Miami Beach’s Lincoln Road is the fourth-most-expensive retail street in North America, according to a new report from brokerage Cushman & Wakefield.
But rents on the pricey strip in the heart of South Beach have stayed flat over the last year and are likely to drop as weak Latin American economies and Zika stunt tourism spending.
“We have seen a slowing of velocity of transactions on Lincoln Road and flattening, and in some cases reduction, of asking rents,” Greg Masin, senior director at Cushman & Wakefield, said in a statement. “We expect this trend to continue in the near term.”
$325 Average rent for retail space on Lincoln Road in 2016
Pressure from Wall Street has also caused publicly traded apparel companies to shut down under-performing stores across the country.
Rents for retail space on Lincoln Road held steady at $325 per square foot between 2015 and 2016, after several years of rapid gains, according to the report. That made Lincoln road the fourth-priciest retail street in the continent after Fifth Avenue in New York City ($3,000 per square foot), North Michigan Avenue in Chicago ($550 per square foot) and Post Street in San Francisco ($545 per square foot).
Globally, the cities with the most expensive shopping destinations are New York, Hong Kong, Paris, London and Tokyo.
Lincoln Road may have peaked last year when a Spanish billionaire paid $370 million for an entire block that includes Apple and Gap stores. It was the second-highest real estate deal in Miami-Dade County history. All of the shopping district lies within a 4.5-square-mile area in Miami Beach where mosquitoes are transmitting Zika, according to health officials. The virus has stung the local economy since being discovered earlier this year.
The city of Miami Beach is planning a redesign for a tourism mecca that critics say has grown stale and uninspiring with cookie-cutter national chains and poor infrastructure.
Miami Herald staff writer Joey Flechas contributed to this report