Greater Downtown Miami is projected to gain approximately 1.425 million square feet of retail space over the next 3 years according to the new “Study of Retail Market Conditions” commissioned by Miami Downtown Development Authority and released last month. Some of the key findings in the report include:
- Downtown Miami contains approximately 6.5 million square feet of retail…, with a great diversity in rents by neighborhood ranging from the high teens to over $100/SF.
- Less than half of retail spending in Greater Downtown Miami is tied to local residents, reflecting its large employment base and tourist attractions. (I found it interesting that retail spending drivers are equally split between residents, workers and visitors.)
- Approximately 1.425 Million square feet of retail are planned or under construction… reflecting a 22% increase. The 700,000 +/- square feet actively under construction within Greater Downtown accounts for approximately 40% of the countywide under construction average.
- Miami’s retail market benefits from record tourism visitation in Miami-Dade County as well as record market share. In 2014, over 30% of tourists to Miami-Dade County visited the downtown area, an all-time record.
- Retail rents… in Greater Downtown average $37 – $39/SF in late 2015, up 28% in the past two years. This rent growth is a combination of increased retail sales and traffic, coupled with higher-quality spaces being made available for lease.
- IRR Miami’s analysis of the existing state of downtown retail indicates a potential robust growth trajectory as the Greater Downtown Miami area becomes a larger part of the tourist experience, and the residential critical mass continues to evolve.
Read the full report here: 2016-01-01 MDDA_IRR_RetailReport