Despite widespread volatility in retail markets across the United State, Downtown Miami is experiencing continued growth in the commercial and residential sectors, which is serving to drive new retail business openings throughout the area. In fact, recent research conducted by the Miami Downtown Development Authority (DDA) found that 42 new net retail businesses opened in Downtown Miami in 2009, marking the third straight year that the district has seen 40 or more new net retail outlets open. In total, 152 new retailers have established a Downtown Miami presence since 2005. Added to that, we are already tracking over 20 businesses slated to open during the first part of 2010.

The news of Downtown Miami’s retail growth comes as other markets across America continue to struggle. A recent Integra Realty Resources survey of the 50-largest markets in the U.S. found that Downtown Miami’s retail vacancy rate of 5.06% is among the five lowest in the nation. These numbers mark a dramatic spike in retail demand over the past 18 months; Downtown Miami’s overall vacancy rate climbed as high as 12.5% in mid-2008, according to CoStar Group.

It’s clear that retail activity in Downtown Miami is bucking the national trend, but according to real estate professionals familiar with this market, this growth comes as no surprise.  The DDA’s recently published Residential & Demographic Profile estimates that close to 70,000 people are currently living in Downtown Miami, up from the 2000 Census figure of 39,176, marking an 80% increase in less than a decade. Projections indicate the population will increase to 85,000 by 2014.  This influx of new residents are drawn to our waterfront location, entertainment and cultural offerings, affordable sales and rental options, and strong commercial base – and are populating our City streets and fueling the local economy. As a result, retail business owners are capitalizing on this trend by offering new goods, services and entertainment  options.

In one of the most challenging economic conditions in recent history, Downtown Miami still managed to attract a record-breaking number of key businesses that are enhancing the quality of life for residents and visitors and transforming the district into a 24-7 urban center. And to ensure that Downtown Miami continues to solidify its standing as a destination for residents and visitors, the Miami DDA has a number of economic development and quality of life initiatives underway. Through its Retail Advisory Group, the DDA works closely with brokers, tenant representatives, and property owners to encourage retailers to relocate and/or expand within the district. For example, its façade improvement and shutter removal incentives, and tenant improvement grant program, assists businesses in targeted areas of Downtown to help improve the retail environment.

As a public agency, it is our role to help foster a climate that encourages continued investment in our region. The more we can do to make our City’s streets cleaner, safer, and easier to navigate, the better positioned we will be to cultivate private enterprise – leading to more job creation and economic growth.

Alyce Robertson is executive director of the Miami Downtown Development Authority.

Many of us have jumped through hoops to meet a residential landlord’s demands prior to renting an apartment. Before you even have a key in hand, you’ve already shelled out thousands of dollars in the form of credit check and application fees, a security deposit, up-front rental payments, even background check fees. All of this in the name of due diligence.

With the commercial real estate industry and broader business world intently focused on what landlords are doing to lure and retain tenants in today’s economy, it’s time for commercial asset owners to get aggressive in requesting tenant guarantees that offset the risks associated with leasing space in a volatile economy. The fact is, tenants’ are just as vulnerable – more so, in many cases – to the ups-and-downs of this shaky economic climate as their landlords, as is evidenced by continued increases in the unemployment rate, the corporate bankruptcy rate, and the loan default rate.

The notion that landlords should be demanding more from their tenants becomes even more important in a market that enjoys a roster of stable owners, such as the Miami office market. By requesting letters of credit, tenant contributions to upfront TI costs, and other case-by-case guarantees, landlords have an opportunity to safeguard themselves for the long-term. From a tenant’s perspective, this is a small price to pay considering the concessions that landlords are making in today’s economy.

by Danet Linares, President of CREW-Miami (Commercial Real Estate Women) & executive vice president of Blanca Commercial Real Estate

The adage “a rising tide lifts all ships” rings especially true during a bull market.  Recent years have been good to our region and many of us have benefited from the booming economy.  But as deal flow and business in general trickles, we are reminded that periods of prosperity inevitably give way to hard times. There’s no question that the problems we’re facing require more than a quick fix, but by revisiting the basics of business development, we can prime ourselves for growth once the good times return.

The first step in going back to basics is keeping poised and focusing on that which is within your realm of control, rather than getting caught up in the panic induced by daily headlines.  It is a common reaction to seek cover, slash business budgets and wait for the storm to pass; but the fact is that businesses that stay front-and-center despite the hard times are usually the first to recover.

Having said that, there are a number of things you can do to weather the storm. While there are countless fundamentals unique to each industry, the following are four of the “basics” that every businessperson should prioritize:

·         Build Relationships – Get to know your clients, customers and colleagues and develop a clear understanding of their personal interests and business objectives. Beyond your existing relationships, invest in new relationships with members of the business community who can help keep you engaged and in front of key audiences.

·         “Smart Communication” – Let’s face it: there’s a lot of anxiety in the business world today. Now is the time to build confidence in your business among both internal and external audiences. Doing this will establish healthy lines of communication that can be put to good use when market conditions improve.

·         Exceptional Client/Customer Service – Many companies claim to be “client-focused,” which is easy to live up to when deals are flowing and serving clients is part of the business cycle. The challenge comes when business slows and natural client contact becomes more infrequent. When this happens, creativity in client outreach is key. Send an article that relates to a personal or business interest of theirs, stop by to say hello once in a while – anything that demonstrates clients are top-of-mind and that you are committed to addressing their needs.

·         Get Involved – Community involvement and business go hand-in-hand. Deal flow might have slowed down, but professional and community organizations are moving full-steam ahead.  Aligning yourself with premier organizations not only helps you rub shoulders with the right people, but it demonstrates your commitment to making a positive impact in the community in which you serve.  People want to work with people who care, lead by example and make a difference.  Getting business cards and following up is nice, but showing your peers how you can make a meaningful difference – through participation in committees, boards, etc. – is ultimately how you will gain respect, and in turn, see the fruits of your labor pay off with more business referrals.

The basic fundamentals have helped us get through tough times in the past, and if past is prologue, then embracing – and acting upon – these principles is what will help get us back on track today.