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-
100- to 200-basis point
drops over the past six
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.” ◆
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Everyday Needs = Good Business
Pick up chinese food
+ dry cleaning
Birthday card for
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.
Cedar Shopping Centers, Inc.
Developers, Owners and Managers of
Bread & Butter Shopping Centers®