How Miami Retail Stacks Up Nationally

MIAMI—Most luxury storefronts are in five major cities—and Miami is one of them. Of course, Miami offers much more than luxury storefronts. Miami is home to a plethora of retail outlets, from discount stores to department stores and beyond.

According to Marcus & Millichap's latest market report, developers will complete 1.4 million square feet of retail space this year, the highest total since 2008 as construction activity accelerates. In 2014, builders finished 700,000 square feet. Asking rents will rise 2 percent this year, reaching $29.90 per square foot as robust demand for retail space pushes up rents across the metro.

GlobeSt.com caught up with Chris Weilminster, executive vice president of Real Estate Leasing for Federal, to get his thoughts on how Miami retail stacks up to other cities in part three of this exclusive interview. You can still read parts one and two: Behind the Deal: $88M CocoWalk Trade Dissected and CocoWalk Remaking Itself in New Retail Era.

GlobeSt.com: Federal develops and manages assets across the US. How does Miami's retail market stack up to other cities?

Weilminster: Federal Realty owns, operates and develops irreplaceable assets in core markets located along the east and west coasts and we are extremely selective when acquiring an asset. We only operate in communities with high barriers to entry for new commercial development and in urban infill markets that are densely populated, highly educated and affluent.

We look for properties that have redevelopment, remerchandising and expansion potential so we can make a positive impact on the communities we serve and provide the best opportunity for success for our retailing partners. Miami has many of these attributes. The city's mix of culture, diversity, international influence, and great weather makes it unique from most other trade areas in the US. Federal Realty is bullish on Miami-Dade County and believes the area has positive, long-term investment potential for properties like CocoWalk.

GlobeSt.com: What's next for Federal in South Florida? Do you have your eyes on any other neighborhoods or properties?

Weilminster: Federal is always looking at opportunities that align with our development philosophy and business plan, which emphasize neighborhoods with high barriers to entry, capacity for urban in-fill development and strong demographics in place. This is why Miami is a target market for us.

A number of neighborhoods across the community certainly fit these criteria, including Coral Gables, Doral, South Miami, Miami Beach and others. For now, Federal Realty is very excited about its investment in CocoWalk and will commit 100% of our focus and attention to making it the retail destination of choice for the Grove and all of Miami.