MIAMI—Who would have thought retail developments would be discussed so soon in the commercial real estate recovery that left many reeling? But here we are.
We've been talking with Don DeWoody, a principal at Avison Young in West Palm Beach about retail real estate trends. You can go back and read part one and part two if you missed them. Wrapping up our discussion, we're looking at Miami Beach from an investor's perspective and what DeWoody sees as emerging retail trends.
GlobeSt.com: I see a lot trading of retail trading on Miami Beach and also net leased assets. How is supply and demand playing out from an investor's perspective?
DeWoody: Miami Beach is red hot. It's also no secret that there remains a higher demand for quality assets than supply at the moment. Core assets are trading at premiums and strong credit tenant assets continue to demand a high premium in the market place.
GlobeSt.com: What emerging trends are you keeping an eye on in the retail real estate space?
DeWoody: Today, retailers are redefining themselves and their retail footprint. What used to work in 10,000 square feet of space may now be more efficient in 4,000 square feet.
This adjustment should not be seen as a bad thing, as change creates opportunity. A landlord with a tenant in this situation will have the opportunity to create a healthier shopping center with more shopping options for patrons, more foot traffic for retailers and in turn, potentially more rental revenue.
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