Retail Pre-Leasing At Brickell City Centre Weak, Simon Brought In To Help Market Space (Updated)

Swire Properties has signed a deal with Simon Property Group to help lease the retail space at Brickell City Centre, in a three-way partnership with the Whitman family.

The move comes weeks after the developer revealed in a conference call that just 25% of non-anchor space had been leased, a disappointing number.

In 2013, Swire had brought in Bal Harbour Shops owner Whitman as a partner to help lease the space. Whitman may have been unable to achieve the desired results.

Last August, Swire announced that it had signed Saks Fifth Avenue as an anchor. At the time, it seemed that the remainder of the space would be easy to fill.

Whitman previously had a 13.5%, stake in the project, and it is unclear if Simon now owns a portion of that stake, if any (see update below.) In a statement, Swire said that they will remain the primary developer, while Whitman and Simon will share the role of co-developer for the retail component.

In the Miami area, Simon operates Sawgrass Mills and Dadeland Mall, among others.

Brickell City Centre’s retail space isn’t scheduled to open until Fall of 2016.

 

Update: Simon now owns a 25% stake in the retail portion, CEO David Simon said on a conference call. He said that City Centre will be a ‘unique, terrific’ asset that will ‘blow people’s minds away.’

Simon was approached by Swire and has been involved with City Centre ‘for a while.’ They will be managing the mall, have already ‘made a lot of progress on leasing.’

 

PreviouslyWith Saks As Anchor, 25% Of Remaining Brickell City Centre Retail Space Now Leased

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Ed
5 years ago

Brickell hasn’t proven yet to be a market for many restaurants and retail. I think people already have to spend more than 50% of their salaries on rent/mortgage to live here and might be price conscious when it comes to eating out.

marc
5 years ago

Haha, so much for ultra lux.

Jacob
5 years ago

Crazy idea: instead of more luxury retail, why don’t we provide things that locals will use on a daily basis? As non-glamorous as it sounds, this would be the perfect spot for a TargetExpress store (small-space Targets geared toward urban neighborhoods). Or what about furniture stores to decorate all these newly-built condos? Seems like a West Elm or something would do well here.

Enough with the high-end retail stores.

Anonymous
5 years ago

So basically a Midtown for Brickell?

Marc305
5 years ago

Once again people wanting to make Brickell affordable. Every major city has an area that is high end, Miami is no different. If you want to live in an area more affordable, move. If you want a Target, go to Midtown. No one is forcing you live or shop in Brickell. So tired of reading comments like this. City Centre will sell out by 2016 and it will do so to very high end tenants.

Ed
5 years ago

Apple store should be a no-brainer. If neither of these can get Apple here then they suck.

BinBrickell
5 years ago

If the mall isn’t opening until Autumn 2016 I don’t see why it’s disappointing “only 25%” of the remaining retail is reserved. I’m surprised that many has made a commitment so far in advance. I thought this project was opening at the end of 2015. Imagine how long it will take for Downtown and Edgewater to become attractive neighborhoods (if ever) if Brickell is taking so much time to come to fruition.

Ed
5 years ago

The block that holds hotel and office building 1 opens end of this year. Saks anchors the west block so unless they are hiding tenants it seems like the ground level of hotel/office block is empty.

Really???
5 years ago

I think folks have to remember that this is a blog and comments like how this being 25% leased is their opinion and not the actual news. I know for example of a luxury retailer that was in talks about leasing space here and they were ultimately turned away as they didn’t want two retailers selling the same thing. That hardly sounds like they really struggling to lease. Meanwhile malls like Aventura have two of the exact same stores like Aldo for example.

It sounds to me like they want a broader variety of stores and don’t want to compete head to head with the design district as they have a better format for pure luxury alone. The Whitmans obviously don’t have the connections into as wide a variety of retailers like Simon.

Anonymous
5 years ago

Really?? Please

Ed
5 years ago

So you’re saying that TNM made up that conference call where developer revealed they have leased 25%? It doesn’t seem like that was an opinion bur rather stating a fact (unless you say that statement never occurred on that conference call)

Obviously
5 years ago

So, TNM’s reporting is actually the equivalent of some newspaper’s opinion section?

Well, when you finally get to it, I’ll be really anxious to read Really???’s blog site for the real story.

BinBrickell
5 years ago

Honestly I’d rather have more Aventura/Dadeland style shops at BCC. This is great news. Bal Harbour is so dull. People with real money don’t overspend on clothing, only people who want to appear as though they have money do.

WhyNotNow
5 years ago

Craig Robins is getting the last laugh.

Mondocondo
5 years ago

Swire’s problem may be that the design district-downtown-Brickell corridor is essentially developing three new malls with the Brickell City Center and Miami World Center, not to mention the potential redevelopment of Bayfront. Some retailers may be wondering where to go, some may be playing coy. In any event it’s a lot of new retail supply with uncertain demand/purchasing power. You would think that with all the new condos being built that the retailers would be lining up, but they may have too many choices on where to go and just holding back for a bit. The retail prospects have national relationships with Simon (the largest mall company in the US), Taubman at Miami World Center and General Growth at Bayfront (and Merrick Park), so they have to figure out which one to go with, and which ones to disappoint. For the developers it may be an opportunity to bring some new blood into the mix, like maybe some solid foreign retailers, instead of recreating new Dadelands. Cheers

John
5 years ago

Whitman lost retailers to the design district. Maybe their clout isn’t what it used to be. I would like to see more stores that are beneficial to local residents.

Really???
5 years ago

No, I’m saying there are FACTS and there are OPINIONS. If they are 25% leased then that is a FACT. Whether or not being 25% leased more than a year from opening is disappointing is an OPINION. Again if they were so disappointed that they were only 25% leased it would seem odd that they would be turning away retailers because they sell similar products to another retailer. It would be like they turning away Nine West because they already signed ALDO, when most malls usually have them both. They’re clearly being selective about who they want.

So again there are facts to a story and then the way those facts are interpreted into a broader narrative that is usually someones opinion. The head line here implies that Simon was brought in due to weak leasing when they may have been brought in to reach a different subset of retailers that the Whitmans don’t have access to. Don’t forget now they have World Center on the horizon which has Taubman and access to a broader variety of retailers. Why would they want to defer all those retailers to World Center when they are going to be the ones built first. Going 100% luxury WASN’T the plan and they had no real competition before World Center. But now that you have Taubman out trying to line up the best retailers for World Center it only seems prudent to bring in Simon and make the argument why you are better. The Whitmans don’t have the relationships to do that.

BinBrickell
5 years ago

Exactly, it was the CONTEXT of this article that was bias, not the facts. This project will be great, probably the greatest in the history of central Miami, but development news has been slow in recent weeks so maybe the attention grabbing headline made it sound like it is a real problem.

Anonymous
5 years ago

they need to get their act together…who builds such a massive shopping center without a major preleasing plan?

Lesly
5 years ago

Where do you go to lease a space??? How much is the rent per sf. They hide these facts and I am wondering “why???”