For the first time since 2008, JLL Retail Research reports all Florida and US markets that it measures are either rising or peaking. We see a Florida retail market currently being led by the five “fab” locations: Tomoka Town Center in Daytona Beach, Seminole City Center in Seminole, Disney Springs in Orlando, Brickell City Centre in Miami and CityPlace in Doral. With technology, tourism and value among the factors leading retail across the state, average Florida rents have risen for three years in a row.

1. Naveen Jaggi
President,
JLL Americas Retail
& Capital Markets
FloridaConference
& Deal Making
August 22, 2016
seven trends
Impacting
Retail’s Future
2016
Florida Retail Report

2. Download the full report at
jllretail.com/research
JLL
Florida
Retail Report

4. Average Florida rents have risen
for three years in a row
10.8 million square feet has been
leased in the past three years
Average cap rates are down to 6.45%,
below the previous lowin 2007 of 6.53%
Florida
Momentum

5. Miami’soccupancy is 96.5%, althoughrents
have declined in 2 of the past 3 quarters
With low vacancy, Tallahasseerents appear to
have found a peak after 2 years of strong growth
Ft. Lauderdale, Palm Beachand Sarasota
are beginning to peak, but rents and
occupancy are still rising
Florida
Momentum
For the first time since 2008,the JLL property clock
shows every marketrisingor peaking

6. 01 value vs luxury
02 digital
03 experiential
04 food,food,food!
05 tourism
06 touch screentransformation
07 reality star treatment
seven trends
Impacting
Retail’s Future

7. 01
value vs luxury
seven trends
Impacting Retail’s Future

8. discount luxury
“middle”
retailers
01
value vs luxury
Discount, middle and luxury

9. 01
value vs luxury
Value shoppingis now for everyone
Low-income families plus higher-income shoppers
who’ve now developed a taste for discounts
ImageSource: T.J.Maxx
ImageSource: DollarGeneral
ImageSource: Ross Stores, Inc.

10. 01
value vs luxury
Tomoka Town Center
Daytona Beach, FL
Consolidated-Tomoka Land Company
Tanger Outlets
North American Development Group

11. 02
digital
nine trends
Impacting Retail’s Future

12. 02
digital
2016 headlines

13. Source: U.S. Census Bureau
7.7%
e-commerce
92.3%
bricks-and-mortar
02
digital
7.7% of allretail sales are e-commerce

14. Source: Forrester, Bain
Beautyand
cosmetics
Consumer
electronics
Computers Books Clothing Furniture Grocery
02
digital
e-Commerce penetration for select
product categories, 2005-2030F

15. 02
digital
Seminole City Center
Seminole, FL
North American Development Group
Primerica Group One
ImageSource: seminolecitycenter.com

16. 03
experiential
seven trends
Impacting Retail’s Future

17. 03
experiential
What does experience really mean?

18. 03
experiential
Maslow’sHierarchy of Needs
Commoditized
goods, Internet/
impersonal
shopping
Premium goods,
experiential
shopping

19. 03
experiential
Taking back theirbrands
Luxury brands want to stop department store
discounting – some willpull products from stores

20. 03
experiential
C-suitefocus on experience
Few companies had a Chief Experience
or Chief DigitalOfficer a decade ago,
now they’re more important than ever

21. 03
experiential
Nordstrom’s CXOtold us…
§ Look at the entire company through
the eyes of the customer
§ Create a killer experience for today,
and the future
§ Be relevant: understand your
customer’s lifestyle and fit into it

22. 04
tourism
seven trends
Impacting Retail’s Future

23. 04
tourism
Travel and tourism is a large
driver of experiential retail

24. Source: World Tourism Organisation
04
tourism
Global Tourism Outlook
Tourist arrivalsforecasted to reach
1.8 billion by 2030 globally

25. Source: visitflorida.org
04
tourism
Tourist spending in Florida
in 7th year of growth
2015
91.3 Million Visitors = $89.1 Billion
60% Retail
$0
$10
$20
$30
$40
$50
$60
$70
$80
$90
$100
2006 2008 2010 2012 2014
Tourism&recreationtaxablesales(billions)
Florida Tourism Spending

26. 04
tourism
DisneySprings
Orlando, FL
Walt Disney,Inc.
ImageSource: Phelan Ebenhack

27. 04
tourism
Florida forward momentum
Brightline construction and track work
continues on South Florida stations
Miami Ft. Lauderdale
Orlando West Palm Beach
Source: allaboardflorida.com

28. 05
food, food, food!
seven trends
Impacting Retail’s Future

29. 05
food, food,
food!
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
Jan-92
Jan-93
Jan-94
Jan-95
Jan-96
Jan-97
Jan-98
Jan-99
Jan-00
Jan-01
Jan-02
Jan-03
Jan-04
Jan-05
Jan-06
Jan-07
Jan-08
Jan-09
Jan-10
Jan-11
Jan-12
Jan-13
Jan-14
Jan-15
Jan-16
Grocerystores ($M)
Restaurants & bars ($M)
In 1992 we spent $163 at grocers
for every $100 in restaurants
Today we spend $96 at grocers
for every $100 spent in restaurants

30. Liberty PublicMarket, San Diego Brickell City Centre, MiamiEat Street, Orlando (2017)
Artegon Marketplace
PonceCity Market, Atlanta EatalyGotham West,New YorkCity

31. 05
food, food,
food!
Brickell CityCentre
Miami, FL
Swire Properties
Simon Property Group
Whitman Family Development
ImageSource: Brickell City Centre

32. 06
touch screen transformation
seven trends
Impacting Retail’s Future

33. Technology is set to transform
physical shopping
06
touch screen
transformation

34. Mobile payments
Loyalty rewards
Order-ahead
Custom orders
06
touch screen
transformation
ImageSource: TargetCorporation, Starbucks Corporation, Chick-fil-A

35. Panera 2.0 is fully digital: mobile app,
in-store kiosk and web ordering combined
06
touch screen
transformation
ImageSource: Panera Bread

36. American Eagle App
Talk to consumers on their own terms
06
touch screen
transformation

37. CustomConverse
Sneaker seller prints custom designs
on All Stars and apparel
06
touch screen
transformation

38. Human-freeordering
Eatsa, San Francisco
06
touch screen
transformation
ImageSource: Jason Henry / TheNewYork Times

39. ShopWithMe
Retailpop-up at Santa Monica Place:
§ Self-service changing rooms
§ Self-checkouts w/ RFID tags
06
touch screen
transformation
ImageSource: ShopWithMe

40. 07
reality star treatment
seven trends
Impacting Retail’s Future

41. Consumers wantto be treated like
the stars they see in the media
07
reality star
treatment

42. Magicmirror technology delivers
a customized experience
07
reality star
treatment
ImageSource: Rebecca Minkoff

43. 07
reality star
treatment
CityPlaceDoral
Doral, FL
The Related Group
Shoma Group
ImageSource: TheRelated Group
Fresh Market
Cobb CinéBistro
Kings Bowl
Tommy Bahama
Cooper’s Hawk
Burger & Beer Joint
Sushi Siam

44. Florida’s “fab five”
seven trends
Impacting Retail’s Future

45. Daytona Beach, FL
Developed by:
Consolidated-Tomoka Land Company
Tanger Outlets
North American Development Group
Project components:
§ 300,000 SF Tanger Outlet
§ 350,000 SF Shopping Center
§ 140,000 SF Sam’s Club
Tomoka
Town Center
Outlet, Value, Tourism, Residential Growth

46. ImageSource: seminolecitycenter.com
Seminole
City Center
Seminole, FL
Developed by:
North American Development Group
Primerica Group One Retail
Retail size: 424,192 SF
Anchors: Earth’sFare, Studio Movie Grill,
Bealls, SteinMart, LA Fitness, HomeGoods,
Ulta, Kirkland’s, PetCo, Five Below
Redevelopment, De-Malled, Entertainment, Value

47. ImageSource: Phelan Ebenhack
Disney
Springs
Orlando, FL
Developed by:
WaltDisney, Inc.
Retail size: 500,000 SF
Entertainment: CirqueDe Soleil, AMC Theater,
House of Blues, Co- ca-Cola Store, Splitsville
Key tenants: Anthropologie, Tommy Bahama,
Uniqlo, Under Armor Brand House, Zara
Entertainment, Tourist, High-End

48. ImageSource: Brickell City Centre
Brickell
City Centre
Miami, FL
Developed by:
Swire Properties, Simon, Whitman Family
Development project size: 5.4 Million SF
Retail size: 500,000 SF
Anchors: Saks Fifth Avenue, Cinemex,
ItalianFood Hall
Key tenants: HugoBoss, Intermix, lululemon,
Suit Supply, Coach, Porsche Design
Mixed-Use, Scale, Luxury, International Appeal,
Indoor-Outdoor

49. ImageSource: TheRelated Group
CityPlace
Doral
Doral, FL
Developed by:
The Related Group, Shoma Homes
Retail size: 600,000 SF
Anchors: Fresh Market, Cobb CineBistro,
King’sBowl
Urban, Dense, Entertainment, StructuredParking

50. Naveen Jaggi
President,
JLL Americas Retail
& Capital MarketsThank you
Download the full report at
jllretail.com/research