Terranova Reports Broward County Retail Rents Rise While Occupancy Declines

(Pompano Citi Center, above, shows parking lot capacity)


MIAMI BEACH, FL– Shopping center rents inBroward County increased 6% between spring 2007 and spring 2008, according to Terranova’s 2008 Shopping Center Update Report.

Average asking rent for inline space in Broward County is now $23.98 per square foot net, compared to $22.63 in 2007. (Sawgrass Mills mall, Sunrise, FL at top right)

A drop in occupancy accompanied the increase, with the county’s vacancy rate now at 7.44%, compared to 5.46% in 2007. The higher vacancy rate reflects an increase in the availability of both big-box and inline space.

The retrenchment or demise of various chains such as Rag Shops, 99 Cent Stuff, CompUSA, Pier One Kids and Bombay Co. impacted occupancy, as these stores occupied anchor and junior-anchor spaces throughout the county.

Inline space also has become more available throughout the county, as smaller local tenants have closed while national chains such as Hollywood Video, Curves and Quizno’s have reduced the number of locations.

“South Florida’s retail market remains strong and resilient, but no doubt we all now have more space available to lease,” said Stephen Bittel, Terranova’s Chairman.

“If you are in amarket with strong fundamentals, as SouthFlorida is, that means opportunity more than anything else.”

Those fundamentals include population growth and a diverse economy, and continue to fuel new retail construction, with some 25 projects totaling more than three million square feet under construction or expected to break ground in the next 12 months.