Posted on Thursday, 08.27.2009Miami Commercial Real Estate - Best Time to Lease Stores
It’s a tenants market!
In the midst of the real estate boom it would have been impossible to ask for a reduced rate on a lease for a Miami Commercial real estate
property. The answer would have been a resounding "No." But times have changed. Bankruptcy has left a path of vacancies including Miami retail space
and Miami office space
. Large companies like Circuit City, Linens 'N Things and Sound Advice have gone bankrupt. Plus many national retailers are putting the brakes on expansion plans. That's forced some South Florida landlords to get creative in order to fill space.
Depending on the location, some landlords are willing to consider a variety of uses: medical clinics, doctor's offices, day spas, day care centers, Miami Beach retail space and Miami office space.
It's all part of South Florida's new retail Miami Commercial real estate
paradigm, which has brought the first drop in lease rates in more than a decade. The landlord is no longer the one pulling all the strings and more than ever it's a tenant's market.
Landlords are increasingly flexible on everything from shorter lease terms, seasonal Miami retail space and temporary uses.
Landlords are taking a little more risk to make it happen and are allowing tenants who do not have Wal-Mart credit to lease stores in Miami.
At the end of the day it's all about filling Miami commercial real estate spaces
. Resourceful leasing is a necessity as retail landlords in Miami struggle with some of the highest vacancy rates they've seen in almost two decades.
Not everyone is willing to accept the nontraditional tenant. It all depends on the type of use, the quality of the Miami Commercial real estate and the property owner's capital structure.
On a brighter side, the Miami retail veterans say the current situation is not as bad now as it was in the last major recession, which stretched from the late 80s into the early 90s.
During the last recession, Miami retail vacancy rates climaxed at around 20% in South Florida, but even with the jump, today's numbers are no more than half that level and less in many areas of Miami.
According to one Miami Commercial real estate firm, Miami's average vacancy rate was 6.35% at the end of 2008, with east-central Miami and the Homestead area the only markets into double-digit vacancies.
Since potential tenants are limited, they can also afford to move slowly before signing any deals.