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Brokers say the addition of the 1111 Lincoln Road project in South Beach has altered the retail real estate landscape in the northern portion of the neighborhood.
The project, which includes tenants like Danny Meyer's Shake Shack and Nespresso Café, has impacted the way landlords in the area think about their property, said Mike Comras, president of Comras, a retail brokerage firm based in Miami Beach.
"I would say Lincoln Road is one of the hottest streets in the country right now," Comras said.
According to Comras, rents in the Lincoln Road submarket have risen approximately 20 percent in the last six months, from averaging between $130 to $160 per square foot all the way to a current range of $150 to $200 per foot.
Comras represented several new tenants in recent deals in the complex, which was built by developer Robert Wennett, including Mexican eatery Rosa Mexicano and clothing boutique Coltorti.
"I think there's been an impact," said Cushman and Wakefield's Greg Masin. "I think that the flow and the feel of that block has been materially altered. I think [Wennett] has got a very efficient retail floor plan there."
The site was designed by Basel, Switzerland-based architects Herzog & DeMeuron in their first Miami project. The global firm has designed structures from the Beijing National Stadium to the Tate Modern in London.
"I think with 1111 [Lincoln], the combination of the architecture, being widely photographed, it's gotten a lot of acclaim," Comras said. "I think [Wennett] did a great job in leasing the space. He's gotten some smaller spaces and signed some upscale tenants."
Masin said the effect on 1111 Lincoln's block, which is at the western end of Lincoln Road where it meets Alton Road, has caused a new kind of thinking for landlords.
"I think it's forcing other landlords who are in a position to do so, to address upgrades for their exteriors and their facades, and how they're going to enhance tenants' ability to make a presentation in the street," he said. "The question for each individual block of Lincoln is whether it would have the kind of environment that [tenants] would want to operate in and be a part of."
Part of its success has come from the decision to close off that block, between Alton and Lenox roads, to pedestrian traffic, said Drew Kristol, a senior associate at Marcus & Millichap.
"The 1111 project has definitely redefined the western portion of Lincoln Road with a more international, high-end retail vibe," Kristol said. "Prior to the development, that corner was defined by only the [AMC] movie theater and now the retail activity and outdoor restaurant space has created a much livelier corridor."
Courtesy of: The Real Deal/Alexander Britell
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