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Will The Pandemic Kill Demand For Micro Units?

For the past five-plus years, micro-units have been an intriguing subplot in the grand saga of commercial real estate. As demand for housing has boomed, especially in rent-burdened cities like New York and San Francisco, developers gambled that tenants would tolerate tiny units — some as small as 220 SF — for the chance to access cool neighborhoods at affordable rents. Now, though, some real estate experts wonder whether the coronavirus will kill, or at least cripple, the concept.

“Prior to COVID, there was a big surge in the urban areas, urban core, everyone wanting to live in micro-units, and now it looks like everyone wants to move to the suburbs, buy homes, get out of apartments,” FM Capital Principal Aaron Kurlansky said during a Bisnow South Florida webinar last month.

Social distancing is the antithesis of the tight-knit living style that micro-units and their cousin, co-living, promote. With bars and restaurants shuttered and remote work gaining more acceptance, renters may see fewer reasons to remain in city centers, where most micro-unit properties are.

Integra Investments principal Victor Ballestas said his company was considering developing micro-unit projects in the Wynwood and North Beach areas of Miami.

“You sort of have to go towards the micro-market in order to make the numbers work, because the overall rent was pretty high,” he said. But in the wake of the coronavirus, “those are the ones that we’ve probably pulled back the quickest.”

“We always had a little heartburn over the micro-unit model,” he continued. “And then [we] started hearing through the grapevine also that people that are moving into micro-units are, you know, moving out after the year. It’s pretty much like 100% turnover rate, which obviously impacts performance significantly.”

That prompted him to focus on multifamily deals on larger parcels instead, he said. Allen Morris Co. CEO Allen Morris, who also spoke on the webinar, said he shared Ballestas’ concerns.

“People do sometimes tend to move out after a year. They say, ‘Great, look how much money I’m saving!’ and then they say, ‘I can’t stand it! Get me out!’ So, it becomes like student housing — they all move out at the end of the year.”

Kurlansky said the small apartment complexes his company owns in South Beach and Miami Beach have underperformed compared to the larger units farther from downtown in his portfolio, which he attributed to unit size.

“People are in, then they’re out,” he said. “As we’ve played in the student housing space, as someone from my office told me, it’s like convincing your wife every year that she loves you. You go from 100 to zero to back to 100, so it’s an exhaustive process, and, you know, micro-units, it seems to me, are going to follow that kind of trend where you’re just kind of [going to] be in constant lease-up.”

 

Source:  Bisnow

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These Miami Neighborhoods Saw More Retailers Open Than Leave Amid Pandemic

While many retail shops in Miami-Dade and Broward sat empty during the first months of the pandemic, a few neighborhoods actually experienced a bump in leasing.

Downtown Miami, Coral Gables and Medley/Hialeah defied the nationwide retail spiral, increasing total retail inventory by more than 10,000 square feet each, according to Colliers International’s second-quarter retail report.

“The positive net absorption in these neighborhoods were hangover deals done during the fourth and first quarters,” said industry watcher Beth Azor, investor and broker at the Weston-based Azor Advisory Services.

Dave Preston, executive managing director for retail services for Colliers International, agreed, noting that retail transactions take six to eight months to process.

Another factor, said Azor: Paycheck Protection Program funds, which allowed many tenants to hold on during the second quarter.

But those positives will likely be offset in the third and fourth quarters. Azor said she expects those market reports will show double-digit vacancy rates, at least of 10%, and a minimum of 10% drop in asking rents. Average asking rates have already inched downward, according to the Colliers report.

South Florida also will feel the impact of the national bankruptcies and store closings announced in the second quarters — J. Crew, CMX Cinemas and Neiman Marcus, just to name a few. Miami-Dade Mayor Carlos Gimenez’s order on Monday to end dine-in services and close some other businesses in the county “will be the nail in the coffin for many businesses; this will increase the vacancy numbers,” Azor said.

MIAMI-DADE

Total second-quarter vacancy grew from 4.3% to 4.5%. The completion of new construction injected 10,195 square feet into the market, bringing the total to 101.3 million square feet — 230,698 square feet more than the market absorbed.

But some neighborhoods were spared. Downtown Miami increased leased space by 28,651 square feet; Coral Gables grew by 17,428 square feet, and Medley/Hialeah grew by 24,397 square feet.

“The positive absorption in Downtown Miami stands out. The new development, including Miami Worldcenter and Moishe Mana’s Flagler Village, shows growth in the market,” Preston said.

Newcomers to Downtown Miami leased 2,000 square feet, including ArTi Entertainment, which took 2,200 square feet. “That shows entrepreneurship is alive during the pandemic,” Azor said.

The average direct asking rate decreased from $37.95 to $35.98 per square foot.

 

Source:  Miami Herald

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Vulture Investors Circling In Search Of Dying Businesses And Available Space

Faced with heightened restrictions due to a surge in Covid-19 cases, coupled with a desire to keep employees safe, some Miami restaurants are calling it quits.

Other eateries are mulling closing their dining rooms, temporarily shutting down, or changing their business models entirely. If the state or local governments order another shutdown, it could mark the “nail in the coffin” for as many as half the restaurants, said Felix Bendersky, restaurant broker and owner of F+B Hospitality.

Yet, some restaurants are still signing new deals or reopening during the pandemic, taking advantage of spaces that are back on the market.

New Restrictions

After several days of record Covid-19 cases statewide, stricter rules are putting renewed pressure on struggling businesses. On Wednesday, Florida’s total reached nearly 159,000 cases and 3,550 deaths.

Gov. Ron DeSantis ordered the closure of bars on Friday. On Tuesday, Miami-Dade Mayor Carlos Gimenez ordered restaurants (and bars that have been able to continue operating) to stop selling alcohol between 12:01 a.m. and 6 a.m. This past weekend, pool access and alcohol sales were restricted at hotels in Miami-Dade.

On Wednesday, Miami Beach established a curfew from 12:30 a.m. to 5 a.m. (food delivery is among the exceptions). The city is banning alcohol sales at all retail stores, including liquor stores, grocery stores and convenience stores, after 8 p.m. Restaurants can’t operate for dine-in or takeout between 12:01 a.m. and 6 a.m.

The new orders come as restaurants are still restricted to 50 percent occupancy.

Vultures Circle Amid Struggles

All the while, vulture investors are circling in search of dying businesses and available space, sources say.

In May, OpenTable CEO Steve Hafner predicted a quarter of U.S. restaurants that were closed or that were only offering takeout would not survive.

Bendersky said he’s receiving 20 to 30 calls a day from restaurateurs and brokers looking for second generation spaces ranging from 1,000 square feet to 1,500 square feet in neighborhoods such as Edgewater, MiMo, Brickell, Downtown, Coral Gables and South-of-Fifth.

Second generation spaces include built-out kitchens with a DERM-approved grease trap, which makes the space more valuable, especially now. It can save new operators between $300,000 and $750,000 in buildout costs, Bendersky said.

Meanwhile, many existing restaurants are on pause, trying to figure out when and if to reopen, whether to close their dining rooms, or sell.

“There’s a lot of different groups right now that are just evaluating whether or not it’s worth it right now to open back up,” said Aaron Butler, CEO of Avenue Real Estate Partners.

Mila, a rooftop restaurant on Lincoln Road in Miami Beach, is among those waiting to reopen, Butler said.

Chica in the MiMo District and Spring Chicken in Coral Gables are also waiting to reopen, according to a spokesperson for 50 Eggs Hospitality Group.

Michelle Bernstein, a prominent Miami restaurateur, posted on her Instagram account that she was closing Cafe La Trova’s dining room as of Monday.

Bernstein, whose restaurant is in Little Havana, said that despite following social distancing and CDC guidelines, “the health and safety of our employees and patrons has become too great of a concern to continue offering dine-in service under the circumstances.”

Laid Fresh, a cafe in Wynwood, also announced on Instagram that it was closing the location permanently.

Kush by Spillover, a Coconut Grove restaurant that Kush Hospitality recently rebranded and reopened, closed temporarily. Caja Caliente, a restaurant in Coral Gables, posted on social media that it was closing its indoor dining room, and would only have outdoor seating available. Politan Row, a food hall in the Miami Design District previously called St. Roch Market, has not yet reopened.

“The arbitrary changes and regulations have been pretty impactful because we find out hours before the changes are made,” said Ben Potts, co-owner of Beaker & Gray in Wynwood.

He said the county and city-mandated curfews put in place due to protests also had an effect.

Yet, his and other restaurants still remain open. Potts said Beaker & Gray has been open since May 27. “At the moment we’re planning on staying open,” he said.

And some new eateries are in the pipeline. In the Miami Design District, Itamae, Ovation and Cote are all expected to open later this year.

And Old Greg’s Pizza will operate a pop-up out of chef Brad Kilgore’s Kaido space in the Design District beginning on Friday, the pizza concept posted on Instagram Wednesday.

Test Is Coming

The real stress test could come in the next three to six month months, after money from the Small Business Administration’s Paycheck Protection Program loan program runs out, brokers say. Vulture investors of both kinds – hunting for real estate deals and for the restaurant and bar businesses themselves – are in the market.

“Larger, high-priced restaurants are more of a challenge because their overhead and carrying costs are so much higher,” said Butler of Avenue Real Estate Partners.

Many tenants had the wherewithal to survive in April, May and June, or had worked out deals with their landlords, and/or had received PPP money, experts say.

Moving forward, the types of tenants that will survive have been adapting successfully to the changes brought on by the pandemic.

Pizzerias and national chains are flourishing, because they lend themselves to takeout, said Scott Sandelin, a broker with Marcus & Millichap.

“This [pandemic] will accelerate that change in the food business,” Sandelin said. Yet, many restaurants and bars, he added, are in a “scary situation.”

 

Source:  The Real Deal

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Survey: Patients Strongly Prefer Off-Campus Healthcare Experiences

In an effort to uncover critical insights into patient behavior and serve as thought leaders within the healthcare real estate industry, Physicians Realty Trust (the “Company”) commissioned an independent survey in five of the Company’s largest markets to better understand consumer perceptions of healthcare facility safety within the context of the COVID-19 pandemic.

CVR and Carmichael & Company, healthcare consultants based in Indianapolis, conducted the panel-based survey for the Company, surveying the AtlantaDallasLouisvilleMinneapolis, and Phoenix markets. A total of 2,018 respondents were surveyed, resulting in an average margin of error of 2.19% across the five markets.

Strong Consumer Preference for Off-Campus Medical Facilities

The research revealed that when seeking medical treatment, the overwhelming majority of respondents prefer to receive care in an off-campus medical facility located a mile or more from a hospital campus. Based on survey results, this trend is likely to continue for the foreseeable future due to COVID-19, especially given concerns regarding a possible resurgence of the virus later this year.

“The findings affirm our long-term observations in consumer attitudes and validate the Company’s continued investment strategy targeting off-campus medical office buildings,” said John T. Thomas, President and CEO of Physicians Realty Trust. “As thought leaders in the healthcare industry, we commissioned this research to advance our understanding of COVID-19’s impact on our business, as well as provide insight and guidance to our healthcare partners.”

In the report, respondents also provided insights on enhanced safety and hygiene protocols, spokesperson preferences for COVID-19 communication, and other shifting perceptions of healthcare highlighted by the pandemic.

“For many years, consumers and physicians have been seeking services at locations convenient to them and their homes, often away from hospital campuses,” Thomas added. “This study verifies that especially in light of COVID-19 safety and cleanliness concerns, consumers strongly prefer medical office facilities located away from the hospital campus.”

The Company is sharing these findings with its healthcare partners and stakeholders to increase awareness and better understand healthcare consumers’ decisions.

To access the report, go to www.docreit.com/research.

 

Source: PRNewswire

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Multifamily Remains Strong Amid Health And Economic Uncertainty

As cities and businesses begin to reopen following weeks or months of stay-at-home orders, many sectors of the economy face the reality of a downturn. Amid that climate of uncertainty, multifamily remains strong as an investment opportunity.

Backed By History

Multifamily real estate has a long history of weathering economic storms. Last year, CBRE analyzed the effects of the past two recessions on the commercial real estate market and found that “multifamily outperformed office and industrial in the 2001 recession and all major property sectors (office, industrial, retail) during the 2008-2009 recession. Multifamily generally had lower total rent decline and more rapid post-recession rent recovery.”

Following the 2001 recession, multifamily recovered more quickly than other CRE categories and reached a much higher rent growth (10%) beyond its historical peak than either industrial or retail (4.3% and 5.7%, respectively).

The 2008-2009 recession sparked a steep decline in homeownership and demand for single-family homes, which has bolstered the multifamily market for the past decade. That demand has not shown signs of slowing in recent months.

The market has been predicting a downturn for the past several quarters. Although few could have expected a pandemic as the cause, industry experts have been ready for the shift from growth to maintenance for some time. The sector’s strong history of withstanding recessions gives those of us in multifamily confidence that we will bounce back and fare well in spite of challenges. In fact, my firm wrote about the subject in a 2019 newsletter, highlighting some fundamentals that contribute to multifamily success in all economic climates, including location, value-add investments and underwriting.

Effects Of The Pandemic To Date

While the market can expect a dip in occupancy following the pandemic, experts anticipate that it will be short-lived. Multifamily fundamentals will contribute to its ability to react to short-term fluctuations and long-term recovery. Covid-19 has had an impact on multifamily, but we can expect that the sector will continue to demonstrate its resilience.

According to one Globe St. writer, “Demographic trends favor continued multifamily demand. In addition, many businesses are now operating remotely so flexible shelter or renting versus owning remains desirable. And, graduating students with high debt will most likely choose to rent because securing a mortgage remains challenging.”

Recent reporting shows that renters in Class A and B properties have, in large part, kept up with their rent payments through the months of stay-at-home orders, in part because many residents in luxury to midtier apartments have a greater ability to continue their work remotely from home because many of these renters work in information- or technology-centric fields. Apartment communities located near strong professional business centers will continue to attract renters.

In our experience, professionally managed properties also have a greater ability to flex and meet the needs of those remote workers with high-quality technology investments, as well as creative solutions to in-unit and on-site workstations.

In addition, the following will support continued apartment demand:

• Interest rates are at record lows.

• With fewer people able to afford homeownership, tenants who under different circumstances might have become homeowners will remain apartment renters.

• With projected decreases in both homeownership and multifamily apartment deliveries, the current multifamily supply shortfall will increase.

• Resident turnover will lessen as people seek stability.

• Properties that have already deployed technology for marketing, leasing and resident services will be at an advantage in retaining and attracting renters in this environment.

Even as consumer spending tightens and retailers downsize or close entirely during downturns, people continue to need homes. Demand for apartment homes continues throughout all economic cycles. As the economy corrects in 2020, investors should feel a higher level of comfort with their multifamily investment than other investment products.

 

Source:  Forbes

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There’s A New COVID-19 Store In Miami & It’s The First Of Its Kind

There is a store in South Florida that is dedicated to protecting you from the novel coronavirus. COVID-19 Essentials in Miami is open for business in the Aventura Mall. The pop-store is gearing Floridians with all the necessary tools for the pandemic.

COVID-19 Essentials sells any-and-everything novel coronavirus related, but with a dash of Miami flare added to the mix. Nadav Benismitzky, the owner of the store, has been operating the brick-n-mortar shop for about three weeks.

Before you even set foot in the store, patrons are prompted to a thermal imaging machine. Working with Kent Services, the machine checks prospective shoppers’ temperature and ensures that they’re wearing a mask before entry.

After passing the scanner, you’ll enter the chicest COVID-19-centric store you will ever lay your eyes on.

They sell $9 hand sanitizers, portable UV lamps, infrared thermometers, and fashionable face masks.

All of the store’s masks are made with 100 percent cotton, N95-grade material, and some are fashioned with LED lights, Benimetzky told Narcity. In short, these aren’t your Walmart face coverings on display.

In Miami, there is zero-tolerance for drab, so Benismitzky set out to change the lackluster mask scene in the area. He says he got the idea to open the store because he was “tired of seeing the ugly N95 masks around town.”

Working with Aventura Mall, he was able to land a lease for a space in the Nordstrom wing of the shopping center.

With most of South Florida now under some form of a face mask mandate, and a continued spike in cases in-and-around the region growing more worrisome by the day, Benimetzky’s unique store could see more business.

For now, the store is a pop-up, but Benimetzky says they’ll “be here as long as the pandemic is here,” with hopes that it’ll be a permanent fixture at Aventura.

The next time you’re on South Beach with your cool LED mask, raise a glass to Bemimetzky.

 

Source:  NARCITY

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Developers Plan Mixed-Use Project At Former Museum In Wynwood

New York developers L&L Holding Co. and Carpe Real Estate Partners formed a joint venture to build a mixed-use project in Miami’s Wynwood.

The developers have three acres at the northeast corner of Northwest 29th Street and Northwest First Avenue under contract. The property to be redeveloped would include the former Rubell Family art museum building at 95 N.W. 29th St.

Don and Mera Rubell relocated their art museum to Allapattah in 2019. The old building was listed for sale. Given how much development has been taking place in Wynwood, which is popular for its street art, dining and entertainment, it didn’t take long to find buyers.

L&L and CREP said they expect to close on the land in mid-2021, although they didn’t disclose the price. The site would allow for up to 800,000 square feet of development. Their project would combine offices, indoor and outdoor retail space, and multifamily. The size of the project hasn’t been disclosed.

“We are thrilled about this opportunity to create a one-of-a-kind 21st century mixed-use development in one of the world’s coolest and most eclectic neighborhoods,” said David Levinson, chairman and CEO of L&L. “CREP is the perfect partner given their successful track record in Miami and vision for further transforming Wynwood into a vibrant and dynamic place that celebrates the rich culture and history of the district. More importantly, our two firms share an affinity for bold, visionary projects that complement and enhance the surrounding neighborhood.”

Led by Levinson and Robert Lapidus, L&L is currently building a 670,000-square-foot office building at 425 Park Avenue in Manhattan. It’s also developing TSX Broadway, a luxury hotel in Times Square.

CREP, led by Erik Rutter and David Weitz, is known in Miami for the Oasis, an adaptive re-use project featuring restaurant, retail and offices. It landed Spotify as a tenant.

“When we entered the Wynwood submarket we were immediately attracted to its character – to the intangible buzz and energy you feel when walking the streets of the neighborhood,” Weitz said. “Our goal with this project on 29th Street and the Oasis is to preserve that character, and let it inspire our projects’ design and ethos.”

 

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A Medical Complex Is Coming To Miami Worldcenter

A $60 million medical center is planned for Miami Worldcenter, the mixed-use downtown development.

The 100,000-square-foot Center for Health + Performance, or CH+P, will sit on the ground floor of the Legacy Hotel & Residences, according to a release from the tower’s development firm, Royal Palm Companies.

A medical center was planned long before the pandemic, Dan Kodsi, CEO of RPC, said in a statement. But the pandemic is leading to some changes.

The development team is expanding the center’s air purification system and anti-microbial and chemical-resistant surfaces. Think voice-activated elevators, touchless room key access, UV-sterilization wands and robots for common areas — through the building.

Construction will begin on the tower at 942 NE First Ave. in the fall. The tower will have 274 condo units and 256 hotel rooms.

“While it’s been over a year in the making, COVID-19 was the driving force in enhancing some of our features that would allow the hotel to continue operating during any future pandemics,” Kodsi said in an email.

The center will have surgery rooms, capabilities for MRI, CT, mammography, X-Ray, ultrasound scans, on-site pharmacy, on-site laboratory for test results, and on-call doctors, nurses and nutritionists. The healthcare organization that will run the center has not been decided.

“One of the many impacts of COVID-19 will be a more informed and hyper-cautious traveler that will be looking for hotels and vacation homes that prioritizes their health and safety without sacrificing that luxury lifestyle they are accustomed to,” said Stephen Watson, head of medical and wellness projects for RPC.

The Miami Worldcenter is a 27-acre, $5 billion development that broke ground in 2018 with the construction of Paramount Worldcenter. The project includes hotels, condominiums and retail spaces.

Source:  Miami Herald

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Pandemic Transportation Changes In Miami Could Become Permanent

Miami-Dade’s transportation picture has been in flux since the onset of the coronavirus pandemic, and many changes – including new safety strictures, increased telecommuting and a rise in non-motorized mobility – could prove permanent, experts say.

“This is a lifetime event that’s really going to change a lot of things, including transportation, how people work and where,” said Javier Betancourt, executive director of the Citizens’ Independent Transportation Trust. “And if anyone tells you they know for sure what’s going to happen, they’re lying to you.”

That’s not to say there aren’t indicators of where things are going. Following a nationwide shutdown to stem the spread of the virus, once-bustling workplaces have been replaced – either temporarily or permanently – by home offices connected digitally through email and apps like Zoom and Slack.

Working remotely, or telecommuting, has increased in recent years, but Covid-19 accelerated what would have been a much slower evolution. Only 7% of US workers telecommuted at least once weekly prior to the pandemic, according to the Pew Research Center. Once the virus hit, the figure shot up to 50%, an analysis by research group Brookings Institute found.

If a significant portion of people continue to work from home, Mr. Betancourt said, Miami-Dade’s transportation decision-makers must take a hard look at whether some transit and roadway expansion projects should proceed as previously planned.

“All these capacity-building projects need to be examined in light of reduced demand,” he said.

A directive to launch the first such examination here is incoming, said Aileen Bouclé, executive director of the county Transportation Planning Organization (TPO).

On June 18, the TPO Governing Board, comprised of every county commissioner, elected representatives from nine cities and a school board member, will consider an item from Dennis Moss and Rebeca Sosa that, if approved, will order a study of how telecommuting could reduce congestion across Greater Miami.

“They’ve made a very next-step request for us to start seeing what that looks like and if we can adopt any guiding principles or policies to help even out the demand on our infrastructure over a long period of time – where we can reduce the peak demand and congestion and have a better overall picture of a congestion-reduction strategy,” she said.

Another potential change that comes as a result of fewer cars on the road is fewer cars in driveways and garages, said Transit Alliance Miami Executive Director Azhar Chougle, whose nonprofit advocacy group has spearheaded the Better Bus Project to redraw Miami-Dade’s Metrobus route network.

Because driving to and from work is often the primary utility of a personal vehicle, he said, it becomes an unnecessary expense once that need is no longer there.

“Most cars are idle for more than 90% of the day,” he said. “Miamians who are used to just driving, even for the smallest possible trips, when you take the work trip out of the equation, there are interesting possibilities.”

One possibility already gaining traction is broader bicycle use across the county. But the shift from cars to bicycles and e-scooters isn’t as simple as swapping one mode for another. While some small pockets of the county have proper accommodations for so-called micro-mobility modes – bike paths, widened sidewalks and programs with bike- and scooter-share companies like Citi Bike and Jump – most of Miami-Dade is still inhospitable to non-motorized travel.

Before the pandemic, those deficiencies and others across Miami-Dade – including many parts of the county’s unincorporated area, where sidewalks on major roads are frequently nonexistent – were largely the concern of habitual bicyclists and residents who didn’t own cars.

Now, with half of the county’s workforce homebound, the absence of a safe, comprehensive route network for pedestrian and two-wheeled travel is glaring, Mr. Chougle said.

“Everyone has realized biking infrastructure here is terrible,” he said. “What we’ve discovered is just outright, major government failure.”

That failure, he said, is most pronounced in Miami and Miami Beach, the subjects of Transit Alliance’s most recent study, “Build it – Bike it,” which shows both cities have sorely undelivered on promises to create safe, usable, interconnected bike paths.

Miami Beach, which in 2015 adopted a comprehensive bike master plan, has to date built just 0.1 miles of protected bike lanes and has 3 miles of shared paths still under construction. Transit Alliance recommends 6.8 miles of protected lanes and 3.7 miles of shared paths.

Miami, which in 2009 adopted a similar plan, still has miles of its core network incomplete, with missing links between key arterial roadways across the city and no protected bike lane across the Venetian Causeway.

“Whoever is in charge of this network in the City of Miami, and whoever was responsible for the 2020 objectives in Miami Beach and them not having been completed, should be fired,” Mr. Chougle said. “It’s at the point where, can our decision-makers hold anyone responsible for these major failures, or are they just going to be looking at the same map 10 years from now?”

The good news, Mr. Betancourt said, is that the countywide pause everyone is experiencing provides a rare chance to rethink and refocus priorities and, compared to other infrastructure projects in the developmental pipeline, bike-specific enhancements are much cheaper.

“Transit and roadway expansions are investments that take billions of dollars to see through and decades to come to fruition,” he said. “Telecommuting and first-last-mile connectivity is low- to no-cost and can be done in short order. And people have now gotten used to it. There’s really a potential to continue that and build it up.”

Critical roadway and transit improvement projects will still come, including transit upgrades to six key commuting corridors outlined in the countywide Smart Plan. But questions of future capacity and ridership have made many local transportation experts rethink advocating for more expensive modes.

Talks on the subject among county, state and federal transportation officials are ongoing, according to Ms. Bouclé, who said a federally required transit ridership study planned for the fall will further help to inform the TPO of what demand will be for different transit modes.

“From where I’m standing today, the range of that demand is really something we have to focus on,” she said. “It’s a fair statement that our pre-Covid forecast may be quite different moving forward.”

Even if ridership never returns to levels prior to the pandemic, Miami-Dade will still need a transit system to serve a core ridership dependent on its services. In mid-April, roughly a month into pandemic-related closures, ridership on Metrobus, Metrorail and Metromover fell 80% below normal.

As of last week, according to figures provided by the county Department of Transportation and Public Works, ridership across the three modes combined, at 110,000 between June 8 and 12, is about 47% of what it was the same time last year.

Director Alice Bravo said her department is bringing on additional vehicles to accommodate the ridership increase while still providing enough space to minimize the spread of Covid-19.

“In terms of trains, when our numbers really fell off, we went to nine trains per hour but have now increased that to 14 and can increase it to 19 trains as demand grows,” she said. “In terms of buses, we’re going to bring some through vendors … for the I-95 express service and other vehicles to intersperse between ours on routes where ridership is increasing and they’re needed for social distancing.”

Many of the protective measures put in place – from disinfecting transit vehicles multiple times daily and nightly, maintaining hand sanitizers in all vehicles and at train stations, social distancing at county facilities, and installing vinyl curtains and polycarbonate doors to isolate bus drivers and their ventilation systems from riders – will likely continue “for a long time,” she said.

Ms. Bravo’s department is also experimenting with one possible solution to low ridership on some Metrobus routes: Go Nightly, a partnership with Uber and Lyft in which the companies provide rides in lieu of buses that before ran on eight nighttime routes.

Rather than take buses, transit users are instead asked to follow instructions posted at bus stops along the routes to use a smartphone app or call a number to get a voucher-paid ride along the routes and within a quarter-mile radius of the corridor.

“This is maybe something we can explore to provide some type of transit connectivity in areas where density is too low to provide bus routes,” she said.

As for other answers, Mr. Chougle said, the county may do well to examine how other large metropolitan areas proceed in improving transit in the wake of the coronavirus.

Miami-Dade has “responded really well” to the pandemic, he said. The question for every leader here is whether the county will emerge with a stronger or weaker transportation and transit system than before.

“Right now,” he said, “it’s not clear how that will go.”

 

Source:  Miami Today

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COVID-19 Will Accelerate Property Repurposing

In many ways, COVID-19 is accelerating transitions that had already been occurring in the commercial real estate world.

“People think we should open up the economy sooner,” says Newmeyer Dillion partner Mike Krueger. “But I don’t think anybody’s saying that this isn’t going away anytime soon.”

Ultimately, Krueger predicts that COVID-19 will force “some very creative repurposing of properties.”

“We’re going to see very creative developers come in and repurpose those properties for their next use,” Krueger says. “At this stage, we don’t even know what the best use of some properties will be.”

Krueger says that is already happening in malls. In some places, they’re being repurposed by medical organizations.

“You may have a J.C. Penney’s in a huge building that could be perfect for an oncology department or maybe perfect for outpatient medical treatment,” Krueger says. “The rest of the stores might still be vacant, but that one building is great for that a medical use.”

Malls may have other advantages for conversion to other uses. For instance, a large mall will be ADA compliant.

“It’s going to have elevators and escalators,” Krueger says “Maybe an abandoned mall is a perfect opportunity to put a nursing home or some assisted living facility because you already have all these access points.”

Malls, which are also near public transit and bus lines, would also provide plenty of space to create completely independent units that are not on central air, if ventilation is a concern, according to Krueger.

“I think we’re still waiting on a lot of guidance,” Krueger says. “The insurance companies are really going to be the ones that are going to dictate this.”

But malls are just one example of how COVID-19 could change spaces.

“We are now looking at a complete revolution in what retail and commercial spaces are going to look like, especially in the restaurant industry,” Krueger says. “Depending on where you are, you’re going to have different counties with different restrictions. At least in the Bay area, we know that the post-COVID-19 restaurant experience is not going to be the same as pre-COVID-19, namely and the occupancy space.”

Offices are another place ripe for change. While teleworking had been growing steadily as a trend for a while, Newmeyer Dillion partner Mike Krueger thinks the news that Twitter is allowing its employees to work remotely indefinitely will spark discussions at a lot of large firms in The Bay Area.

“For large tech companies that are renting out giant spaces in downtown San Francisco or anywhere in the Bay area, anywhere where commercial real estate is very expensive,” Krueger says. “Now, all of a sudden, you see some of the most visible tech companies out there saying, ‘We don’t even need our commercial space.’ I think you’re going to see a significant change around what that space is going to be useful and how that space is being used.”

 

Source: GlobeSt.

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