make room for the construction of a new three-story structure that will join the existing building, escalating in a tiered design. The façade to Lincoln will remain intact, while the new space will open to both Meridian Avenue, already a busy north-south cross street, and to Lincoln Lane North, activating that alleyway with new retail activity. The addition will be made of continuous glass walls, angled in a way that creates a prism effect which will be dramatized with nighttime lighting from inside. On 723 Lincoln Lane, a building just north of Lincoln Road and abutting Macy’s on 17th Street, two new stories will be built, creating a two-level glass-encased box that will project onto the street, in a visually striking way. “The idea was to create a space that was prominent for retailers and find a new line that was commercial, but rises above commercial to give something back to the city, something aesthetic,” Shulman says. The growth of the neighborhood into a world-class urban center needs to incorporate both commercial viability with the district’s historic beauty, says Terranova executive vice president Mindy McIlroy, who is charged with selecting the best retailers for the new space. “Expanding our buildings and opening up retail toward Lincoln Lane North and South is part of the ongoing
“With Miami ranking as the third U.S. entry point for high street retail ”
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The redeveloped Terranova buildings will fuse with the ongoing growth of Lincoln Road establishments and its neighboring streets and alleys. This spillover of retail activity – already observable in stores and restaurants just off the main street, such as CB2, Yardhouse and Yardbird – are harbingers of a distinct Lincoln Road district that is forging its character as a dense multi-focus city center containing not only shopping and dining, but also cultural, residential, educational and business activities. One block north of Lincoln Road sits the city’s New World Center, a concert facility designed by renowned architect Frank Gehry, and which replaced the Lincoln Theater where H&M is now located. Opened in January 2011, the modern concert venue which seats 756 is home to the New World Symphony and welcomed more than 44,000 attendees in fiscal year 2012-2013. The acoustics for the center were designed by world-renowned acoustician Yasuhisa Toyota, who had previously worked with Gehry in the design of the Walt Disney Concert Hall in Los Angeles. The $160 million project includes a parking garage with adjacent public recreation park that features a 7,000 square foot projection wall on which selected events are broadcast to outside strollers and onlookers. Meanwhile, the city of Miami Beach is pursuing bids for the redevelopment of its dated convention center, located just blocks from Lincoln Road, into a mixed-use convention site. Separately, the city also is requesting bids for the redevelopment of three parking lots along Lincoln Lane into mixed-use projects that will include residential uses in addition to commercial and parking.
A BRIGHT F U TU RE So what does the future for Lincoln Road look like? Moving forward with these large-scale redevelopment projects and design overhauls may have a few locals and tenants
new heights on Lincoln
alike a bit wary of the area becoming something it is not. Terranova is determined to seamlessly integrate these new flagships within the pre-established retail community. Strategically placed stores will help drive even more traffic to the area, naturally resulting in increased revenue and awareness of the district. One who is earnestly poised for the future of the district is popular Miami restaurant innovator John Kunkel, CEO of 50 Eggs Inc. and owner of Yardbird Southern Table & Bar and Khong River House, both located just off Lincoln Road. Although both locations are extremely popular dining spots, neither traffic nor rents are as high as they are right on Lincoln Road, Kunkel says. But he’s confident that will change as expansion continues to trickle outward. “I think Lincoln Road will continue to develop off the side streets, particularly where we are,” he says. “It’s an exciting time for Miami Beach and we’re glad to be a part of it.”
Terranova’s executives say that is the future they see as well, and it’s that view which is key to the company’s expansion strategy being a success. Lincoln Road is a fast changing urban enclave, and the enlargement of Terranova’s Lincoln Road inventory will be a significant catalyst to the district’s growth. Says Bittel, Terranova’s chairman: “Organic growth in an urban city is necessary in order to progress. But with that growth, it’s important for us to make smart decisions not solely based on the numbers, but also based on what is the best fit for this lively atmosphere.” From a historical high end fashion retail street to a modern, diverse, urban shopping destination garnering international attention, Lincoln Road is on pace to continue growing, further establishing a presence and reputation as the leading destination for high street retail in the Southeast.
Artist rendering of 723 Lincoln Lane North
723 Lincoln Lane North
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south florida urban street retail report
2013 edition
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Taking to the Street: Urban Retailscape in South Florida
Miracle Mile Streetscape
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ith record numbers of tourists coming to South Florida and a steady recovery in the local economy, rent and occupancy have climbed in the region’s best known retail streets over the past 18 months. Fueling the increases are new designer stores and trendy restaurants that have sprouted throughout the streetscape, which now includes some names that are new in the local retail scene. Eight of South Florida’s best known retail streets show increases in average asking rent, and most also show increases in occupancy, which in some streets is near 100%. The three streets in tourist-and local-packed Miami Beach stand out with ever higher asking rents, while streets in the more inner areas of downtown Miami and downtown West Palm Beach, though also improving, still lag behind the growth and modernization in their surroundings. In between, Miracle Mile, Las Olas Boulevard and Sunset Drive are exhibiting strong improvement and sustained improvement. Many of the new retailers opening in South Florida’s urban streets are new concepts from merchants that are either national chains or are smaller but still financially solid. This trend is elevating urban streets above the typical momand-pop store but outside the sameness of traditional malls and shopping centers. Said another way, many financially solid retailers are choosing urban street settings as a viable and desirable option to traditional mall or shopping center settings.
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For example, La Tagliatella, the Italian restaurant concept from publicly-traded European restaurant chain AmRest Holding, is opening its first Florida location on Miracle Mile. Second Time Around, a national chain of upscale consignment stores based in Boston, Mass., entered Florida with stores on Las Olas Boulevard and Sunset Drive. Popular urban restaurant chain Bar Louie opened on Clematis Street and Brother Jimmy’s BBQ opened on Sunset Drive. National frozen yogurt chain Pinkberry, hailing from California, opened on Ocean Drive, while up-and-comingdesigner store chain Intermix (bought by Gap in January for $130 million), already located on Collins, is now testing the waters on Worth Avenue with a pop-up store. Local retailer Peace Love World, which had opened a location on Sunset Drive two years ago, has opened a second location on Miracle Mile. On Lincoln Road, the trend is toward highrecognition designer and brand names, such as Armani, Fossil and John Varvatos. To be sure, although some staple national tenants exist in all of South Florida’s urban retail streets, each preserves a good
“...many financially solid retailers are choosing urban street settings as a viable and desirable option to traditional mall or shopping center settings.”
Retail Report
amount of one-of-a-kind stores and restaurants, rendering each street with its own character and setting it apart from an enclosed mall or shopping center.
Leading the Pack
Lincoln Road continues to raise the bar in rents and occupancy, its average rent spiking 33.5% in 2013. Lincoln Road benefits from Miami Beach’s international tourism, whose diverse geographical origins support a year-round tourism flow. For example, South American tourists from countries such as Peru, Chile, Brazil and Argentina typically visit during the summer, when those countries experience their winters. Canadian and U.S. tourists, on the other hand, typically visit in the winter to get away from their cold weather. The street is beginning to appeal to designers and international brands, with boutiques from Armani, John Varvatos, Fossil and Lacoste among the new retailers entering the street over the past 18 months. Existing retailers who want to expand their footprints have resorted to redevelopment, as space remains tight on Lincoln, even though it has the largest inventory of all the streets. Such redevelopment is bringing flagship locations for Gap and Spanish powerhouse Zara, which are building two-story stores, and a new space for the relocation of Apple’s existing Lincoln store, almost doubling its size. Ocean Drive and Collins Avenue, which also benefit from Miami Beach’s tourism crowds, continue on an upswing as well, their asking rents climbing 38% and 21% respectively. Vacancy Rate
Locals as much as tourists enjoy the restaurants along Ocean Drive, which remains ever tight, mostly with local, independently owned restaurants. Collins Avenue, like Lincoln Road, is a showcase for retailers to expose their brands to visiting tourists from around the world, and retail redevelopment is visible on this street, where three properties on its southern end are fenced off, poised for renewal. But some Collins Avenue retailers are seeking a location on Lincoln as well. Zara, which already has a location on Collins, and Urban Outfitters, already on Collins, are both opening new stores on Lincoln. Neither one has announced plans to close the Collins location, less than two miles south of Lincoln. If there were such a thing as a designer theme park, it might look like Worth Avenue, with its charming Mediterranean architecture and pristine landscaping. Worth Avenue has more high-end designer boutiques than any other street in the Southeast, and both occupancy and rent increased in 2013. Its stores serve its immediate surroundings in the affluent Town of Palm Beach as well as visitors who seek it out as a luxury shopping destination. But one challenge for Worth Avenue is that population is decreasing in the town of Palm Beach. Further, other venues in South Florida, such as Aventura Mall and Village of Merrick Park, have increased their amount of high-end stores, while the Design District, a mostly gritty neighborhood north of downtown Miami, is undergoing a major renovation into a high-end shopping destination, with stores from Louis Vuitton, Hermes and Cartier already open.
Submarket
Yearly Change in Rent
Avg. Asking Rent
2012
2013
2012
2013
6.2%
3.4%
Lincoln Road
33.5%
$203.34
$271.56
3.0%
0.6%
Ocean Drive
38.4%
$97.53
$135.00
4.3%
7.4%
Collins Avenue
21.4%
$88.56
$107.52
2.4%
0.9%
Worth Avenue
12.7%
$75.61
$85.22
6.2%
3.3%
Miracle Mile
17.2%
$44.60
$52.26
0.0%
0.8%
Sunset Drive
NA*
NA*
$47.00
5.3%
9.8%
Las Olas Boulevard
4.0%
$36.17
$37.62
10.1%
4.6%
Flager Street
-4.7%
$29.25
$27.87
12.2%
12.3%
Clematis Street
10.6%
$23.22
$25.67
*Sunset Drive did not have available retail space in 2012. TRENDS
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the tourists, is sustaining its gains from recent years, but has slowed its momentum over the past 18 months. Mbar and Mancini’s, two locally-owned restaurants that were expected to enliven one of the street’s key corners, have shut down after short lives, leading to an increase in Las Olas’ vacancy rate to 9.8%. To be sure, Las Olas continues to attract new restaurants, boutiques and galleries, and, despite a higher vacancy rate, average asking rent in 2013 increased 4%.
Pursuing Potential
Continued Improvement
Miracle Mile in Coral Gables also remains in an upswing, its average asking rent hiking up 17%, boosted by increased occupancy. A long-vacant space on the eastern end of the street is now slated to become BurgerFi, one of the most successful players in the popular better-burger category, while several other new restaurants have brought life to formerly empty storefronts. Coral Gables contains some of the county’s newest office buildings and is home to many of the region’s international headquarters, imbuing the city’s Central Business District with sophistication and buzzing lunchtime activity. Cultural events and fine and trendy dining characterize Coral Gables in the evening. Sunset Drive, a street that has added trendy to its neighborly character, has one of the tightest occupancies in South Florida due to its relatively small inventory. Sunset’s vibe has noticeably livened in recent years with the addition of cutting edge restaurants and bars, which have added sizzle to a street historically known for easy walking and boutique shopping. This activity has continued over the past 18 months, with four new restaurants poised to open in coming months. Las Olas Boulevard in Fort Lauderdale, which caters as much to its surrounding business population as it does to 20
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Flagler Street’s occupancy has improved over the past 18 months, its vacancy rate dropping to 4.6%, but its average asking rent decreased for its remaining spaces. While new restaurants and stores have spruced up and modernized some facades, particularly on its eastern half, Flagler Street remains in need of infrastructure improvements and more widespread renovation. The residential and commercial renaissance in its surroundings has boosted its potential, as Flagler Street now is surrounded by thousands of new condo units, hundreds of hotel rooms and new high-profile office towers. In a similar manner, Clematis Street continues an uneven improvement that is most visible toward its eastern end, while other portions of the street lag behind in renewal and vitality. The 2013 opening of Bar Louie in a long-vacant space has brought one more
Retail Report
modern establishment to Clematis, boosting the street’s profile as a lunchtime destination and night scene. Clematis Street is faring slightly better in occupancy than its submarket and its county, with a higher average rent than both, reflecting the underlying strength of many of its tenants, particularly restaurants old and new where lunch crowds are a staple.
Tourism on the Street
South Florida’s retail streets benefit from the state’s robust tourism industry, which continues to grow unabated. The state attracted 49.6 million visitors in the first half of 2013, a 4.2% increase over the same period a year before, according
to figures from VisitFlorida, the state’s tourism marketing organization. Visitor spending in Florida from January 2013 through May 2013 totaled $33.2 billion, a 5.5% increase from the same period on 2012. South Florida accounts for a large portion of tourism activity, the three counties totaling 31 million tourist in 2012. By county, Miami-Dade County counted 14 million visitors in 2012, Broward County 12 million, and Palm Beach County nearly 5 million, according to figures from each county’s convention and visitors bureau. Visitors to South Florida are drawn to the region’s beaches, golf courses, shopping, and increasingly, to its cultural events. The South Beach Food and Wine Festival is a nationallyrenowned showcase of chefs and culinary personalities, attracted 60,000 guests in 2012; Art Basel, an annual international five-day art fair composed of about two dozen art shows throughout different Miami and Miami Beach venues, drew 50,000 art aficionados from throughout the world in 2012; and the Ultra Music Festival, an outdoor electronic music festival that boasts the world’s most renowned DJs, drew about 165,000 attendees in 2012. Miami-Dade’s Convention and Visitors Bureau is the only one of the three bureaus that tracks visitors to specific TRENDS
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Retail Report
“The Design District, an inner-city area north of downtown Miami, is undergoing a wave of redevelopment by a multi-property owner, who plans to transform the neighborhood into an upscale retail destination with more than 500,000 square feet of retail...�
destinations within the county: An estimated 6.4 million tourists visited Lincoln Road in 2012, and some 3.6 million tourists visited Coral Gables (where Miracle Mile is located), higher than the number of tourists visiting well-known shopping destinations such as Dadeland Mall, Dolphin Mall and Bal Harbour Shops.
Challenges and Rewards
Unlike traditional shopping centers, urban street retail involves multiple owners, older construction, and municipal control over parking and traffic rules, thus presenting block-to-block and even building-to-building inconsistency in upkeep and appearance. Their owners have to rely on local government to optimize parking, common area appearance and traffic flow. But as local governments increasingly recognize and embrace the value and appeal of original retail street destinations, the streets’ performances frequently surpass that of traditional shopping centers in their submarkets.
Retailers increasingly are getting over apprehensions about the unorthodox store layouts found in street buildings, as they perceive the market opportunities in street locations, which are the original mixed-use, live-work-play settings now emulated by many new developments. Retail street landlords face the challenge of balancing the need for financially strong, national tenants that are able to afford rising rents, with the appeal of unique local tenants that give the street a homegrown, local character.
New Construction
New urban retail development is on the horizon in MiamiDade County, as developers detect interest from retailers seeking entry and expansion in the South Florida market. The Design District, an inner-city area north of downtown Miami, is undergoing a wave of redevelopment by a multiproperty owner, who plans to transform the neighborhood into an upscale retail destination with more than 500,000
Las Olas Blvd
Skyline Downtown Miami
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Retail Report
rent & vacancy in street retail space v. shopping center space
square feet of retail covering a multi-block area from North Miami Avenue to NE Second Avenue, between Northwest 38th and 42nd Streets. The project is highly ambitious because much of the area and its immediate surroundings remain in rough condition, and this pocket of the city of Miami doesn’t contain any other major crowd attractions such as beach or golf resorts or employment centers. Nonetheless, high-end retailers Louis Vuitton, Hermes, Cartier and other similar designer brands have taken the plunge, while the jury is still out whether the transformation will be successful. Also capitalizing on urban renaissance is Brickell CitiCentre, a mixed-used project by Swire Properties, and which has broken ground on a multi-block site just south of downtown Miami, amid the flourishing Brickell Avenue neighborhood. The project will include more than 500,000 square feet of retail space and an underground parking garage, but tenants haven’t been announced yet as of the writing of this report. The project will serve the burgeoning urban residential base in downtown Miami and the Brickell area, but its design
involves the construction of a mall, rather than the creation or redevelopment of an urban retail street. Metropolitan Miami, a high-rise, mixed-use project dominated by office, hotel and residential space, is under construction on a three-block site in downtown Miami’s central business district. The retail and entertainment component consists of a Whole Foods store of 37,000, projected to open in the first half of 2014, and on a separate building in the same complex, a retail block with a 12-screen Silverspot Cinema and two restaurants is slated to open by the end of 2014. While these new projects will expand options for retailers and consumers in South Florida, the original urban retail streets that have survived the test of time harbor a unique shopping experience that no developer has been able to duplicate. Urban retail streets embody city history, contain some of its better known landmarks, and provide an element of authentic community life to the shopping experience.
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STREET ANALYSIS: 1) LINCOLN ROAD
Lincoln Road’s rents continued to climb in 2013, as vacancy dropped to 3.5%, from 6.2% in 2012. Average asking net rent of $272 in 2013 is 33.5% higher than $203 in 2012. A wave of new international retail brands have opened over the past year, including Armani, Lacoste, Tesla, Fossil, John Varvatos and G-Star Raw, while popular Spanish retailer Zara is entering the street with a new flagship store on the 400 block, and Apple is planning a larger store of nearly 10,000 square feet on the 1000 block. Lincoln Road continues to enjoy a heightened momentum that began in 2010, when the pedestrian stretch of Lincoln was extended one more block west, and the 1111 Lincoln garage-and-retail was completed. The redevelopment of the old Lincoln Theater followed in 2012, including a signature store for H&M, now open and drawing crowds.
REDEVELOPMENTS, ADDITIONS, RENOVATIONS: • Spanish retailer Zara will open a flagship 2-story store in redeveloped space at 400-412 Lincoln, where Samy Style and Swiss Maker once were located. • Gap is redeveloping its space at 1001 Lincoln into a flagship 2-story, 28,089 square foot signature location that will include 3,865 square, said to be a future Athleta store.
601-B Lincoln. 16 Handles Frozen, a frozen yogurt shop, will replace Source Paris at 665 Lincoln. Superdry Store, a British fashion retail chain, replaced Fly Boutique and Soprano Café at 646-650 Lincoln. Desigual, a colorful fashion retail chain hailing from Barcelona, Spain, opened at 630 Lincoln. Giant Dutch clothing retailer G-Star Raw replaced Optical Shop of Aspen at 509 Lincoln. Women’s clothing retailer Pocco Paradiso replaced Stage at 441 Lincoln. Onda de Mar replaced Alchemist at 438 Lincoln.
2) COLLINS AVENUE
The closing of one store and the addition of new retail space through the redevelopment of an existing building increased the vacancy rate on this stretch of Collins Avenue to 7.4% in 2013, up from 4.3% in 2012. The higher vacancy rate signals transition and renovation on Collins, rather than a softening of demand. The street’s market strength is apparent in a 21% increase in average asking rent, from $89 in 2012 to $128 in 2013. Two additional sites appear fenced off for redevelopment, although work hasn’t begun on the projects. Collins Avenue is the least pedestrian-friendly of all the streets, but it feeds off the walking traffic from Ocean Drive, which is only one block east.
• Urban Outfitters and American Eagle will be opening new stores in the redeveloped space of the former Brownes & Co. Apothecary at 841 Lincoln. • Apple is pursuing approval to demolish the 1021-1025 Lincoln building to build a new larger store where it would relocate its existing store at 738 Lincoln.
Tenant Moves: AJ/Armani Jeans replaced Geox at 741 Lincoln. Custo Barcelona opened at 1106 Lincoln. Lacoste opened at 1026 Lincoln, in a former French Connection space. Tesla opened at 511 Lincoln. French Connection moved to 643 Lincoln, replacing Envy. John Varvatos Bowery opened at 1018 Lincoln, replacing Nest. Urban Outfitters and American Eagle will open in the former Brownes & Co. Apothecary space at 841 Lincoln Road, while Brazilian retailer Havaianas will replace Teno at 831 Lincoln. Fossil opened at 836 Lincoln, replacing Post Blue Jeans Co. Timeless Cosmetics opened at 947 Lincoln, replacing Swatch, which relocated to 551 Lincoln. Carel Gallery closed at 922 Lincoln. Brazilian shoemaker Melissa Shoes opened a pop-up store in the former Camille & Lucie space 830 Lincoln Road. Lush, a retailer of handmade soaps and cosmetics, opened at TRENDS
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• A residential building at 825 Collins seems slated for redevelopment into retail, but plans appear to be on hold. • Walgreens is building a new store on the NWC of Collins Ave. and 14th Street.
Tenant Moves: Zingara Swimwear, will replace Taleese at 530 Collins. Puma closed at 820 Collins.
3) OCEAN DRIVE
Ocean Drive remains a high occupancy stretch lined with hotels and condo buildings whose ground-floor cafes and restaurants spill over the sidewalk, along which a steady stream of tourists and locals parade daily. Restaurants dominate this street, with some fashion and art stores speckled in between. Occupancy in 2013 is practically 100% north of Fifth Street, with one single space of less than 1,000 square feet currently in the market. Long-standing establishments include News Cafe, the Clevelander, and Lario’s on the Beach, which is undergoing renovation.
REDEVELOPMENTS, ADDITIONS, RENOVATIONS: • The historic coral building on the NWC of Collins Ave. and Ninth Street is being redeveloped into a two-story retail building with 4,814 square feet on the ground floor. The project is preserving the building’s coral façade. • A retail project called The Vitrine has been proposed at 909 Collins Ave., formerly a multi-family structure. The project seems to be on hold, but plans submitted with the city propose partial demolition and renovation of the two-story building into a split level retail building.
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Tenant Moves: 530 Ocean’s Grill replaced Maya Tapas and Grill at 530 Ocean Drive. Lario’s on the Beach opened a pop-up location at 1300 Ocean Drive, while its permanent location at 820 Ocean Drive is undergoing renovations. La Baguette opened at 1060 Ocean Drive. Pinkberry Frozen Yogurt opened at 1144 Ocean Drive. Fashion retailer Gallery replaced Gallery Déjà vu at 1390 Ocean Drive. Café Venue opened at 1330 Ocean Drive. Il Bolognese opened at 1400 Ocean Drive. 1410 Ocean Café replaced Fresco Trattoria at 1410 Ocean Drive. SoBe Sports Bar replaced Buffalo Wings & Rings at 1500 Ocean Drive. DEMOGRAPHICS: Lincoln Road, Collins Avenue and Ocean Drive are in the North Miami/Beaches submarket. This submarket has an estimated 2013 population of 229,417. The population is 40% Hispanic and 31% African American. Median age is 41 and average household income is $63,412. Population growth in this submarket was 3% between 2010 and 2013, and is projected to gain 5% in the next five years. Daytime population in this submarket is estimated at 113,880.
4) SUNSET DRIVE
5) MIRACLE MILE
Tenant Moves: Brother Jimmy’s BBQ is slated to open in the former Dan Marino’s space in Shops at Sunset Place, 5701 Sunset Drive. Sip, a tapas and sushi restaurant and bar, replaced Fresh Dash Frozen Yogurt at 5845 Sunset. Buns & Buns, a bakery, restaurant and bar, will replace OMG! Burger at 5748 Sunset Drive. Temple, a quick-service organic food and beverage restaurant, is proposed at 5831 Sunset, on the site of the former Beverlee Kagan Antique Jewelry space. A Mediterranean food restaurant is proposed at 5864 Sunset Drive, now occupied by the Jorge Hulian Gallery. Second Time Around, an upscale consignment store, opened at 5770 Sunset Drive. Respice Independent Republic, a boutique of uniquely designed accessories and lifestyle items, replaced Aurum Collections at 5760 Sunset Drive. Blue Fish Sport, a clothing boutique, opened at 5738 Sunset Drive. Argentinian deli/bakery Patagonia (aka Nahuen) closed at 5861 Sunset Drive, after a brief metamorphosis as Fin, a white tablecloth restaurant.
Tenant Moves: Le Macaron a will replace Jamba Juice at 208 Miracle Mile. Men’s fashion retailer Bogosse opened a pop-up store at 204 Miracle Mile. Burger Fi will open at 136 Miracle Mile. Bellmont Bakery and Restaurant will replace Leather World at 339 Miracle Mile. (Leather World had relocated to 127 Miracle Mile.) La Tagliatella Restaurant will open at 301 Miracle Mile, in the former Campaniello Design Collections space. 345 Caffe Italiano will replace Dog Bar at 259 Miracle Mile. Aire, a bridal boutique, opened at 361 Miracle Mile. French-Venezuelan restaurant Mesa opened at 264 Miracle Mile by the same owner of the previous tenant, Charlotte Bistro. Panzerotti’s Cucina Italiana will replace Copas y Tapas at 94 Miracle Mile. Le Petit Café replaced French Café Rendevouz at 92 Miracle Mile. Baklava Coffee opened in the former Carolina Boulton Couture space at 90 Miracle Mile. Khirei Med Spa opened at 349 Miracle Mile, replacing Sheryl’s Floral Gallery. Fast Weight Loss replaced Home Run Real Estate at 347 Miracle Mile. Bridal boutique Merlili opened at 356 Miracle Mile, replacing maternity clothing store Olian. Bijou Bridal and Special Occasion opened at 340 Miracle Mile, replacing Priscilla’s of
Sunset Drive has one of tightest occupancies, and many of its jewelry, fashion and beauty tenants are long-standing merchants that give the street a stable, neighborly character. Spicing it up is a smattering of new restaurants, bakeries, cafes and bars opened in recent years on Sunset and its surroundings, noticeably increasing nighttime activity with beer tasting, gourmet dining, tapas munching and people watching. In 2013, two new restaurants are proposed on recently vacated spaces, while a long-vacant space on the ground floor of Shops at Sunset Place soon will open as a barbecue restaurant. A portion of Shops at Sunset Place center has been converted to office space, but the three-story center anchored by AMC Movie Theaters retains a retail character that widens choices and provides a hang-out place for the younger set and families with children.
Increased occupancy on Miracle Mile is pushing up 2013 asking net rent to an average of $52.96 per square foot, up 17% from $44.60 a year before. A wave of new restaurants and boutiques has lowered the vacancy rate to 4.3%, down from 6.2% in 2012. The street is preserving its character as a destination for special-occasion fashion and gifts, while new trendy restaurants and cafes have boosted its profile as a go-to street for lunch and dinner. The landmark Miracle Theater is undergoing a façade renovation that will restore the marquee to its original look, as well as restore the theater’s ticket kiosk and poster cases on the outside lobby area.
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Retail Report
6) LAS OLAS BOULEVARD
Boston. Fashion boutique Bloom opened at 293 Miracle Mile. Victoria’s Design re-opened as a bridal boutique at 241 Miracle Las Olas’ average asking net rent climbed 4% to $37.62 Mile. Peace Love World, a boutique of locally-designed sports in 2013, but vacancy also increased to 9.8%, compared to and casual clothing, opened at 225 Miracle Mile. Doperdoll, 5.3% in 2012, as several establishments closed, including a hair care and skin care retailer, replaced DeLeon Fine Art at Mbar, and a proposed Mancini’s in adjoining space, 219 Miracle Mile. which never opened. Argentinian deli By contrast, new Patagonia, at 244 local art galleries and “By contrast, new local art galleries and clothing Miracle Mile, has clothing boutiques been renamed boutiques opened over the past year, continuing Las opened over the past Nahuen. A beauty year, continuing Olas’ character as a destination for unique finds.” spa will open in the Las Olas’ character former Countrywide as a destination Bank space at 67 for unique finds. Miracle Mile. Marce Although Chico’s and Sunglass Hut are found here, Las Men’s Couture opened at 86 Miracle Mile. Imagine, an events Olas has a minimal presence of national chains, making planning firm, opened at 80 Miracle Mile. Pasha’s and Chilorios it an authentic Fort Lauderdale shopping and dining closed at 130 Miracle Mile. experience. The street added two new restaurants to its
DEMOGRAPHICS: Miracle Mile and Sunset Drive are in the South Miami submarket. This submarket has an estimated 2013 population of 332,814. The population is 72% Hispanic and 6% African American. Median age is 44, and average household income is $69,890. Population in this submarket grew 5% between 2010 and 2013, and is projected to grow another 7% in the next five years. Daytime population is this submarket is 234,030.
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set of eateries, which includes long-established local landmark the Floridian Restaurant.
Tenant Moves: Daniel Antiques replaced Hamilton Gallery at 615 E. Las Olas. Elektrik Boutique replaced Cosy Life Collection at 619 E. Las Olas. Clothing boutique 701 Store replaced Lyca Blue at 701 E. Las Olas. Fashion boutique Anamá replaced Saba Gallery at 702 E. Las Olas. Wild Sea Oyster Bar & Grill opened at 620 E. Las Olas, on the ground floor of the Riverside Hotel.
Havana Republic Cigars replaced Underwraps Lingerie at 610 E. Las Olas. Oggi Murano Gallery replaced Optimystik Eyewear at 803 E. Las Olas. Voodka Brasserie opened at 817 E. Las Olas. Roehr Nature & Science, a pharmacy, opened at 1015 E. Las Olas. St. Tropez Bistro closed at 1010 E. Las Olas. Bettie Page by Tatyana replaced Mike Fina Arts at 1016 E. Las Olas. Jamali Gallery opened at 1018 E. Las Olas. Flora Ottimer Children’s Boutique relocated to the Galleria Mall, closing its store at 1034 E. Las Olas. Kensington & Company relocated from 1121 to 1038 E. Las Olas, where it replaced Shakoload Chocolate Factory. Elaine North Asid Design Studio opened in the former Kensington space. Mediterranean Market closed at 1021 E. Las Olas. Bass Realty and Investments replaced Las Olas Brokers Group at 1117 E. Las Olas. Hair Couture on Las Olas replaced Veloce at 1233 E. Las Olas. Dr. Phone Fix replaced Myra Designs at 1261 E. Las Olas. M Bar closed at 1301 E. Las Olas. Brooklyn Italian Ice opened at 1306 E. Las Olas. Azure Home replaced Hibiscus Place Emporium at 1406 E. Las Olas. Sophy Curson closed at 1508 E. Las Olas.
DEMOGRAPHICS: Las Olas Boulevard is in the Dania/So. Fort Lauderdale submarket. This submarket has an estimated 2013 population of 116,186 and is projected to grow 2.7% over the next five years. The population is 22% African American and 18% Hispanic. This submarket is one of the few that showed an increase in average household income, estimated in 2013 at $71,641, higher than $69,213 in 2012 and $70,835 in 2011.
Median age is 42. Daytime population is 111,505. Population in this submarket grew 1.6% between 2010 and 2013.
7) CLEMATIS STREET
Speckles of new energy are visible on Clematis with the opening of several new restaurants, but the street remains a mixed-bag of activity that varies from block to block, if not from door to door. Two new restaurants that opened last year – including popular chain Five Guys Burgers and Fries -- are being replaced with new tenants, and the south side of the 500 block remains largely unoccupied. Still, average asking rent increased 10.6% to $25.67, with vacancy of 12.3% virtually flat from a year before.
Tenant Moves: Long established JC Harris Co. Clothing, a fixture at 333 Clematis, closed its doors for good after 100 years in business. The building is said to be slated for a redevelopment that would include a hotel, but plans haven’t been disclosed. Bar Louie opened at 200 Clematis. J Flynn’s Irish Pub will replace Reef Road and Rum Bar at 223 Clematis. Oli’s Fashion Cuisine replaced Fuku at 215 Clematis. Taco Vida replaced Five Guys Burger and Fries at 107 Clematis. The Chick Pea Grill & Hummus Bar opened at 400-D Clematis. Field of Greens opened at 412 Clematis. Center City Pharmacy at 420 Clematis will be relocating and expanding two doors down at 416 Clematis, the former site of Leapin Lizards. Best Darn
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Frederics opened at 311 Worth Ave. Art gallery Zaras relocated from 334 to 333 Worth Ave.
Kettlecorn, a gourmet pop corn store, replaced Lois Brezinski Artworks at 527 Clematis. Palm Beach Stitch, an embroidery, monograms and engraving store, replaced Union of Angels at 537 Clematis.
DEMOGRAPHICS: Clematis Street is in the West Palm Beach submarket. This submarket has an estimated 2013 population of 267,786, and is projected to grow 5% in the next five years. The population is 33% African American and 18% Hispanic. Median age is 41 and average household income is $65,978, lower than $69,480 in 2011. Daytime population is 186,292. Population in this submarket has grown nearly 3% since 2010.
8) WORTH AVENUE
High-end designer name boutiques, galleries and jewelry stores define Worth Avenue, considered the Rodeo Drive of the South. Despite some turnover, the vacancy rate of 1% on street-fronting spaces is at an all-time low, while average asking net rent increased to $85.22, up 12.7% from $75.61 a year before. Worth Avenue is anchored by Neiman Marcus and Saks Fifth Avenue on its east end, and contains the only street-level Tiffany store in South Florida. Other tenants include Escada, Ferragamo, Gucci and Valentino.
Tenant Moves: Yacht manufacturer Ferretti Group opened an office at 110 Worth Ave. Herve Leger replaced BCBG Max Azria at 206 Worth Ave. Up-and-coming designers store chain Intermix opened a pop-up store at 218 Worth Ave., formerly occupied by Luca Luca. Peggy Daven relocated from 226-B to 250 Worth Ave. Island Company replaced St. John at 256 Worth Ave. Gregory James Jewelry replaced The Worth Collection at 209 Worth Ave. Italian luxury clothier Brioni will replace Badgley Mishka at 251 Worth Ave. Aqua Beachwear replaced Dokkim at 319 Worth Ave. Luxury eyewear maker Morgenthal 30
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Tenant Moves: Worth Avenue, located in the island of Town of Palm Beach, technically falls in the West Palm Beach submarket, the same as Clematis Street. However, its high-end merchants target its immediate trade area on the island itself, as well as high-income visitors from outside. Population on the island in 2013 is 8,263, with a median age of 68. Average household income in the Town of Palm Beach is $172,469. The population is 4% Hispanic and less than 1% African American. Daytime population is 11,849. Population on the island decreased 15% between 2000 and 2013, and is projected to decrease less than 1% in the next five years.
9) FLAGLER STREET
Momentum has stalled on Flagler Street, after a speckling of modern restaurants and stores in the past five years began modernizing the original Main Street of downtown Miami. Those establishments still pepper the street and a few new ones have opened, but Flagler’s makeover and revival is proceeding much slower than the residential, commercial and cultural renaissance enveloping its surroundings. Vacancy in 2013 has dropped to 4.6%, compared to 10% in 2012, but average asking rent of $27.87 is nearly 5% lower than $29.25 in 2012.
Tenant Moves: Mindy Wu Asian Bistro opened at 175 W. Flagler. Beit Burger, a kosher burger restaurant, opened at 16 W. Flagler. Mixtura Peruvian Fusion will be opening at 22 E. Flagler. E-Bikes will replace Ely-M Jewelry at 48 E. Flagler. Ely-M is relocating to the second floor of the Seybold Building at 33 E. Flagler. Steps Outlet replaced Simply Fashion at 63 E. Flagler. Pizzarium opened at 69 E. Flagler. 7-Eleven opened a second store on Flagler in downtown Miami, replacing Bakers Shoes at 114 E. Flagler. Lost Boy Dry Goods, a jean store by the owners of long-standing Flagler tenant La Epoca, is opening at 157 E. Flagler. Voom Voom Outlet Shoes opened at 231 E. Flagler. A new restaurant concept called Imperia is slated to open at 50 Biscayne Blvd, replacing its two previous tenants, Safi (which had replaced Mia) and Damn Good.
Retail Report
SURVEY PARAMETERS This is the 4th annual Terranova report on South Florida street retail, based on a two-phase survey of all retail space in nine recognized retail streets. A field survey and phone survey were completed in August 2013. Average rents are asking net rents on available space or recently leased space. Total inventory includes the gross leaseable area on the ground floor only.
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word ‘round town W h at th e masses are saying about Lin c o l n Ro ad… “It’s a one-stop destination. One can shop, eat and get pampered in place.”
“The heart of South Beach.” - John Kunkel | CEO of 50 Eggs Inc.
- Maria T. | Freelance Writer for Miami Herald and Ocean Drive Magazine
“As a Miami native, the atmosphere is really what I love most about Lincoln Road. Despite being a tourist spot it is still really laid back.”
“The must-go, must-have destination where you can really find everything from good retail, to good food, to good entertainment.”
- Lauren G. | International Shoe Distributor
- Michelle Levy | CEO of Melissa Shoes
“Watching a movie, having a nice lunch and shopping are our favorite past time at the mall. It’s such a good location to unwind.” - Karla G. | Event Photographer
“I love the energy – one of the last great pedestrian streets in America.” - John Varvatos | Fashion Designer Ocean Drive Magazine – 2013
“If I have a craving for something New York here in sunny South Beach, I just have to go to Lincoln Road mall.”
“It’s the epitome of what South Beach encompasses. Vibrant individuals make up its geography while dining and doing some major damage to their Visa’s.”
- Mary P. | Yelp reviewer
- Nycole S. | Miami Native
“Lincoln Road encompasses Miami in one street. The outdoor shopping, chic dining, and bustling atmosphere draw you in.” - Nicholl V. | Fashion Blogger
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coral gables・south miami・kendall・palmetto bay brickell・UM・FIU・MIA・whole foods markets
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chicvibe a e u rop ean c a f e, a f ashi on b ou ti q u e, a wine bar. . . w h ere else b u t the g ab les
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MINDY McILROY, in her seventeenth year with Terranova, serves as the firms Executive Vice President, overseeing leasing, marketing and new business development for the company’s retail portfolio. McIlroy is an Executive Board Member of the Coral Gables Business Improvement District (BID), a member of the International Council of Shopping Centers (ICSC) and a founding Board Member of the Lincoln Road Property Owners Association (LRPOA.)
“Miracle Mile has always been one of those places that really drew me in when I first came to South Florida. I saw so much potential not being utilized, so I’m thrilled to be a part of its growth and transformation into a destination district.”
M
iracle Mile is the original Main Street of Coral Gables, an affluent city that has been defined by its superior aesthetics, sophisticated urban culture and optimal location. Stacked with every category across the shopping, dining, and business spectrum, it’s no wonder locals and visitors alike are taking notice of the chic district. Miracle Mile’s historical reputation coined the concourse as the first stroll-and-shop street in Miami-Dade County. It totals 440,886 square feet of ground-level boutiques, restaurants and cafes along both sides of four tree-lined blocks. The infusion and progression of these businesses has allowed Miracle Mile to remain one of South Florida’s most popular pedestrian locations.
TH E P E O PL E Envision: the stylish shopper, the educated account executive, the food enthusiast, all strolling the streets of Miracle Mile in search of their muse. The combination of trendy dining options and business opportunities makes the district a prime hot-stop for savvy shoppers on the hunt. An estimated 246,883 people reside within the surrounding 3 miles, a population projected to grow an impressive 5.2% in the next five years. Within this radius is the most affluent portion of Miracle Mile’s trade area, consisting of residents living within the City of Coral Gables itself. This is an estimated population of 49,110 people with an average household income of $125,899 and a median home value of $459,411.
In addition to locals in the immediate area, corporate offices draw a large, affluent international business crowd. That’s what attracted Alina Villasanta, Designer and CEO of locally launched brand Peace Love World. “It’s a unique blend of customers that are not only residents but also a lot of international business travelers,” said Villasanta, whose growing brand includes store locations in Hong Kong, along with another five in South Florida. “As a matter of fact, we have made some very significant relationships with international distributors and customers because of the Miracle Mile location and visibility. It is not only a retail location, it is also a window to the world.”
THE T HE SCEN E A thriving metropolitan business district, the streets of Miracle Mile naturally draw a large daytime crowd with business executives spilling into the surrounding restaurants on their lunch break. However, it is quickly becoming a respectable dining destination for evenings and weekends as well. This growth is due, in large, thanks to restaurant entrepreneurs like John Kunkel of 50 Eggs Inc. and Abe Ng of Sushi Maki for establishing their forward thinking culinary endeavors in the area. When speaking about Miracle Mile and its surroundings, Ng, who has owned his flagship location in the Gables for about 14 years, states “It’s an exciting central business district that’s evolving from a multi-generational bridal-store destination to a more diverse mix of shops and dining.” TRENDS
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Terranova Corp couldn’t agree more, McIlroy states, “We see the coming years as the time for Miracle Mile to really come out of its shell and flourish, not just as a well-known bridal district, but as an overall retail and dining destination. There’s so much potential that hasn’t been fully utilized up until now.” Aside from eclectic dining, downtown Coral Gables and Miracle Mile offers an upscale selection of unique boutiques and specialty stores including Peace Love World and Blush Boutique. Shoppers can score everything, from the latest in designer fashions and fine jewelry, to accessories and menswear, but there’s plenty of room for growth. Surrounded by upwards of 70 food options, Villasanta says, “Miracle Mile has been known for its bridal businesses, but it needs more fashion forward brands to sit alongside the fabulous restaurants that are already there. The consumer is starving for it! Already having the art galleries and restaurants, I believe a little more fashion would make it a destination for the entire weekend.” Cattiva Boutique is the newest high-end retailer slated to join the marketplace within the coming weeks, but current tenants, like Peace Love World, have no doubt there will be more fitting additions to come.
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while the inventory is playing catch up. Says Villasanta of Peace Love World: “There are new restaurants (popping up) that are very much in alignment with our brand, their customers are shopping in our store and buying our products. This is why I believe the (Miracle Mile) consumer is looking for more variety in their retail shopping experience.”
The Business Improvement District (BID) of Coral Gables has been a huge driving force behind the growth and expansion in and around the area. BID’s efforts, in combination with Terranova Corp., have recently driven occupancy rates down to 4.3% - the lowest it’s been in almost a decade. According to their website, BID’s “Miracle Mile offers an upscale selection of unique Through support of mission is to “proboutiques and specialty stores including Peace Love residents, current busimote commercial ness owners and local World and Blush Boutique. Shoppers can score vitality to Miracle Mile and Downtown everything, from the latest in designer fashions and fine government agencies, Miracle Mile is setting Coral Gables, and jewelry, to accessories and menswear, but there’s plenty the stage for its next to act as a stratephase. An area previgic catalyst for the of room for growth.” ously driven by blushoverall improvement ing brides in search of their perfect day accessories has since of the area. Through the implementation of marketing and turned into a business entrepreneur’s blueprint and savvy advertising programs, and engagement in the form of adconsumer’s retail playground. vocacy, this collective organization of property owners and merchants position Downtown Coral Gables as a desirable place to shop, dine, play, live and do business.” Seems they’ve done just that according to Abe Ng, “The (city) government is very pro-business and encourages creative enterprises now more than ever. There’s a lot of really great support of small businesses in the area to attract young entrepreneurs.” The foundation has been set with countless restaurants that have already established an abundant amount of foot traffic, what’s left is the addition of local and international brands to capitalize on the growing market. The capital is there,
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TREND SETTER ShopCoralGables.com 40
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This is your look, your sparkle and shine, your impulse to accessorize. Be an eye for fashion. Be on the edge. Be chic. Be you. Visit Downtown Coral Gables and Miracle Mile, where you’ll find more than 170 shops and boutiques to cater to your style.
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top ten restaurants in coral gables By Emily Codik as published by Miami New Times Best of Miami Blog, Thu., Sep. 19 2013 at 9:00 AM
I f Cora l Ga bles were a p o p star , i t w o ul d b e Ju stin Timber lake post -F ut ureS e x /Love S o unds. Y o u st ill dig the ‘90s man : Br i l l o -cur l ed h a i r , f rosted t i ps, and the damn se x i est deni m o ut f i t i n h i story . B ut you also love his ne w , s l eek sound . This city has evolved too. It once catered to law firm types and diners who couldn’t pick Kim Kardashian from a lineup. Now, Coral Gables heralds a cool era of dining. There are cocktails, funky foods, and young chefs. What follows are the top ten restaurants in the area, a mix of the old and new.
10. Gusto Fino There are sandwiches, and then there’s Gusto Fino’s Pork Five-O ($8.95) -- a ridiculously rich sammie stuffed with sliced pork tenderloin, mushrooms, mozzarella, and pancetta. Sure, lighter items also appear on the menu: soup, capresa, carpaccio, and antipasto. But don’t let the greenery stop you from ordering this lunch spot’s famous meatball sub, a heaping mass of beef, pomodoro, and pecorino cheese. It’ll make your sandwich-lovin’, beef-crazed heart go pitter-patter.
8. Ortanique on the Mile Ortanique on the Mile has been around almost longer than Justin Bieber has been alive. So, yeah, things stay pretty classy over there. You can order the lemon-roasted caesar salad or some baked Brie. But know this: Chef Cindy Hutson is known for her tropical cooking. Sample some fried yuca, coffee-crusted steaks, and jerked cornish hens ($26). Relish in Coral Gables’ swanky Caribbean eats.
7. Bulla Gastrobar
9. Su-Shin Izakaya Warning: Su-Shin Izakaya will not refund your money if your meal was different from what you expected. In other words, take your platáno-maduro-sushi-loving culosomewhere else. (Seriously, this disclaimer appears on the front page of its website.) At this Aragon Avenue spot, follow the lead of its regulars. Try the specials or whatever looks good on the chalkboard menu: stir-fried garlic beef ($8.95), grilled squid, or fish collar. Eat up. Don’t even think of asking for your money back. 42
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Let’s put this in terms Miamians can easily understand: Bulla is Por Fin but with a tummy tuck and a little face-lift. Por Fin was once fancy, traditional, and conservative. But earlier this year, it changed its name and concept. Today, Bulla has creative cocktails, cool vibes, and a young crowd. Go for the croquetas de jamón ($9); stay for many, many glasses ofsangría de cerveza.
6. Palme D’Or Does Palme D’Or deserve a higher spot on this list? Perhaps. But recently, things changed at this critically acclaimed restaurant. After 13 years, noted chef Philippe Ruiz exited the kitchen. In August, Gregory Pugin took the helm. So, will Pugin rock it? It’s likely. But it’s still too soon to tell. Palme D’Or snagged a spot on this list because of what it once was. We’ll have to see what it’ll become.
5. Frenchie’s Diner Let’s get one thing straight: The croque-monsieur at Frenchie’s Diner is one of the most delicious lunches in town. Sure, the family-run spot churns out delectable duck confit, escargots, and moules-frites. But it’s this béchamel-smothered creation that’ll keep you coming back. So take a lunch break one of these days. Tell your friends you’re just popping out for a quick salad. Then stuff your face with this ham-stuffed sandwich -- a decadent creation crowned with blistered, bubbly Gruyère ($12). It’ll do you good -- promise.
3. Swine Southern Table & Bar Pork in your drink? Try the bacon-washed whiskey. Pork in your supper? Choose from Swine Southern Table & Bar’s whole hog, bacon, loin, or shoulder. Pork in your sweets? Treat yourself to the sticky bun, a dish garnished with candied smoked bacon. If you don’t like Swine, you can’t possibly be from Miami. This is the city of la caja china, chicharrón, and pan con lechón. So kudos to Swine! Because little will ever trump a meal of pork on pork on pork.
2. Eating House Eating House’s menu has a whole lot of quotation marks. The “dirt cup”? It’s not really a dirt cup. The “fried rice”? It’s fussier than what you get from your favorite Chinese delivery place. You see, chef Giorgio Rapicavoli has made a name for himself by selling Tang mimosas ($5), Cap’n Crunch pancakes ($13), and some funny concoction dubbed “foie-ffles.” Two cheers for his sense of humor. And three cheers for his badass kicks.
1. Pascal’s on Ponce 4. Xixón Spanish Cuisine You look like you need some Spanish meatballs -- tender orbs of beef bedaubed with tomato sauce. Or maybe you crave black rice, its grains coated in squid ink and topped with seafood. Xixón isn’t just a restaurant on Coral Way; it’s a Miami institution. Head over and obey tradition: You must drink red wine, eat mucho jamón, and learn to love the funky flavors of boquerones and salted cod.
OK, OK. We know. Pascal’s is kind of fusty, its tables festooned with roses and its walls lined with sconces. But while other chefs obsess over foams and 64-degree eggs, Pascal Oudin sticks to what he knows: cheese soufflé, duck terrine, and olive-oil-poached fish. Classic French, independently owned restaurants are a rarity in this novelty-obsessed town. For that, and his unrelenting permanence, we award Oudin the number one spot. TRENDS
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