Ken Krasnow Makes 'Catches its Breath' Prediction

MIAMI—The urbanization trend is alive, well and growing on the South Florida commercial real estate scene. More and more retailers and multifamily developers aiming to be in “live, work, play” areas that are increasingly popular with both Baby Boomers and Millennials. To facilitate urbanization, more new projects are being developed and planned as mixed-use, incorporating office, retail and hospitality and multifamily.

GlobeSt.com caught up with Ken Krasnow, the new executive managing director for Colliers International South Florida, to get his thoughts on the latest in South Florida's retail and multifamily sectors, and how they often intersect. Stay tuned for this afternoon's Miami edition for part two of this interview.

GlobeSt.com: What South Florida submarkets are retailers targeting now?

Krasnow: Doral is building a vibrant “live, work, play” environment and is a hot spot for retailers looking for the urban feel in a non-traditional downtown core. The downtown areas, such as Brickell, Downtown Fort Lauderdale, and the Biscayne corridor, are attracting new-to-market retailers. The town of Surfside is an up-and-coming area, and the soon-to-be-open Brickell City Center is attracting high-end tenants.

GlobeSt.com: What types of retailers are showing interest?

Krasnow: At Brickell City Centre, there is a lot of interest from high-end clothing boutiques that are expected to land in the market in 2016. These are clothing stores from Europe and other countries that attract an international clientele such as Ted Baker and Agent Provocateur from the UK, Vilebrequin from France and 100% Capri from Italy. There is also strong demand overall in the market from fast casual restaurants and high-tech fitness centers.  

GlobeSt.com: What do you predict will happen with multifamily rental rates? Will they keep rising?

Krasnow: We are heading into a period where the rental rates are starting to level out as the multifamily market “catches its breath.” A lot of much needed product was delivered all at once, and the supply is expected to put pressure on short-term rental rate growth.

If I had a crystal ball, I would say that in 2016 we will not see the same level of year over year rate increases we have seen the past few years while the market catches up. Still, demand for multifamily remains strong, and with more multifamily projects that include retail to create true mixed-use developments, this caters to the demands of many empty-nesters, Boomers and Millennials, who want apartment amenities in a walkable environment.