Hollywood commercial real estate

A planned city, and what that means for buildings today

Hollywood was laid out in the 1920s by its founder, Joseph Young, as a planned city: a broad boulevard running from the downtown to the ocean, traffic circles, and a grid of residential streets on either side. A century later, that plan still shapes the commercial market. Hollywood Boulevard is wide, with a median, and it connects downtown directly to the beach. Young Circle sits at the center of the downtown and moves traffic around a large public park.

The plan also left the city with older commercial buildings. Many downtown storefronts date from the early and middle part of the twentieth century. They have the charm buyers and tenants want, along with the issues that age brings: older plumbing and electrical, roofs that have been patched over the years, and layouts that predate modern accessibility and fire codes. A tenant or buyer who goes in expecting that, and budgets for it, usually does well here.

Downtown Hollywood, street by street

Hollywood Boulevard west of Young Circle

The heart of the downtown runs along Hollywood Boulevard between Dixie Highway and Young Circle. Restaurants, bars, galleries and local shops fill ground floors, with some office and residential above. Rents have generally been lower than on Las Olas, which has made downtown Hollywood a place where independent operators can afford to open.

Harrison Street and Tyler Street

The parallel streets north and south of the boulevard hold smaller restaurants, bars, service businesses and offices. They are quieter, with lower visibility, and often more affordable. For some concepts, a Harrison or Tyler space with a loyal local crowd is better than a boulevard frontage.

Young Circle and ArtsPark

ArtsPark at Young Circle hosts concerts, events and programming that bring people downtown, especially in the evenings and on weekends. Properties fronting the circle have strong visibility, though getting in and out by car takes some getting used to.

Dixie Highway and the rail line

The western edge of downtown follows the FEC rail line and Dixie Highway, with more service, auto and light industrial uses. These blocks can offer larger floor areas and lower costs, and some have potential for future redevelopment.

Hollywood Beach and the Broadwalk

Hollywood Beach is known for its Broadwalk, a long oceanfront promenade lined with restaurants, cafés, small hotels and shops. Unlike some South Florida beaches, much of the Hollywood oceanfront is still made up of small, older properties: motels, low-rise apartment buildings and family-owned restaurants. Larger resort and condominium towers sit at intervals along A1A.

That mix creates opportunities for buyers who want a small hospitality or mixed-use property. It also brings specific risks. Oceanfront buildings face strong wind, salt and flood exposure, which drive insurance and maintenance costs. Some older buildings sit below current flood elevations, which limits how much renovation can happen before the whole structure must be brought up to current standards. Coastal construction rules apply to work near the beach. These questions should be answered before a price is agreed.

For restaurant and retail tenants on the Broadwalk, the season matters. Winter months are busy with visitors from the Northeast, Canada and elsewhere, and summer is slower. Leases that account for that pattern, and operators who plan for it, tend to last.

Medical office around Memorial Regional Hospital

Memorial Regional Hospital, part of the Memorial Healthcare System, anchors a medical cluster in Hollywood. Physician groups, outpatient services, imaging, therapy and other medical users look for space close to the hospital for referrals and convenience. Medical office is a specialized product: plumbing in every exam room, accessible restrooms, sometimes lead-lined rooms for imaging, and higher electrical and HVAC demands.

Our plumbing license and general contractor background are especially useful here. We look at whether an existing space has the plumbing risers and sewer capacity to support exam rooms, how much of the build-out can stay, and what a medical conversion would cost. That changes which spaces make sense and how we negotiate the improvement allowance. Learn more about tenant representation in Fort Lauderdale.

West Hollywood: US-441, the Hard Rock and big-box retail

West of I-95, Hollywood is a different place. The Seminole Hard Rock Hotel and Casino near US-441 and Hollywood Boulevard is one of the largest entertainment destinations in South Florida, and it draws visitors and employees from across the region. Much of that complex sits on Seminole tribal land, which follows its own jurisdiction. The commercial properties around it, on city or county land, benefit from the traffic it generates.

The western corridors, including Hollywood Boulevard, Sheridan Street, Stirling Road and Pembroke Road, are lined with shopping centers, restaurants, auto services and medical offices. Large retail centers near I-95 serve shoppers from across southern Broward. These are car-oriented properties where traffic counts, signage, parking and access from the main road decide value.

For tenants, the western corridors offer easier parking and larger spaces than downtown. For investors, they offer neighborhood and community shopping centers with a range of tenants. The key questions on these centers are anchor tenant strength, lease rollover, the condition of the roof and parking lot, and how the center competes with newer projects nearby.

US-1 and the eastern corridors

Federal Highway runs north to south through eastern Hollywood, between downtown and the Intracoastal. It carries heavy traffic and supports strip centers, restaurants, car dealers, banks and small office buildings. Many of these properties are older and on relatively shallow lots, which can limit redevelopment, though some larger parcels have been rebuilt as mixed-use or residential projects.

The neighborhoods east of US-1, including Hollywood Lakes, sit between the downtown and the beach. Commercial uses here are limited, which keeps demand for the nearby corridors steady. Business owners who live in these neighborhoods often want to work close to home, and that supports small office and service retail along Federal Highway.

Industrial and service space in Hollywood

Hollywood’s industrial inventory is smaller than Pompano’s or Dania Beach’s, but it serves an important function. Small warehouses and service buildings along the rail line, near Dixie Highway, and toward the airport and Port Everglades house contractors, auto repair, storage and light distribution. These spaces are in demand because they let service businesses stay close to customers in Hollywood, Hallandale Beach and Aventura.

Many of these buildings are older, with grade-level loading, limited clear height and modest power. Tenants should look carefully at roof condition, flooding history and parking for work vehicles. If you need more space or modern specs, compare options in Dania Beach or Pompano Beach.

Buying older commercial buildings in Hollywood

A large share of Hollywood’s commercial stock was built decades ago. That is part of its appeal, and it is the source of most surprises. Our checklist for an older Hollywood building:

• Sewer laterals and drain lines, camera-scoped. Older cast iron and clay lines fail with age, and replacing them under a slab is expensive.
• Electrical panels and wiring, including whether the service supports modern tenant needs.
• Roof age, structure and drainage, with replacement priced under Broward wind code.
• Termite and wood damage in older framed buildings.
• Windows and storefronts, and whether they meet wind-load requirements.
• Open and expired permits, and unpermitted additions or conversions.
• Flood zone, building elevation, and the rule that substantial improvements to buildings in flood zones may require bringing the whole structure into compliance.
• Insurance quotes, obtained early.

Sal walks these buildings as a contractor, not only as a broker. Title, legal and tax questions go to your attorney and CPA.

Small hotels and mixed-use on the beach: an investor’s view

Buyers from New York and the Northeast often ask us about the small motels and apartment buildings along Hollywood Beach. They are familiar with walk-up buildings and like the idea of an oceanfront asset at a smaller price point than Miami Beach. The opportunity is real, and so are the details.

Many of these properties were built in the middle of the last century. Some have been well maintained, others have deferred work hidden behind fresh paint. Short-term rental and lodging operations require state licensing and must follow city rules, which have changed over time and may change again. Parking is often limited. Insurance is a major operating cost.

For a hypothetical example: a buyer looking at a small beachside motel would want to confirm the lodging license history, the condition of the concrete and rebar (salt air causes spalling), the age of the roof and windows, the flood elevation of the ground floor, and what the city allows for renovation or redevelopment of the lot. Those answers determine whether the property is a renovation play, a hold for income or a land play. We help buyers figure out which one they are actually buying.

Leasing tips for Hollywood tenants

1. Pick your Hollywood. Downtown, the beach, the medical district and the western corridors serve different customers. Start with where your customers are, then narrow the search.
2. Price the age of the building. Older spaces may need plumbing, electrical and accessibility work. Get a contractor’s eye on it before you sign.
3. Ask about redevelopment plans. Hollywood has active redevelopment efforts. Your landlord may have plans for the property, or a neighbor may be about to start construction.
4. Negotiate signage. On busy corridors, a pylon or monument sign position can matter as much as the space itself.
5. Understand the season. Beach and downtown businesses see stronger winters. Plan your opening date and cash flow around that pattern.

Hollywood compared with neighboring markets

How DiBe works in Hollywood

We represent tenants searching for retail, restaurant, medical and industrial space, and we review build-out costs before you commit. See tenant representation in Fort Lauderdale. For investors, we handle buying and selling small hotels, mixed-use buildings and shopping centers through investment sales. For owners renovating older buildings, our project management service keeps the work on budget. Call or text 239-256-5005, or email info@diberealestate.com.

Redevelopment in downtown Hollywood and at the beach

Hollywood has used community redevelopment agency districts for years to fund improvements downtown and along the beach, including streetscapes, public spaces and incentive programs for private projects. Those efforts have helped bring new residential buildings to the downtown and new hotels and condominiums to the beach.

For developers, the questions are practical: what the zoning and land use plan allow on the parcel, what design standards apply, how parking requirements are handled downtown, and whether any incentive programs are available and on what terms. For tenants and investors, redevelopment means new neighbors and new competition, along with more residents and visitors. We follow the city’s plans closely but always confirm current programs and rules directly with city staff and a land use attorney, since they change.

Getting to Hollywood: roads, rail and the airport

Hollywood sits between Fort Lauderdale and Miami-Dade, which is one of its strongest selling points for businesses that serve both counties. I-95 runs through the middle of the city, and Florida’s Turnpike and I-75 are reachable to the west. Fort Lauderdale-Hollywood International Airport is just north, which matters for companies with frequent travel and for hotels that serve airline crews and travelers.

Tri-Rail has a Hollywood station near I-95, and Brightline’s Aventura station is a short drive south. Downtown Hollywood is walkable, though most customers still arrive by car, and public parking garages and street parking serve the boulevard. At the beach, parking is limited and costly in season, which affects restaurants and shops along the Broadwalk.

Building out space in an older Hollywood storefront

Most tenants who sign in downtown Hollywood will build out an older space. Our advice from the construction side:

• Ask for any existing plans or permit drawings. Many older buildings have none, which means your architect starts from field measurements.
• Expect hidden conditions. Removing old finishes often reveals water damage, termite activity or outdated wiring that has to be fixed.
• Budget a contingency appropriate to the age of the building, and agree with the landlord in advance on who pays for problems found behind walls.
• Plan for accessibility. Entrances, restrooms and counters may need to be updated as part of a permitted renovation.
• Confirm utility capacity early, especially water, sewer and electrical service for restaurants and medical uses.

We often help clients write these points into the lease so the landlord shares responsibility for conditions the tenant could not have known about.

Who leases and buys in Hollywood

Hollywood’s tenant base is broad. Downtown draws independent restaurants, bars, galleries, salons and small professional offices. The beach draws hospitality operators, seasonal retailers and food and beverage concepts aimed at visitors. The area around Memorial Regional Hospital draws physicians, therapists, labs and outpatient providers. The western corridors draw national and regional retailers, fast food, auto services and medical practices that want parking and visibility. Older industrial blocks draw contractors and service businesses that need to be close to customers in southern Broward and northern Miami-Dade.

On the buy side, we see local owner-users buying their own buildings, Northeast investors looking for small beach and downtown properties, and developers looking at corridor parcels for residential and mixed-use projects. Each of those buyers needs a different kind of analysis, and we tailor ours to the property and the plan.

Developing on Hollywood’s corridors

Older strip centers, auto lots and low-rise office buildings along Hollywood’s main roads are natural candidates for redevelopment as land values rise. The questions we work through with developers include what the current zoning and future land use designation allow, whether a land use amendment or rezoning would be needed, traffic and access from the main road, how parking requirements affect the building size, and what it will cost to relocate or buy out existing tenants. Sal’s experience as a general contractor and developer in Southwest Florida and Brooklyn helps us test a project’s numbers before you spend heavily on design. See development sites in Fort Lauderdale for more on how we approach land.