International Investors Eyeing Miami Retail

MIAMI—Grocery-anchored shopping centers get plenty of investor attention, but what's the impact of new competitors like Trader Joe's on the region? And how does the flood of global capital affect retail competition?

We caught up with Jones Lang LaSalle vice president Sean McConnell, who spearheads the firm's retail practice in South Florida, to get his take on these issues. Click here to read part one of our exclusive interview with McConnell, in which he reveals JLL's retail strategies.

GlobeSt.com: Competition is stiff among grocery chains in South Florida. What impact will the entrance of new competitors like Trader Joe's have in the region?

McConnell: Across the state, grocery chains from Publix to Walmart seek to further grow their market share. The strong dynamics is also appealing to new competitors and regional players, as we've seen international supermarket chains like Aldi and Okey Dokey enter the market in recent years and local grocers like Sedano's Supermarket expand, all vying for the best anchor locations to expand their brands.

More recently, we have seen national specialty retail grocery chain Trader Joe's announce its first South Florida location in Pinecrest. We expect competition to remain stiff among grocery chains and we consider this a good thing. It keeps retailers on their toes and makes them provide a better experience if they want to thrive.

GlobeSt.com: On the investment side, are you seeing investor appetite for shopping centers and other retail assets in South Florida?

McConnell: It's no secret that international investors are looking to invest in South Florida real estate and are driving this market's recovery, which outpaces that of other major markets around the country. While much of that investment is on the residential and office markets, we are starting to see interest in retail assets as well. For example, we are currently marketing for sale Intracoastal Mall, which is a world class, 26-acre waterfront center located in Sunny Isles in North Miami Beach between Bal Harbour Shops and Aventura Mall.