Marcus & Millichap’s Kirk Felici
Miami retail vacancies are poised to dip below 4 percent for the first time in six years, a new report from Marcus & Millichap shows.
The market’s vacancy rate should decline from 4.1 percent to 3.9 percent by the end of 2014, according to the firm’s quarterly report. That should allow retail landlords to start raising rental rates after a lull in 2013. The firm cites record tourism activity as a key driver of the retail sector’s growth.
More than 1.4 million square feet of retail space is slated to be completed by year’s end. The new construction shouldn’t reverse the declining vacancy rate trend, however. About 85 percent of the space is already leased. — Eric Kalis