Real Estate Forum - July August 2011

New development is also on the boards. One of the biggest announcements this year on the development front is a joint venture between the Related Group and International Sales Group. The JV plans to break ground on as many as six new high-rises in the next 12 months. And Pollack Partners purchased a 4.36-acre land parcel in Downtown Orlando for $3.7 million.

“This sale shows that there are opportu-
nities that warrant new development, when
the location is right,” says Kane Morris-
Webster, a retail and land specialist at
Colliers International Central Florida.
“Moving from speculators to selling to end-
users and new development is a clear signal
that things are improving.”
The big story in Florida retail is the
impact of the gradually improving economy
and the influx of new-to-market retailers.
As economic factors and consumer confi-
dence strengthen, retailers that previously
lacked a presence in key Florida markets
are looking to make a move into the state.
As these tenants lease up space, rental rates
are increasing in some South Florida and
Orlando markets and cap rates are improv-

“Cap rates have dipped down pretty deeply. In some cases, you’ve seen

100- to 200-basis point drops over the past six months.”

PAUL ELLIS

CNL Commercial Real Estate

ing at quality retail centers.

“We’re definitely seeing the tide turn at this point. More retailers are kicking the tires,” says Sabrina Meerbott, a leasing associate at Continental Real Estate. “The mid-sized boxes are starting to get absorbed.

There’s a lot more pent-up demand in South Florida than other Florida markets, but we’re seeing recovery across the state.” On the hospitality front, property values are finally beginning to rise. Hotels are once again viewed as desirable assets across the state and new development is under way in the Tampa and Miami metros.

Cases in point: Aztec Group closed a $4.8-million construction loan for the Comfort Suites Airport/Cruise Port in Fort Lauderdale and a $3.725-million refinance for the Days Inn Miami Airport North. Capmark Bank closed a $100-million note sale on the Omni Center and Hilton Downtown in Miami.

“The banks are loosening up a little, but it’s still tough to get financing,” says Bernie Wolfson, president of Miami-based Hospitality Operations, which is developing the Hampton Inn & Suites Brickell. “We were able to get it because we’re going after a market segment that’s not adequately served in the Financial District of Downtown Miami—a mid-priced option.” ◆

Reprint orders: www.remreprints.com

Everyday Needs = Good Business

Bread &
butter
Pick up chinese food
Eggs too
+ dry cleaning
AAA batteries
dog food
Call in
prescription
scotch tape
Sport socks

Birthday card for
M
om

There’s nothing fancy about everyday shopping needs: picking up dry cleaning in the morning, grabbing pizza for lunch, shopping after work for a new DVD, take-out food, sweat socks, shampoo or even bread and butter. Everyday necessity shopping drives daily customer traffic to the retail, food and “big box” stores at Cedar’s Bread & Butter Shopping Centers®. Our tenants have long-term leases that generate predictable cash flow and our strong balance sheet permits us to take advantage of attractive acquisition and redevelopment opportunities. Centers that serve everyday shopping needs is our formula for good business.