Retail development has surged in South Florida, but the trend may be near a peak in Miami-Dade County, according to a research report by Chicago-based commercial real estate firm JLL.
Retail space occupancy rates average 95.9 percent in Miami-Dade, compared to 92 percent in Broward County and 91.3 percent. About 1.3 million square feet of retail space is under construction in Miami-Dade, where the existing inventory measures almost 50 million square feet.
“The Miami market continues to soar, and developer are in full swing as a result,” JLL reported. “Miami’s numbers are the closest to a peak of any market in Florida, leading many to believe that some kind of correction is in store.”
While the retail development in Miami-Dade may be nearing a peak, it is still growing in Broward and Palm Beach counties.
“The Fort Lauderdale market has seen tremendous rent growth … This and a gentrifying population are driving a great deal of new development projects in the market,” JLL said in its report on the retail market.
“Palm Beach [County] has seen steady appreciation in rents as occupancy has stabilized and residential growth has resumed at a healthy pace,” JLL reported.”Strong economic growth has helped to propel growth in the real estate market.”