A new report from Marcus & Millichap indicates that the end of brick-and-mortar retail is not dead in South Florida. More than 2.8 million sq ft of retail space is projected to be delivered this year with Miami-Dade County expected to top 1.8 million sq ft alone. The report suggests that retail demand will continue to remain strong in South Florida as the local unemployment rate remains low and travelers recognize the region as a haven for luxury shopping. Vacancy rates for retail are projected to be 4.2 percent in Miami-Dade County, 3.4 percent in Broward County, and 3.8 percent in Palm Beach County. Rents are also expected to increase to $37.40 per sq ft in Miami (4.9 percent y-o-y), $22.50 sq ft in Fort Lauderdale (2.8 percent y-o-y), and $24.65 per sq ft in West Palm Beach (6.5 percent y-o-y). Demand was greatest in the Miami Airport submarket, where net absorption totaled 491,000 sq ft, followed by Aventura with a net absorption of 317,000 sq ft.
