MIAMI—What are the hottest retail submarkets in South Florida? Delray Beach is among them, according to Joshua Ladle, an associate with Avison Young.

"Within less than a decade, downtown Delray Beach—namely Atlantic Avenue—has been transformed into a vibrant live-work-play area," Ladle tells GlobeSt.com. "It is becoming one of the premier South Florida hubs for destination restaurants and bars as well as shopping from high-end local boutiques to big-name national retailers."

As Ladle sees it, energy and desirability of the Delray Beach area continues to attract more tourists, local visitors and residents—and investors and developers have taken notice. He points to many developments underway, including apartments by Related Group, the Aloft hotel, the iPic Movie Theatre and Atlantic Crossing, and says these speak of a renaissance happening in the submarket.

"Significant demand from investors to buy retail properties along Atlantic Avenue continues, but with its fragmented ownership, acquiring a critical mass of properties is difficult," Ladle says. "Also, too few properties are available for sale which is contributing to the steady rise in pricing."

Partially fueled by the activity of downtown, west of Interstate 95 at Military Trail and Atlantic Avenue, Ladle says there has been "tremendous activity" among buyers purchasing properties to extend Atlantic Avenue's reach and capture the demand as a result of the influx of residents in Delray. His research shows two out of five of the major centers at the intersection—there are two on the northeast corner of Delray Square I and Delray Square II—have traded hands within the past six months, and a third traded hands not too long before.

"Most recently, Avison Young secured a joint-venture operating partner for the existing ownership of Delray Square II, one of the only assets in Delray Beach positioned to accommodate large, anchor-sized tenants," Ladle says. "With the lease-up of Delray Square II and the redevelopment of the adjacent Publix-anchored Delray Square I, the entire intersection will benefit from the transformation of the northeast corner."