Development executives at a national conference in Miami Beach said retail districts succeed when developers prioritize infrastructure and community fit over raw square footage.

The message came Oct. 27 at the Urban Land Institute's 2026 fall meeting at the Miami Beach Convention Center, The Real Deal reported. Panelists said getting the street grid, storefronts, parking and tenant mix right before construction begins can determine whether a project thrives or struggles to fill space.

Jeff Kreshek, chief operating officer of Federal Realty Investment Trust, said one of the biggest mistakes developers make is prioritizing more leasable space over a retail environment that works.

"Making it work to a number in a pro forma or just maximizing everything out because you can sometimes is a fool's errand," Kreshek said.

Retailers should fit the community and give people a reason to visit rather than filling storefronts with the highest-paying tenants, he said. The goal is creating places people want to visit during everyday routines, not just on major shopping days, Kreshek said.

Bill Caldwell, chief development officer at Edens, stressed the importance of amenities that encourage people to linger. "Always plan for dogs," Caldwell said.

Jen Newman, director of strategic growth at CAGE Civil Engineering, moderated the panel. Jeffrey Pongonis, principal and practice leader at Mksk, also participated.

Lincoln Road faces similar challenges

The panelists did not discuss Lincoln Road, but the corridor illustrates many of the challenges they described. The eight-block pedestrian mall stretching from Washington Avenue to Alton Road has had more than 40 retail property owners, according to The Real Deal.

Rents surged to as much as $300 per square foot in the years before the pandemic, pricing out longtime tenants while national chains like Apple, H&M and Zara remained. Rents have since dropped to $120 to $200 per square foot, Lincoln Road Business Improvement District President Lyle Stern told The Real Deal in a July report. Insurance and real estate taxes alone can cost $30 to $70 per square foot depending on the property, and those costs are passed to tenants, Stern said.

Lincoln Road retail space was more than 80 percent occupied as of July, Stern said. Many storefronts that appear empty are leased and awaiting permits or tenant build-outs.

Two major projects aim to reshape the corridor. Michael Comras' $30 million NoLi District won final approval from Miami Beach in October, according to The Real Deal. The 150,000-square-foot project will convert North Lincoln Lane from a service alley into a pedestrian walkway with storefronts, cafes and outdoor seating. Retail spaces will range from 400 to 4,000 square feet, smaller than the large storefronts national retailers occupy on the main strip.

At the eastern end, Sobe Sky Development plans to remake the gateway at 100 Lincoln Road between Collins Avenue and the beach with pedestrian-friendly public spaces and art installations.

The city is also advancing a $29.4 million infrastructure project. Phase II includes upgrades to Meridian and Drexel avenues, expanded landscaping, enhanced lighting and improved drainage, Community Newspapers reported. That phase was expected to be substantially completed in 2026.

Caldwell told the ULI panel that choosing the right tenant mix for a particular neighborhood is one of the most important components of retail success. Pedestrian connections alone are not enough if shoppers are not going into the stores, he said.