NAI Alliance and NAI Miami | Fort Lauderdale Success in Securing 10-Year Lease

Miami, FL – 11 December 2023 Edward Schmidt, SIOR, CCIM, Co-Chairman of NAI Miami | Fort Lauderdale, and Brian Armon SIOR, CCIM, Senior Vice President/Principal of NAI Alliance based in Reno, Nevada, successfully represented Cleaner’s Supply, the world’s largest supplier of dry-cleaning products, in a 10-year, 78,000-SF office space lease in Sparks, Nevada.

“This collaboration illustrates the strength of NAI’s network, which spans across regions and specialties, providing value-driven solutions and maximizing opportunities for our clients,” said Schmidt.

Cleaner’s Supply is the world’s largest supplier of dry-cleaning products. With over 28,000 products and world-class customer service, they are committed to making the customer’s job easier. Plus, they are strategically located on the east and west coast with distribution centers in Conklin, NY, and Reno, NV allowing them to quickly get orders out and delivered.

About NAI Miami | Fort Lauderdale
Headquartered in the Dadeland Area of Miami, with additional offices in the Doral/Airport area, Downtown Coral Gables, and Downtown Fort Lauderdale, NAI Miami | Fort Lauderdale has been a market-leading, full-service commercial real estate brokerage firm since 1996, providing exceptional service and expertise in the South Florida Market. We are independent, owner-operated and locally grown, with the freedom to act quickly and creatively on your behalf. With more at stake than traditional firms, NAI Miami | Fort Lauderdale takes your business personally and is committed to providing the highest level of service and smart execution.

At NAI Miami | Fort Lauderdale we possess the multiple disciplines required of a full-service real estate firm with expertise in sales and acquisitions, leasing, management, financing, planning, zoning, litigation support, and forensic real estate analysis. We serve our clients with a single point of contact that effectively delivers a variety of strategic and tactical solutions across platforms. We understand the realities of today’s business world. The bottom line – we know that when we deliver results to our clients, we all benefit. To learn more, visit www.naimia-ftl.com.

About NAI Global
NAI Global is the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. NAI Global provides a full-range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. NAI Global member firms, leaders in their local markets, are actively managed to work in unison and provide clients with exceptional solutions to their commercial real estate needs. Founded in 1978, today NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific, with over 6,700 local market professionals, managing over 380 million square feet of property. Supported by the central resources of the NAI Global network, Member firms deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges. To learn more, visit www.naiglobal.com.

Lithium Capital Management Group Opens a Miami office at Citigroup Center

Miami, FL – 15 September 2023 – NAI Miami | Fort Lauderdale, a member of the world’s premier managed network of commercial real estate firms, announced today that Jeremy S. Larkin, CEO of NAI Miami | Fort Lauderdale, represented Lithium Capital Management Group in securing a 5-year lease for 2,443 SF at the Citigroup Center, 201 South Biscayne Boulevard, Miami, FL 33131.

Lithium Capital Management Group is an international advisory group placing equity and debt in commercial real estate investments throughout the United States for their offshore clientele.

“I am very pleased to have the opportunity to help our client secure a prestigious location in Downtown Miami,” said Larkin. Lithium Capital Management Group is expected to formally open its offices in October 2023.

NAI Miami | Fort Lauderdale, with its extensive market knowledge and global perspective, continues to meet the demands of our domestic and international clientele in search of strategic real estate solutions.

About NAI Miami | Fort Lauderdale
Headquartered in the Dadeland Area of Miami, with additional offices in the Doral/Airport area, Downtown Coral Gables, and Downtown Fort Lauderdale, NAI Miami | Fort Lauderdale has been a market-leading, full-service commercial real estate brokerage firm since 1996, providing exceptional service and expertise in the South Florida Market. We are independent owner-operated and locally grown, with the freedom to act quickly and creatively on your behalf. With more at stake than traditional firms, NAI Miami | Fort Lauderdale takes your business personally and is committed to providing the highest level of service and smart execution.

At NAI Miami | Fort Lauderdale we possess the multiple disciplines required of a full-service real estate firm with expertise in sales and acquisitions, leasing, management, financing, planning, zoning, litigation support and forensic real estate analysis. We serve our clients with a single point of contact that effectively delivers a variety of strategic and tactical solutions across platforms. We understand the realities of today’s business world. The bottom line – we know that when we deliver results to our clients, we all benefit. To learn more, visit www.naimia-ftl.com.

About NAI Global
NAI Global is a leading global commercial real estate brokerage firm. NAI Global offices are leaders in their local markets and work in unison to provide clients with exceptional solutions to their commercial real estate needs. NAI Global has more than 325 offices strategically located throughout North America, Latin America, Europe, Africa and Asia Pacific, with over 5,800 local market professionals, managing in excess of 1.1 billion square feet of property and facilities. Annually, NAI Global completes in excess of $20 billion in commercial real estate transactions throughout the world.

NAI Global provides a complete range of corporate and institutional real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain and logistics consulting and related advisory services. To learn more, visit www.naiglobal.com.

NAI Miami | Fort Lauderdale Celebrates Full Lease of Fully Renovated Iconic Shopping Center at 4000 Red Road

Miami, FL – 23 August 2023 – NAI Miami | Fort Lauderdale, a member of the world’s premier managed network of commercial real estate firms, has successfully leased 100% of the recently renovated shopping center, owned by Matthews-Jacobs Investments LC, located at 4000 Red Road, Miami, FL 33155.

The property is well-known locally for the former longtime anchor tenant “Allen’s Drug Store.” The property has been completely renovated to bring new life and vibrancy to the busy of Bird Road (SW 40th Street) and Red Road (SW 57th Avenue).

“We are proud to have contributed to the transformation and full occupancy of this iconic shopping center,” said Edward Schmidt, CCIM, SIOR, Partner and Co-Chairman of NAI Miami | Fort Lauderdale.

“Being a South Miami local, it is exciting to contribute to the commercial evolution of this area. The new tenant mix at 4000 Red Road has a real synergy that the Landlord was seeking to bring to the center,” said David Oxios, Associate of NAI Miami | Fort Lauderdale, who worked alongside Schmidt. “The tenants of this shopping center are CalaMillor, Sun Tan Miami, World of Smoke & Vape, Imago/Art in Action, Oli Beauty Salon, SoFlo Dental of South Miami, and the latest addition, Indieluu Boutique,” said Oxios.

The shopping center’s history, combined with its transformation and current dynamic tenant mix, serves as a testament to the dedication and vision of all involved parties. NAI Miami | Fort Lauderdale continues to set new standards in the real estate industry through its commitment to excellence and innovation.

 

About NAI Miami | Fort Lauderdale
Headquartered in the Dadeland Area of Miami, with additional offices in the Doral/Airport area, Downtown Coral Gables, and Downtown Fort Lauderdale, NAI Miami | Fort Lauderdale has been a market-leading, full-service commercial real estate brokerage firm since 1996, providing exceptional service and expertise in the South Florida Market. We are independent owner-operated and locally grown, with the freedom to act quickly and creatively on your behalf. With more at stake than traditional firms, NAI Miami | Fort Lauderdale takes your business personally and is committed to providing the highest level of service and smart execution.

At NAI Miami | Fort Lauderdale we possess the multiple disciplines required of a full-service real estate firm with expertise in sales and acquisitions, leasing, management, financing, planning, zoning, litigation support and forensic real estate analysis. We serve our clients with a single point of contact that effectively delivers a variety of strategic and tactical solutions across platforms. We understand the realities of today’s business world. The bottom line – we know that when we deliver results to our clients, we all benefit. To learn more, visit www.naimia-ftl.com.

 

About NAI Global
NAI Global is the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. NAI Global provides a full-range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. NAI Global member firms, leaders in their local markets, are actively managed to work in unison and provide clients with exceptional solutions to their commercial real estate needs. Founded in 1978, today NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific, with over 6,700 local market professionals, managing over 380 million square feet of property. Supported by the central resources of the NAI Global network, Member firms deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges. To learn more, visit www.naiglobal.com.

NAI Miami | Fort Lauderdale Represents Landlord in Lease of 20,240 SF at 7320-7332 NW 58th Street

Miami, FL – 21 August 2023 – NAI Miami | Fort Lauderdale a member of the world’s premier managed network of commercial real estate firms, announces today that the 20,240 square feet industrial warehouse and showroom/office building on 39,000 SF of land located at 7320 – 7332 NW 58th Street, Miami, FL, 33166 has been leased to ABC Trucks Parts Group, the leader for truck accessories after-market original equipment manufacturer parts.

The lease was facilitated by NAI Miami | Fort Lauderdale’s, Edward Schmidt, SIOR, CCIM, Co-Chairman; Gabriel Garcia-Menocal, SIOR, Executive Vice President; and Lucia Custer, Executive Vice President; alongside Solaris Real Group.

“This deal marks another milestone for our team, and we take immense pride in representing the landlord in securing the perfect tenant for this property,” said Schmidt.

“Collaborating with Solaris Real Group helped us deliver exceptional value and results to our clients,” said Garcia-Menocal.

 

About NAI Miami | Fort Lauderdale
Headquartered in the Dadeland Area of Miami, with an additional office in the Doral/Airport area Downtown Coral Gables, and Downtown Fort Lauderdale, NAI Miami | Fort Lauderdale has been a market-leading, full-service commercial real estate brokerage firm since 1996, providing exceptional service and expertise in the South Florida Market. We are independent owner-operated and locally grown, with the freedom to act quickly and creatively on your behalf. With more at stake than traditional firms, NAI Miami | Fort Lauderdale takes your business personally and is committed to providing the highest level of service and smart execution.

At NAI Miami | Fort Lauderdale we possess the multiple disciplines required of a full-service real estate firm with expertise in sales and acquisitions, leasing, management, financing, planning, zoning, litigation support and forensic real estate analysis. We serve our clients with a single point of contact that effectively delivers a variety of strategic and tactical solutions across platforms. We understand the realities of today’s business world. The bottom line – we know that when we deliver results to our clients, we all benefit. To learn more, visit www.naimia-ftl.com.

 

About NAI Global
NAI Global is the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. NAI Global provides a full-range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. NAI Global member firms, leaders in their local markets, are actively managed to work in unison and provide clients with exceptional solutions to their commercial real estate needs. Founded in 1978, today NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific, with over 6,700 local market professionals, managing over 380 million square feet of property. Supported by the central resources of the NAI Global network, Member firms deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges. To learn more, visit www.naiglobal.com.

Retail Reigns in Florida

Retail in Florida has proven to be a consistent winner, even as the state encounters the same macroeconomic headwinds hitting the rest of the country. Fueled by growing demand and lower supply, the sector, and leasing activity in particular, is boasting unparalleled performance.

Brokers and developers working in the state who were interviewed for this article uniformly point to the sustained population surge as the driving force behind the success of retail real estate throughout the entirety of Florida.

Joe Gallaher, a partner with NAI Miami|Fort Lauderdale, puts it succinctly: “It’s different from the rest of the nation, just based on the influx of residents that we get to the state every day; there is always an increasing demand for retail.”

Robert Spratt, president of Hill Partners, an owner and developer based in Charlotte, North Carolina, affirms that Florida “continues to benefit from the shift of the population to the South.”

Josh Beyer, senior vice president of development with The Sembler Co., a retail management and development company based in St. Petersburg, concurs.

“Florida’s population continues to be on a really high-growth path,” says Beyer. “The Southeast  as a region is marked by very health retail on the whole, but Florida stands out as a gold star.”

In December 2022, the United States Census Bureau reported that Florida was the fastest growing state in the country for the year. Florida has also held the title of being the third-most populated state overall, surpassing New York in 2014. The state’s population increased by 1.9 percent between 2021 and 2022, reaching 22.2 million people and marking the first time the so-called Sunshine State led the country in population growth since 1957.

The moniker of “Sunshine State” gestures toward what sources say is the driving factor in Florida-focused migration: good weather and a warmer climate.

Michael McNaughton, chief operating officer of Sleiman, a Jacksonville-based development firm, gestures to North Florida as particularly attractive for would-be Floridians. According to McNaughton, the region offers “a three-season type of opportunity” and the best schools in the state, making it a very attractive location for “continued economic development and population growth.”

Another of Florida’s distinguishing elements is the lack of state income taxes. Others interviewed similarly identify the state as a tax haven of sorts. McNaughton predicts that people will continue to migrate from other large metropolitan areas in order to capitalize on Florida taxes and its lifestyle.

A good time, not a long time

In addition to the influx of permanent residents, Florida sees a fair share of tourism-driven traffic. As the acting downtown development board director for the City of Orlando, David Barilla is very familiar with such traffic. Barilla says that his city alone sees upward of 70 million tourists annually.

In addition to being home to Universal Studios and being proximate to Walt Disney World Resort, which is located roughly 15 miles outside
Orlando, the city houses tourist drivers such as Dr. Phillips Center for
Performing Arts, Camping World Stadium — which will host the NFL’s 2024 Pro Bowl Games — Amway Center and Exploria Stadium.

Noel Cupkovic of Cupkovic Architects summarizes that retail in Florida, as compared to the rest of the world, is “definitely better because of the density of the people who are here and the tourism market.”

Tourism lends itself to the establishment of Orlando as a strong food-and-beverage base with the presence of world-class restaurants, adds Barilla. Food-and-beverage concepts populating the city include solita Tacos & Margaritas — which took over a space formerly occupied by Wahlburgers — Mason’s Famous Lobster Rolls and Pappy Smash Burger, to name a few.

Retail for residents

The City of Orlando, and its downtown development board, is not interested only in catering growth and the city’s retail lineup to those passing through. According to Barilla, the organization’s goal is to showcase “the true, authentic Orlando” to visitors, targeting “even 1 to 2 percent” of those 70 million tourists each year. Importantly though, Barilla’s team also strives to ensure that the retail lineup includes necessity-based retail such as grocery stores and dental offices.

Barilla’s office takes an active role in encouraging the growth of the retail sector, including having a team dedicated to recruiting tenants and educating brokers on the strengths of the market and availabilities that retailers can take advantage of.

In order to attract retail that will enrich the area, Downtown Orlando has also established financial programs to incentivize tenancy. White Rabbit and Trophy Room are examples of tenants that have participated in the retail stimulus program, which offers assistance with initial tenant improvements. Says Barilla, “we can partner with them, currently, up to $75,000…plus an additional $25,000 for the first year’s rent.”

In the nearby Lake Nona master-planned development, Tavistock Development recently submitted site plans to the city for a 405,000-square-foot shopping center called Lake Nona West. The property will sit on 54 acres and feature open-air shops and outdoor entertainment spaces.

Elsewhere in Florida, the government sector is similarly adopting a proactive approach to retail growth. Cupkovic points to Phase II of Celebration Pointe in Gainesville, which in large part consists of the development of a sports facility totaling roughly 200,000 square feet. According to Cupkovic, obtaining local county funding was instrumental for the project, dubbed Alachua County Sports & Events Center.

Totaling 1.5 million square feet, the overall mixed-use development is owned by Celebration Pointe Holdings LLC and is the vision of Svein Dkyrkolbotn, principal owner of Viking Cos., as well as Ralph Conti, owner of Ra Co Real Estate Advisors.

High (demand) and low (vacancy) 

Cupkovic, who has worked on the Celebration Pointe development since 2015 when he completed the master plan for the project, says that tenant interest is strong. Le Macaron recently moved into a larger space at the development, hosting a grand reopening in July of this year. Frozen cocktail concept Fat Tuesday and Peach Valley Café also recently joined the tenant lineup.

Such interest aligns with the overall low vacancy levels throughout the state of Florida. Gallaher puts it simply, saying that “vacancy is super low.” South Florida specifically, he adds, is underserved per capita on the retail side, meaning that as a factor of square footage versus population, the ratio of retail space per person is less than the national average.

Sleiman’s McNaughton elaborates that for the South Florida region, which he considers including everything south of Orlando, the vacancy rate is roughly 4 to 4.5 percent. He estimates North Florida to have slightly higher vacancy levels, at approximately 5.5 percent.

According to market reports by Colliers for the second quarter of 2023, retail vacancy rates in the Broward County, Miami-Dade and Palm Beach counties sat at 3.5, 3.1 and 3.7 percent, respectively.

Though markets throughout Florida are universally experiencing this lower vacancy, Gallaher points out that there is some distinction between urban and suburban areas.

“Outside of the urban core, you get a little bit more vacancy,” says Gallaher.

Development drags

One reason for these historically low vacancy rates is that the supply of new space is not keeping up with demand. Much as vacancy rates are low, so too are the rates of construction.

Brett Hutchens, president of CASTO Southeast, says that his company has been able to continue on projects that were already underway, such as the redevelopment of Winter Park Village, unaffected by the interest rate hikes. CASTO Southeast, along with co-developers Bromely Cos. and Jeffrey R. Anderson Real Estate, is also underway on Midtown Tampa, which will deliver 1.8 million square feet of mixed-use space. However, he adds that “interest rate costs and construction costs will probably prohibit” other projects that might have otherwise been undertaken.

“There are very few larger retail projects being developed at this time,” adds Spratt.

Economic headwinds and higher interest rates have hit development particularly hard. Beyer says that given the cost of hard goods, labor, construction materials and capital, he is “a bit concerned about the returns for developers.” Beyer continues that it is hard to make the dots connect without a fairly significant reset in rents.

Nevertheless, they persisted

These headwinds have not, though, fully halted the development of retail spaces in the state. Colliers reports, for instance, that by the end of the second quarter of 2023, an additional 409,000 square feet of retail space was under development in the Palm Beach County market.

PEBB Enterprises is currently redeveloping Delray Landing in Delray Beach. The developer has signed 27,099 square feet in leases at the Sprouts-anchored property, which is set to reopen this summer. New tenants coming to the center include Retro Fitness, Crown Wine, Keke’s Breakfast Café and a dentist office.

PEBB Enterprises and Banyan Development also started construction on Atlantic II, a 10-acre mixed-use development in Delray Beach, in July of this year, with delivery scheduled for 2024.

Further north, Sembler Co. recently opened a new ground-up, Publix-anchored shopping center in St. Johns County. Dubbed Treaty Oaks Plaza, the development is currently being leased, with all five of its outparcels already spoken for, according to Beyer.

Sembler is also underway on the retail component of a mixed-use project called The Preserve Marketplace in Pasco County. The retail component features a Mandola’s Italian Kitchen, which is scheduled to open in a built-to-suit space in the fourth quarter of this year.

Frankie Campione of CREATE Architecture Planning & Design says that the firm is underway with the design of Winchester Orangetree, a mixed-use, ground-up development in Naples. The developer, Barron Collier Investment Partners, a joint venture between Barron Collier Cos. and Metro Commercial Development Group, is currently in the design and developmental stage. Additionally, construction is nearly complete on Founders Square, another Naples project by Barron Collier Investment Partners that will feature retail stores and restaurants, as well as residential, office and self-storage space.

Hill Partners is in redevelopment mode as well with the 297,963-square-foot Promenade at Coconut Creek, which Spratt says has been experiencing increased sales. Upgrades at the property will include modernizing the aesthetics, as well as establishing more gathering places.

Advantaged positions

It might be speculated that in the midst of the slowed development and heightened competition for space (and macroeconomic headwinds), smaller businesses could see less opportunity and be pushed out of a retail landscape populated by bigger brands and companies. Though some landlords may favor the latter, those involved with leasing in the state report a surprisingly diverse mix of national and local tenants.

Hutchens says a diverse tenant mix is a “necessary part of a larger shopping center,” though local tenants may require that landlords and those in charge of leasing “do a little more due diligence.”

Such due diligence has only become more important in the current economic environment, according to Zack McNamara, senior director of leasing with Franklin Street in Orlando.

“With everyone expecting a recession on the horizon, a lot of landlords are being a lot more cautious [with respect to] the financials of the tenants and the deals that they’re committing to,” says McNamara.

In spite of this added pressure and caution, McNamara does not hesitate to agree that landlords are currently in a privilege position, especially relative to that of tenants.

“It’s a good time to be a landlord in Florida,” he says.

Money, money, money

One reason landlords are in an enviable position? In order to secure their share of highly coveted space, retailers are paying top dollar. High increases to rent are not only the product of a lack of competition from new space, but are also a necessity for landlords in this inflationary context.

“We’re finding ourselves having to increase rents at a faster rate than the tenant community is typically accustomed to,” says McNaughton. “When you had inflation as high as 8 to 9 percent, renewing tenants with only a 3 percent increase was not keeping pace, and therefore, you’re essentially losing money on a renewal.”

This makes renewal discussions “a bit more challenging,” adds McNaughton, especially as tenants face not only markedly high rental rates, but also the higher cost to do business in the current economic environment.

In addition to inflation-based cost increases, expenses such as insurance are rising as well. McNaughton says that insurance rates are doubled in some cases.

“The cost is typically passed on to the tenant in the form of their triple-net charges,” says McNaughton.

Playing favorites (or not)

Perhaps it is a testament to the strength of retail in the state of Florida that for as many professionals you ask to identify the most successful type of retail, you will get almost as many answers.

One recurring theme highlighted by sources is the strength and ubiquity of food-and-beverage concepts. Barilla notes that of the 20 new businesses that have entered the downtown Orlando area over the past year, roughly half have been restaurants.

Gallaher also observes that among the many restaurants, smaller sizes are prevailing. Larger dining concepts ranging in size from 6,000 to 8,000 square feet are now less common. He says that in their place, multiple smaller restaurants of approximately 3,000 square feet are emerging.

These more diminutive spaces are better suited to accommodating the takeout and deliveries, says Gallaher, a form of consumption that has been more popular in the aftermath of the COVID-19 pandemic. Gallaher more specifically gestures to chicken concepts as having a moment.

“Chicken restaurants are really blowing up everywhere,” he says.

Also more popular, according to sources, is experiential retail. Brokers and developers attribute this trend to the continued post-pandemic enthusiasm for getting out of the house. By way of example, Barilla points to Proper, a Japanese-style listening bar that has opened on Orange Avenue in Orlando.

He says that the city also has “a very strong gaming and technology sector with simulation and tech,” including EA Sports. Velocity Sports, an arcade and restaurant concept, which Barilla describes as similar to Dave & Buster’s but “high-end and boutique,” is also scheduled to occupy 15,000 square feet of space in Orlando’s downtown, part of the trend of e-sports “taking shape and putting a strong foothold” in the area.

Gaming is also a central component of The Pomp, a 223-acre mixed-use development in Pompano Beach. The Cordish Cos. and Caesars Entertainment are co-developing the project, which will feature a Topgolf, Live! at The Pomp, Sports & Social, PBR Cowboy Bar and the existing Harrah’s Pompano Beach casino.

Spratt points out that “theaters are doing much better as the studios are rolling out films.” This is unsurprising in light of the recent releases of “Barbie” and “Oppenheimer,” which have thus far grossed more than $1 billion and $553 million worldwide, respectively.

The consumer preference for experiential retail manifests itself in Celebration Pointe as well.

“Shopping is not the first priority, necessarily,” says Cupkovic. “If you do go there to shop, then you’re overwhelmed by how cool the space is, so you’d like to come back and do other things like go to the restaurants, sports facility or the theater.”

Leasing News

Hill Partners, for one, aims to align its tenant mix with trends and consumer preferences.

“We are very selective and intentional in curating the right merchandising mix,” says Spratt. “Passing on very good tenants that just do not fit the overall merchandising strategy.”

Tenants at the firm’s Promenade at Coconut Creek property include Brighton, Orangetheory Fitness, The Cheesecake Factory, Silverspot Cinema, White House Black Market and Sephora.

The cosmetics retailer opened another Florida store in April of this year at the $4 billion mixed-use Miami Worldcenter, which also saw the addition of lululemon athletica.

In April, French apparel retailer Etam selected Dadeland Mall in the Miami suburb of Kendall as the site of its first U.S. store. Within Miami proper, fitness concept Club Studio signed a 38,400-square-foot lease at Grove Central, a mixed-use development underway by Terra and Grass River Property Co. in the Coconut Grove neighborhood. Scheduled to open in 2024, Club Studio joins a roster of upcoming tenants that includes Target, Sprouts Farmers Market, Total Wine & More and Five Below.

In St. Augustine, roughly 40 miles southeast of Jacksonville, a 100,000-square-foot Bass Pro Shops Outdoor World store is also set to open next year. Steinemann & Co. is the developer for the store, which is set to open in 2024.

Sunset Harbour, a retail center located in Miami Beach, also saw the addition of new tenants earlier this year. In February, Asana Partners announced leases with restaurants Casa Bufala, Sacro and Nautical Bowls, as well as Chip City Cookies and fitness and wellness club The Outsider.

Investment Sales

While leasing activity is strong, news on the investment sales front is fairly scarce, according to the brokers interviewed, another casualty of the rising cost of capital. Gallaher bluntly states that “there are not really any big transactions that might have been of note,” though he does recall the $82 million sale of Homestead Pavilion earlier this year. The property comprises 302,346 square feet in the South Florida city of Homestead.

In May of this year, Unibail-Rodamco-Westfield (URW) sold Brandon Shopping Center in metro Tampa for $220 million, with North American Development Group purchasing the 1.2 million-square-foot property with a joint venture partner.

Other transactions this year have included WS Development and PGIM Real Estate’s acquisition of The Avenue Viera, a 550,000-square-foot, open-air retail center located in Viera and situated within the 43,000-acre master-planned Viera community. Tenants at the property include AMC Theatres, Belk, Chili’s, Cost Plus World Market and Sephora, among others.

Outside of such deals, McNamara describes the investment sales activity in Florida as being “somewhat stagnant…given where the capital markets are.”

Looking ahead

There is reason to believe, following what some predict was the final Federal Reserve interest rate hike of 25 basis points in July, that such stagnation could potentially shift, though Sleiman’s McNaughton expects that the cost of capital will remain high.

Brokers and developers in Florida are hesitant to make any proclamations regarding the future of the retail sector in the state. Hutchens chuckles that “your guess is as good as mine” when asked about the outlook over the next couple of years. Similarly, Beyer wishes that he had a crystal ball and knew where things were headed.

Hutchens does add that he’s hopeful that capital markets will settle, which should encourage deal activity.

“In another 24 months, we’ll be back to some kind of normalcy,” he says.

Though McNamara qualifies that it is unclear what the next year could bring, he predicts that rental rates will remain high and construction will remain limited, which should help property performance.

“It will take a little bit of pain before some of these owners decide to start coming down and negotiating on rents, especially given the level of demand,” says McNamara. “The continued lack of new development starts will bode well for existing projects and their absorption.”

Overall, sources share this optimism for a state and market grounded in good weather, population growth and tax benefits.

— Hayden Spiess

This article was originally published in the August 2023 issue of Shopping Center Business magazine.

NAI Miami | Fort Lauderdale Represents Aqua-Tots Swim Schools in New Lease of 8,200 SF

Miami, FL – 1 August 2023 – NAI Miami | Fort Lauderdale a member of the world’s premier managed network of commercial real estate firms, is thrilled to announce the successful negotiation of a 15-year lease of 8,200 square feet in eastern Fort Lauderdale, FL on behalf of Aqua-Tots Swim Schools.
“This lease is the latest of several recent major transactions we’ve represented for Aqua-Tots, demonstrating a steady demand,” said Jeremy S. Larkin, CEO of NAI Miami | Fort Lauderdale.
“Aqua-Tots shows no signs of slowing down,” said Craig Merlin, Associate of NAI Miami | Fort Lauderdale, who worked alongside Larkin. “Aqua-Tots is looking for additional locations for future outlets throughout South Florida to meet the growing demand for their services,” said Merlin.
Aqua-Tots is continuing its aggressive expansion campaign looking to open new locations throughout the tri-county area. Our prototype facility is between 7,000 – 11,000 square feet with ample parking. If you have a site that fits the requirement, please contact Jeremy S. Larkin.

About Aqua-Tots Swim Schools

Aqua-Tots Swim Schools is the world’s largest swim school franchise with 140 locations worldwide and 125 stores in the U.S. It is the trusted industry leader in swim instruction since 1991. With a focus on water safety and skill development, Aqua-Tots has earned a reputation for delivering exceptional swim instruction in a safe and nurturing environment.

About NAI Miami | Fort Lauderdale

Headquartered in the Dadeland Area of Miami, with an additional office in the Doral/Airport area and Downtown Fort Lauderdale, NAI Miami | Fort Lauderdale has been a market-leading, full-service commercial real estate brokerage firm since 1996, providing exceptional service and expertise in the South Florida Market. We are independent owner-operated and locally grown, with the freedom to act quickly and creatively on your behalf. With more at stake than traditional firms, NAI Miami | Fort Lauderdale takes your business personally and is committed to providing the highest level of service and smart execution. At NAI Miami | Fort Lauderdale we possess the multiple disciplines required of a full-service real estate firm with expertise in sales and acquisitions, leasing, management, financing, planning, zoning, litigation support and forensic real estate analysis. We serve our clients with a single point of contact that effectively delivers a variety of strategic and tactical solutions across platforms. We understand the realities of today’s business world. The bottom line – we know that when we deliver results to our clients, we all benefit. To learn more, visit www.naimia-ftl.com.

About NAI Global

NAI Global is the single largest, most powerful global network of owner-operated commercial real estate brokerage firms. NAI Global provides a full-range of corporate real estate services, including brokerage and leasing, property and facilities management, real estate investment and capital market services, due diligence, global supply chain consulting and related advisory services. NAI Global member firms, leaders in their local markets, are actively managed to work in unison and provide clients with exceptional solutions to their commercial real estate needs. Founded in 1978, today NAI Global has more than 375 offices strategically located throughout North America, Latin America, Europe and Asia Pacific, with over 6,700 local market professionals, managing over 380 million square feet of property. Supported by the central resources of the NAI Global network, Member firms deliver market-leading services locally and combine their in-market strengths to form a powerful bond of insights and execution for clients with multi-market challenges. To learn more, visit www.naiglobal.com.

Costar NAI Featured Image

Developer of Moxy Hotel in Chicago’s River North Buys Former Midas Shop Next Door

After building Chicago’s first Moxy hotel next door, well-known River North developer Friedman Properties has bought the site of a former Midas auto shop, which could become the latest low-rise in the city to give way to construction cranes.

Friedman Properties late last month paid just over $4 million for the 8,638-square-foot site at 158 W. Grand Ave., according to NAI Miami brokers who represented the seller, Midas parent TBC Corp.

It’s unclear what the Chicago developer plans to do with the site, or the 4,318-square-foot former Midas building on it. The site’s zoning would allow for an approximately 60,500-square-foot development, NAI Miami broker Jeremy Larkin told CoStar News.

Friedman Properties’ chairman and CEO, Al Friedman, did not respond to a request for comment from CoStar News.

His firm previously built the eight-story, 156-room Moxy Chicago Downtown hotel on a similarly sized site next door at 530 N. LaSalle St. That hotel, developed with Indiana-based White Lodging Services, opened in 2018.

Friedman has decades of experience buying and developing offices, hotels, retail and other properties in the area just north of Chicago’s Loop business district, which led to him being nicknamed “mayor of River North.” It’s possible he bought the development site without a specific plan in hand.

“We marketed it across the country and the guy next door buys it,” Larkin said. “It happens more often than you’d think.

“When I first got into the industry, a mentor told me you always follow the rule of fives. He said you start with the property you’re selling and go five properties in either direction, and you have a 50 to 75% chance you’ll find a buyer.”

Friedman’s other River North properties include the landmark Medinah Temple at 600 N. Wabash Ave., where Chicago plans to have a temporary casino while the city’s permanent facility is built north of there along the Chicago River. In another recent deal, New York-based The Group plans to bring French concept La Grande Boucherie and a smaller Japanese restaurant to a Friedman-owned building previously rented to Ruth’s Chris Steak House at 431 N. Dearborn St.

If Friedman knocks down the Midas building and builds on the site, it would continue a trend of gas stations, auto repair stations, parking garages, surface lots and other low-slung properties that have been replaced by taller structures during a construction boom in and around the Loop since the end the Great Recession.

In fact, Friedman’s Moxy project next door was on a lot where a service station once stood.

About a half-mile east of there, Mavrek Development, GW Properties and Luxury Living Chicago have begun demolishing a parking garage at 535 N. St. Clair St., where they will then construct a 21-story, 248-unit apartment building.

About a half-mile to the west, the Habitat Company and Diversified Real Estate Capital this week broke ground on a 33-story, 343-unit apartment tower. They recently demolished the 120-year-old Cassidy Tire building, which for decades had been a tire retail and auto service facility on the site near the river.

Farther north of the Loop, developer Fern Hill wants to demolish two gas stations it has acquired alongside The Moody Church as part of a multitower North Side development that would be designed by globetrotting architect David Adjaye.

Midas decided to sell the River North site after its lease for the building to a franchisee expired, said Jonelle Compiani, a spokeswoman for Palm Beach Gardens, Florida-based TBC. The Midas shop closed at the end of January, she said in an email.

TBC previously has cashed in on similar properties where property values have risen and developers are seeking land, including in Miami and Seattle, Larkin said.

Brokers were hired to sell the Chicago parcel in the spring, before rising interest rates, inflation and worries of a recession began to push down sale prices throughout the country, he said. Because of high demand in River North and a well-established buyer, the price stayed within the previously expected price range, Larkin said.

“In the right submarket at the right time with the right people, deals will continue to happen, but I think the cycle’s kind of over,” Larkin said. “You’re seeing economic activity start to slow, you’re seeing layoffs and the economy is a bit more dormant.

“In Miami, we’ve seen explosive growth slow to what we’d consider normal growth. The buyer frenzy has stopped but there are still a ton of deals moving along. There’s just not that insanity out there.”

For the Record

The seller was represented by NAI Miami brokers Larkin and Joseph Gallagher, and Chicago-based ARC Real Estate Group brokers Elan Rasansky and Al Rodenbostel.

NAI Globlal Retail Newsletter

Retail Real Estate Trends

Trends and Insights on Retail Real Estate by Experts in Multiple Markets

October 6, 2022

Each month a group of NAI Global’s top retail real estate experts participate in a conference call. The group discusses trends in their respective markets, activity, rental rates and investment capitalization rates and related factors impacting the retail industry in the U.S.

Here are some highlights from the October call.

  • Bed, Bath & Beyond
  • Rent-A-Center
  • TIs Impacting Retail Lease Deals
  • Pickleball & Cocktails, Coming to a Place Near You Soon (most likely)
  • This and That

In late August Bed Bath & Beyond said it would close about 150 stores and lay off workers. That announcement came days after company leaders were sued, accused of artificially inflating the stock in a ‘pump and dump scheme.’

The home softs good retailer is suffering from a merchandise problem, among other things (such as a mountain of debt) after it shifted to off-brand products a few years ago, when the company tried to grow nine exclusive brands – and shoppers didn’t respond favorably. Bed Bath & Beyond is scaling back on some of those private label products and trying to bring back major brand names. Its next test will be whether they can do so by the holiday shopping season.

Meanwhile, the NAI Global Retail Council participants on the call said that several Bed Bath & Beyond stores in the Northeast are coming to the market. Additionally, there were some in Dallas, one in Arizona and five or six in the Mid-Atlantic, which to Dimitri Georgelakos, a Principal with NAI KLNB in Tysons, VA, said “is a good thing for the market, because there is so little inventory for small-and-mid-sized box stores.” Bed, Bath & Beyond typically occupies retail space from about 25,000 square feet to as much as 40,000 square feet.

CVS is also closing some stores in the Northeast as it modifies its retail concept to include more in-store health care services, said Michael Jacobs, a Principal with NAI Glickman Kovago & Jacobs, based in Worcester, MA. Walgreens is also adjusting its locations map, as word has it that the retailer was very selective in buying Rite Aid stores—1,932 according to media reports. Walgreens bought the stores and a few distribution centers after trying but not succeeding in buying the entire chain. There is an expectation that some of the stores Walgreens did acquire will go dark if they have not already.

Rent-A-Center, a company valued at $4.6 billion at the end of 2021 and with 2,435 stores at the end of last year, recently completed a new lease and opened a store in Walla Walla, WA. The company has a rent-to-own platform selling furniture, appliances, computer equipment and more to largely middle-class Americans. On average Rent-A-Center opens 10 new locations a year and does about 10 relocations. Robert Render, a Vice President in the Dallas Retail Division of NAI Robert Lynn that represents Rent-A-Center nationally said he is working on multiple transactions for the company but could not disclose the locations at this time.

TIs Impacting Retail Lease Deals

We’ve heard how rapidly rising interest rates is pausing CRE investment sales. Now construction costs, with 30% to 35% increases over a year ago, is negatively impacting retail lease deals as the build-out costs are making deals untenable. Deals are preliminarily getting through committee-level decision-making then killed at transactional (lease) execution. Tenants want rental rate reductions in order to make leases with high TIs pencil, and so far landlords aren’t budging.

Pickleball & Cocktails, Coming to a Place Near You Soon (most likely)

The popularity of pickleball is soaring as a maturing population looks for active and social gatherings that aren’t as demanding as, say, tennis or racquetball – and they are much more social than they are competitive. Hence a new retail/recreational/entertainment business is rolling out – Pickle and Social – that is the third concept developed under the Competitive Social Ventures (CSV) Holding Company. These are the guys that introduced Top Golf. To be clear about its priorities, the company put it on its Pickle and Social website: “(We are) Embracing our Mission to bring people together for FUN and authentic shared experiences by creating an unbeatable atmosphere, innovative play, amazing food and drink, and top-notch service.”

Shelby Tworek, a retail specialist with NAI Horizon in Phoenix, said the company is at work developing a 2-3 acre site in Scottsdale and is also planning similar locations in Gilbert and Glendale, both of which are also in the Phoenix Metro Market.

Related, Jacobs is working with a national sports group seeking locations in select areas along the East Coast and Midwest for entertainment development.

This and That

Home goods stores have been impacted by the slowing housing market. Year-over-Year (YoY) sales of furniture and home-furnishing stores declined in August by 1.6% on a seasonally adjusted basis, while electronics and appliance store sales declined 5.7%, according to the Commerce Department. However, declining sales at retailers such as RH, Wayfair Inc., Williams-Sonoma Inc. and others have been attributed to the shift in consumer spending habits; during the pandemic, consumers stocked up on goods. Since late last year when the health crisis began to fade, consumers switched to services – traveling and dining out, mostly, with their discretionary spending.

Gyms and in-person fitness stores are back and once again boosting occupancy at grocery anchored shopping centers and strip malls. Hammered by the pandemic, the better quality brands fared better than discounters like 24-hour Fitness. In the Mid-Atlantic region, Georgelakos reported that One Life Fitness is opening 50,000-square-foot locations in multiple locations to add to its existing footprint in the region. The company also operates fitness centers in Virginia, West Virginia, Maryland and DC.

Ralph Lauren is Opening 250 New North American Stores

Shifting from department stores to its own branded outlets, Ralph Lauren told investors in late September it has exited two-thirds of department stores where it sold apparel and would instead open direct-to-consumer locations, beginning with 14 new stores in prime markets, such as San Francisco, Denver and Seattle. Already 63% of the company’s revenue comes from consumerdirect sales, with 26% attributed to e-commerce.

Doral Commercial Real Estate

An Inside Look At “Getting On The Green”

Craig Merlin’sGetting on the Green” podcast sets out to explore the different pieces of the Commercial Real Estate (CRE) puzzle. From asset managers to property managers, “Getting on the Green” dives deep to uncover what goes into each of these roles. As a former professional golfer, Craig finds the CRE business to be much like his beloved game: it is a group effort that relies on feedback from peers, dedication, and practice. The melding of his two loves brings the podcast to life bringing the different roles and aspects that keep the CRE industry running to center stage.

Each guest surprisingly had one thing in common: they all had an outside interest that fueled them to succeed in the CRE business. Daniel De Pablo, a property manager, majored in criminology at FIU and was always interested in the psychology of people. As a property manager, he explains that this interest helps him be compassionate, helpful and resolve many problems with tenants. Larry Gautier, an Auburn University Alumni and fifth generation “Miamian,” attributes his success as a broker to the many roles he has held since 1980 in the commercial real estate business. He has held roles such as property manager which allows him to truly understand his clients, the buyers, and sellers he encounters every day.

Merlin uncovers helpful tips to succeed in this industry. As Timothy Merriman Jr. puts it, “One day you have to wake up and realize no one is going to do it for you.” Merriman explains to Merlin on the podcast that there is no secret to this industry except hard work. Like many things in life, there is no secret pill to make you a real estate guru. 

Each guest explains their personal journey how they “made it”,  resonating with the same idea: at the core, to be successful you must put in the work, day in, day out, of relationship building, research, and getting serious truly learning the ever-changing landscape of the Real Estate landscape. 

Ultimately the CRE industry cannot ever be explained in a nutshell. Craig Merlin sets out to do this and does a pin-up job of doing so. Make sure to take the time to listen to “Getting on the Green” where you will hear from real estate professionals speak about the restaurant industry, cost segregation, real estate law and so much more. 

Let us know what you think!

Click here to listen on Apple Podcast

Click here to listen on Spotify

Restaurant Ordering Help During COVID-19

NAI Miami wants to share a nationwide resource for our restaurant clients, tenants and friends that you might not know existed- Speedytab.

Speedytab offers commission-free online and app ordering to help drive sales during Coronavirus.

Below is a one-pager outlining how Speedytab is helping, but at a high level they are providing branded online and app ordering for restaurants for free right now to help stay open and succeed.

They have customers across the country, from single-unit operators like Madruga Bakery to national chains like Barnes & Noble Cafes.

NAI Miami wants to work together with our restaurant tenants, clients and friends to help us all succeed during these challenging times.

Here are some examples.

Pubbelly Sushi Web: https://pubbelly.speedetab.com

Gregorys Coffee Web: https://gregorys-coffee.speedetab.com

Kuma’s Corner web and app

If you are anyone you know can benefit from using this company please reach out to our contact:

Adam Garfield

SpeedETab, Co-founder & CEO

www.speedetab.com

786.295.0444