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boynton beach mall

Boynton Beach Mall could have half the square footage for retail businesses once it’s redeveloped, but it might add apartments, a hotel and offices.

The plans reflect attempts across America to transform malls as fewer people go there to shop. Apartments also are planned at the Coral Square Mall in Coral Springs and at the former Fashion Mall in Plantation.

The Boynton Beach Mall once had tenants including Burdines, JCPenney, Jordan Marsh and Lord & Taylor. But like other malls facing less in-store shopping and an increase in online shopping by consumers, retail tenants have dwindled over the years, with new types of tenants coming in.

“According to city documents, 30 percent of the mall is now vacant, and its proposed redevelopment would not only stabilize it, but make it a desirable destination once again,” said Bonnie Miskel, a lawyer representing primary mall owner Washington Prime.

The proposal would reduce the existing mall square footage for retail from about 1 million square feet to 482,750 square feet, and build separate, mixed-use buildings with retail use on the first floor and residential units above. Developers also would add up to 1,420 residential apartments on the site, along the north end and southwest side of the mall property, and inside the new mixed-use buildings. The redeveloped mall would include a 400-room hotel, 65,000 square feet each of medical office space, and general office space, and 35,000 of new restaurant space.

The master plan and rezoning request for the 116-acre site was filed with the Boynton Beach City Commission, which gave initial approval, but meets again on the plans Jan. 21. Some Boynton Beach residents expressed concerns on the NextDoor app about mounting traffic off Congress Avenue near the mall and that mall redevelopment plans didn’t seem to include any new entertainment venues for the community, such as a park, bowling alley or sports center.

The plan doesn’t affect Macy’s and JCPenney, the two major department stores remaining at the mall, which are owned separately, and Christ Fellowship Church, owner of a former Dillard’s department store space in the mall. The redevelopment would happen over five phases, with the first phase removing the former Sears buildings and adding a 400-unit apartment building, Washington Prime said.

In its proposal for redevelopment, Washington Prime says that “the current use of the property as an aging mall is in steady decline as it no longer meets the needs of the community and is slowly becoming a source of blight in the city.” Occupancy at the mall has dropped by 11.5 percent between 2015 and 2016, according to documents submitted to the city to justify rezoning.

 

Source: Sun-Sentinel

The Delray Beach Community Redevelopment Agency approved plans for AltaWest, a $100 million mixed-use project on West Atlantic Avenue.

The CRA board OK’d the sale agreement with BH3 Management for 7.4 acres at 600 to 800 West Atlantic Avenue. The developer has 30 days from the date of obtaining a construction permit to close on the land, according to the South Florida Business Journal.

Aventura-based BH3, led by Dan Lebensohn and Greg Freedman, was the winning bidder of six groups for the public-private partnership project. The development will include 43,000 square feet of ground floor retail, 21,600 square feet of professional office space, a 33,000-square-foot grocery store, 165 residential units totaling 272,242 square feet, 744 parking spaces, about 45,000 square feet of public space called “Frog Alley” and up to 30 workforce housing units, the latter of which includes 18 affordable housing units being built on an adjacent site.

The site is in an Opportunity Zone, which means the developer can qualify for a major federal tax incentive for developing the project. The federal program allows developers and property owners to defer and possibly forgo paying some of their capital gains taxes, or taxes resulting from the sale of certain assets.

While BH3 was the only bidder to not offer money in exchange for the land, the company said it plans to spend the most on development.

BH3 has to put $250,000 into escrow. The city commission still needs to grant the project final site plan approval.

 

Source: The Real Deal

According to the new 1Q 2018 The Quarterly Report – South Florida Commercial Real Estate released this week by data firm Vizzda and the MIAMI Association of Realtors, South Florida‘s multifamily real estate transactions jumped 8.5 percent year-over-year in 1Q 2018 and per-unit multifamily prices increased in Miami-Dade, Broward and Palm Beach counties.

“Increasing population, job growth and rising single-family home prices are increasing demand for South Florida multifamily properties,” said 2018 MIAMI Commercial President Brian Sharpe. “South Florida’s new transit options such as the new Brightline Miami-to-West Palm train service is fueling more multifamily growth.”

Palm Beach County Posts a Banner Quarter for Multifamily Sales

Palm Beach County posted a record 34 multifamily transactions in 1Q 2018, totaling nearly 2,200 units for $151,600 per unit. The West Palm/Riviera Beach and Green Acres/Palm Springs sub-markets had the most transactions with 12.

The South Florida tri-county region finished with 140 multifamily transactions in 1Q 2018, an 8.5 percent increase over the same period last year.

Miami-Dade County had the highest number of transactions at 65, which was in line with the third and first quarters of 2007 but lower than the strong showing in 4Q 2017. Broward, meanwhile, saw an increase in multifamily transactions because of a rise in transactions in Fort Lauderdale.

Miami-Dade County Enjoys Retail Growth in 1Q 2018

Miami-Dade County retail enjoyed strong year-over-year growth in transactions, square footage and dollar volume transacted. Nearly half of the sub-markets in Miami-Dade County had price appreciation on a per square foot basis quarter over quarter.

South Florida average per square foot valuation for retail property increased by 11.1 percent to $304 market wide in the 1Q of 2018.

Broward had year-over-year declines in retail transactions, square footage and dollar volume. Fort Lauderdale was Broward‘s only submarket with quarterly and annual growth in square footage transacted.

Palm Beach square footage transacted went down slightly but both transactions and dollar volume transacted increased on a quarterly basis.

Broward County Office Surges in Several Metrics in 1Q 2018

The Broward County office sector showed robust year-over-year growth in square footage and dollar volume. The sector posted 15 percent more office transactions than this time last year. The increase in sales volume led to a decline in per square foot valuations on an annual basis.

The Miami-Dade office market saw declines in transactions, square footage and dollar volume on an annual basis.

Palm Beach office also saw declines in all four metrics tracked by Vizzda. The Boynton Beach/Delray Beach is the submarket with highest per square foot valuation at $634 per square foot.

South Florida Posts More than 200 Industrial Transactions for the Fifth Consecutive Quarter

South Florida registered 213 industrial transactions in 1Q 2018, showing the continued strength of the market. South Florida is a top-tier U.S. industrial real estate market. New warehouses and distribution centers continue popping up throughout South Florida, adding jobs and boosting the economy.

The Miami-Dade industrial market saw the same number of transactions as the 4Q 2017 but saw declines in square footage and dollar volume transacted on an annual basis.

“While volume of industrial square footage declined in Miami-Dade, values did not,” Vizzda CEO Kris Thompson said. “This is indicative of an increased demand for a scarce supply. In layman’s terms, industrial properties in Miami-Dade are white hot.”

Broward saw a decline in industrial square footage transacted, number of transactions and dollar volume. Broward office’s first quarter of 2018 was the first quarter in which fewer than 1 million square feet of industrial property was transacted in more than a year.

The Palm Beach industrial market also saw declines on every metric other than transaction volume on an annual basis. The Green Acres/Palm Springs submarket grew its industrial transactions by double digits over the same period last year.

 

Source: WPJ

Finally, it seems, we have gotten a handle on Millennials — their desires, their habits and ideas of how to live life.

Now with Millennials a known entity we turn our attention to the next generation: a cohort that has been dubbed Generation Z. Born between the mid-1990s to early 2010, many are just starting to enter the workforce. And they will be just as, if not more, a potent force than Millennials as they make up 25% of the population.

To find how Gen Z will affect commercial real estate — both within as brokers and without, as apartment and office occupiers — we turn to Pushpa Gowda, the Miami-based Global Technology Engagement Director for JLL.

“In 2015, Millennials became the largest generation in the American workforce, according to Pew,” Gowda tells GlobeSt.com.

Little surprise, then, that real estate decision makers are tuned into what millennials are looking for given their significant purchasing power.

“But,”Gowda continues, “they now need to turn towards the next generation and understand importance nuances between these cultural cousins. This generation will be influenced, marketed to, and sold differently than past generations, including real estate, where there is a great opportunity for Gen Z to help shape the future of real estate sales, particularly as Gen Z becomes an increasingly important real estate buyer.”

Here, are seven ways this will happen.

Being Brokers

1. They’ll be very good at online cold calling. “Generation Z is the first to have truly grown up completely immersed in social media from birth – which shapes the way Generation Z makes major purchasing decisions. We’ve seen brokers begin to use social media, other than LinkedIn, to generate leads and new business opportunities.” Generation Z won’t know anything else and will likely be very successful in “online cold calling, Pushpa concludes.

2. Technology will be critical for recruiting and retention. Brokers relying on technology for their business is fairly new, Gowda says. Generation Z will expect the latest technology and will expect it to be seamlessly incorporated into business processes. “This will become critical for recruiting and retention.”

Apartment Dwellers versus Home Buyers

Generation Z outnumbers their Millennials peers by large margins, ultimately positioning them as the force driving the home buying and building market soon, Gowda says.

3. A suburbs revival. As Generation Z is just beginning to come of age, they are slowly entering the housing market, Gowda says. Yet while many are currently renters, they aren’t content staying renters for long, in part due skyrocketing rental prices across the country but more so because they are more family-oriented and will be settling down. They will be raising children. “It may not look the same as their elders’ generation, but they will need housing, and they will want to ease their work-life balance,” she says. For that reason, she adds, “the suburbs are not dead, and even though we’ve seen a lot of shift toward downtowns across the country, don’t count the suburbs out just yet.”

This will force companies to reexamine their headquarters when considering long term moves, she adds.

Office Occupier Trends

Workplace environments have changed dramatically, thanks to Millennials who have reshaped the very concept of work. But Generation Z will spur its own workplace revolution, Gowda says. “These new college graduates are not coming from environments where they sit in one place for hours at a time, as universities have adapted the student experience. This will directly translate to their expectations in the workplace.”

Generation Z is bringing with them an entirely new set of expectations that companies and buildings must strive to achieve in order to remain relevant and competitive to attract this next generation of workers, she says.

4. Less amenities, more flexibility. Generation Z is social, collaborative, and less focused on amenities, requiring flexible spaces that can be adapted to collaborative projects or individual work, Gowda says. In fact, 69% of Generation Z would rather have their own workspace than share it with someone else, while at the same time 74% of Generation Z prefer to communicate face-to-face with colleagues, so both private workspaces (or quiet zones) and collaboration spaces are important. “It will be interesting to see this play out at as Millennials become managers of Generation Z, this will likely be a good match with some differences to accommodate.”

5. Flexible roles too. “Expect Gen Z to be focused on more than just flexible spaces, they want flexibles roles too, Gowda says. Seventy-five percent of Generation Z would be interested in a situation in which they could have multiple roles within one place of employment. “Corporations will need to consider how to physically organize departments throughout the physical office to encourage hybrid roles.”

6. It’s the technology, stupid. “Generation Z is in need of corporate workplaces that support the highly interactive and tech-enabled environments they’ve grown up in,” Gowda says. In fact, 40% of Generation Z said that working Wifi was more important to them than working bathrooms. This is in line with Generation Z expecting not only technology basics but also the latest technology. ”Corporations should make certain to provide a variety of workplace sizes and styles accessible 24/7, as choice and individuality are defining characteristics of Generation Z.”

7. Free-flowing environment. But technology is just one element, Gowda says. “Generation Z demands a free-flowing environment that supports all their needs, from workout rooms, workspaces designed for any given day and spaces that build community and collaboration.”

 

Source: GlobeSt.

But for the hockey arena on it, the 143 acres of public land on the edge of the Everglades in Sunrise is a clean slate.

In the coming 20 years, the county intends to fill in the grassy blanks with Downtown West, a mix that could include condos, stores, restaurants, offices, maybe even a casino.

This week, Broward County embraced a development vision for the land, a potential playbook created by the Urban Land Institute. The nonprofit real estate consultancy visited the site, studied it and issued the report this month. To carry it out, the County Commission agreed Tuesday to hire two real estate employees, including a director of real estate.

The institute’s land-use experts said the county-owned BB&T Center, a giant venue surrounded by parking spaces, represents “an opportunity lost.’’ The consultants said visitors leave the arena after shows or games because there’s nothing there to capture them. They suggest the land be developed thoughtfully, and slowly, with a potential mix of housing, a hotel, office space, retail, a casino and the hockey arena.

“The undertaking is huge and could be controversial,” said Broward Commissioner Nan Rich, who represents most of Sunrise. “There’s a lot of potential. But we have to get it right, and that’s the challenge.’’

The mix of development — including whether casino rights are obtained and whether the Florida Panthers hockey team remains in the arena — will be determined in the coming years. The development is expected to complement what’s around it: America’s largest single-story retail mall, Sawgrass Mills, condo towers and  Metropica, a $1.5 billion development on Northwest 136th Avenue and Sunrise Boulevard that’s in the planning stages.

Sunrise Mayor Mike Ryan said he’s “thrilled’’ the county is taking the opportunity so seriously. He said the arena never was expected to stand alone, as it has since its 1998 construction. Sunrise supports development of the land, he said, and the market will determine the right mixture of uses.

“We’re a partner in trying to help find something that works in the context of what’s already there,’’ Mayor Ryan said.

The land for years was in the hands of the hockey team owners, who never used it. The Panthers, a National Hockey League team, plays in the county arena, and an affiliated company operates it. In a reworked agreement in December 2015, the county won back development rights to the land surrounding the arena. The deal increased the public subsidy of the team by $86 million, to $342 million. The new agreement aims to keep the team in the BB&T Center until 2028.

The county brought Urban Land Institute to town last summer to brainstorm possibilities for the land around the arena, and to look at possibilities if the Panthers ultimately depart. After visiting in June, the institute’s participating experts interviewed those involved in the arena and the site and conducted research, producing the report released this month.

The consultants explored three alternatives: the Panthers extend their lease, and a casino is added; the Panthers extend their lease, and office and housing are added; and the Panthers leave, the arena is demolished, and housing, a casino and offices are added. The third option would bring in the most tax revenue and income to the county, at an estimated $391.3 million over 11 years, the report said.

“Limited initial demand exists for new development on the site,’’ the report says, “However, over time, more opportunities will arise.’’

The development report lays out a timeline from now to 2040 for remaking the acreage.

“Redevelopment of the arena site will require a long-term, patient approach that will take more than 20 years,’’ the report says.

It also acknowledges that market forces, including potential downturns, remain unknown. The path to development started Tuesday with the agreement to hire real estate overseers. The expense of a real estate director and project coordinator is expected to be $275,000 a year, a county memo says.

The consultants suggest the county start by assembling a Downtown West Broward Leadership Council, a hub for public input and problem solving. Ryan said one thorny issue will be management of traffic. He’s advocating construction of Sawgrass Expressway ramps to and from the north, to help drivers reach and depart from the site. He also said it’s important that the county not build anything that would compete with or detract from nearby development.

“It’s critical to get participation from everyone from the beginning,’’ Broward Commissioner Nan Rich said.  “One thing is clear, there has got to be a lot of involvement from the community. When you’re developing something this size, I don’t want to superimpose things on people that live in an area.’’

Click here to view the SunSentinel video ‘Broward Embraces Development Vision of Downtown West’

Click here to view the SunSentinel video ‘Broward Explores Developing Land Around BB&T Center’

 

Source: SunSentinel