Fort Lauderdale dropped one spot, and West Palm Beach fell in the rankings since last year's NRI, but Miami climbed four spots. West Palm Beach kept a strong ranking because of strong household growth fueling retail demand.
Growth in population will attract retailers to Fort Lauderdale, and retail property values will rise accordingly, the report states. Retail sales were up 4.1% in the past year, and 3.8% growth is expected for this year. Low construction last year and this year, and limited land available for development, make this city a strong market for retail investment.
Growth in retail sales is expected to be a healthy 4% this year in Miami. Also, construction levels are lower this year, which will enable the market to start tightening late this year or early next year.
Strong household and employment growth drive retail demand and push asking rents higher in West Palm Beach, where the average asking rent is expected to grow by 2.2% to $17.14 per sf by the end of the year. Top-ranking markets typically have low vacancies, a small amount of new development, prospects for rental growth, and strong household and employment growth.
For the second year in a row, Washington, D.C., was the top retail market nationwide.
Want to continue reading?
Become a Free ALM Digital Reader.
Once you are an ALM Digital Member, you’ll receive:
- Breaking commercial real estate news and analysis, on-site and via our newsletters and custom alerts
- Educational webcasts, white papers, and ebooks from industry thought leaders
- Critical coverage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
Already have an account? Sign In Now
*May exclude premium content© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
