S
outh Florida's food and beverage industry is facing one of its toughest years yet, with hundreds of restaurants across Miami-Dade, Broward, and Palm Beach counties closing or planning to shut down soon. Restaurant broker Felix Bendersky says he's been flooded with calls from restaurateurs seeking help getting out of their leases as the summer proved to be "the worst on record." Mom-and-pop shops and big chains alike are feeling the pinch, including Mr. Mandolin in Miami's MiMo District and Yard House in Miami Beach.

    A surge in similar concepts has increased competition, making it harder for operators to stay afloat. Developer Alex Karakhanian notes that ten years ago, if a restaurant concept was successful, others wouldn't open nearby, but now, if one concept works well, multiple similar restaurants will pop up in the same area. Despite this "restaurant armageddon," demand remains high, with prospective operators willing to pay six- and seven-figure sums for spaces.

    Commercial brokers are capitalizing on this trend, with Fabio Faerman noting that there's a strong demand for second-generation restaurants. Exiting restaurant operators can make money by selling their leases to new operators, often demanding key money in the process. Landlords are now getting in on this action, charging market price rent and taking advantage of the lucrative sales.

    The demand for commercial spaces remains high, with many properties being snapped up quickly. Residential real estate is also seeing significant activity, including Ideavillage CEO Anand Khubani's $100 million purchase of three Miami Beach properties.