Coral Gables Retail Update Q1 2015

February 23, 2015, By Andrea Vigil

In the last 12 months, the Coral Gables retail market has experienced increased velocity of transactions both from a leasing and acquisitions standpoint due to a lack of new inventory in the market. The increased activity, coupled with planned residential projects have whetted investor appetite, who envision an increase in population density on the horizon.

National retailers looking to increase their footprint in Miami have several new options, and Coral Gables will have to compete with other submarkets that have an ever-increasing mixed-use development pipeline such as Brickell/Downtown, Design District, Wynwood and Miami Beach.

The Coral Gables demographic base drives demand from retailers that cater to an affluent customer. Dual income, college educated couples earn an average of $115,000 per year, a number that is nearly double that of Miami-Dade County as a whole, and owner-occupied home values are nearly three times greater than the rest of the county.¹

Supported by strong daytime density of nearly 80,000 retailers generated approximately $1 billion in retail sales out of two million square feet of space in 2014. With another 600,000 square feet of retail proposed, supply will exceed demand in the next 18-24 months.

Restaurants continue to perform well in Coral Gables. In 2014, restaurants saw an increase of more than 13 percent in restaurant sales.²Regional operators have chosen new locations, including Ticety and My Ceviche on Miracle Mile, Choices Café on Ponce de Leon Boulevard, and a new, full-service Spanish Mediterranean coming to Giralda Avenue, expected to open later this year.

Giralda Avenue rendering. Courtesy of Stantec

Streetscape

Miracle Mile mid-block rendering. Courtesy of Stantec

In September, the city approved the long-discussed $18.8 million streetscape renovation plan for Miracle Mile and Giralda Avenue. Property owners directly on the Mile and Giralda Avenue would bear 35 percent of the total cost through a special assessment tax, and adjacent property owners within the Business Improvement District would pay 15 percent. The city will pay the remaining cost. Many of the restaurant and retailers along these corridors agree that, while the construction may temporarily affect business, the improvements will help the city compete with more pedestrian-oriented thoroughfares like Lincoln Road Mall. [More at Miami Today.]

Miracle Mile

Stretching four blocks from Douglas Road on the east to LeJeune Road on the west, Miracle Mile has long been the dominant corridor and coveted address in Coral Gables with restaurants and apparel operators feeding off of the heavy pedestrian and vehicular traffic on the street. The Mile has approximately 284,000 square feet of retail and a vacancy rate of 6.4 percent. This may increase as the street faces increased competition from potential mixed-use projects in the development pipeline and the corridor undergoes its streetscape renovation project.

NEW TENANTS TO MIRACLE MILE

Ticety, a 2,400 square foot restaurant serving teas and sandwiches, at 206 Miracle Mile

Doperdoll, a 3,000-square-foot hair salon, open at 219 Miracle Mile.

Violetas Home Design leased 2,000 square feet at 223 Miracle Mile.

Trouville, a Uruguayan steakhouse, signed a 2,000 square foot lease at 125 Miracle Mile, formerly Spyworld. The steakhouse has a second location on 71st and Collins Avenue.

My Ceviche leased the former BGR Burger Joint at 232 Miracle Mile as its third location

Haagen-Dazs signed a 10-year lease for 873 square feet at 286-292 Miracle Mile in June.

Wine and tapas bar Uvaggio leased 817 square feet at 70 Miracle Mile and opened in April.

Twinkle Twinkle will expand to approximately 2300 square feet at 40 Miracle Mile.

Lease rates for Miracle Mile range from $50 PSF/NNN to $75 PSF/NNN.

Ponce de Leon Boulevard / Bird Road

One of the most ambitious projects in the Gables is Agave Ponce LLC’s Mediterranean Village at Ponce Circle. The $500 million mixed-use project will include 314,000 of office space, a premium 184-key hotel; 324,000 of commercial space that will include 241,900 square feet of retail, 29,000 square feet of restaurant space, a 12,000 square foot day-care facility, 9,500 square foot gym, and a 32,000 square foot theater with a cafe; and three residential towers with 214 condo units and 15 townhouses. The Planning and Zoning Board will reconvene in the coming months to decide on requested changes to the zoning code. [More at Miami Today.]

Just west of Ponce de Leon Boulevard on Bird Road, Shoma Homes has proposed a 270-unit residential tower with 40,500 square feet of retail space.

NEW TENANTS TO PONCE DE LEON BLVD

Vegan fast casual restaurant Choices Café opened its third location at 2626 Ponce de Leon Boulevard.

Local apparel operator Cavalier opened a 1,350 square foot store at 2710 Ponce de Leon Boulevard.

AT&T opened its latest outpost at 4105 Ponce de Leon Boulevard.

Vitamin Shoppe leased 1,087 square feet at Gables Ponce.

Average rates for Ponce de Leon Blvd. range from $50 – $60 PSF/NNN.

LeJeune Road / Salzedo Street

Publix submitted plans to redevelop its store at 2551 LeJeune Road with a mixed-use grocery and residential project back in May. The store plans to expand to 57,000 square feet and will be linked to 282 units in an 18-story residential tower, as well as a 793-space parking deck. The project is estimated to cost $77.5 million.

Across the street from the Publix site, at 2524 LeJeune Road, Starwood Hotels will bring its Aloft brand with 137 rooms, 34 units for the Sojourn boutique and a 4,200-square-foot restaurant. The project is expected to be completed Q1 2016.

Further north at 2051 LeJeune Road, JHM Hotel Group proposed a $30 million, 167-room Residence Inn by Marriott adjacent to the existing Courtyard by Marriott. Directly behind the proposed Residence Inn, veteran developer Armando Codina has proposed a mixed-use project at 2020 Salzedo Street that will have 4,600 square feet of ground floor retail, 47,800 square feet of office, 214 apartment units and more than 500 parking spaces.

Village of Merrick Park

General Growth Properties’ Village of Merrick Park continues to be the preferred location for luxury brands. The 730,000 square foot, open-air mall opened in 2002 and anchors the southeast end of the market with brands such as Neiman Marcus, Nordstrom, Gucci, Diane von Furtenberg and Jimmy Choo. New tenants to the mall in 2014 include Crate & Barrel (18,000 SF), kate spade new york, Brasserie Central (147 seats opened in December 2014), Piripi (200 seats opening in 2015) and Soul Cycle.

South Dixie Highway

With more than 80,000 vehicles per day, tenants cannot ignore the visibility the South Dixie Highway corridor of Coral Gables affords. Closet Factory leased the former Sir Galloway Cleaners and Sound Component space at 1536 South Dixie Highway. [reword: The existing Miami’s Best Pizza space at 1514 South Dixie Highway will be replaced by a new 50 Eggs restaurant concept.]

A $75 million proposal was submitted in October to redevelop the Holiday Inn at 1350 South Dixie Highway into a mixed-use hotel, retail and multifamily project. The plan calls for a 252-room hotel, 188 residential units, 4600 square foot restaurant and 13,300 square feet of retail space.

Owners of the Riviera Plaza, at 1542 South Dixie Highway, are planning a mixed-use redevelopment to include 30,000 square feet of retail, 160 residential units and more than 400 parking spaces.

The Lennar Foundation Medical Center, the University of Miami’s $155 million outpatient project, will be located at 5550 Ponce de Leon Boulevard. The 200,000 square foot building will provide 255 new medical jobs and space for Sylvester Comprehensive Cancer Center, Bascom Palmer Eye Institute, an urgent care, outpatient surgery, and other UHealth subspecialties. The University of Miami is the city’s largest employer with a staff of nearly 13,000.

Santona Corner, located at 1430 South Dixie Highway, was acquired in September for $17.5 million ($470 PSF) by ABC Properties of New York from Danny Taha’s Santona Corner LLC. The property has 37,130 square feet of retail, and tenants include Jugofresh, Intercredit Bank, EPB Custom Bicycles and Yamaha Pianos.

HUNGRY FOR MORE: NEW GABLES EATERIES

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