Lincoln Road Mall Dominates Retail Rental Market on Miami Beach
Ranked the 10th most expensive retail street in the United States, Lincoln Road Mall, Miami Beach’s premier open-air shopping, entertainment and dining destination is the priciest place to rent retail space in South Florida. Undergoing revitalization and proposed expansion that could bring in a new wave of big brand storefronts and even higher prices for investors, the Lincoln Road retail submarket advances as the highest sales revenue per sq. ft. in Miami Beach, according to CBRE.
The high profile strip, an historically designated Mall; is one of the first pedestrian only thoroughfares in the nation and now the most popular and sought after retail centers on Miami Beach. Storefronts are already dominated by International brands, with tenants that include H&M, Anthropologie, Intermix, and Forever 21 among others. The promenade has attracted retailers looking to take advantage of the high passing traffic as well as its proximity to the surrounding residential and hotel areas.
Signaling a major shift in redevelopment for new retail and restaurant venues, billionaire Amancio Ortega, the fourth richest person in the world according to Forbes, and owner of a fashion empire which includes Zara, purchased the 1001-1035 Lincoln Road block front for $370 million. The record-breaking sale marked one of Miami-Dade county’s biggest commercial retail deal to date. The block is reported to be a future location for Nike, anchored by new retail stores which includes the Gap, Intermix, Athleta, and the Apple Store.
High street retail segment leasers and buyersinclude H&M and The Aldo Group Inc who purchased its Lincoln Road space at a sales price of $35,000,000. This year’s largest transaction and the largest space available in the commercial deal pipeline, is the Macy’s Lincoln Road flagship store, a 98,610 square feet building marketed for sale, which could fetch a whopping $80 million or more, when sold according to reports. The premier building has attracted the interest of big box tenants such as Nordstrom Rack and Old Navy, HomeGoods, Saks Fifth Avenue OFF 5TH or Bed, Bath & Beyond and potential buyers could include domestic and international investors who already have holdings on Lincoln Road and beyond. A limited number of high value commercial properties on Lincoln Road have also hit the market this year ahead of the upcoming Lincoln Road master plan. Units for sale on Lincoln Road include properties featuring a rooftop sky deck, commercial and office condos, retail buildings, and a two story multi-unit condo building.
With retail leasing and sales on Lincoln Road dominating the commercial industry on Miami Beach, much consideration has been given to provide infrastructural improvements by transforming the area via the Lincoln Road Master plan, presented to the Miami Beach City Commission. A new designed proposed integration and balancing of the public space with the commercial space by widening sidewalks, enhancing the pedestrian walkways, and adding more public seats and outdoor space for art installations and public performances. Designed by famous architect Morris Lapidus, the Mall has undergone various updates and last year, Miami Beach officials commissioned New York architects James Corner Field Operations to complete new plans to revamp the area adding more lighting, trees, bike lanes and additional storefront space.
Lincoln Road Mall is within close proximity to the heart of South Beach and world-famous Ocean Drive, just a few blocks west to the beachfront. The over a mile long retail strip spans from Washington Avenue to Alton Road, a is a global destination for tourists, visitors, and residents to enjoy shopping, dining, entertainment and people-watching. The mall is home to a diverse mix of commercial retail spaces including offices, shops, boutiques, restaurants, bars, art galleries sidewalk cafes, a movie theatre and much more.