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MB RDA EXECUTIVE DIRECTOR'S REPORT MAY 15, 1985 MIAMI BEACH REDEVELOPMENT AGENCY 411EXECUTIVE DIRECTOR'S REPORT MAY 15, 1985 1) Status of GSA Property Attached are copies of correspondence that we received from GSA and the National Park Service. Our response to the National Park Service is also attached. GSA continues to schedule auction of the property for June 4, 1985. Congressman Pepper's g PP Office is continuing to seek support for designation for park purposes. 2) Cheezem Development Agreement The staff continues to work with representatives of Cheezem to refine the designs for Biscayne Street, and to ensure that construction is completed in accordance with the Development Agreement. We continue to be assured by representatives of Cheezem that their closingwill take place. 3) South Pointe Park Phase I construction, which consists of the parking areas, roadways with lighting, underground utilities, tree transplanting, irrigation interior p g,. g on feeders, park lighting, betty promenade and walkways, is approximately 69% complete. Phase II construction, which consists of the amphitheater with a tensile structure stage covering, adjacent support building with public restrooms, picnic shelters and pavilion, vita course, observation towers, dune boardwalks, athletic field lighting, g irrigation systems and final landscaping, is approximately 26% complete. This project is on schedule, and is within the approved budget that was appropriated. 4) South Pointe Promotional Efforts The second edition of the South Pointe Leader was previously transmitted to you under separate cover. We are in the process of distributing this publication via our national mailing list. 5) 55RI Lawsuit We are continuing to negotiate a development agreement with representatives of First Boston. The hearing on the Exercise of Option has been re-scheduled to May 20, 1985. 6) Corridor Studies Attached is a draft copy of the Commercial and Retail Potential Study that was conducted by Halcyon. The Agency Members have previously received copies of Goodkin's Residential Analysis. Financing Strategies for development are forthcoming from Halcyon, and Design Standards are being prepared by Land Design/Research. 7) Housing Authority Negotiations The Agency Attorney is awaiting a response from Freilich and Leitner as to whether or not the language regarding access would fulfill the City's obligations to Carner/Mason. 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''''.':: ' . •'' '-1• 4:4-•*'''llaiitr. ii.... ',AA 1-..;72‘&1: -..TII.;.ak‘gits.i.-.. .. . . - ' '14.11- '4. 'Aiitradithafasiv.ii.1141.4:1:Aili -- s -•-:.....c.;•.•..i./..,..24.t...1.tisirli, .: .• 11/A r'il 1 !'11 .. , , f•• 111)rii."1 1111'01111 , 60 0 0 0 49 1- , I .1(-If',r; , ) ; :1 : I': J ; I i ) P7 , / iZ' t / S'Ir.' Y'''''/ HALCYON LTD. Development Consultants OFFICE AND RETAIL MARKET POTENTIALS SOUTH POINTE, MIAMI BEACH Presented to: City of Miami Beach 1700 Convention Center Drive Miami Beach, Florida 33139 Presented by: Halcyon Ltd. 1511 K Street, N.W. 55 High Street Suite 1100 Hartford, CT. 06103 Washington, DC 20005 April 1985 • • r41 i3L1C1.1 i 1 8 60 000492 Table of Contents SECTION 1.0 EXECUTIVE SUMMARY • SECTION 2.0 ECONOMIC OVERVIEW 2.1 Population Trends and Projections 2.2 Employment Trends SECTION 3.0 OFFICE MARKET POTENTIALS 3.1 Dade County Office Market Overview 3.2 Catpetitive Office Locations 3.3 Office Demand Analysis 3.4 Office Development Potentials SECTION 4.0 RETAIL MARKET POTENTIALS 4.1 Caetitive Retail Development 4.2 Retail Demand Analysis 4.3 Retail Development Potentials APPENDIX Survey of Design Firms r 1 r),,FI NIEM1 EP1CY I tG MAY 1.5 1`)B5 ..fUV 9 60 000493 Section 1.0 EXECUTIVE SUMMARY The following provides a summaryof Halcyon's • Cyon s Ona 1 ys i s of office and retail potentials in the South Pointe area of Miami Beach. - Site Analysis Miami Beach's South Pointe area occupies one of premier development sites. South Florida's Bordered by the Atlantic Ocean, Government Cut, and Biscayne Bay, South Pointe is only 5-10 minutes away EtOH downtown Miami and 15-20 minutes f ran the Miami International Airport. The main aCCess route to South Pointe is the MacArthur Causeway which feeds into Fifth Street in Miami Beach, the corridor under consideration as location• an office South Pointe is Miami. Beach's onlyofficially • redevelopment ictally designated • •area• and, as such, suffers f ran considerable physical deterioration and disinvestment. A new $11.5 million marina, 17 acre park and planned mixed-use residential and hotel development at the southern end of South Pointe should improve the area considerably. In addition, the Pr $9.8 million of City has bond funds for infrastructure and streetscape .improvements to Alton Road and Biscayne Construction of these improvements Street. � ements is scheduled to begin this summer. Economic Trends Located in one of the fastest growing states in the country, Dade County possesses a generally healthy, diversified and mature economy. Due to the strong dollar and a nationwide decline in international trade, onwide population and cloyment growth is projected to be lower over the next 5 - 10 years as compared to the last decade. However, County projections show a population 16.5% increase between 1980 and 1990, which is likely to outpace the rest of the country. Potentials Halcyon's survey of potential office tenants and brokers and analysis of Dade County's office market indicates that South Pointe has good potential as a future office location, particularly for corporate offices and professional firms• To establish itself as a premier location in the regional office ce market and effectively compete with other office sub-markets, the area must first establish a strong residential base. The South Pointe Towers project, currently under construction by the Cheezem Development Corporation, will rpo establish South Pointe's residential and office presence. 11 n rAC 1►f�v�'1 t ` ` t ' f is AWRY f ti 60 000494 Halcyon projects that South Pointe should be able to absorb approximately 60,000 square feet per year between 1985 and 1990 and 75,000 square feet per year between 1990 and 1995 as the area becomes more desirable as an office and residential location. (See Table 1.1 on the following page) . Table 1.1 Summary of Projected Annual Office Demand Dade County and South Pointe, 1986-1995 (Square feet) Total 1986-1990 1990-1995 1985-1995 Dade County Office Demand 1,430,000 1,255,000 11,997,700 South Pointe Capture Rate 4% 6% 5.5% South Pointe Office Demand 57,200 75,300 734,000 Source: Halcyon Ltd. Halcyon estimates that there will be two main sources of demand for South Pointe office space: o Regional offices of national corporations and headquarters for local campanies. Several national and local companies are already considering South Pointe as a major location for front and back office space. Estimates of space required by these entities range in size frau 50,000 to 100,000 square feet. Corporate office space would clearly establish South Pointe as an office presence and would attract other smaller tenants wishing to locate in proximity to these companies. Space demanded by corporate headquarters is not represented in Table 1.1; office requirements by this group would be in addition to Halcyon's demand projections. o Service and Professional campanies, such as lawyers accountants, consultants, and design firms. Initially, South Pointe should attract firms serving the Miami Beach market or desiring inexpensive space close to downtown. As South Pointe develops as an attractive residential area, it will attract more professional firms wishing to locate close to their owners residents. These firms are less price sensitive, which will lead to higher rents. • ilk,:ooariiitir 0.5 11 60 0 0 0 495 Based on the above absorption rates, Halcyon recommends medium-sized buildings of 70,000-120,000 square feet, which will enable a normal 1-2 year lease-up period. Achievable rents in Class A buildings are projected to be $16-18 per square foot (on a gross basis) in today's dollars for the first wave of development. After the South Pointe is established as a desirable residential and office location, achievable rents should rise to $18-22 per square foot. Projected rents in South Pointe are below current rents in downtown Miami and along Brickell Avenue but slightly higher than rents in the Airport/West Dade area, which contains mainly Class B office space. Land prices in South Pointe range frau $11 to $30 per square foot, well below prices in camparable office locations. Finally, parking will be an important consideration, with approximately 3 spaces per 1,000 square feet required to market the office space. Retail Potentials The South Pointe area of Miami Beach can support approximately 100,000 square feet of retail by 1990, based on the expenditure potential of current and future residents, and future office workers. In addition, the South Pointe area can support 35,000 square feet (5-7 restaurants) of restaurant space (in addition to Joe's Stone Crab and the proposed restaurants at South Pointe Park and the Miami Beach Marina) based on residents, employees, and visitors to the area. The opportunity exists for an existing Ocean to Bay retail di stri ct along Biscayne Street. Supportable retail space will increase rapidly between 1990 and 1995 as more workers and residents move into the area. Halcyon's projected retail demand is shown in Table 1.2 below: Table 1.2 Summary of Supportable Retail Space South Pointe, Miami Beach, 1990 and 1995 1990 1995 Convenience (1) 55,000 87,000 Restaurants 35,000 70,000 Misc. Retail (2) 17,000 28,000 Total 107,000 185,000 (1) Includes supermarkets, drug stores, and miscellaneous convenience goods, catering to South Pointe residents. (2) Includes retail stores catering to office workers and visitors. Source: Halcyon Ltd. • 4,1011 . ,CH 'f f' ` .c.1 r'i`fr1c11i- I f:i1CY ;. )9n 12 60 000496 Table 2.2 shows that population growth in Miami Beach between 1970 and 1980 and particularly between 1980 and 1984 has been significantly slower than the county. Futurepopulation in Miami Beach will depend on growth pen its ability to capture county growth. TABLE 2.2 POPULATION TRENDS 1970-1990 MIAMI SMSA (DADE COUNTy) 7. (Est.) 7. (PROJ.) 1970 DISTRIB. 1980 DISTRIB. 1984 DISTRIB. 1990 MIAMI BEACH 87,072 6.97. 96,298 5.9% 97,300 5.6'1. N/A MIAMI 334,859 26.47. 346,865 21.37. 379,300 21.7% N/A DADE 1,267,792 100.07. 1,625,781 100.07. 1,750,000 100.07. 1,894,000 SOURCE: U.S. DEPT. OF COMM. BUREAU OF CENSUS. METRO-DADE PLANNING DEPT. UNIVERSITY OF FLORIDA BUREAU OF ECONOMIC AND BUSINESS RESEARCH, HALCYON LTD. 2.2 Employment Trends Tables 2.3 and 2.4 on the following pages illustrate growth in employment as well as distribution of non-agricultural employment between the years of 1970 and 1984 for Dade County. The discussion which follows highlights elements of the Dade County employment base which will effect development potentials for South Pointe: o Dade County and the state of Florida experienced rapid non agriculture employment growth between 1970 and 1980, at annual levels of 3.7% and 5.2%, respectively. Between 1980 and 1984 employment continued to grow, however at a significantly reduced pace for Dade of 1.2% annually while the state rate was only slightly behind the previous period at 4.5% annual growth. o The distribution of agricultural employment is similar for the state and the county, however, growth rates are quite different. The strongest sectors for county growth between 1970 and 1984 were wholesale and retail trade, finance insurance and real estate (FIRE), services mining and miscellaneous and government. • 1,1E1 i i ; 14 40 000497 TABLE 2.3 EMPLOYMENT TRENDS 1970-1984 MIAMI SIISA (DADE COUNTY) Annual Averages PERCENT CHANGE G. ANN. CHANGE , " 1970 1980 1983 1984 1970-80 1930-84 1970-80 1980-84 MANUFACTURING 77,200 101,500 91,800 96,900 31.5X -4.5ti 2.3% -1.2% CONSTRUCTION 32,400 38,400 36,600 38,300 19.57% -0.3% 1.7% -0,1X, T.C.U. (1) 55,300 71,900 67,000 70,800 30.01. -1.5% 2.7% -0.4% WHLSL. & RET. TRADE 131,700 188,900 192,600 199,300 43.4% 5.5X 3.7X 1.37, F.I.R.E. (2) 33,700 52,700 60,100 61,500 56.4% 16.77, 4.61. 3.9% SERVICES & MISC. 115,300 176,900 192,800 204,500 53.4% 15.67% 4.47, 3.7% GOVERNMENT 57,600 96,600 96,400 99,200 67.7% 2.7% 5.3% 0.7% ----- ----- TOTAL 503,200 726,900 739,300 770,500 44.5% 6.07. 3.7% 1.57, (1) Transporation, Communication and Public Utilities (2) Finance, Insurance and Real Estate SOURCE: STATE OF FLORIDA DEPARTMENT OF LABOR AND EMPLOYMENT SECURITY TABLE 2.4 EMPLOYMENT DISTRIBUTON TRENDS MIAMI SMSA (DADE COUNTY) 1970 1984 CHANGE MANUFACTURING 15.3' 12.6% -2.9% CONSTRUCTION 6.4% 5.0% -1.5% T.C.U. (1) 11,0X 9.2% -1.8% WHLSL. & RET. TRADE 26.2%. 25.9% -0.3% F.I.R.E. ( ') 6.7% 8.0% 1.3% SERVICES & MISC. 22.9% 26.5% 3 GOVERNMENT 11.47. 12.9': 1.4% TOTAL 100.0% 100.0% (1) TrarEncraticn, omrnunication aTld Public Utilities Finance, Insurance and real Estate • • fit fil:..VO.OrMENT. MENU 11 15 RUING 40 000498 o County growth in wholesale and retail trade was strongest between the 1970 and 1980. The slower pace of growth between 1980 and 1984 can be explained primarily by the strength of the dollar as compared to foreign currencies. Both wholesale as well as retail trade employment were effected by strength of the dollar. Retail trade, was effected by the lose of revenue frau tourists frau Latin and South America as well as frau EUrape. Employment in wholesale trade was primarily affected by a drop in the Latin and South America trade. o The F.I.R.E sector has exhibited strong and consistent growth both in the 1970 and 1980 periods as well as in the 1980 and 1984 periods. F.I.R.E. continues to be the leading employment growth sector in the county. This is an particularly important development for office demand generation in the county as approximately 90% of employment in this sector is generally housed in office developments. , o The services mining and miscellaneous category with approximately 26.2% of total employment distribution in 1984, exhibited sustained growth between 1970 to 1980 as well as in the period 1980 to 1984. These sustained growth rates indicate the direct impact of expanding support firms, such as attorney's, accountants, data processing and personnel businesses as well as hotel development and tourism. Similar to FIRE, sustained employment in the service sector is considered to be an important demand generator for office development, however, at a lesser rate than the FIRE sector. o Between 1970 and 1980 the government sector experienced strong growth rates. 1980 to 1984 showed a significant decrease in annual growth. The recent trend, is likely to continue in light of national political attributes that work towards restricting growth in the number of government employees. Table 2.5 on the following page shows the employment and unemployment trends in Dade county as compared to the state. Historically, county unemployment rates have exceeded that of the state. This trend however, is quite reasonable, given the proportionally higher influx of South American and Latin American immigrants into the county as well as county's relatively mature and less flexible economic base. Trends since 1981, however, show that county has recovered well fran the recent national recession. k E Vi'UIlH1 AGENCY ( 5 1'r3 MEF !HA; 16 60 000499 TABLE 2.5 LABOR FORCE AND EMPLOYMENT TRENDS DADE COUNTY AND FLORIDA 1980-1984 1980 1981 1982 1983 1984 (1) DADE COUNTY NON-AGRICULTURAL EMPLOYMENT (000'S) 726.9 745.7 733.5 734.6 762.7 7. CHANGE FROM PREVIOUS YEAR NA 2.6% -1.6% 0.17. 3.9' UNEMPLOYMENT RATE 8.27. 9.57. 10.17. 9.87. 7.3% FLORIDA NON-AGRICULTURAL EMPLOYMENT (0001S) 3,576.2 3,736.9 3,761.9 3,893.0 4,266.8 7. CHANGE FROM PREVIOUS YEAR NA 4.5! 0.7X 3.57. 9.67. UNEMPLOYMENT RATE 5.97. 6.87. 8.27. 8.67. 6.17. NA-NOT APPLICABLE (1) PRELIMINARY DECEMBER INFORMATION SOURCE: FLORIDA DEPARTMENT OF LABOR AND EMPLOYMENT SECURITY • '1M/1M' RiAci 44..:r:11AGA rig; , 17 RIFE IIN - )005" 6 Employment Projections Table 2.6 shows total non-agricultural employment projections as well as projections by industry sector. The distribution of employment growth is based on past trends discussed previously as well as expectation of future developments in the Dade • County marketplace. As Table 2.6 below and Figure 2.1 on the following page show, the highest annual average growth rates are projected in the F.I.R.E as well the services and miscellaneous sectors. Between 1985 and 1995, an additional 56,000 jobs are expected in the Services Sector and 23,000 in Finance, Insurance, and Real Estate. Overall, Dade County employment is projected to increase by 1.8% per year between 1985 and 1990 and 2.0% between 1990 and 1995. These projections represent slower growth than experienced between 1970 and 1980 (3.7% per year) but more rapid growth than the early 1980's (1.2% between 1980 and 1984) . Table 2.6 Ellploy*ent Projections Dade County, 1980-1995 Actual Projections Change Average Annual Growth 1980 1985 1990 1995 1980-85 1985-90 1990-95 1980-85 1985-90 Manufacturing 101,500 96,700 108,800 126,100 (4,800) 12,100 17.301 -1.0% 2.47. Construction 38,400 42,600 44,900 48,600 4,200 2,300 3,700 2.1% 1.1 T.C.U. 71,900 70,100 73,700 85,700 (1,800) 7,600 12,000 i 5 •., � -J..,X 1.t1� Trade 188,900 193,600 204,000 219,100 4.700 10,400 15,100 0.5% 1.0 F.I.R.E. 52,700 65,400 75,700 88.300 10,700 12,300 12,600 3.7% 3.5% 26,9002. h Services 176,900 199,100 228�200 255�100 2zf 200 29,1000 4% 2 � L .1% Government 96,600 98.059 79,700 100,100 1,459 1,641 400 0.3% 0.7% TOTAL 726,900 763,559 935,000 923.000 36,659 71,441 98.000 1.0% 1.34 Source: Goodkir PeEearch Company, Halcyon Ltd. • REPriff-ILlutlir''1AfiEnkfl"Mil:11;1:_NCY • 18 Figure 2.1 EMPLOYMENT PROJECTIONS 1 DADE COUNTY, FLORIDA 0.9 • 0.8 • ♦1111♦ or . . . . ... ^.4.0.7 pr . • - . -11; 0 4 " 4. \- - ,\,, Ii 0.8 :41 tO 4 LO li kill, 16.46. 41 A.I\AO ' m'S \ a 0.4 r > / 0.341 1 \ ' '; Ili7- 0.1 r y 1 t ' 1980 1985 1990 1995 SERV. INN FIRE t77fTRADE �� MFG. [771 OTHER . MIAMI P7Arti ttf:1)z'JELVtalkf!f AGENCY tr,r.Eiii 19 60 000502 Section 3.0 OFFICE MARKET POTENTIALS Halcyon has evaluated the potential for newculative � office space in the South Pointe area of Miami Beach, particularly along Fifth Street and alongAlton Road. Since little or no office space currently exists in the South Pointe area, the purpose of Halcyon's analysis was to test whether South Pointe's locational advantages and proposed amenities (marina, park, new housing, retail) would attract office developers and tenants to the South Pointe area. 3.1 Dade County Office Market Overview Dade County has emerged as a major national and international office center. Because of its proximity to the Caribbean and Latin America, major national and international banks have opened offices in the Miami area. In spite of a national recession in the 1981-82, absorption of new office space in Miami market has held fairly steady, although there was a slight decline in 1983 as the strong dollar lead to a decrease in trade and international business.. Over the 1980-84 period, absorption of office space in the Miami metropolitan area averaged 1.28 million square feet year. Over the same period, the per . amount of new office oaYlpleted has exceeded absorption in each of those years as shown in Table 3.1 below. Although same additional supply is necessary for increased vacantce and to replace re pace older buildings, the over-building in Miami has led to an increase in the overall vacancy rate from 5.2% in 1980 and 16.2% in 1984. Table 3.1 Office Completion and abeorbtion Dade County, 1380-1984 1180 1181 1982 1933 1984 Soace Completed 1,570 1,554 1,600 2,+:00 7,645 (000) Absorbtion 1,583 1,535 1,215 1,100 1,5 'U (000) Vacancy ate 5.2! 5.2% B.;% lu.l_: la.". ScLr:e: ►of dwel l Banker • • it NEM Inf t 2 0 6 O 000503 An increase in office vacancy rates has occured across the ' country as available financing has led to over-buildingin many markets. Miami remains relatively healthy canpared to major office markets across the country. 3.2 below shows downtown, suburban and metropolitan vacancy rates for selected major office markets across the country. As that Table shows, Miami had one of the lowest overallvacancy rates in the country in September 1983. At the same time, cities such as Dallas, Phoenix, Denver and Houston all had vacancy rates greater than 20%. Table 3.2 Office Vacancy Rates in Selected Cities, September 1983 Downtown Suburban Metropolitan Boston 2.0% 13.4% 7.0% Philadelphia 9.0 11.4 10.0 San Francisco 6.4 18.5 10.8 Miami 13.9 9.8 10.9 Atlanta 16.3 10.8 12.1 Chicago 10.6 16.1 12.3 Seattle 10.0 27.0 12.8 Minn./St. Paul 7.2 20.9 13.6 Los Angeles 13.1 20.2 18.6 Dallas 13.3 25.7 21.3 Phoenix 9.7 31.0 22.4 Denver 22.4 30.1 26.4 Houston 10.8 33.1 28.2 SOURCE: Coldwell Banker The three major Class A office markets in Dade County are: Downtown Miami, Brickell Avenue and Coral Gables. Together, these three areas account for approximately 45% percent of the 23.4 million square feet of office space in the Miami Metropolitan area. The largest market for secondary office space is the Airport/West Dade area, which contained 6.3 million square feet in 1984. Table 3.3 on the following page shows the distribution of office space and the vacancy rates for the 6 major sub-markets in the Miami Metropolitan area. This table shows that downtown Miami had the highest vacancy rate at 15.5%, while the vacancy rate in the Brickell Avenue area was surprising low at 4.4%. r '9I BEACH i 'if VWW,titilli. ACHI I /\' 19.1 METING 21 60 000504 Table 3.3 Major Office Sub-markets Dade County, 1984 and 1985 Total Space (000 sq. ft. ) Vacancy Rates 1984 1985 Change 1984 1985 Downtown 4844.2 6002.4 23.9% 15.5% 20.8% Brickell 2522.6 2522.6 0.0% 4.4% 4.6% Coral Gables 3045.8 3045.8 0.0% 9.4% 11.5% Airport/West 6293.8 7107.1 12.9% 7.5% 13.6% Dade South Miami/ 1775.1 1846.7 4.0% 8.8% 17.7% Kendall NE Miami 43310.0 5331.6 23.1% NA NA Other 554.0 554.0 0.0% NA NA Total 23,365.5 26,410.3 13.0% 10.1% 16.2% Source: Coldwell Banker Lease Rates Table 3.4 below shows average lease rates for newly occupied class A office space in the Miami s kets. The highest rates are attained in downtown and Brickell Avenue area, where new office demand approximately $30 per square feet. Rents in Coral Gables are slightly lower at $25 per square foot while the least expensive rents are found in the Airport West Dade area at $16 per square foot. In spite of increasing vacancy rates, office rents have been increased fairly steadily f ran 1980 to 1984 but have been flat for the last year as high vacancy rates have constrained price increases. Table 3.4 Office Space Absorbtion and Average Lease Rates Dade County, 1983 and 1984 Average Absorption 000 Lease Rates(1) 1983 1984 1984 Downtown 360.0 984.0 $30.00 Brickell 5.3 0 30.00 Coral Gables 140.0 150.0 25.00 Airport/West Dade 290.0 NA 16.00 South Miami/Kendall NA NA 18.50 NE Miami NA NA NA Other NA NA NA Total 1,100.0 1,300.0 (1) for new Class A space Source: Coldwell Banker ''1!A",t'i CERN N [[� RENhaOPMLNI AGENCY MAY 15 1985 MFUMG 22 • 60 000505 Office Tenant Profile The four largest categories of office space users in the Miami area are legal services, banking, communications, and credit agencies. Except for legal services, these industries also have the highest average size office space as shaven in Table 3.5 on the following page. Office space users with the largest number of fines are legal services, with 639 firms, and general business services, with 243 fines. The average size tenant occupies approximately 6,100 square of office space in the Miami, area. Compared to other cities in the country this is relatively small average size; only Kansas City has a smaller average office space tenant. In spite of a small average space size, large firms are still occupying the majority of space in the Miami market. 1983 there were 338 firms (12% of total) with over 10,000 square feet of office space. These firms occupied 10.7 million square feet of space, or an average of 31,640 square feet per firm. While 65% of all office space users lease their space, 15 of the 20 largest users in the market own their space. Ahi:AMI REACH REOE VF[OPPI E r AGERY ►t'( i9,85 • R fy!:f 1.1r t 23 60 00050 3 Table 3.5 Office Space Occupants in Miami By Industry, 1984 Industry Number Total Square By Standard Industrial of Average Size Footage Classification (S.I.C. ) Firms In Square Feet By Industry " " Cammunication 39 41,178 1,605,931 Banking 135 15,492 2,091,421 Holding Campany 17 13,681 232,578 Credit Agencies 92 13,571 1,248,581 Human Resources 45 8,793 395,684 Air Transportation 38 7,702 292,685 Wholesale Trade- 62 5,641 349,758 Nondurable Nonprofit Organization 42 5,601 235,235 Insurance Carriers 164 5,209 854,314 Stock Brokers 81 4,198 340,003 Wholesale Trade- 138 4,080 563,093 Durable Insurance Brokers 121 4,045 489,425 Miscellaneous Services 221 3,893 860,309 Real Estate 184 3,829 704,521 Legal Services 639 3,324 2,124,261 Business Services 243 2,988 726,165 Medical Services 74 2,723 201,529 NOTE: For industries occupying 200,000 square feet of space or more. SOURCE: Coldwell Banker '11 M1 HACHH i;UD[VL1.Qpt FN1 AGENCY MAY 1 ,.; 1985 • MEEr1 IG 24 60 000507 3.2 Competitive Office Locations South Pointe and Miami Beach possess two major attributes which will help it it compete for office tenants. First, the area is approximately a 10 minute drive f rcm downtown Miami, making access to offices in the downtown and along Brickell Avenue r+ relatively easy. Second, assuming that much of the proposed development takes place, the area will be able to offer the following amenities: views of both the ocean and Biscayne Bay, a marina, restaurants and retail shops, and a Y high °'p ► large number of g quality rental and owner-occupied residential units. In sum, the South Pointe area will be an exciting water oriented mixed-use environment. The negative attributes of the South Pointe area are the current state of deterioration and the abandonment, and its relative inaccessibility for major residential areas in Southwest Dade County. Finally, like all other office locations in the South Florida area, developers will have to provide a significant amount of parking to make office development marketable. (Parking could be provided in city awned and operated garages. ) The following paragraphs describe the major attributes of the offices kets with which South Pointe will have to campete for tenants. Airport/West Dade: This area, which has experienced rapid growth in the last few years, has typically served the demand for office/warehouse space as well as back office space in the Miami area. Rents are relatively low in this area at $16 Per square foot for new space. Until recently, buildings have been relatively small, generally under 100,000 square feet. However, several new projects include several building and/or larger buildings. Carnival Tours recently occupied over 100,000 square feet in two building in the Koger Executive Center in this area. Coral Gables: The Coral Gables area is popular among professional firms that do not need to be in downtown Miami or on Brickell Avenue. Coral Gables offers excellent accessibility to the Airport and to the residential areas of Southwest Dade County. Rents in Coral Gables are approximately $25 per square feet for new Class A space. • iii!AM! BEA(1I fire LVFLOPMU'li AGENCY WV 1 5 1185 25 60 000508 Coconut Grave: Coconut Grove is a relativelysmall office s ket. However, as an important residential, retail and entertainment district, Coconut . mixed-use . Grove i s one of few successful districts in the Miami area and with its orientation provides aford water prototype development in the South Pointe. Office developments in Coconut Grove are typically • under 100,000 feet. The recent development Office tower, of the Grand Bay a 32 story 175,000 square foot building overlooking the bay with rents projected at $25-30 Per square foot will be one of the largest structures in the area. Parking is an important issue in the Grove, with a minimum of 2.5 spaces per square foot required for successful marketing. Arthur Godfrey Road (41st Street)/Miami Beach: Arthur Godfrey ey Road in Miami Beach has developed into a resident oriented office district. Many of the tenants are doctors, due to the close proximity to the Mt. Sinai Medical Center, and financial services. There are approximately 250,000e feet of Class ass A space, with one 60,000 square foot project under development. In addition, there is ar sal for a P � 350,000 square foot office building at Arthur Godfrey Road and Biscayne Bay that would try to attract more corporate offices. Rental rates in this area average $10-12 per square foot. 3.3 Office Demand Analysis Given that there is no existing officece in the a South Pointe area, Halcyon used the following methodologyto evaluate the demand for office Ce• o A telephone survey of Miami-based design firms which evaluated the willingness of these firms to move to the South Pointe area as well as contraints and required amenities. o A survey of brokers familiar f ran the South Pointe area to determine the marketability, achievable rental rates, and parking requirements of new office development. o An analysis of Dade County employment projections and projected space needs and South Pointe's likely capture of that demand. Survey of Design Firms Discussion with brokers and other knowledgable people involved in the Miami area office market typically believe that the South Pointe area will be able to attract architects and other design firms looking for a unique environment. To test. this concept, Halcyon conducted a limited telephone survey of these types of firms to determine the feasibility of this office tenant group. flIA; I REAM UEV[LOJ M1.1f AGFE CY .1AY r 1985 • Pr4(3 26 60 000509 The main office location criteria for architects are accessibility to expressways, the airport, rester other similar f i tins. � restaurants, and The general feeling about the South Pointe area was that it was too far frauto ee residences y to be an attractive office location. Many of those interviewed expressed concern about the South Pointe's distance Southwest Dade Count and the f fran r r ear of traffic jams on the Causeway. The most popular locations for architectual and the1 firms are Coral Gables outskirts of Coconut Grove, which offer a prestige location, access to the airport and d employee residences without the congestion of downtown or Brickell Avenue. Interior design firms interviewed are committed so-called "DesignDistrict" to the north of downtown Miami. In spite of high crime and lack of amenities in the area, a of low rents and the ccmbirLation proximity to suppliers makes the area relatively attractive, Interior Design fines interviewed • that the South Pointe would said be attractive only if rents were in the $10-11 per square foot range and the entire design ' moved to that area. district Survey of Office Brokers office brokers familiar with Miami Beach and • 1SOu� Pointe expressed relatively y positive opinions about the potential of the South Pointe area as an office location. The contributingto their two factors . optimism are: first, the area is close to downtown Miami, and second, there is currentlysignificant of interest by a amount • developers and investors in purchasing carinerci.al properties in the South Pointe area. Although brokers were unwillingto divulge information about specific transactions, there was a strong indication that many people frau the Miami area believe that the South Pointe does have a reliable future as an office market area. As fort po ential rents in the South Pointe area, brokers projected rents in the $18-20rsquare foot range in today's dollars. Brokers indicated that parking will be an important issue, with approximately 3 spaces per 1,000 square feet of officec spa e required to market the office space. The one reservation expressed is that for professional offices to be viable, South Pointe area will have to establish itself as an acceptable residential location. Until that time, the area is too inaccessible for many office tenants. In other words, the future of South Pointe area as an office location seems to tied to the residential development in the area. MIAMI BEACH REDEV[LU1'MFNT AGENCY 1IA( .15 1985 27 60 000510 Employee-Based Demand Projections Demand for new office space is largely growth in to g y a function of the employment sectors that utilize office space. The sectors that use office space are: r r o Finance Insurance and Real Estate. Approximately �Proxima telt' 90% ofthe employees in this sector occupy office space. o Services. An estimated 50% of theto ees in utilize office spaCe � y the sector • o Other sectors of the economy, such as manufacturing, use office space to a lesser degree (estimated at 10%). Table 3.6 below shows the projected demand ifor in office space in Dade County 1985 through 1990 based on theto projections shown and discussed in Section 2. yment Halcyon estimates that the South Pointe area • of Miami. Beach should be able to capture approximately 4% of total Dade County office demand over the 1985-1990period between 1990 and 1995. and 6% of demand TABLE 3.6 OFFICE EMPLOYMENT PROJECTIONS AND SPACE NEEDS, DADE COUNTY, 1986-1995 1980-85 1986-90 1991-95 OFFICE RELATED EMPLOYMENT F.I.R.E. (1) @ 90: 9.630 11,070 13,590 SERVICES @ 407. 8,880 11,640 5,040 GOVERNMENT ti 25: 3b5 410 6,725 TOTAL 18,875 23,120 25.755 OFFICE SPACE DEMAND (000 sq.ft.) @225 S.F. PER EMPLOYEE 4.246.8 5.202.1 5,704.3 ALLOWANCE FOR VACANCY AND 424.7 520.2 570.5 DEMOLITION @ 10% TOTAL OFFICE DEMAND 4.o71.5 5.722.3 61275.4 AVG. ANNUAL DEMAND (0:0) 1b-.j 1 ,L, :THFJINtES `�� R: �V� L CAF T UPE PATS �• j• `.•1 r. ,�;� J FI2E DEMAND 1ij():i E•�.) 0 71.5 15 !C 7 r Source: Hal c for Ltd. MIAM! BEAflI REI) a(ELUF MENr AGENCY • tylM r ING 28 60 000511 3.4 Office Development Potentials As shown in Table 3.6 above, the South Pointe area of Miami Beach should be able to support approximately60 000 - 70 0 � 00 square feet of office space annually over the next 10 years. Given this abosorption rate the optimal building size will be 60,000 to 120,000 square feet, a l lowing for a one to two year absorption period. In addition to this demand, there is an opportunity for office space catering to corporations or large tenants who desire a signature building or see South Pointe as a good investment opportunity. While there are generally few firms looking for space at one time (as noted earlier, there are only 38 firms in the Miami area that occupy over 10,000 feet) there are currently several who are considering a South Pointe location. As soon as these tenants are identified, the city needs to take whatever steps are necessary to attract them to South Pointe. Sane of the steps that the City could take to attract major corporate users to South Pointe are: o Land assembly and cost writedowns o Provision of public parking facilities o Assistance in obtaining Federal economic developemnt funding (e.g. UDAG) o Assistance in obtaining State funding o Industrial Development Bond financing o Marketing assistance (for speculative space) Achievable Rents Discussions with brokers active in the Miami office market indicated that the first wave of Class A office space in the South Pointe area could command rents ranging f ran $16 to $18 per square foot in today's dollars. Of course, free rent periods and other concessions would have to be offered if a building were delivered in an over-built market. After South Pointe becomes an established office location, rents should rise to approximately $18 - $22 per square foot in todays dollars. Land Prices Halcyon evaluated land prices in the South Pointe area compared to land prices in other Dade County office locations. As shown in Table 3.7 on the following page, land prices in the South Pointe are low compared to other areas on an FAR-adjusted basis. This is because South Pointe is not a proven office market and because of current deteriorated conditions. Also, development costs in the South Pointe are likely to be higher than most other areas. • WV! BEACH U PEVELOI' Ni Ant ,ICY MAY 15 19S 29 60 000512 Table 3.7 LAND PRICE COMPARABLES • DADE COUNTY OFFICE MARKET Price per Land per Square Office Market Square foot FAR FAR(1) Downtown $150-250(5) 5(2) $40 Brickell $175-200 3.25-6.25(3) $60 Coral Gables $150 3.0 $50 Airport/West Dade $8-12 .5(4) $20 Coconut Grove $65-100(5) 1.3(3) $55 Dadeland Triangle $40-60 1.2-2(6) $31 South Pointe $20-25 2-2.5(7) $10 (1) Based on an average price/sf + average FAR (2) 300 height limit - can be waived, average around 5. (3) Bonuses are applied to mixed-use projects with residential cnents. (4) Determined by proximity to airport (height restrictions) and parking requirements at 4/100 s.f. (5) Depends on site desirability . (6) FAR can be as high as 4. County has strong interest in waiving development restrictions because of area's proximity to metro. (7) Along Miami Beach Boulevard. Source: Halcyon Ltd. Other Issues Sufficient parking will be required to market any office space in South Pointe. Based as discussions with brokers and a review of comparable areas, Halcyon has estimated that 3 parking spaces per 1000 square feet of office space will be required in the South Pointe area. • MIAMI BEAt E ''FDEVELO1•MECUT ,`4;E' MAY 1 5 1z..{ EFT11' 30 60 000513 Section 4.0 RETAIL MARKET POTENTIALS Retail facilities and restaurants will an important part of the • development in the South Pointe area. The current retail facilities are obsolete and need to replaced with modern facilities that serve the new residents, office workers, and visitors to the South Pointe area. In addition, Halcyon has identified a major opportunity to capitalize on a potential market for quality restaurants in the South Pointe area. This strong popularity of Joe's Stone Crab, along with proposed Crawdaddy's restaurant in the South Pointe Park, are the basis of a potential restaurant district. The dimension of the market support for retail and restaurant uses is documented in the following sections. 4.1 Competitive Retail Developments The Miami metropolitan area possesses a diverse inventory of retail offerings, ranging from Latin-oriented shops and restaurants in downtown Miami to typical suburban malls located throughout Dade County. Restaurants are scattered throughout the area, with important clusters in Little Havana and Coconut Grove. In the next few years, Miami will have a 220,000 square foot Festival Market Place: the proposed Bay Side center in downtown Miami under development by the Rouse Company. To succeed in this environment, new retail development at South Pointe will have to cater to local residents and employees or establish a unique concept that attracts residents and visitors fran throughout the Dade County. With the exception of Joe's Stone Crab Restaurant, the South Pointe area in Miami Beach currently contains very few retail stores or restaurants that are doing well currently. In fact, the drive through the area reveals an abundance of stores barely surviving or boarded up. Ocean Drive in particular is lined with stores that were once thriving and now are barely surviving. For Miami. Beach as a whole, a recent analysis done by Inter-America Research Associates indicated a total of 791 retail stores. The quality of products offered by these retail stores is estimated to be 10% better, 40% moderate, 50% budget. Given the low incases of Miami Beach residents, is not surprising to find that most of these stores are in the so-called budget category. As discussed above, the only market segment that will need to attract visitors frau outside the South Pointe Area .is the restaurants proposed for the South Pointe area. Although there are several well-established restaurants throughout Miami Beach, there is no "restaurant district" that will provide direct competition to the South Pointe area. E-UAMI i', 11C'II f;EUEVLI.Viv;EiNi. AGENCY t :.I 1. 5 MI5 MLI 1 MG 31 60 000514 4.2 Retail Demand Analysis The support for retail and restaurants space within the South Pointe area will came from three main market segments: o The current and new residential population within the South Pointe area, particularly South Pointe Towers and other new residential developments; o The office worker population along 5th Street: o Visitors to the area including restaurant patrons, marina uses, and beach goers. This section identifies the size, income and buying of these three potential market segments. South Pointe Projections The current population of South Pointe is estimated to be 4500 hundred residents, comprising approximately 3,400 households. Given the redevelopment pressures within the South Pointe area, many of the existing households in the area will relocate to other parts of Miami Beach and Dade County as rental units are taken off the market for renovation or demolition. Accordingly, Halcyon projects that the existing households in the area will decline by an average 5% per year through 1995. As shown in Table 4.1 on the followingg page, this results in a decline from 3,388 households in 1986 to 2,135 households in 1995. At the same time as the number of existing households is declining, new residential development will replace these households, thereby creating a more affluent andoun er Y g residential base. The most important development proposed for the South Pointe area is South Pointe Towers, located between Biscayne Road and South Pointe Park. The Cheezem Development Company has a development agreement with the City of Miami Beach to construct approximately 1,200 new condominium units in high-rise structures over the next ten years. Phase I will include 200 units with an opening scheduled for mid-1986. Table 4.1 shows the proposed build out of units for the Cheezem project. In addition to South Pointe Towers, there will be strong demand for other new residential offerings, both rental and condominiums units, according to a recent report by the Goodkin Research Company. Starting in 1987, the Goodkin Research Company projects overall demand of approximately 100 to 150 units per year in a combination of rental and condominium offers. The projected total number of households, as well as various component groups, is graphically presented in Figure 4.1 on the following page. fiF.0414ZICAENCV • t 4 Mit J 0 32 60 00051 Office cloyment shown in Table 4.1 is based on demand projections that were developed in Section 3 of this report. As shown in Table 4.1 Halcyon projects approximately 1,800 new office employees in South Pointe by 1995. Finally, visitors to the South Point Area makeup a large and g important associate of demand for restaurant and retA i.1 •• facilities. Visitor projections for the South Pointe Area are based on current estimates of visitation to Joe's Stone Crab. Halcyon has inflated these visitation figures by 10% a year between 1986 and 1990 and 5% peryear between 19 91 and 1995. These projections are based on the increased attractions in the South Pointe Area, including the new South Pointe Park, the new Marina, as well as the proposed new restaurants themselves which will attract visitors. The total number of visitors to the area is expected to increase from 350,000 in 1986 to 650,000 in 1995. Resident Based Demand Table 4.2 on the following page shows projections ofro'ected average household incomes and P ] total household incomes for the South Pointe area. Average household income for existing residents is estimated at 12,700 dollars in 1985 dollars.g Average income for existing residents is based on figures reported in the 1980 Census of Papulation and inflated to 1985 dollars. Average incames among existing residents of the South Pointe are expected to remain constant over the projection period. Average incomes for new residents of South Pointe are estimated to be $40,000 dollars based an assumed average condominium value of $100,000 and a housing value to income ratio of 2.5 to 1. Halcyon has assumed that incomes of new residents will increase f ran 1.5% per year in real terms, resulting in a 1995 income of $45,763 (in 1985 dollars). Total household income for the South Pointe area is projected to increase fran $47 million dollars in 1986 to $123 million in 1995. (All income projections are in constant 1985 dollars. ) Table 4.2 Household•lo:� r i � Income Projection: south Pointe, Miami Ze ch• 1926-1:7:` inrC I9a,5 constant dollars) 1326 "26 1'87 i E3 1;89 1;31 -fir1;3: :3=4 7'! . .era:e Incomes: ,. • L • T I: 4_ C i s + S t r,1 ;=-i e r 1• l i i j C 7E.216 = 2+ 1` --r �C •;1 i ..� ;�•. 71,:::/ : • - 1 _':/•.'.' J • L c 3,•:i 7,110 Ji• . .: : :•J•-.- :::.:z7 .1•. -- -r` --- _ •- i $__: a -: 1.a-_r in:rens.:7!g tr .•f•• per •�.7 • r.�•• 1 ♦ • / `L•1• r ! E n[��11 r �f REDEVELOPMENT AGENCY ,'''f+`� 3.5 1985 I MEETING • r . 33 60 °00516 Halcyon has translated household forecasts for the South Pointe area into projected retail expenditures by various merchandise and store categories. The distribution ofenditur potentials is based on 1982 expenditure � e xpen ture patterns for the Miami Metropolitan area as reported in the latest Census of Retail Trade. The largest single retail category is food stores which accounts for 9% of total household income on avera e. As shown in Table 4.3, total retail expendituresg the South by residents of Pointe area are projected to be $15 million dollars in 1986, increasing to $40 million dollars in 1995. Note that these are expenditure potentials by residents and will not necessarily be spent in the South Pointe area. Table 4.3 Retail Ependi Lure Potentials tv Merchandise Categor', (1) South Pointe, "1ia,ri Beach, 1986-1995 '1n 1985 constant dollars) 1936 1937 1998 1999 1990 1371 1992 :.997 1994 1.5%Lilding Materials 694 783 877 977 1,144 1,255 1,771 1,553 1,686 1,2:3 u 5•_.�.ren2'aI Merchandise 2,461 • `,777 7,111 ,111 7,i63 4'0c? 4,450 4,861 5,524 vtr7 ~• 479• »~d`d Stores 4,221 4,762 r716 5,340 6,158 7,671 8,377 9,474 1'),250 1:, 59 3.3%Apparel 1,774 2,A2 2,242 2,496 2,724 1,207 7,504 7,961 4,7A •O`F:. ,- .4`:Furni tore 1,108 1,:50 1,400 1 JJ9 � {i -� • 1,3.6 2 0} 2,183 ...486 2,690 • 902 � Drinking 1 ` r1 773 2,659 C9 '� ��L 7,467'1•c',L.'yt�lr;l 9 r' 7,307 ICC 4,721 5,1)8 C C/1 .. '.Lrug Stores 909 1,'•►''b 1 149 1 .,,� 1 9%D - , t ` ,2 1,499 1,644 1,796 2,041 208 , 382 T•�I�.1�•sL � etL�►! � 11 � �r.� .,� +?{ 1 ��T� � �� 1 L•tiILZ L 1 7 L 38`1 6 20 4,17: r 5,130 5,535 TOT.;'. PFTAIL E;FEND1TIJ 'ES 15,794 1 19,445 o 25,757 '----- _ 7,75 r t: 2ased on 1982 e.;cendi Lure patterns for the i1Q.T i ne Lr.pvlitV r area.• 1 `1alcroi{ Lt:!. Officeloyee Demand Office employment in the South Point area is expected to occur along Miami. Beach Boulevard. In section 3.0 Halcyon projected that office demand would be approximately 60,000 square Per year between 1986-1990 and 75,000 between 1990-1995. Expenditures by office employees varied depending on the amount and quality of retail goods which are convenient to their place of work. In general, however office employees typically spend on a annual basis $1,000 to $1,200 on food and $500 to $1000 on retail items such as clothing gifts, etc. Halcyon estimated the annual average expenditures by South Pointe office employees will be $1,500 dollars for food and retail combined, the law end of the typically observed range. As shaven in table 4.4 on the next page, office employees expenditures are assumed to increase by 1% per year in constant dollars. 1'1'!A M1 I BEACH f'Er,r`F:..0(-�.�tERT NANCY MAY k 1B5 YIf_E�sf•�« r ..�.1 11 34 60 000517 cuth 9:171te. ii ari2each 1=90 1737 193 19;1 1:92 :9;-1 CUSE3L5 Eistind 7,388 3,219 7.::58 2,305 2.76) 2.022 2.490 2.30 2.24i New e.si,lents: Cee:em 100 200 :00 400 bo0 300 Other too 200 :00 400 50 '00 Y:0 Total Households 7,488 3,519 7,553 3,605 7,760 7.322 7,390 4. 6 4.148 1,235 OFFICE EMPLOMENT 3ffice De.elopment ;sq. ft. 50,000 100,000 150,H0 200.000 250, 00 :00,0')0 :50.R0 400,M Employees 250 Sq. ft./emp. 200 400 600 800 1,000 1,200 1,400 1, 0O VISITORS t2) 350,000 385,000 423,500 465.850 512,435 538,057 S6 ,96O 593,208 622,39 07.1,01: (1) Household count for 1986 based on 1990 Census. Assumed to decline by 5% per year. (2) Assumed to increase at 10% per Year from 1987-1990 and 51 per ,ear from 1791-1995. Source: Dade County Flanning Dept. Halcyon Ltd. Figure 4.1 HOUSEHOLD PROJECTIONS SOUTH POINTE, MIAMI BEACH 4.5 — 4.0 — 3.5 — 3.0 — 1:3 2.5 — C 0 Lu 0 2.0 — 01- 1 .5 — 1 .0 — 0.5 — 0.0 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 YEAR EXISTING + CHEEZEM o OTHER NEW A TOTAL MIAMI [31._ PIDI:NEUIPM EN I AGENCI ivti::,`r" 1.5 1985 MEL 1ftU 35 60 000518 __7;:i t lre :'_tent. f- Scutt.. r oiijlr, 11ae11 Bean, 1936-1995 • :6 ._ e 1?'-0 i1 :;92 .--• _ r•'rl r„Nb /VF,rr ,DC_a,:ran ,000 1, 00 1,000 1,000 1,M 1 M'i T'.i..I MTr r?••i�iL-�11 '.j#}•rI.1/i••ti)` 1, 00 • dVV 510 500 500 500 500 500 50152C.EAPP1i1•TI:PE3 _.. • i - T 1t 200 400 J�� VI: :•••r0(t 20 1,40 1 0 100 200 300 400 500 600 700 S C.0 T 1 T M 1. f� 300 600 900 1'`1r 1,500 1,901 2,100 ` + e - " 2G'ur:e: 41c.on Ltd. Table 4.5 Visitor Expenditure Potentials South Pointe, Miami Beach, 1926-1995 1996 1987 �1nr ,`J8 1939 1 190 1991 1992 i92 1 e •:RA6E E1r END'ITURES - ---- ---- J°s t nurd!1t1 C c �� #15.0'0 $15.00 $15.0) $15.00 $15.00 Retail $5.00 $5.00 .00 $C.00 $5.00 $5.00 <•�� $5.00 0� y J j' ��r $5.:,,T.! _JT4L EXPENDITURES ! Convenience Goods Table 4.6 below shows Hal n s cyo projections of the market . potentials for various types of conveniencegoods. Required productivityfor these storeswas �l � assured to be $250 dollars per square foot for food stores, $200 per square foot for drug stores and $180per square foot for miscellaneous retail stores. As shown in Table 4.6, approximately 55,000 square feet convenience spaCe can be supported Lam° ed by 1990 and approximately 87,000 square feet can be supported by 1995. Restaurants Giventhe new residents, new employees,, and visitation of the South Y� increase Pointe area, Halcyon has found that there is a major opportunity to create a unique restaurant estaurant district in the South Pointe area. As shown in the Table 4.7 on the following page, the total demand for restaurants will approach 48,000 square feet 1990 by and 68,000 square feet Table 4.6 Supportable Square Feet of Convenience Space South Pointe, Miami Beach, 1986-1995 1985 1987 1988 1989 1990 ,991 1C4^ 1 1--r 2`0 Focd StoreE 16,884 , 21,342 27,761 27,831 :: 5:b 77,748 77,291 4 ,998 41.272 :1:0 Drug Stores 4,546 ,C46 5,12Q 5,7464o 6,397 7,473 3,219 ''+° 1•. c: 11,C:3 ••C:'3 1••1s:: JV. 1s- Retail 1I,712 13,244 14,237 16,51n 11,748 2•,r♦• 27.1=4 2-,':4 ter'- : t .r Lr. ti.• TOTAL ;!G�!;''T }ter •� .� � ! , 7 2:.1 ► _R BLE EO.OFT. .':,16S ',42:3 2i 'JL5 '7 1 :7, 5 1 ' 5° 9. :5512 -. {1 1 i :'9 'LL c1 Ha.:r oil Ltd. • • • MIAMI B EACH !If-WV:L(1'M f AGES t;Y P"•y. V 15 r35 • IsitL I1rl 37 60 0005201 by 1995. Table 4.7 also shows that net supportable demand, which is total projected demand less existingand proposed p oposed • restaurants. An estimated 15,000 square feet exists or is proposed at Joe's Stone Crab, Crawdaddy's, and a new restaurant at the Marina. The majority of the demand for restaurant space is expected to cane f ran the visitor market who currently • provide the support for Joe's Stone Crab y T+bi 4.i °estaurint E„pendi Lure aotsnti 313 South Pointe, Miami Beach, 11986-1995 198i: 1997 1989 1999 199'.! 1,93 1:s4 Resident 2ased 2,104 2,659 2,160 3,467 .,203 4,155 1,721 5.1`••3 _ • +r Empl o.,ee Based 0 200 400 600 800 1,000 1,200 1.10(.: c:•;.•, Visitors 5,250 5,775 6,353 6,983 7,687 8,071 8,474 3,379 ,.743 TOTAL 7,354 3,343 9,411 10,548 11,754 12,374 17,329 15019 ± ..s, :7,1:: • SuGr•OR TMFLE SFACE @ 29,414 .� �,� '7 b4b 42,192 f 51,496 55,31 r •, ;-;.•. � - ,-. 3 3 3 9 3 77 8 Q 60,077 64,203 iC{� i�G l� � � �/,Y�J � LI:�1�v/% U'�1 rti� .-t. t25 PER SO. FT. _,,, EXISTING SPACE 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15,000 15 30) NEW RESTAURANT DEMAND 14,414 18,193 22,646 27,192 72,815 7,6,4q 6 40,316 45,:)77 41,203 57,483 Source: Halcyon Ltd. Mi sc:el laneous Retail Given the heavy visitation projectious for the South Pointe area, there's also likely to be a significant amount of spending on typical tourist goods such as cards, gifts, souvenirs, etc. In addition, office employees are expected to spend approximately $500 dollars per year on miscellaneous retail items. Table 4.8 below shows Halcyon projections for supportable square feet for miscellaneous retail items, assuming a productivity requirement of $200 per square foot. As shown in Table 4.8, demand for this type of space is expected to be almost 17,000 square feet by 1990 and 28,000 by 1995. Tawe 4.3 `•'�i� G{2 - �'1 ►�.'Gt '� �..1�vnrlt r•�r� �;,i��l i i 1.Leiianey 3 PEta 1 EI.sper.,i ►•f i:veli.Lam.• moo.t1 1ci r. e. Miami =each, r•. -C. } 1_.... _ -1�� -• J ,125 ♦1•C2i 13.146 3.•4J 14,..;}l 17.::4-.•:4 .f �•r r� `-. � -- •-. .- - - r -. FT.s. iinirVERTAIENT MACY MAY t 5 19PP'► Mt[11L • 38 • 6O 000521 HALCYON LTD. Development Consultants OFFICE DEMAND SUt MARY Basic demand generators: Architects: - Accessibility to: Expressways/Airport * Downtown Other similar firms * Employee residences * - Prestige Interior Designers: - Accessibility to: Airport/Expressways Design district * Employee residences ;17-11!!! i; * Most important factors • t"!AM' BEACI I REDEVELO'ME11 AGENCY I MAY 15 W`T '1' I TIN G 39 60 000522 SZg000 09 5[1!133V1 �UL i AIN I A3N31)V 14131AHUi]A (i U IL) ':� IU�Ut�"1 1b'1O1 v 'OSIW o '1S3d + 'N3ANO0 S661 17661 £661 3661 1661 0661 6961 9961 L861 9861 1 1 i 1 0 e , 4 Q- O - OZ „- 0 Of, - 0S 09 - OL ?�O C - O8 C D VI• 06 o m 3m 001 N m • 011 • - 031 0C1 of l 0G1 - 091 HOV39 INVIW '31NIOd H1loS OL l JVdS11VL3 ?:1 318VJdOddfl9 Z•1' aan2Td uoA3IeH :a»ncs ZSo'ZZ.i £Ib`Z11 86Z'ZCI Si0`L8 8509L 461S9 ai`9S 1y101 tZ1'L1 1S6`S1 118'11 88S'I1 SZ001 OSL'8i.etla 8 • .3sc W 91i'Ot 96 `9 Si8`Z: Z61`LZ 9a9'ZZ £61:`8i bib`tt luene4sa Z1S'S9 996'6S ZL9'tS LL9'9D S(16'117 :Zt`L�' ' d i 691 �. a�uatuanun ---- ---- ---- Z661 1661 0661 6861 8861 L861 9861 S661-9861 `I4 eag cue cW 'alu tod 41110S pueaap a3eds iiepd fo Lams 6't a t gel moT Z•V a zn6Ta uT ATTexRidszEs pe uasaada z osTe s z a4uiod tnoS 4e ads T Tia z aTq zoddns •Pale aquzoa qnos atp go S.zo4TSTA pup SaaAoidua 'spTouasnoq Mau Jo suoz aCoid a uo pasEq 'S661 Aq 4aag aienbs 000'19T to 066T Aq 3 a2fbS 000'30T Weal o; pa4paCoad sT 4aa; eTqe4aoddhs Jo 4unowp Teqos •sgdeibexd snoznald atp u-r pa4uawnoop SP aoads Jo 4aa3 a.zti�nbs a oddrls TTa4a2 Tq go s aq stgs 6•t aTq sT eTqua4od quawdoTanad T TP4aai Jo S HALCYON LTD. Development Consultants APPENDIX SURVEY OF DESIGN FIRMS • . • ' • 1 CPCH RU) VE1OE'- ', ACFtC'( Ni.AY I 585 MU I iNU 41 60 000524 HALCYON LTD. Development Consultants The following are comments from Offer User 3urvev - January 28, 1985: Architects (5) Size - Arch i tectural firms surveyed ranged from 10-150 employees requiring 2,000 to 40,000 s.f. Rent - Housed in converted houses, warehouses and small office buildings - primarily owned or joint ventured - rentals - $12-$18 s.f. ($12 ++) Parking - off/on street parking - .8 to 1.2 spaces/employee sufficient Location - primarily Coral Gables/outskirts of Coconut Grove (U.S. 1) Strong Points: 0171 - easilyaccessible to.: - airport - expressways - downtown - other similar f i rtes ":°\ - metro - ,_ •.+ ,'y,. not congested ,t is - prestige (Coral Gables) Comments concerning South Pointe location: - employee residences are too far (southwest) - Causeway backs up - l imi ted access to Coral Gables/Br ickell EMPLOYEE RESIDENCE LOCATION SEEN AS LARGEST FACTOR Landscape Architects (2) Size - 7-10 employees, 1,200-1,400 s.f. of space Rent - propensity to own building Parking - on street/off street ($30 month) Location - South Miami, Coral Gables MIAMI f)F'CFH rEnEvELJPMEH I AGENCY MAY 15 i 95 MEETING • • 44' 60 000525 9 7 g O V■l.Vi 09 et, • • 5N0131V SB6I 5 I AV1 J A3,J39V JN3 d013;\3r3jj H3V • TaqSTp ubTSaQ - awT.zJ saTyj TvioD - bvT)IEd :squToa xraaM auk oo asoTo - gsaMcnos •0 wodi TL cq aouaTuanuoo - aouvqsjp buTxTvM uTL TM siaTTddns - :gDTigsTp ubTsaQ •g uoTgsabuoo ;o 3fovT - saouapTsay aaAoic]u - .4oT?1STp UBTsap - sAP.ms saadxa - :uoT4vooI Tpaquao - :saTcRD TeloD V s4uTQd buoys q saM T�T�uapTSa1 nos - � ' „t: £aTgeD Tp1o"J TaqsTp ubTsa - zosauur�o - F Tp, uoT�EooZ aaAoTca/saords •T oc do - buTxied tt)++ . .s/OS•ZTS :quaff buTpTTnq umo uT /TT1EwT1d pasno�; - quaff • •S OOZ - aeAoTdwe T TeT UapTsdd "3•s 005'8-000'8 :SaeAoTdu. 0E-SZ TeT3 - errs (E) slaubtsaQ 1Opalul sqoagT4318 2atpo - slaubTSap - S.zaAmeT - SaOu3o "TSE s TuTwp - sessau Tsnq IeTTurT s - :go uo.peooT uo spuedap QgeooTai ssaubuTTTTN - :e u T ord c4ttos uo squemoD (saTqp0 Tp1O3) abTgsald - sassau T snq 12T TEAT s - squeTT3 - :oq nTTTTg1esssoop - squTod buoags - HALCYON LTD. Development Consultants i Comments concerning South Pointe location: ra - Not accessible to: - airport - expressways - restaurants - employee residences - 40th Street - design district Competitive if: - $10-$11 per s.f. - "only if design district moved" . 0 • .,\.\''''T ' 5 ,. .. 1/4.,_.ItIC:.'r',001, • '11E✓ MIAMI BEACH • REDEVELOPMENT AGENCY MAY 15 1985 MEETING 44