Miami offers a full range of establishments that attract multi-cultural shoppers, as well as the tourist shopper, according to Pete Schlang, director of retail leasing at Continental Real Estate Companies. "Our diverse metropolis will always attract cutting edge developments," he says.

Trends in Miami' retail development, according to Schlang, are moving toward urbanization. "Everyone is thinking urbanization," he says. "For example, there is development taking place in the downtown Kendall and Brickell areas. Even the older neighborhoods of Ft. Lauderdale are trying out this new trend." Schlang also notes that there is continued high demand for high-income neighborhoods, such as Aventura and Coral Gables and that people are looking for redevelopment sites due to the fact that the western boundaries are fixed.

Significant developments in the area include The Rouse Company' Kendall Town Center, proposed for 2003, which includes 1.3 million square feet of retail in addition to office space, a medical center, a hotel and an ACLF. It is to be located west of 157th Avenue, south of Kendall Drive and if completed, could significantly impact Dadeland Mall. Potential anchors include Burdines, Dillard' and Sears.

Rouse also is underway with The Village of Merrick Park in Coral Gables, bringing the first Nordstrom' Department store and Dean & Deluca' market to Miami. The project will consist of 700,000 square feet when completed in early 2002. This project could affect both The Falls and The Shoppes of Bal Harbour by offering convenient shopping for the wealthy residents of Coral Gables, and theBrickell Avenue area as well as the tourist industry.

The Dolphin Mall, located on the Turnpike and 836, is a 1.3 million-square-foot mall consisting of discount retailers that will compete for the visitor dollar with Sawgrass Mills (Broward County). Anchors include Oshman' Super Sports, Dave & Buster', Off 5th Avenue and Marshalls Outlet. The mall is being touted in Brazil and Chile, targeting the Latin American tourist. Shuttle buses are available from Miami International Airport, a new and innovative way to attract shoppers.

Redevco recently completed The Shoppe' of Liberty City. This inner city redevelopment is anchored by Winn Dixie. The center attracted several national retailers such as Radio Shack, Payless Shoes and Hollywood Video. "With enterprise zones and many inner cities needing more retail, expect more of the same to follow," says Schlang.

Additionally, more retail is proposed for Aventura where occupancy levels are almost at full capacity. Plans call for 200,000 square feet to be built on the west side of Biscayne Boulevard, across from Aventura Mall.

New retailers to the Miami market include The Container Store at Dadeland, Garden Ridge at Cutler Ridge, Nordstrom' at Coral Gables and Dean & Deluca's at Coral Gables. Major leases that have been signed recently include Garden Ridge' 100,000 square feet on South Dixie Highway in Cutler Ridge. Vacancy rates are approximately 7 percent in Miami overall. However, in many submarketsthese rates are even less.

"The next big development areas could be both the Brickell and the Omni corridors," says Schlang. "Several projects have been proposed for Brickell, and one or two could actually come to fruition. The Omni corridor with the draw of the Performing Arts Center is also a good candidate for redevelopment. This area could offer South Beach residents a shopping alternative," he adds.

Although new and innovative shopping experiences will continue to be built, simple grocery-anchored retail continues to be in high demand and very stable, according to Schlang. "We should not lose sight of what has worked for more than 30 years: Power center retailers come and go with every fad, but people will continue to buy food at their local supermarket."

Pete Schlang is director of retail leasing with Continental Real Estate Cos.


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