Hipsters & The Affluent Coming Together in Miami Design District

The Dacra Real Estate Firm, headed by developer Craig Robins, is on the forefront of a venture to revitalize the long dormant Miami Design District. Their plan? To attract luxury retailers away from the undisputed retail king, Bal Harbour Shops.

Bal Harbour has long been the spot for luxury retailers in South Florida, so much so that last year it was awarded the distinction of being the world’s most productive shopping center according to the International Council of Shopping Centers, which, yes, is apparently a real thing. However, despite the success of Bal Harbour Shops, more and more luxury retail tenants, including Hermès, Cartier and Louis Vuitton, are leaving to set up shop in the Design District, where larger retail spaces are available at a significantly lower cost per square foot.

Cartier was able to open a space 12 times larger than the space it previously occupied at Bal Harbor Shops. Following the expiration of its lease this past December, Hermès left a 4,300 square-foot space for a temporary space in the Design District as they work on developing a three-story, 15,000 square-foot landmark location scheduled to open in late 2014.

Other designer giants following the lead of these stores and looking to make the move to the Design District are Fendi, Giorgio Armani, Harry Winston and Valentino. However, they must wait until their Bal Harbor leases are up, as they contain a non-compete clause that bars the retailers from opening another location within 20 miles.

Dacra’s revitalization effort will cost around $1 billion, so they have partnered with L Real Estate, a private equity fund whose investors include a world leader in luxury, LVMH. The plan calls for the construction of a new thoroughfare with pedestrian plazas and mixed-use developments consisting of luxury condominiums and restaurants, in addition to the retail. Below you will find a proposed layout of the Miami Design District pedestrian promenade:

Miami Design District Proposed Promenade