October 16, 2014
With mega retail projects emerging in Downtown Miami, where does that leave Lincoln Road? Will buyers still be willing to pay top dollar for Lincoln Road retail with the likes of Brickell City Centre and Miami Worldcenter emerging?
Swire’s Brickell City Centre inked a deal with Bal Harbour Shops on the retail front. The 2.9 million-square-foot mixed-use development will include a high end 500,000-square-foot retail center.
Swire also plans to develop condominiums, hotel and other elements of the project in the third quarter of 2015, offering built in shoppers. Swire’s retail center will host a Sacks Fifth Avenue, for starters.
Meanwhile, the first phase of the $2 billion Miami Worldcenter includes retail, residential towers, and an expo center and adjacent hotel that promises to elevate the blighted neighborhood to destination status. Forbes Company and Taubman will deliver a 765,000 square-foot shopping mall anchored by Bloomingdale’s, Macy’s, and dining and entertainment options.
Is there room enough for Lincon Road, Bal Harbour Shops, Miami Worldcenter, Brickell City Centre, the Design District and other retail centers in Miami? Will retailers pay top dollar on Lincoln Road with so much new inventory coming online?
Adam Lustig, a partner in Miami-based Bilzin Sumberg who has been involved in some of the recent real estate deals that have led Lincoln Road, tells GlobeSt.com buyers are willing to pay top dollar on Lincoln Road because of the tenants Lincoln Road is attracting and the rents they are paying.
“Lincoln Road is unique,” Lustig says. “Both locals and tourists really enjoy the pedestrian mall experience. I don’t think the Brickell City Centre, Miami Worldcenter or the Design District will hurt sales on Lincoln Road. They are all fantastic projects that will help bring Miami to the next level in retail.
“It is not a fixed pie, though,” Lustig says. “As Miami transforms into a world class city and tourism continues to expand, I think there is room for all of these projects to be successful.”