'Brighter year seen in Lincoln Road as city’s retail vacancy rate at 10%

The retail real estate market in Miami Beach is gearing up to have a bright 2025, according to local commercial and retail real estate experts.

Lincoln Road is going to be heard from in 2025, said Jonathan Carter, Colliers’ executive managing director.

Big-name restaurants like Mila and Andrés Carne de Res are attracting and catching the eye of other retailers to move into Miami Beach, he said.

Even though the overall vacancy rates sit at around 10% in Miami Beach citywide, the high tourist traffic areas like Collins Avenue, Washington Avenue, and Lincoln Road are starting to see high-end retailers like Victoria’s Secret move in and pricing out older retailers, added Stephen DeMeo, principal at Lee & Associates South Florida.

“With leading new higher-end retail stores, art galleries, boutiques replacing the older retailers, it also brings higher rates, and higher vacancy rates,” he said. “But there is a new trend happening in Miami Beach where experiential retailers are starting to come into play with pop-up stores and short-term leases. Some of these landlords are certainly flexible with these retailers and making flex arrangements. They’re trying to attract brands that want to test the market and that don’t want to get into five- or 10-year leases.”

This trend is a win-win situation for both the landlord and the tenant, Mr. DeMeo said.

Lincoln Road in Miami Beach is having a comeback year and has so much momentum, said Mario Saldana, VP of Investments at Tricera Capital.

Lincoln Road is mostly leased by restaurants, so a lot of small, big restaurants, or small food concepts and quick-service restaurants, Mr. Saldana said.

“Recently, we have started to see that boom in Lincoln Road. So now, the overall area is sitting at around 50% vacancy, but I see that changing quickly rolling into the new year,” he said. “I think there’s a lot of action and a lot of companies wanting to invest on Lincoln Road today. I really think this is going to change dramatically in the next few years.”

About Lee & Associates South Florida

Lee & Associates South Florida is a fully vertical commercial real estate brokerage firm focused on industrial, office, retail, multifamily, investment and land sectors. Our dedicated team of professionals is led by Matthew Rotolante, CCIM, SIOR a 4th generation South Florida native in a family that has owned and operated commercial property here since 1928. Lee & Associates is the largest agent owned brokerage in the nation with Senior Agent’s ability to earn profit share resulting in the highest splits while still receiving full resources, support and leads from our national network. Our collaborative and cheerful culture allows for open communications throughout the company, fostering the sharing of information and best practices to better enable client decision making.  The Lee & Associates’ robust national network that sold and leased over $115 Billion in the last 5 years offers clients a cross-market platform of expertise and deal opportunities across all asset specialties and representation roles. For the latest news from Lee & Associates South Florida, visit leesouthflorida.com or follow us on Facebook, LinkedIn, Twitter and Instagram, our company local news.

About Lee & Associates

Lee & Associates is a commercial real estate brokerage sales, leasing and management firm. Established in 1979, Lee & Associates has grown its service platform to include over 75 offices in the United States and Canada. Lee & Associates is the largest agent owned commercial real estate brokerage where agents get the greatest return for their efforts and hence are more committed and better enabled to provide superior results for their customers.  For the latest news from Lee & Associates, visit lee-associates.com or follow us on Facebook, LinkedIn, Twitter and Link, our company blog.