Just days after the International Council of Shopping Centers held its annual Florida conference in Orlando, we caught up with JLL’s retail brokerage team to share some of the latest trends the Florida market is experiencing. JLL’s 2016 Florida Retail Report takes a deeper dive at the factors fueling these trends and what’s ahead for the retail real estate market in the region.
We highlight 5 trends below:
Value shopping is for everyone.
Low-income and high-income shoppers have developed a taste for discounts while at the same time splurging on luxury items.The Tomoka Town Center in Daytona Beach is a good example of this.
“Tomoka Town Center is creating a new retail center of gravity that combines luxury tenants in the Tanger outlets and value-oriented tenancy of the Town Center tailored to today’s consumer,” said JLL VP and Florida Agency Lead Justin Greider.
Consumers are increasingly touch-screen dependent. Their reliance on mobile pay, loyalty programs and order-ahead services is making technology a necessity for retailers.
Experiential shopping with a reality star treatment.
An “experience” means shoppers are meeting their higher-order needs. Consumers want to be treated like the celebrities they see in the media and are willing to splurge on these experiences.
Walt Disney’s Disney Springs in Orlando is aiming to do just that by bringing together unique and high-end retailers in one location. Their first-to-market luxury concepts such as The Trophy Room, a high-end athletic boutique founded by the son of Michael Jackson, are being mixed with entertainment venues such as Cirque de Soleil, House of Blues and Splitsville to create a unique and “Instagrammable” experience.
Tourism is in the driver’s seat.
An increase in spending by tourists has been a bright spot in consumer spending for Florida markets like Miami and Orlando. The trend is expected to continue, especially in Downtown Miami where more than 12 hotels will open their doors in the next few years.
Swire’s Brickell City Centre, a mixed-use complex that is adding residences, offices, retail and a hotel, is hoping to attract the guests who will stay at these new 4,000 rooms. “Brickell City Centre will offer a unique shopping and dining experience for Miami tourists,” said John Lambert, EVP & Florida Retail Market Lead.
Food options are crucial.
Spending in restaurants for the first time has exceeded grocery store spending. Examples of this include Brickell City Centre’s soon-to-open Italian food court and Disney Spring’s first-to-market restaurants STK and Morimoto Asian. The Related Group and Shoma Home’s City Place Doral will be anchored by a Fresh Market offering grocery items as well as prepared foods.
Every Florida market saw increases in retail occupancy in the first half of the year. Occupancy is now at above 90% in almost every major city. This increase in retailer demand is driving rent growth and supporting the necessary market dynamics for new construction projects to move forward that will bring to life new shopping concepts and further cement these retail trends across the state.
About the Authors
John Lambert is the Regional Leasing Director in Orlando/Florida. He is responsible for the oversight of all operational functions and collaborates with clients and client service teams to develop and implement strategies, which maximize asset value. Contact John.
Justin Greider is primarily responsible for overseeing the agency leasing portfolio throughout the state of Florida. His role includes the strategic planning and execution of merchandising plans for the variety of neighborhood, community and premiere shopping center properties throughout the state of Florida. Contact Justin.