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610 Lincoln Road, Miami Beach, FL 33139. Phone: 305-604-0065

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cONTENTS

i wANT TO DO mORE

An interview with Terranova Chairman, Stephen H. Bittel

Shb'S TOp TEN gEmS

ThE ART Of builDiNg bETTER SchOOlS SOuTh flORiDA

uRbAN STREETRETAil REpORT

6

18

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4 TERRANOVA801 41st STREET SUITE 600, MIAMI BEACH, FL 33140 | WWW.TERRANOVACORP.COM | LEASING@TERRANOVACORP.COM | 305.695.8700 follow us @terranovacorp

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CHAirmAnStephen H. Bittel

exeCuTive viCe PreSidenT / ediTor-in-CHiefMindy McIlroy

mAnAging ediTorRebecca DeVille

reSeArCH direCTorAlina Matas

grAPHiC deSignerMichael Dorer

reSeArCH ASSiSTAnTKesley De Miranda

ConTriBuTing wriTerSAlina MatasRebecca DeVilleAndrea Speedy

PuBliSHerTerranova Corporation

AdverTiSerSFreddoLa DoradaLe MacaronLincoln RoadMiracle MileSteve Madden

Terranova Corporation801 W 41st Street, Suite 600Miami Beach, Florida 33140305.695.8700leasing@terranovacorp.com

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tephen h. Bittel, chairman of terranova corp., has reached new heights in the realm of commercial real estate since his firm’s $342 million sale of a portfolio of six Buildings on lincoln road in miami Beach — one of the largest property deals in south florida history.

terranova remains an owner and managing memBer of the properties, in a new partnership with morgan stanley real estate investing. in total, terranova corp., which Bittel founded in 1980, owns and operates more than $1 Billion of real estate in florida, mostly in south florida.

‘I want to do more’

From The Miami Herald, 10-12-2014© 2014 The McClatchy Company. All rights reserved. Used by permission and protected by the Copyright Laws of the United States. The printing, copying, redistribution, or retransmission of this Content without express written permission is prohibited.

By Ina Paiva Cordle

Stephen h. Bittel, chairman of terranova corp:

SQ. You are a Miami native, yes?

A. I am as native as one could be, having been born at Jackson Memorial Hospital, the second of three children of my very active parents, Jordan and Judy Bittel who grew up on Miami Beach. My father always joked that when our families got down here, there were only Claude Pepper and the alligators. A product of the Miami Dade County Public School system from grades one through 12, I continued my education at Bowdoin College, with my sister, and son, later graduating from Bowdoin as well. While it’s a long way to Brunswick, Maine, we still feel uniquely close to the college.

Q. Did you originally intend to be a lawyer?

A. After Bowdoin, I spent a year in Europe, as a Watson Fellow, and applied to law school while

abroad. As the son and grandson of attorneys, I grew up always planning to follow in their footsteps professionally, but by the time I began at the University of Miami School of Law, I was headed in another direction, working full time in commercial real estate during my first year of law school, and then starting what is now Terranova during the fall of my second year. While somehow I managed to graduate and pass the bar as a result of some remarkable study group partners who always reeled me back in to focus on our exams, working full time while simultaneously a full time law student might not be recommended for those requiring normal sleep.

Q. How did you start Terranova Corp.?

A. In the fall of my second year of law school, my then-employer suggested a change in my

We sat down with Bittel in his Miami Beach offices to discuss his background and company, and then emailed him these questions to which he responded.

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compensation from salary to all commission, that would enable me to earn much more. After thinking about it overnight, I agreed with them and left to begin what is now Terranova. While creating my own company had always been a dream, the idea had been to first get through law school. But alas, as in the John Steinbeck novel title, “the best laid plans of mice and men…”

So there I was, at the age of 24, engaged, with a mortgage, a full-time law student, and working on my own out of our first home. Retrospectively, it doesn’t seem like the best of business plans, but somehow, it worked. The hope was that I would continue to build upon relationships developed during my Watson Fellowship year in Europe and to attract capital from abroad to invest with me in South Florida commercial real estate. I found the Terranova name, Latin for new land or new world, in the back of a dictionary in the foreign words section, as we all used to have dictionaries back then.

Every European with a high school education or more had taken several years of Latin in school so they would know what the company was about, and every Spanish speaker would know as well, so I only had to explain it to the English speakers. Our first logo was a globe with the Terranova name created by a University of Miami graphic arts graduate student, and while we still have the same font, the globe has been downsized to incorporate it into the orange that is the most recognizable part of our logo today.

Q. What were your first investments?

A. Our first investments were “friends and family” syndications of two small unanchored strip shopping centers on Sunset Drive, magically just down the street from Sunset Corners, the wine and gourmet store started by my grandparents 60 years ago, and now owned and wonderfully operated by my older brother and first cousin. Next came a five-building office park

on Coral Way, the Biscayne Plaza Shopping Center (with which we are still involved), and then an industrial park on Milam Dairy Road. All of these projects had other investors, but we retained the management and leasing on all of them, developing what has become our core competency in operations. In 1986 the combined effect of changes in the tax laws and new regulations governing the Savings and Loan industry plunged the overbuilt commercial real estate sector into a deep recession. Fortunately, the company, which by then had just over 30 team members, was competent and strong enough to race into what is now called the distressed business, to offer our services to insurance companies and banks which rapidly became involuntary owners of commercial real estate when their loans defaulted. We helped them get title and then did workouts all over the state including management, leasing and construction management, eventually restoring the value, and then taking the assets to market for sale.

Q. How did Terranova grow from there?

A. Our property base continued to grow, reaching a peak of over 8 million square feet, with a team of over 100 members. We saved our profits and started buying again, this time partnering with high net worth families. We focused on supermarket/drug store anchored shopping centers in growing suburban markets in Miami Dade, Broward, and Palm Beach counties, always looking for opportunities in growing neighborhoods that we believed would lead to increasing sales and growing rents.

Q. Why did you focus on strip shopping centers?

A. We loved this asset class because we believed that the chain store relationships could be developed and result in multiple leases with the same tenant, whether new to market like Starbucks when they first arrived in South Florida, or Publix, with which at one time we had

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16 separate stores. It was the same with Walgreens, Winn Dixie, Payless Shoes, and you name the chain, we were doing business with them. Our size gave us incredible tenant access at the highest levels of the retail companies, and we could do more and more stores with substantially the same lease agreement. It was a special combination, and we used this access to build what we called our “yours, mine, and ours” portfolio, with some properties pure third-party assignments, some joint ventures with either high net worth families or institutions, and some were all ours.Some of our notable properties with which we have been involved in different capacities over the last 30 years include Biscayne Plaza, Suniland, Kendall Mall, Flagler Park Plaza, all in Miami Dade; Westfork Plaza, Paraiso Plaza, Country Walk, Weston Lakes, and Sheridan Mall in Broward; and Boca Valley Plaza, Shadowwood Square, Jupiter Square in Palm Beach County. All told, we have worked on nearly 100 different open air shopping centers over the past 30 years throughout Florida, plus a large number of office and industrial properties.

Q. How did you become interested in urban retail?

A. In the mid 1990s, the residential land surrounding our shopping centers had been absorbed and substantially built up with housing. When the homes

and apartments were first newly occupied, they were filled with growing young families that were the ultimate consumption unit. As the families grew, they consumed more and more. Our retail tenants experienced growing sales which quickly meant growing rents. As the communities aged, the children matured and moved out, leaving us smaller groups of consumers. Sales growth began to slow and we were concerned. At the same time, younger people relocating to South Florida started thinking about living in more urban areas like Miami Beach, Coral Gables and Brickell. For the first time in my life, our suburban communities were commencing an uncomfortable transition from endless suburban sprawl to real urban pockets of activity. Our first buy was an eight-building

portfolio on Miracle Mile in Coral Gables over 10 years ago, which we still own today, now with our second institutional partner. Coral Gables has a walkable downtown core that is getting better and better with strong daytime population from a robust office market,

great restaurants and growing residential. The city leadership has committed to a streetscape project to further upgrade the common areas of Miracle Mile which should make the future even better.

Q. What originally caused you to think of Lincoln Road?

A. We had chased deals on Lincoln Road since 2002, and had a great history of coming up short. We loved the street because it had a special combination of local customers and tenants, and international visitors and retailers. The café life in the center remains the engine that really drives the energy of the street. When the economy slowed down in 2007, we stopped buying and focused on our existing large portfolio. We had plenty of work to do and weathered the storm comfortably, focusing again on our core operational competency, and benefiting from low leverage and no

“Coral Gables has a walkable downtown core that is getting better and better with strong daytime population from a robust

office market, great restaurants and growing residential.”

i want to do more

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property level recourse debt. Our team member count shrunk through some attrition, but we are proud of having zero layoffs, and only one person who took a salary adjustment — me, and I took no salary for several years.

With retail sales showing growth in December of 2009, we made the call that it was time to go all in on a bet on a recovering economy and thought there was no better place than Lincoln Road. Our first buy with an institutional partner was a three-building, $52 million deal in December of 2010 that included the Sushi Samba restaurant on Pennsylvania and Lincoln, and the Starbucks building on Meridian and Lincoln — getting us two of the very best corners on Lincoln Road. At a price of $850 per square foot, people called from around the country to tell me I had gone crazy.

They did not understand that the numbers were even worse, as one of the buildings was on Lincoln Lane, to the north of Lincoln Road and not as valuable as Lincoln Road. Our plan was simple then and not a lot different than in the past, as we thought

we could move average rents of $65 per square foot to $130, and we planned to replace the Lincoln Lane building with a new three-story retail store.

Two years later, we bought three more buildings for $139 million, all on Lincoln Road with the same partner, at what then seemed like a far less astonishing $2,300 per square foot. Once again we had a plan, as we bought with average rents of $130 per square foot, with the hope to get to a then market rate of $300 per square foot as leases expired. Since then we have received approvals from the Historic Preservation Board on Miami Beach to add additional square footage to two of our buildings. Together the two buys combine to approach almost thirty percent of

the retail space on Lincoln Road.

Q. You just sold your six-property portfolio for $342 million,

one of the largest property sales in

South Florida history.

"I am passionate about making our community and country better. We are committed to this as a family

and company."

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You retained ongoing ownership as a partner with Morgan Stanley Real Estate. What are your plans for the properties now?

A. We are laser-focused on executing our leasing and development plan, seeking out exciting new retailers from around the world to make the Lincoln Road dining and shopping experience one of the best in the world. As we find premier retailers and restaurateurs to join us, we will be ever-sensitive to maintaining the right possible mix of offerings to appeal to everyone who loves to spend time eating, shopping and watching people.… We start with a magical location on Miami Beach, a top destination for local area residents and tourists from around the world.

We have played an important role joining the property owners up and down Lincoln Road into a property owners’ association that we hope will soon transition into a Business Improvement District like we have had for years in Coral Gables, where our executive vice president, Mindy McIlroy, has a leadership role. The City of Miami Beach has committed to a major upgrade of the common areas of Lincoln Road to be designed by a world-class design firm and paid for by special assessments that the property owners have been contributing to for many years. This coupled with a huge upgrade to the convention center and a new convention hotel, should propel the quality and quantity of Lincoln Road guests higher than we have ever known. The new leadership at the City of Miami Beach understands the unique and powerful role that Lincoln Road has played in the past, and will in the future.

Q. You have also been very active philanthropically and hold a number of positions in political and nonprofit organizations. Please tell me about that.

A. I am passionate about making our community and country better. We are committed to this as a family

and company. Terranova was just the presenting sponsor for the National Parkinson’s Foundation Miami Moving Day. Team Terranova raised nearly $400,000 making us the highest first-year team in history and the top giving team ever. I am on the Board of Teach for America Miami because I believe that every child should have equal educational

opportunity and that the inner city education gap has the potential to be the most destabilizing single issue facing our country. Our TFA Corps members, under the leadership of our exceptional Superintendent, and with unmatched commitment and enthusiasm, are teaching in the poorest neighborhoods and really moving the needle on educational achievement. I am an elected member of the Democratic National Committee because I believe that we are all about giving everyone in need a hand up and I am delighted to make the commitment it takes. Two of our children, now adults, served in the Peace Corps and my wife is a teacher in the Miami-Dade County Public Schools. All three of our wonderful adult children share our passion for helping others. What we lose in sleep, we make up in our constant effort to improve our community and country, and that energizes us to do more and more. We have been so incredibly fortunate and achieved a level of success we never dreamed possible, so giving back is amongst our very top priorities.

Q. What is next for you?

A. I want to do more. I will have plenty of time to rest in my 90s and after, but for now Terranova is focused on reinvesting in both super core and opportunistic commercial real estate. Personally, I want to make sure we have the leadership in place to continue the positive impact on Lincoln Road and Miracle Mile, as well as seek out new streets where we can grow a meaningful ownership position. Everyone asks what I am going to do after our recent Lincoln Road trade, and I answer the same every time: I want to do it again.

Personally, I have so many charitable and political goals ahead that there is little time for a breather. Investing in education in Miami is a top priority, when we get education right, it fixes so many other issues in our community from homelessness, to crime, to health, to jobs. The growth of our community demands an educated populace and we have the right people in Miami to push this goal forward year after year, making our Miami community one of the greatest places to live in the world.

STEPHEN H. BITTELTitle: Chairman and founder, Terranova Corp., Miami BeachAge: 58Born: MiamiLives in: Coconut GroveEducation: Bachelor’s degree majoring in economics, Bowdoin College, Brunswick, Maine; Law degree, University of Miami School of LawPersonal: Married, three adult childrenHobbies: real esate, politics, charity, food and wine, Miami Heat fan

i want to do more

12 TERRANOVA817 L INCOLN ROAD • MIAMI BEACH, FL 33139 • 305.534.9997

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The ArT of BuildingBeTTer SchoolS

The ArT of BuildingBeTTer SchoolS

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How MiaMi DaDe Public ScHoolS anD a TeacH for aMerica aluMnuS cHangeD one ScHool’S enTire ouTlook

How MiaMi DaDe Public ScHoolS anD a TeacH for aMerica aluMnuS cHangeD one ScHool’S enTire ouTlookBy Andrea Speedy

roving that progress often begins with the most unexpected catalysts, one of MiaMi’s neWest puBlic school initiatives started with simple question – why

don’t We inspire learning By creating environMents that encourage ideas and creativity?

P

The ArT of BuildingBeTTer SchoolS

The ArT of BuildingBeTTer SchoolS

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For the teachers and students of Jose de Diego Middle School, located on the edge of Miami’s hot Wynwood Art District, the answer was literally all around them. It just took some new perspective from a neighborhood native and her affiliation with the innovative Teach for America program. “I was tired of looking at white walls,” says Catalina Hidalgo, the teacher behind what would become one of the largest public art projects of its kind. “Wynwood is bursting with larger-than-life mural artists,” she continues. “I thought it would be a cool idea to bring a few artists to paint this school. It just seemed crazy to have giant stark white walls here and everywhere else around us is filled with murals.” The Wynwood area of Miami has the unofficial reputation of being a global mecca for street artists. Wynwood Walls is a rotating exhibit that has been painted by many of the top graffiti and street artists from the U.S., Australia, the U.K, Europe, South America, and beyond. Hidalgo’s vision was that the school’s many blank white walls could serve as the next canvases for Wynwood’s numerous resident and visiting artists.

Not many fourth-year teachers would have had the ingenuity, desire, or determination to take on such a new and unique challenge. However, it is one of the hallmarks of the Teach for America to match natural-born leaders to the schools where they can make the most positive impact. Hidalgo’s placement at Jose de Diego four years ago is just one such example of why Terranova’s chairman, Stephen Bittel, counts Teach for America among his most important volunteer efforts. “The people best suited to make changes that really matter for Miami are those who grew up here,” explains Bittel. “Ms. Hidalgo is one such person – but the hundreds of students that currently attend Jose

de Diego Middle School, and the thousands that will follow after them are also important stakeholders in the future of Miami. Teach for America helped Ms. Hidalgo channel her energy and enthusiasm into something

with far-reaching impact for the entire city. That’s something any organization – and any teacher – can be proud of.”

When Hidalgo shared her plan with her principals. school district leadership, and later, Wynwood’s local street art leaders, the project quickly grew from a modest wish for a few murals to an excited effort encompassing more than 40 internationally renowned artists and what would become 75 separate murals. Classes at the school were each assigned artists, and were given the opportunity to work hand-in-hand with them from inception to completion – often actively painting sections or elements of the murals. Ranging from colorful decorative motifs, to bold cartoon-like characters, to pop-art, to traditional graffiti letters and imagery, to a photo-realistic multi-story shark, no two installations are the same… inviting students, teachers, administrators, and visitors to explore every corner and immerse themselves in a new slant on the educational experience. Even more impressive is the long-term community fundraising campaign the project sparked, which was launched during 2014’s Art Basel Miami Beach. Featuring the mural work of such famous artists as D*Face, Anthony Lister, Pixelpancho, Pastel FD, AholSniffsGlue, Hox,

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Santiago Rubino and others, the goal is to raise $500,000 to support the creation of stronger art and music programs at the school… an outcome Miami Dade County Public Schools is hoping to repeat.

“The mural project at Jose de Diego Middle School drew incredible support and participation from many individuals and groups, including local and international artists, businesses and non-profits, the school district and secondary educational institutes, teachers, students, and many helpful volunteers,” said Alberto M. Carvalho, Superintendent of Miami-Dade County Public Schools. “These diverse individuals and

organizations came together to produce a world-class, bigger-than-life permanent exhibition, now encompassing more than 75 individual works of art that inspire our students and mesmerize thousands of

visitors who see them. Because of its success, we are exploring the possibility of recreating a similar program at other schools.” Of course, for the results to be sustainable and effective, the School Board will need a steady stream of fresh ideas from invested teachers. That is where Teach for America steps in. “Our mission, as an organization, is to build strong educators that can hit the ground running where they’re needed most,” says Bittel – who also

serves on the board of Teach for America’s Miami Chapter. “We believe that teachers with diverse skill sets are more empowered to reach students and generate results. That begins with

creating a destination students truly want to attend… a place they enjoy being. Ms. Hidalgo has done it with art. But it can also happen with gardens, music, theatre, culinary arts, and countless other sources of inspiration.”

Today, the Jose de Diego Middle School is one of the city’s rising stars in terms of forward-thinking vision and renewed community involvement from businesses and neighbors. It’s also a great source of pride for Catalina Hidalgo, who grew up in the neighborhood, and whose own mother actually attended the school when she was a child. “I’m just pleased that I was encouraged to take this idea as far as it could go. Everyone saw the potential here,” says Hidalgo. Bittel, who has served as Hidalgo’s mentor for the past four years could not be prouder of her, echoes her

satisfaction, “This is an instance where together we have succeeded because everyone put the interests of the students first. From Ms. Hidalgo, to the school administration, to the school district, to Teach for America, to local businesses that donated paint or materials, to the artists themselves, it all serves to illustrate the power of a cooperative attitude towards education. If we work together, everything is possible.”

“It all serves to illustrate the power of a cooperative attitude towards education. If we work together, everything is possible.”

the art of building

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SOuThflORiDAuRbANSTREET RETAilREpORT2015 EDiTiON

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Miami Beach continues to stand out as a stroll-and-shop destination. Two of its streets – Lincoln Road and Collins Avenue – show noticeable increases in rent, keeping them in the lead for asking rents. The streets benefit from the throng of tourists who stroll around Miami Beach year round, an activity that makes the city a showcase for retail brands as much as it makes it a destination for shopping, dining and entertainment. Ocean Drive, the beachfront strip lined mostly with restaurants and hotels, had virtually no availability at the time of the survey.

Miracle Mile, E. Las Olas Boulevard, Clematis Street and E. Atlantic Avenue (a new entry in this annual report) have a more local character, including the business and nighttime activity of their surrounding downtowns. That is not to say these streets don’t have a share of South Florida’s hefty tourism industry -- they do -- but their rents and occupancy reflect more the ebb and flow of local tastes and economy.

Sunset Drive is the most neighborly of all the streets, its surroundings the most sedate, but it continues to gain ground as a dining and entertainment alternative to the more crowded, employment-dense areas of Coral Gables and Brickell Avenue. Worth Avenue’s collection of upscale, designer-brand retailers keeps it in its own class, its market also tailored to the wealthy enclave of the island of Palm Beach and the social circuit that spans beyond its boundaries, including European and Northeast visitors.

Two noticeable trends on all of South Florida’s urban retail streets are:

• a growing presence of national retailers

• replication of some tenants, local and national, among the streets.

Urban Outfitters, for example, opened on both Lincoln Road in Miami Beach and on East Atlantic Avenue in Delray Beach; BCBG, which has had a location on Lincoln Road for several years, opened in 2014 on Atlantic Avenue; colorful fashion retailer Fresh Produce, which has had a location on Las Olas for several years, now opened a new store on Atlantic in 2014. On the local front, restaurant chain Rocco’s Tacos, which first debuted on Clematis Street in 2007 then added a Las Olas location in 2010, now is adding a location on Atlantic in 2015. The Restaurant People, recently launched a new concept, Fork & Balls, on Las Olas. Silk-prints bohemian-fashion retailer RamonaLa Rue, which started in the owner’s Coconut Grove neighborhood in Miami, opened locations on Atlantic and Las Olas in 2014.

Urban retail streets also are where many new-to-market retailers open shop, either bringing to town an existing concept that fits in with the particular’s street scene, or, as is typically the case with local restaurateurs, bringing a completely new concept to which consumers along urban streets are likely to be receptive.

Among new-to-market merchants bringing fresh looks, tastes and textures to South Florida retail streets are Las Vegas-based Fine Beauty Cosmetics, which opened two Tresor Rare stores on Lincoln and Las Olas; Australian organic cosmetics brand Aesop, California-based hat maker Goorin Bros., French fashion retailer Zadig & Voltaire, men’s fashion brand Ted Baker London and Italian cosmetics brand Kiko

A n unrelenting draw toward urban lifestyles characterized south florida’s major retail streets in 2014, as national and international

retailers grabbed new locations in urban settings. not only national and international, but local restaurants and cafes, fashion stores, and art galleries continue to find a thriving environment for new concepts and a fertile ground for expansion in the region’s major retail streets. as a result, average asking rent climbed on all south florida major retail streets. vacancy increased in six of the streets, but increases were either minor, or reflective of unique circumstances on each, such as new construction on collins and relocation of large tenants on lincoln.

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Milano all opened on Lincoln; Sugar Factory American Brasserie opened on Ocean Drive. Uruguayan gourmet pizza restaurant Trouville opened on Miracle Mile; Atlanta-based Mellow Mushroom Pizzeria opened on Sunset Drive; Martha’s Vineyard preppie fashion retailer Vineyard Vines and Swiss fashion label Akris opened on Worth Avenue.

National, international and growing local tenants are forging a mixed character on South Florida urban retail streets, one that combines single-location, independently-owned stores with more financially stable and ubiquitous brands. It can still be said, however, that each street is preserving a unique character, ranging from urban funky Clematis Street in West Palm Beach to tony, high end Worth Avenue, dubbed the Rodeo Drive of the Southeast. Helping streets preserve their uniqueness are historic architecture, one-of-a-kind art galleries, cafes and performance venues, and distinct environments, such as the daytime corporate chic around Miracle Mile in Coral Gables to the more free-spirit nighttime crowds of Miami Beach along Lincoln Road.

HigH STreeT leAd Lincoln Road surpassed its own lead in 2014, its average asking net rent increasing 21.5% to $330 per square foot, as national and international retailers keep seeking space on this street, while some existing stores seek opportunity for larger or smaller spaces. Indeed, the relocation of existing retailers within the street contributed to a spike in vacancy to 9.4%, because two relatively large spaces – Bebe and Apple – went on the market as these retailers move to new locations. Apple moved to a new, larger, two-story building and Bebe moved to a smaller space, formerly occupied by Pasha’s. Also on the market is the space of Anthropologie’s store, which is said to be planning a relocation.

A trend towards multi-story redevelopment on Lincoln continues, most recently including the re-opening of Gap in its redeveloped two-story flagship store and the opening of Urban Outfitters in a two-story space. Apple has built a new two-story flagship store at 1021 Lincoln, where it demolished the existing structure, in order to make room for the new store that will double the size of its existing store on the 700 block.

Retailers on Lincoln Road benefit from the steady flow of Miami Beach’s international tourism, whose diverse geographical origins support year-round visitor activity, with a total of 6 million tourists strolling Lincoln Road annually. South American tourists from countries such as Peru, Chile, Brazil and Argentina typically visit during the U.S. summer, when those countries

experience their winters. Canadian, European and U.S. tourists, on the other hand, typically visit during the U.S. winter to get away from their cold weather.

Ocean Drive and Collins Avenue, which also benefit from Miami Beach’s tourism crowds, continue going strong as well. Locals as much as tourists enjoy the restaurants along Ocean Drive, which remains ever tight, mostly with local, independently owned restaurants, and there is virtually no availability on the strip.

Collins Avenue’s tight inventory has spurred new construction, which has kept vacancy over 7%, but demand for space boosted its average asking rent 16.6% to $125.35. Like Lincoln Road, Collins Avenue is a showcase for retailers to expose their brands to visiting tourists from around the world, and more are slated to come: Fit2 Run and Charming Charlie have staked space on Collins, while three other properties are undergoing redevelopment that will add more retail square footage.

Worth Avenue has remained strong while other South Florida venues that have veered into high end territory, such as Aventura Mall and the Village of Merrick Park. Designer-lined Worth Avenue has added new fashion and jewelry boutiques unique in South Florida. Among new retailers on Worth Avenue is upscale “preppie” fashion store Vineyard Vines, which hails from Martha’s Vineyard in Massachusetts.

retail report

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urBAn SHineMiracle Mile in Coral Gables also remains in an upswing, its average asking rent jumping to 9.8%, boosted by increased occupancy. Surrounded in daytime by an active corporate office scene, and by cultural events at nighttime, Miracle Mile’s cache is enlivened by new trendy restaurants, stores and cafes. Newcomers to Miracle Mile in 2014 include home furnishings stores Oroa and Veneta Cucine USA, Cherry Blow Dry Bar and Brazilian shoe brand Melissa, which also has a location on Lincoln Road.

Sunset Drive, a neighborly street speckled with new trendy tenants got jazzier with several new restaurants and bars opening in 2014, including new-to-market Mellow Mushroom Pizza and local restaurant Station 5 Table & Bar. Another notable newcomer on Sunset is furniture store Arango, which operated out of Dadeland Mall for years before closing in early 2014, driven out by the mall’s high rents.

On East Las Olas Boulevard in Fort Lauderdale, a flurry of new tenants over the past year has lowered vacancy to 2.2%, a noticeable drop from 9.8% a year before. The leasing activity has brought back to life a key corner of the street, the NEC of Las Olas and 13th Avenue, where Fork & Balls replaced the shuttered M Bar.

reBirTH And reCogniTionThis report for the first time includes East Atlantic Avenue in Delray Beach. This east-west road that

ends at the beach has become one of Palm Beach County’s most popular urban destinations as part of Delray Beach’s downtown renaissance, which has been ongoing for more than a decade. With the beach and several hotels located on its eastern end, Atlantic Avenue draws a good share of tourism. But the street’s lively urban scene, derived from its downtown location and a local art scene that has been part of the area’s revival, keeps East Atlantic a local favorite as well. Accordingly, this street’s vacancy rate hovers around 1%, and its average asking rent surpasses many of the others.

Most urban among all the retail streets is downtown West Palm Beach’s Clematis Street, which has improved its tenancy with new, modern establishments, and was named in 2014 as one of 10 Great Streets by the American Planning Association. However, Clematis Street appears the most challenged of all streets in terms of rents and occupancy, partly due to competition from the newer CityPlace multi-block complex only a few blocks from Clematis. But as recognized by the planning association, Clematis has become a natural incubator of start-up enterprises on the upper floors of its buildings, while its ground-level retail retains several established favorites, such as Rocco’s Tacos and Don Ramon Cuban Restaurant, and houses trendy concepts that continue to show up, such as this year’s addition of health and fitness facility ncognito and The Alchemist Gastropub & Bar.

urBAn lureSouth Florida’s retail streets benefit from the state’s robust tourism industry, which continues to grow unabated. The state attracted 94.7 million visitors in 2014, a 3.5% increase over the previous year before, according to figures from VisitFlorida, the state’s tourism marketing organization. Visitor spending in Florida in 2014 totaled $76.1 billion, a 5.9% increase from 2013. South Florida accounts for a large portion of the state’s tourism activity, the three counties totaling 33.3 million tourists in 2014. By county, Miami-Dade County counted 14.2 million visitors in 2014, Broward County 13.1 million in 2014, and Palm Beach County had 6 million in 2014, according to figures from each county’s convention and visitors bureau.

Visitors to South Florida are drawn to the region’s beaches, golf courses, shopping, and increasingly, to its cultural events. The South Beach Food and Wine Festival is a nationally-renowned showcase of chefs and culinary personalities, attracted more than 65,000 guests in 2014; Art Basel, an annual international five-day art fair composed of about two dozen art shows throughout different Miami and Miami Beach venues,

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drew 75,000 art aficionados from throughout the world in 2014; and the Ultra Music Festival, an outdoor electronic music festival that boasts the world’s most renowned DJs, drew more than 330,000 attendees in 2014.

Miami-Dade’s Convention and Visitors Bureau is the only one of the three bureaus that tracks visitors to specific destinations within the county: An estimated 6.1 million tourists visited Lincoln Road in 2014, and some 3.6 million tourists visited Coral Gables (where Miracle Mile is located), higher than the number of tourists visiting well-known shopping destinations such as Dadeland Mall, Dolphin Mall and Bal Harbour Shops.

urBAn dynAmiCUnlike traditional shopping centers, urban street retail involves multiple owners, older construction, and municipal control over parking and traffic rules, thus presenting block-to-block and even building-to-building inconsistency in upkeep and appearance. Their owners have to rely on local government to optimize parking, common area appearance and traffic flow. But as local governments increasingly recognize and embrace the value and appeal of original retail street destinations, they are supporting and implementing improvements to these areas, raising their profiles as destinations. As a result, the streets’ rents and occupancy more often than not surpass that of traditional shopping centers in their submarkets.

More retailers are pursuing urban street settings, increasingly adapting their standard store formats so as to fit the unorthodox space layouts frequently found in existing street buildings. They perceive the market opportunities in street locations, which are the original mixed-use, live-work-play settings now emulated by many new developments. Retail street landlords face the challenge of balancing the need for financially strong tenants that are able to afford rising rents, with the appeal of unique local tenants that give the street a homegrown, local, and ultimately unique character.

urBAn growTHNew urban retail development is on the horizon, as developers meet interest from retailers seeking entry and expansion in the urban South Florida market. The Design District, an inner-city area north of downtown Miami, is undergoing a wave of redevelopment by a multi-property owner, who plans to transform the neighborhood into an upscale retail destination planned to have more than 1 million square feet of upscale retail, covering a multi-block area from North Miami Avenue to N. Federal Highway, between Northwest 38th and 42nd Streets. The project is highly ambitious because much of the area and its immediate surroundings remain in

rough condition, and this pocket of the city of Miami doesn’t contain any other major crowd attractions such as beach or golf resorts or employment centers. Nonetheless, high-end retailers Louis Vuitton, Hermes, Cartier and other similar-tier brands have taken the plunge, and a cadre of others are announced for 2015 openings.

Lincoln Road and Miracle Mile are both slated for upgrades. The City of Coral Gables has selected New York-based Cooper, Robertson & Partner’s to design the $20 million streetscape improvement project to include wider sidewalks, more trees, garden areas and outdoor dining along newly landscaped curbs. Whereas the City of Miami Beach quietly announced James Corner Field Operations to renovate and revamp Lincoln Road.

Two other projects in Miami also are capitalizing on the city’s urban renaissance. Brickell CitiCentre, a mixed-used project by Swire Properties, that has broken ground on a multi-block site just south of downtown Miami, amid the flourishing Brickell Avenue neighborhood. The project will include more than 500,000 square feet of retail space, anchored by Saks Fifth Avenue. Mall at Miami Worldcenter, a 740,000 square foot retail project anchored by Macy’s and Bloomingdale’s, is proposed as part of a mixed-use project to be built on a 27-acre site from NE Seventh Street to NE 10th Street between First and Second avenues.

These projects will serve the burgeoning urban residential base in downtown Miami and the Brickell area, but their designs involve construction of a mall, rather than the creation or redevelopment of an urban retail street. While these new projects will expand options for retailers and consumers in South Florida, the original urban retail streets that have survived the test of time harbor a unique shopping experience that no developer has been able to duplicate.

retail report

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nATionAl And inTernATionAl reTAilerS ConTinue To Seek SPACe on linColn roAd, rAiSing BoTH Profile And renTS on THe PoPulAr miAmi BeACH PedeSTriAn STreeT. To Some loCAlS’ CHAgrin, reSTAurAnT And jAzz venue vAn dyke CAfé CloSed iTS doorS, iTS SPACe SPoken for By nATionAl yogA lifeSTyle reTAiler lululemon. nike AlSo grABBed SPACe on linColn, And BeBe reloCATed To A SmAller SPACe. linColn roAd mAinTAinS iTS no. 1 rAnking Among SouTH floridA’S reTAil STreeTS, wiTH AverAge ASking renT ClimBing To $330 in 2014, uP 21.5% from $272 in 2013. uPwArd moveS on THe Building fronT ConTinue AS well. gAP re-oPened in iTS redeveloPed, Two-STory flAgSHiP STore, urBAn ouTfiTTerS moved inTo redeveloPed Two-STory SPACe, And APPle reloCATed To A new Two-level STore. THe unuSuAlly HigH vACAnCy rATe of 9.4% iS due To THe reloCATion of SeverAl lArge TenAnTS SuCH AS BeBe And APPle, wHoSe CurrenT SPACeS Are in THe mArkeT AT THe Time of THiS Survey.

nATionAl And inTernATionAl reTAilerS ConTinue To Seek SPACe on linColn roAd, rAiSing BoTH Profile And renTS on THe PoPulAr miAmi BeACH PedeSTriAn STreeT. To Some loCAlS’ CHAgrin, reSTAurAnT And jAzz venue vAn dyke CAfé CloSed iTS doorS, iTS SPACe SPoken for By nATionAl yogA lifeSTyle reTAiler lululemon. nike AlSo grABBed SPACe on linColn, And BeBe reloCATed To A SmAller SPACe. linColn roAd mAinTAinS iTS no. 1 rAnking Among SouTH floridA’S reTAil STreeTS, wiTH AverAge ASking renT ClimBing To $330 in 2014, uP 21.5% from $272 in 2013. uPwArd moveS on THe Building fronT ConTinue AS well. gAP re-oPened in iTS redeveloPed, Two-STory flAgSHiP STore, urBAn ouTfiTTerS moved inTo redeveloPed Two-STory SPACe, And APPle reloCATed To A new Two-level STore. THe unuSuAlly HigH vACAnCy rATe of 9.4% iS due To THe reloCATion of SeverAl lArge TenAnTS SuCH AS BeBe And APPle, wHoSe CurrenT SPACeS Are in THe mArkeT AT THe Time of THiS Survey.

linColn roAdreaching higher to accomodate larger

retailers on lincoln road

TRENDS 25

redeveloPmenTS, AddiTionS, renovATionS1212 Lincoln Road, a mixed-use project that will include a three- story parking garage and two floors of retail shops, is proposed on the SWC of Alton Road and Lincoln Road, just west of the western end of Lincoln Road’s pedestrian stretch. Tenants will include Wells Fargo, whose building at 1634 Alton Road will be demolished to make way for the new project.

The ArtsCenter South Florida building at 800 Lincoln Road was sold to a developer who plans to redevelop the art studios facility into a new three level retail and entertainment space.

A three-story retail building is proposed on the courtyard of the Miami Beach Community Church, at the SWC of Lincoln Road and Drexel Avenue. The proposal has to be presented again in 2015 to the historic preservation board, after the city’s special master reversed an initial approval, siding with project opponents who complained the approval process had been faulty.

A 2-story Apple store is now complete at 1021-1025 Lincoln, where Apple has relocated its existing store at 738 Lincoln.

A mixed-use, 21,047 square foot addition is proposed for 1111 Lincoln Road. The two-story addition would be built on the SunTrust parking lot abutting the project on the north just off Lincoln Road, and would include 10,813 square feet of bank space on the ground floor, 50 new parking spaces and four residential units on the top floor.

The former Brownes & Co. Apothecary at 827-829 Lincoln was redeveloped into a two-level store for Urban Outfitters, which relocated from Collins Avenue. The former Pacific Paradise Co. next door at 825 Lincoln was converted to an American Eagle store.

TenAnT moveS Goorin Brothers Hat Shop will open its first Florida store at 612 Lincoln Road, in the former Kilwin’s space. Argentinian gelato store Freddo’s opened at 610 Lincoln, replacing La Lupa di Roma, and Specs replaced Miami Optics at 608 Lincoln. Kiehl’s relocated to 540 Lincoln, from 832 Lincoln. French fashion retailer Zadig & Voltaire will open at 1118 Lincoln. Adidas by Stella McCartney opened and Ted Baker London replaced Juicy Couture at 1111 Lincoln Road.

Women’s fashion retailer Club Monaco replaced shoe retailer Camper at 1006 Lincoln. Nike will open at 1045/1035 Lincoln, replacing Pottery Barn and William Sonoma, which haven’t announced relocation plans. Bebe relocated from 1029 Lincoln to 900 Lincoln, in the former Pasha’s restaurant space. (Pasha’s closed its Lincoln location). Athleta and Intermix each opened a store in Gap’s new 2-story building at 1001 Lincoln. Musical chairs at 927-939 Lincoln: Design Within Reach left 927 as it relocated to the Design District; sports clothing retailer Base relocated from 939 to 927; and new-to-market cosmetics retailer Kiko Milano opened at 939. Cubavera closed at 934 Lincoln. Cosmetics retailer Adore replaced Carel Gallery at 922 Lincoln.

Beauty-care products retailer Aesop opened at 830 Lincoln. MET in Jeans closed at 826 Lincoln and relocated to Collins Avenue. Melissa Shoes relocated its pop up store at 830 Lincoln to a permanent store at 821 Lincoln, where it replaced Tasti Delight. Score closed at 727 Lincoln, Pink Palm closed at 723 Lincoln and Tiramesu closed at 721 Lincoln making room for a new larger footprint retailer not yet named. Simon’s Athletics replaced Athlete’s Foot at 706 Lincoln. Pacific Paradise Clothing closed at 637 Lincoln.

retail report

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CollinS Avenuetight inventory spurs new retail construction

on collins avenue

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redeveloPmenTS, AddiTionS, renovATionSThe former apartment building at 852 Collins Ave. is being redeveloped into a 3-story retail building, with 4,200 square feet on the ground floor. No tenants have been announced.

The residential building at 825-827 Collins Ave. is slated for redevelopment into a 2-story retail building totaling 10,000 square feet.

The historic coral building on the NWC of Collins Ave. and Ninth Street is being redeveloped into a two-story retail building with 4,814 square feet on the ground floor. No tenants have been announced.

The Vitrine, a two-story retail project totaling 7,300 square feet, is under construction at 909 Collins Ave., formerly a multi-family building. No tenant has been announced.

TenAnT moveSFit2Run will replace Urban Outfitters at 653 Collins. (Urban Outfitters relocated to Lincoln Road.) Italian women’s jeans store MET in Jeans relocated from Lincoln Road to 610 Collins, where it replaced Shoe Freak. French fashion house Vicomte A. opened a store at 638 Collins, replacing Kid Robot. Women’s fashion brand Free People, from the same company that owns Urban Outfitters and Anthropologie, opened a store at 650 Collins Ave. French underwear and swimwear retailer Pull-In replaced Nicole Miller at 656 Collins. Kardashians’ fashion boutique Dash opened at 668 Collins, replacing Sisley. Canvas shoe brand Vans will open a store at 670 Collins, in the former United Colors of Benetton space. Accessories chain store Charming Charlie will open at 735 Collins. I Love Sushi and Safari Bar & Lounge opened on the ground floor of the Chesterfield Hotel at 855 Collins. Vapor Shark replaced Puma at 820 Collins.

retail report

develoPerS Are moving forwArd wiTH new ConSTruCTion on THe reTAil STreTCH of CollinS Avenue, wHile exiSTing SPACeS fill uP wiTH new TenAnTS. THe vACATed urBAn ouTfiTTerS, wHiCH reloCATed To linColn roAd, HAS Been SPoken for, And A TenAnT iS SAid To Be under wrAPS for THe former BeneTTon SPACe AS well. THree redeveloPmenT ProjeCTS Are Adding reTAil SPACe on CollinS, BuT no TenAnTS HAve yeT Been AnnounCed for THe new SPACeS. ACCordingly, vACAnCy of 7.5% iS virTuAlly unCHAnged from 2013, BuT new ConSTruCTion And leASing inTereST BooSTed AverAge ASking renT To $125.35, ComPAred To $107.52 in 2013.

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oCeAn drivelong-standing favorites still going strong

on sunny ocean drive

TRENDS 29

reSTAurAnTS frequenTly Turn over Along oCeAn drive, BuT SPACeS rArely STAy vACAnT for long on THiS oCeAnfronT STreTCH of SouTH miAmi BeACH. vACAnCy iS under 1%, And only one SPACe wAS vACAnT AT THe Time of THiS Survey, mArkeTed AS A BuSineSS-for-SAle. noTiCeABle new eSTABliSHmenTS inClude SugAr fACTory AmeriCAn BrASSerie, wHiCH HAS mAde A SPlASH SinCe firST oPening in lAS vegAS in 2010, And SPAniSH fASHion reTAiler deSiguAl. mAny of oCeAn drive’S long-STAnding fAvoriTeS Are STill going STrong, SuCH AS newS CAfé, THe ClevelAnder, And lArio’S on THe BeACH, wHiCH underwenT A renovATion.

TenAnT moveSU Rock Couture, Forever Yogurt and Miami Gift Shop replaced Deco Walk Café at 928 Ocean Drive. I Paparazzi Ristorante replaced Café Med at 940 Ocean Drive. Papagayo Restaurant opened at 1052 Ocean Drive. Sugar Factory American Brasserie and Sushi Couture replaced Bice Bistro at 1144 Ocean Drive. Leslie Lunch opened at 1244 Ocean Drive. Spanish fashion retailer Desigual opened a new location at 1390 Ocean Drive. Gelato 2 Love also opened at that address. Deco Drive Cigars closed at 1446 Ocean. Pasta Ria and Art Gallery of Alexander opened at 1500 Ocean Drive.

retail report

30 TERRANOVA

TenAnT moveSArissa Couture Bridal replaced M&M’s at 357 Miracle Mile. Veneta Cucine USA, an Italian kitchens retailer, opened at 347 Miracle Mile. Bellmont Spanish Restaurant replaced Leather World at 339 Miracle Mile. VIXI Gelateria will replace Signori at 374 Miracle Mile. Bridal boutique Merlili relocated from 88 Miracle Mile to 356 Miracle Mile. Doll retailer Maru and Friends replaced Merlili at 88 Miracle Mile.

A&M Bellezza Salon replaced Cleber Lopes Spa at 330 Miracle Mile. Furniture store Oroa replaced Snow’s Jewelers at 299 Miracle Mile. Cherry Blow Dry Bar will open at 210 Miracle Mile replacing I Designs Opticians who relocated to 269 Miracle Mile. Cattiva Boutique opened at 257 Miracle Mile. Razzle Dazzle Blow Dry Bar opened at 241 Miracle Mile. Ice cream shop Haagen Dazs will replace shoe store Dulce at 286 Miracle Mile. Italian restaurant Fratellino replaced Mesa at 264 Miracle Mile. My Ceviche replaced The Burger Joint at

232 Miracle Mile. Uruguayan pizzeria Trouville will open at 127 Miracle Mile. Casa Mofongo Latin Grill opened at 130 Miracle Mile. Menchie’s replaced Coco Limon Frozen Yogurt at 126 Miracle Mile. Skin care retailer Nerio Camargo replaced Hewryk at 57 Miracle Mile. Pita Bites replaced Sugar Mama Cupcake Boutique at 94 Miracle Mile. Uvaggio Wine Bar replaced L’Arte del Buongusto Café at 70 Miracle Mile. Spy World relocated from 129 Miracle Mile to 44 Miracle Mile.

demogrAPHiCSMiracle Mile and Sunset Drive are in the South Miami submarket. This submarket has an estimated 2014 population of 337,551. The population is 67% Hispanic and 6% African American. Median age is 44, and average household income is $70,892. Population in this submarket grew 6% between 2010 and 2014, and is projected to grow another 7% in the next five years. Daytime population is this submarket is 203,360.

wiTH new STore windowS To gAze AT And new Trendy reSTAurAnT menuS To SeleCT from, THe mile goT STronger AS A deSTinATion for lunCH, dinner, fASHion And gifTS; And iT’S ABouT To geT BeTTer. CiTy CommiSSionerS APProved A muCH-AnTiCiPATed STreeTSCAPe ProjeCT THAT will widen SidewAlkS, imProve ligHTing And lAndSCAPe, And inSTAll SeATing AreAS Along THe mile. ConSTruCTion iS ProjeCTed To Begin in firST quArTer 2016. even Before imProvemenTS, An influx of new TenAnTS lowered vACAnCy on mirACle mile To 3.6%, down from 4.3% A yeAr Before, wHile AverAge ASking renT inCreASed 9.8% To $57.37.

upcoming streetscape improvements sparks influx of new tenants on busy miracle mile

mirACle mile

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SunSeT drivenew restaurant concepts

open on neighborly sunset drive

TRENDS 33

TenAnT moveSStation 5 Table & Bar replaced Sip at 5845 Sunset. Dale’s Pale Ale replaced Brewskis at 5835 Sunset. Temple: Joy to the Food opened at 5831 Sunset, replacing Beverlee Kagan Antique Jewelry. Trattoria Sole closed at 5898 Sunset, and a new restaurant is said to have signed a letter of intent. Arango Furniture will replace Jorge Hulian Gallery at 5864 Sunset. Fashion store Market replaced Cream Beauty at 5820 Sunset. Mellow Mushroom Pizza Bakers replaced Marhaba at 5701 Sunset Drive. Buns & Buns opened in the former OMG! Burgers at 5748 Sunset

Drive. Razzle Dazzle Barber Shop replaced Enjoy (clothing boutique) at 5740 Sunset Drive. The former Patagonia space at 5861 Sunset has been leased to Triumph International Cuisine, but the company hasn’t announced any plans for the space. lululemon left Sunset for Merrick Park.

retail report

deSPiTe BriSk Turnover of merCHAnTS on SunSeT drive, THiS SouTH miAmi deSTinATion remAinS A TigHT-oCCuPAnCy STreeT – due in PArT To A SmAll invenTory – BuT AlSo To fAST TAkerS wHenever SPACe BeComeS newly vACAnT. new reSTAurAnT ConCePTS HAve oPened To rAve reviewS in 2014. on THe CHAin fronT, long-AnnounCed BroTHer jimmy’S BBq finAlly oPened on THe ground floor of SHoPS AT SunSeT PlACe, And new-To-mArkeT mellow muSHroom PizzA oPened down THe STreeT. THe former CHASe BAnk SPACe iS STill emPTy, BuT iTS lAndlord SAid THe SPACe iS SPoken for By An undiSCloSed TenAnT. mAny long-STAnding TenAnTS ConTinue going STrong on SunSeT, wHiCH giveS THe STreeT A STABle, neigHBorly CHArACTer even AS new Trendy merCHAnTS jAzz iT uP. only one SPACe wAS AvAilABle AT THe Time of THiS Survey, wiTH A leTTer of inTenT from A ProSPeCTive TenAnT rePorTedly Signed. noT SurPriSingly, ASking renT of $69 for THAT vACAnT SPACe wAS A 33% inCreASe from 2013.

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TenAnT moveS Louie Bossi’s Ristorante Bar Pizzeria will replace SoLita at 1034 E. Las Olas. Skin care maker and retailer Tresor Rare replaced Indigo Palms at 617 E. Las Olas. Sneakers boutique Soles replaced One Click at 717 E. Las Olas. Grill Republic opened at 817 E. Las Olas, in the former Voodka Brasserie space, and launched by Voodka’s owner. Wyland Gallery opened at 822 E. Las Olas. Forre & Co. Fine Art Gallery replaced hair salon Yellow Strawberry at 1007-1009 E. Las Olas. Your Fat Loss Coach replaced Las Olas Wine Café at 922 E. Las Olas. Hoffman’s Chocolates replaced Udder Sweets at 920 E. Las Olas. Fashion boutique Ramona La Rue replaced St. Tropez Bistro at 1010 E. Las Olas. Sweet Nectar Grill replaced Tundra Las Olas at 1017 E. Las Olas. An unnamed restaurant will replace the shuttered Mediterranean Market at 1021 E. Las Olas. Las Olas Yacht Group replaced Elaine North Asid Design Studio at 1121 E. Las Olas. Bao Bar & Asian Grill replaced Wild East Asian Bistro at 1200 E.

Las Olas. Moda Mario relocated to 1200 E. Las Olas, from 822 E. Las Olas. Real estate firm Real Living Infinity International replaced Vero Design at 1209 E. Las Olas. Floors to Go replaced Aqua Beachwear at 1213 E. Las Olas. Lavalier, a jewelry and accessories retailer, replaced Les Collins hair salon at 1259 E. Las Olas. Fork & Balls Restaurant replaced M Bar at 1301 E. Las Olas. An Irish pub is under construction at 1311 E. Las Olas, former location of Southern Formals. Las Olas Chabad Jewish Center & Judaica Store opened at 1304 E. Las Olas. NYC Deli opened at 1306 E. Las Olas. Tiffany Nail & Foot Spa relocated to 1507 E. Las Olas, from 1311-A E. Las Olas. Two& (pronounced “Two and”), a local beer, wine, bicycle and antique store, opened at 1517 E. Las

Olas, on the site of the former Las Olas Mini Mall. A new Canadian restaurant called Thursday’s is said to be in the works for 1523 E. Las Olas. Broward Bank of Congress will replace Sophy Curson at 1508 E. Las Olas.

demogrAPHiCSLas Olas Boulevard is in the Dania/So. Fort Lauderdale submarket. This submarket has an estimated 2014 population of 118,087 and is projected to grow 5.7% over the next five years. The population is 21% African American and 18% Hispanic. It has an average household income of $69,864. Median age is 42. Daytime population is 113,751. Population in this submarket grew 4.4% between 2010 and 2014.

retail report

lAS olAS BoulevArd

new merCHAnTS HAve Poured inTo lAS olAS, lowering THe STreeT’S vACAnCy rATe To 2.2%, ComPAred To 9.8% in 2013. THiS STreeT ABoundS wiTH loCAl reSTAurAnTS, SuCH AS long-Time lAndmArk THe floridiAn And THe growing roCCo’S TACoS CHAinS. roCCo’S ownerS’ new ConCePT – louie BoSSi’S riSTorAnTe PizzeriA – iS Among A CAdre of new reSTAurAnTS on lAS olAS. inTerSPerSed Among eATing eSTABliSHmenTS Are new ArT gAllerieS, fASHion BouTiqueS And CoSmeTiCS SToreS THAT HAve BrougHT flAir And vArieTy over THe PAST yeAr. THe BriSk leASing ACTiviTy BooSTed AverAge ASking renT To $42.29 in 2014, uP 12% from A yeAr Before.

a flurry of new tenants brings flair to las olas boulevard

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TenAnT moveSPanaterie replaced Pizza Luna at 205 Clematis. Lynora’s Osteria, an Italian restaurant, replaced Luna Lounge and Mediterranean Restaurant at 207 Clematis. Pawn Shop Bar & Grill replaced Dr. Feelgood’s Rock Bar & Grill at 219 Clematis. Boutique health studio ncognito opened at 221 Clematis. The Alchemist Gastro Pub & Bar replaced Reef Road and Rum Bar at 223 Clematis. Nico’s Pizza Italian Cuisine opened at 301 Clematis. C Street Café opened at 319 Clematis. Sushi Yama,West Palm Trading Co. and Finer Optics opened at 330 Clematis. Downtown Vapes and iPhoneFix.com opened in a former pharmacy space at 420 Clematis. Subculture Coffee replaced Raw Kitchen at 509 Clematis. Habatat Galleries relocated from 535 to 513 Clematis. A hookah lounge will replace Best Darn Kettlecorn at 527 Clematis. Palm Beach Bagel Bakery & Restaurant will replace Habatat Galleries at 535

Clematis. Action Sports USA replaced Palm Beach Stitch at 537 Clematis. Schuck & Janoher’s Footwear & More opened at 539 Clematis. Keese’s Simply Delicious, an American and Mediterranean food restaurant that has a location in Lauderdale by the Sea, replaced Yankee Dogs at 540-2 Clematis. Cabana Nuevo Latino (restaurant) closed at 533 Clematis.

demogrAPHiCSClematis Street is in the West Palm Beach submarket. This submarket has an estimated 2014 population of 272,379, and is projected to grow 6% in the next five years. The population is 32% African American and 19% Hispanic. Median age is 41 and average household income is $62,071, lower than $65,978 a year before. Daytime population is 146,932. Population in this submarket has grown between 4% and 5% since 2010.

ClemATiS, wHiCH ConTinueS To STruggle AgAinST THe newer And flASHier CiTyPlACe develoPmenT neArBy, iS Holding iTS own. THe AmeriCAn PlAnning ASSoCiATion nAmed ClemATiS one of “10 greAT STreeTS in AmeriCA” in 2014.

new Crowd-PleASing eSTABliSHmenTS on THe 500 BloCk AT THe STreeT’S weSTern end HAve BrougHT A niCe CounTerBAlAnCe To THe livelier BloCkS eAST of THe rAilroAd TrACkS. THe SouTH Side of THe 500 BloCk remAinS lArgely unoCCuPied, However, ConTriBuTing To THe STreeT’S relATively HigH vACAnCy rATe. AverAge ASking renT in 2014 iS $26.34, uP 2.6% from $25.67 in 2013. vACAnCy inCreASed To 14.1% from 12.3%, lArgely due To THe CloSing of A lArge reSTAurAnT (CABAnA nuevo lATino) THAT HAdn’T Been rePlACed AT THe Time of THe Survey.

ClemATiS STreeTnearby development brings competition

to urban clematis street

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worTH Avenue

european labels open first u.s. locations on designer-lined worth avenue

TRENDS 39

TenAnT moveSSwiss fashion label Akris, Tamara Comolli Fine Jewelry, Pretty Ballerinas (shoes and accessories), Calamassi Italy (handmade shoes and accessories), Golfino (golf apparel), Le Visage Cosmetics, Shi London Cashmere and Engels & Volkers (real estate) opened at 150 Worth Ave. Herve Leger relocated from 206 Worth Ave. to 237 Worth Ave. Omega Watches opened at 226 Worth Ave. The Juicy Couture store at 225-A Worth Ave. is converting to a Kate Spade store, as part of nationwide brand reshuffling by Kate Spade’s parent company. Designer jewelry retailer A.R.T. relocated from 249 Worth Ave. to 235 Worth Ave. French fashion boutiques Sandro and Maje opened at 247 and 249 Worth Ave., respectively, and Italian clothier Brioni opened at 251 Worth Ave. New England fashion retailer Vineyard Vines opened at 305 Worth Ave. Italian linen fashion retailer 120% Lino opened a second Worth Avenue location at 333 Worth Ave.

demogrAPHiCSWorth Avenue, located on the island of Town of Palm Beach, technically falls in the West Palm Beach submarket, the same as Clematis Street. However, its high-end merchants target its immediate trade area on the island itself, as well as high-income visitors from outside. Population on the island in 2014 is 8,263, with a median age of 68. Average household income in the Town of Palm Beach is $143,919. The population is 4% Hispanic and less than 1% African American. Daytime population is 11,712. Population on the island decreased 1% between 2010 and 2014, but it is projected to have a slight increase, 0.5%, in the next five years.

retail report

STreeT-fronTing SPACe on worTH Avenue doeSn’T STAy emPTy for long, And THiS kePT vACAnCy AT 1.4% in 2014, virTuAlly unCHAnged from A yeAr Before. AverAge ASking renT inCreASed To $113.96, uP 34% from $85.22 in 2013. THiS PAlm BeACH deSigner-lined fASHion STreeT Added SeverAl new SToreS from euroPeAn lABelS THAT HAve mAde iT THeir firST u.S. loCATion. meAnwHile, neimAn mArCuS And SAkS fifTH Avenue ConTinue AnCHoring worTH Avenue, And Some exiSTing TenAnTS SPiCed THingS uP: 120% lino oPened A SeCond worTH Ave. loCATion; Herve leger reloCATed To A new SPACe; And kATe SPAde will oPen A STore wHere juiCy CouTure onCe STood, AS A reSulT of reCenT BrAnd reSHuffling By juiCy’S CorPorATe PArenT.

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eAST ATlAnTiC Avenuemodern comeback of downtown delray beach builds

momentum on east atlantic avenue

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ProPoSed ProjeCTSAtlantic Crossings, a mixed-use project that will include 75,633 square feet of stores and restaurants, is proposed on a four-block site on the NEC of E. Atlantic Ave. and NE Sixth Ave., stretching east to the Intracoastal. Plans call for demolition of all existing buildings and phased construction of a six-building complex that will include 343 residential units. Atlantic Plaza Shopping Center at 777 E. Atlantic Ave. is within the redevelopment site.

TenAnT moveSUrban Outfitters will open a two-level store at 306 E. Atlantic Ave. Fashion retailer Fresh Produce opened at 401 E. Atlantic Ave., in suite 101, next to a new store from BCBGMaxAria, in suite 102. Also newly opened at this building is Haystacks, a small chain of hand-designed fashions hailing from Michigan. Smoke BBQ opened at 8 E. Atlantic Ave. Honey Delray, a new nightclub concept by the owners of former tenant Delux, is opening at 16 E. Atlantic Ave. Rocco’s Tacos will replace Prime Steakhouse at 110 E. Atlantic Ave. Gary Rack’s Fat Rooster Restaurant will open at 200 E. Atlantic Ave. Taverna Opa opened at 270 E.

Atlantic Ave. Muffin Tin will replace Nutrition Cottage Health Foods at 407 E. Atlantic Ave. Fashion retailer Morley replaced Forms Gallery at 415 E. Atlantic Ave. Primo Shoes will open at 526 E. Atlantic Ave. Fashion retailer Ramona LaRue opened at 530 E. Atlantic Ave. Honoww Hot Dog will replace The Shack at 632 E. Atlantic Ave. Consignment store A Blast from the Past relocated from 640 E. Atlantic Ave. to 777 Atlantic Ave. Men’s fashion retailer Swatches & Rags will open at 900 E. Atlantic Ave., which also added Beachcomber Art. Art Sea Living replaced The Ancient Olive at 514 E. Atlantic. Extreme Art replaced DaVinci Fine Art & Antiques at 516 E. Atlantic.

demogrAPHiCSEast Atlantic Avenue is in the Delray Beach/Boynton Beach submarket. This area has an estimated 2014 population of 272,229, and is projected to grow 6% in the next five years. The population is 19% African American and 11% Hispanic. Median age is 53, the oldest of all submarkets, and average household income is $64,401, lower than $65,772 a year before. Daytime population is 68,073. Population in this submarket has grown 5% since 2010.

eAST ATlAnTiC Avenue iS A new enTry in THiS yeAr’S rePorT, due To THe APPeAl And momenTum iT HAS gAined AS PArT of THe modern ComeBACk of downTown delrAy BeACH. lined wiTH Trendy reS-TAurAnTS, gAllerieS, CAfeS And fASHion SToreS, ATlAnTiC ConTinueS To rAiSe iTS Profile. nATionAl reTAilerS urBAn ouTfiTTerS And BCBg THiS yeAr oPened loCATionS on ATlAnTiC, AS did one of SouTH floridA’S fAvoriTe CHAinS, roCCo’S TACoS. A new iPiC movie THeATer iS ProPoSed one BloCk SouTH of ATlAnTiC. THe eASTern Bookend of THiS STriP iS THe BeACH, And wiTH A low vACAnCy rATe of juST over 1%, iT’S noT SurPriSing A ProjeCT iS ProPoSed To redeveloP Two BloCkS inTo A new mixed-uSe ComPlex.

retail report

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TERRANOVA fOuNDER AND chAiRmAN, STEphEN biTTEl, iS NOT ONly kNOwN fOR hiS pROwESS iN ThE SOuTh flORiDA REAl ESTATE mARkET, buT AlSO fOR hiS impEccAblE kNOwlEDgE iN SOuTh flORiDA cuiSiNE. OuR VERy OwN fOODiE-iN-RESiDENcE, biTTEl TAkES uS ON A jOuRNEy ThROugh miAmi, STOppiNg AT SOmE Of hiS fAVORiTE lESSER kNOwN SpOTS. SOmE

RESTAuRANTS hiDDEN iN Dimly liT STRip cENTERS, OThERS Off ThE bEATEN TRAck. buT ThESE TEN gEmS DO mORE ThAN juST SATiSfy yOuR huNgER, ThEy will DElighT yOuR TASTE buDS wiTh uNiquE AND mOuTh-wATERiNg flAVORS.

I r o n s I d e P I z z a 7 5 8 0 n e 4t h C o u r t , M i a m iHidden is an understatement for this secluded gem off the Biscayne Corridor. Surrounded mostly by warehouses and commercial properties on railroad tracks, Ironside Pizza is well worth the search. TD Hospitality Group, who first opened Toscana Divino in Mary Brickell Village in 2012, branched out to the Little River District’s Ironside Complex and acquired this Neapolitan pizzeria. This secret spot keeps it simple and tasty offering wood fired oven pizzas from the classic Margherita with San Marciano tomato sauce, mozzarella fiordilatte and fresh basil to the decadent Funghi with porcini mushrooms and black olives. The small but cozy restuarant also offers gluten free and vegan options for its delectable menu.

C a P ta I n J I M ' s s e a f o o d M a r k e t1 2 9 5 0 W d i x i e H w y , n o r t h M i a m iWho would have thought to look in North Miami for fresh fish and seafood? If you didn’t, then you wouldn’t know about Captain Jim’s and his fleet of fishing boats bringing in some of the freshest fish at affordable prices to Miami. Pick out fresh fish at the counter to take home or have Captain Jim’s staff fry, grill, broil, or blacken it for you. Don’t be fooled by appearances and step into Captain Jim’s for friendly service and deliciously fresh seafood.

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M C k I t C H e n41 41 n e 2 n d av e n u e , s u i t e 1 0 1 a d e s i g n d i s t r i c tHailing from Aspen, Colorado, chef and co-Owner Dena Marino opened MC Kitchen in the Design District with Brandy Coletta in November of 2012. Amid art galleries, fashion boutiques and other trendy restaurants, MC Kitchen draws crowds by serving modern, Italian, organic food. The welcoming light-filled space combined with the rustic flavors of Marino’s farm-to-table cuisine creates a multi-sensory dining experience. Creating great food and providing excellent service is the reason why this hidden gem made our list.

C H o I C e ' s C a f e6 4 6 n e 7 9 t h s t r e e t , m i a m iThis family run enterprise was founded by brothers Alex and Jorge Cuevas, to serve delicious healthy food, to promote sound plant-based diets, and to engender sustainable practices. With strong Latin flavors, Choice’s creates a lasting impact on guests with fusion versions of American staples like burgers, pizza, sandwiches and salads to exotic offerings such as Nori seaweed wraps. Choice’s Café serves mouthwatering vegetarian cuisines that keep even their meat-eating customers coming back for more.

t H e f e d e r a l5 1 3 2 B i s c ay n e B o u l e va r d , B I s C aY n e C o r r I d o rCelebrating American comfort food with a modern twist, The Federal can be found along Biscayne

Boulevard just north of Downtown Miami in a dimly light strip mall. But don’t let

the outside appearance of this hidden gem deter

you from enjoying the modern

American tavern. Partners Aniece Meinhold and Caesar Zapata recently celebrated their third year in business this past January and attribute their staying power to its ever-changing seasonal menu that keeps customers coming back for more. Look for their Phuc Yeah pop-up to soon re-open close by.

M I C H a e l ' s G e n u I n e f o o d & d r I n k1 3 0 n e 4 0 t h s t r e e t , d e s i g n d i s t r i c tMichael's Genuine is defined as truly what something is said to be, and this farm to kitchen eatery in the Design District lives by this definition by showing its passion for food. Showcasing James Beard Award-winning chef/owner Michael Schwartz, Michael’s Genuine changes its menu daily by sourcing seasonal ingredients from local growers and small farmers. Choose from small, medium, large or extra-large plates to satisfy your taste buds. Enjoy the tropical foliage while sitting at a table in the courtyard of this remarkable restaurant.

k H o n G r I v e r H o u s e1 6 6 1 M e r i d i a n av e n u e , M i a m i B e a c h

Steps away from the hustle and bustle of Lincoln Road, Khong

River House serves up innovative Southeast

Asian cuisine by staying

true to

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the Mekong region with its tribute to food, flavors and Asian traditions. John Kunkel, owner of other great Miami eats like Swine Southern Table & Bar and Yardbird, opened Khong River House in 2012 after spending close to three years living in parts of Thailand. His experience there is reflected not only in the cuisine, but in the Thai inspired interior of the restaurant where Thai fish traps serve as light fixtures and walls are made of crates and pallets shipped from Thailand. Stop by for a true taste of Asian culture and cuisine.

P r o o f P I z z a & Pa s ta3 3 2 8 n M i a m i av e n u e , M I d t o W nProof Pizza & Pasta quietly opened in October 2014 in Midtown, but they could not keep their Neapolitan style pizza and fresh homemade pasta a secret. Owners, Justin Flit and Matt DePante opened Proof Pizza & Pasta after meeting at the French Culinary Institute in New York City and working in the kitchens of DBGB and Miami favorites, The Dutch and Bourbon Steak. Proof offers Italian classics like margherita pizza and gemelli beef bolognese to unique plates like the oxtail pizza with black garlic, thyme and caramelized onions. This fresh spin on a neighborhood pizza joint makes our list of hidden gems for its high quality and farm fresh ingredients.

B l a C k B r I C k C H I n e s e3 4 5 1 n e 1 s t av e n u e , M i d t o w nJust a short walk from his first restaurant Sakaya Kitchen, Chris Hales is tackling Chinese cuisine

with Blackbrick. Opening in 2013, Blackbrick serves up thoughtful spins on classic take-out flavors like General Tso-style Florida alligator and Kung pao rabbit. If you can’t take the heat of Hales use of Szechuan peppers, then wash it all down with a whiskey cocktail, local craft beer, or wine which all work well to subdue the scorching heat.

s u s H I s a M B a6 0 0 l i n c o l n r o a d , M i a m i B e a c h1 8 0 a r a g o n av e n u e , C o r a l G a b l e sSushi Samba provides a unique blend of Brazilian, Peruvian and Japanese cuisine and entertainment. First opening its doors in 1999 in New York City, Sushi Samba has grown to be an international success story with restaurants in Hong Kong, Dubai, the Bahamas, London, and Mexico City while Miami is lucky enough to have two locations, Coral Gables and Lincoln Road. Sushi Samba’s signature samba rolls build on traditional sushi by adding tropical fruits and spices to give it their unique Peruvian and Brazilian influence. In addition to their world-renowned sushi, Sushi Samba is known for their signature cocktails including classics like the Mojito to exotic spirits like pisco and shochu, not to mention their extensive collection of sake, one of the largest premium sake collections in Florida. The restaurants unique craft, as well as their dedication to presentation, are just a few reasons why they remain one of the top sushi restaurants in the world.

shb's topten gems

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terranova corporation | 801 W. 41st street, suite 600, miami beach, fl 33140 | 305.695.8700 | leasing@terranovacorp.com | WWW.terranovacorp.com | @terranovacorp

MIAMI BEACH, FL

COCONUT GROVE, FL

MIAMI LAKES, FL

BOCA RATON, FL

AVENTURA, FL TENANT REPRESENTATION

TERRANOVA LEASING CONTACTS

JACKSONVILLE, FL

PINECREST, FL

SOUTH BEACH, FL

CORAL GABLES, FL

POMPANO BEACH, FL CORAL GABLES, FL

MIAMI, FL

DOWNTOWN MIAMI, FL

PRIME RETAIL DESTINATIONS WITH TERRANOVAPRIME RETAIL DESTINATIONS WITH TERRANOVA

minDY mcilroY 305.779.8970mmcilroy@terranovacorp.com

Juan franco 305.779.8938 jfranco@terranovacorp.com

anDrei pintilie 305.779.8903apintile@terranovacorp.com

inDia turKell 305.779.8908iturkell@terranovacorp.com

Karen maerovitZ 305.779.8907kmaerovitz@terranovacorp.com

eliZabeth higgins 305.779.8906ehiggins@terranovacorp.com

terranova corporation | 801 W. 41st street, suite 600, miami beach, fl 33140 | 305.695.8700 | leasing@terranovacorp.com | WWW.terranovacorp.com | @terranovacorp

MIAMI BEACH, FL

COCONUT GROVE, FL

MIAMI LAKES, FL

BOCA RATON, FL

AVENTURA, FL TENANT REPRESENTATION

TERRANOVA LEASING CONTACTS

JACKSONVILLE, FL

PINECREST, FL

SOUTH BEACH, FL

CORAL GABLES, FL

POMPANO BEACH, FL CORAL GABLES, FL

MIAMI, FL

DOWNTOWN MIAMI, FL

PRIME RETAIL DESTINATIONS WITH TERRANOVAPRIME RETAIL DESTINATIONS WITH TERRANOVA

minDY mcilroY 305.779.8970mmcilroy@terranovacorp.com

Juan franco 305.779.8938 jfranco@terranovacorp.com

anDrei pintilie 305.779.8903apintile@terranovacorp.com

inDia turKell 305.779.8908iturkell@terranovacorp.com

Karen maerovitZ 305.779.8907kmaerovitz@terranovacorp.com

eliZabeth higgins 305.779.8906ehiggins@terranovacorp.com