Will retail spending take a hit from the strengthened dollar, which is slowing condo sales and tourism? Depends on whom you ask on our panel of developers and financiers at our Miami 2016 Retail Renaissance event last week. Integra Realty Resource senior managing director Anthony Graziano says his biggest concern is overall consumer spending, especially since tourism is the strongest leg in Miami's economic stool. Low gas prices should help that along even though he says the presidential election is “really damaging” to America's psyche. Plus, he sees Miami's demographic growth outpacing the rest of the US for the next 30 years.
But Terranova chairman Stephen Bittel sees things a little differently: He's like to see more people actually moving to Miami versus just relying on tourism for retail expenditures. “There's no way our organic population growth supports all our retail,” Stephen says. And with the rest of the world's economy such a mess, Stephen says that could impact retail in the end. “Imagine you look at all these gorgeous big buildings and the lights aren't on because nobody is living there.”
Anthony and Stephen were part of a panel of retail developers and financiers that included Bilzen Sumberg's Adam Lustig, Aztec Group's Jason Shapiro, Gadinskey Real Estate's Seth Gadinsky and Integra Realty Resources' Anthony Graziano. Despite the slowdown in condo sales, Seth is still “bullish on Miami” retail because people will still ultimately buy the units. And that brings in more shoppers to an area.
Stephen also sees the idea of places people want to congregate as being successful to retail. Along Lincoln Road, Stephen says he fought against “homogeneous” retailers and brought in more local flair. “Lincoln Road has succeeded despite the fact that it goes up against big regional malls with million-dollar marketing budgets,” he says.
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