Florida Commercial Properties

Like many of the cities in the hot South Florida market, Hollywood its coming into its own in the com­mercial real estate market, especially in the retail sector. Retail development coniinitex lo conic oui of the ground to meet demand, and retail leasing activity has been brisk as retail tenants make their way into the market lhat is situated between the viable Miami and fort Lauderdale markets. The West Hollywood submarket in the 44:1-Sheridan Street corridor is flourishing due to the activity from the Seminole Casi­no, which has helped initiate the westward push. Big-box casual restaurants and both national and regional retailers arc flocking to this area. In addition, boutique retailers have shown an increased interest in Hol­lywood's downtown, aiding in its current resurgence. This resurgence is also being facilitated by the construction of- urban

mixed-use projects. Sheridan Stationside Village is a new mixed-use, transit oriented development that will bring 300,000 square feet of retail space as well as 1,050 residen­tial units, approximately 299,000 square feet of office space and a 150-room hotel. Young Circle and properties along the beach are also experiencing a resurgence in retail activity as people are rediscovering the charms of these areas. The Hollywood Boulevard vein is follow­ing suit, transforming from a sleepy town to a. hot new destination. Retail vacancy rates have been higher in this area as it transi­tions, but the resurgence is being likened to  Las Olas Boulevard in Fort Lauderdale and Atlantic Avenue in Delray. Depending on the area, retail rental rates for Hollywood range from as low as $18 per square fool to as high as $35 per square foot. Vacancy rates are running parallel

with other South Florida markets, which is approximately 7 percent to 9 percent. The commercial real estate market in Hollywood and Florida in general is still very bullish despite the housing and condo market slump. The continued influx of residents into Florida has helped bolster the retail market and offset the. current uncer­tainly in the economy. However, the big variable in regards to the continued success of the retail market will be the financial credit markets, meaning the tightening of commercial credit and lending guidelines. All in ;il!,. as history repeats itself, Florida usually gets hit the softest and last, and recovers better than the rest of the country in an upswing. The state of the national retail market, interest rates, the consumer spending clip and even the hurricane sea­son will dictate, and help define future retail activity in Hollywood. " — Alan "Tom" Prakas

 

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