Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/122387
Brickell CityCentre is a vastly different project, with 800 condos in two towers, 93 apartments, 243 hotel rooms and 120,000 square feet of office space, for starters. Indeed, he says, the mix of uses is reminiscent of Swire's urban properties in Asia, of which Pacific Place, in Hong Kong, may be the bestknown example. Miami-based Arquitectonica, which has designed two overseas projects for Swire, is the master architect for Brickell CityCentre. Up-front investments in the project — on things like underground parking, shaded trellises and the redevelopment of a transit station at the site — demonstrate the long-term commitment of Swire and the Whitmans to the project, says Stephen L. Owens, president of Swire Properties. "Most developers tend to build and sell," he said. "One thing to note of both Swire and Bal Harbour is that when we build these kinds of projects, we do not sell them. We invest in them for the long term. The payback for some of the decisions we take on the front end comes down the road over time." The Whitman family, which looked carefully at Swire's mixed-use properties around the world before MiaMi retail asking rent ($PsF) 2010 2011 $23.07 $23.28 2012 $23.49 2013* $23.98 *projection sourc e: Marc us & Millicha p MiaMi retail vacancy 2010 7.8% 6.9% 2011 2012 2013* *pro jec tion 230 6.6% 5.7% sour ce: M arcus & Mi ll ich ap SCT / M a y 2 0 1 3 agreeing to the joint venture, appreciates the growth potential of dense, urban developments, says Lazenby. "That is definitely the direction that retail development is likely to take go- Tourism in MiamiDade could grow by at least some 3 million visitors yearly over the next decade. Clearly, this has not been lost on the world's luxury brands. ing forward, particularly as people and communities reinvest in downtown urban areas," Lazenby said. How these changes will affect other luxury hot spots in Miami-Dade, such as Lincoln Road, Aventura Mall and the Design District is an open question. As Esquenazi sees it, luxury tenants appear to have ample room to grow in South Florida, in part because of Bal Harbour's lease restrictions, which reportedly required tenants to pay percentage rent on sales at any stores built within a 20-mile radius of the property. "You could argue that the Design District and Brickell are very close to each other, but it is all about positioning," Esquenazi said. "The Design District is being built as a hip and artsy shopping destination, with cool shops and great restaurants. … Brickell CityCentre is being built in the heart of our financial district and will be surrounded by concrete walls, office towers, condos and apartments. So these two new projects will be positioned very differently." Likewise, outsiders may not appreciate just how much growth Miami could experience over the next decade and beyond, says Owens. According to the Greater Miami Convention & Visitors Bureau, nearly 14 million tourists traveled to Miami-Dade in 2012, up 3.5 percent from the year before. They spent a record $21.8 billion, an increase of 5.1 percent over 2011. "We see Miami as similar in many ways, though not identical, to what Hong Kong was to China," Owens said. "We fundamentally believe in the soundness of the principle that Miami is the gateway to Latin America." As such, Miami tends to benefit from major political and economic shifts in Latin America, regardless of their direction, Owens says. In other words, when things are good at home, Latin Americans will head to South Florida to shop, dine and otherwise enjoy the fruits of that prosperity. When the home situation worsens, however, they tend to rely on MiamiDade as a place of respite or even escape. "We sold just as many condominiums to folks from Venezuela last year as we did from Brazil," Owens said. "Their economies, as well as their currencies, were headed in opposite directions." Tourism in Miami-Dade could grow by at least some 3 million visitors yearly over the next decade, says Owens. Clearly, this has not been lost on the world's most exclusive luxury brands. And it was a driving factor in the Whitman's decision to collaborate with Swire on Brickell CityCentre, Lazenby says. "What we know from having had the advantage of 48 years of history here is that in order for retail to work — particularly luxury retail — not only do you need a vibrant local trade area with disposable income, but you also need a very active tourism industry," he said. "That's one of the reasons why this collaboration, from our perspective, seemed like such a no-brainer. SCT