Miami Shopping Centers Market Report

Miami Retail Market Overview

The influx of high-net-worth individuals and recovering international travel are boosting Miami’s resident and tourism spending. However, a lack of available retail space is slowing leasing activity, with 2.7 million SF leased in the past year, down from 3.5 million SF in late 2021. The availability rate hit a low of 3.8% in Q2 2024, driven by continued tenant demand despite limited space. New construction remains limited, with just 740,000 SF underway, 75,000 of which is still available. Rent growth has exceeded 19% over the past three years, outpacing national trends. Though transaction volumes have halved compared to peak years, demand remains strong, signaling potential rent growth and pricing stability going forward.

Miami Retail Rent

At $48/SF, Miami leads Florida in retail rents, with Palm Beach and Fort Lauderdale trailing behind. Rent growth has slowed to 4.1% as of Q2 2024, below the five-year average but still outpacing the national rate of 2.6%. Rents vary widely depending on space size and location, with smaller spaces averaging $48 and larger ones around $60/SF. Urban areas like Wynwood and the Miami Airport Submarket see the highest rents, while rents in West Miami and South Dade are significantly lower, ranging between $20 and $30/SF. Tenants seeking large spaces face limited options and higher costs.

Miami Economy

Miami-Dade’s population growth has resumed after two years of decline, though the county still has 24,000 fewer residents than in 2019. High inflation and rising costs of living are driving lower-income residents out, but wealthy individuals continue to relocate to the area, bringing significant new wealth. This shift has fueled a 78% increase in home prices since 2019, making homeownership less affordable for many. Despite this, strong income growth among affluent newcomers has driven a 12% rise in real retail sales through February 2024. However, retail sales growth has started to slow after reaching a peak in early 2023.

Miami Submarkets

Aventura

Aventura’s retail submarket holds a 4.8% vacancy rate, up 3.0% from last year. Over the past 12 months, 190,000 SF of space has been vacated, while rents have grown 1.3% to approximately $80/SF. Mall vacancies are at 6.8%, with 140,000 SF of negative absorption, while neighborhood centers maintain a low 1.3% vacancy rate. Rents vary across asset types, with general retail at $59/SF and malls commanding $100/SF. The submarket totals 6.3 million SF of inventory.

Brickell

Brickell’s retail vacancy rate is down to 3.1%, a 1.2% drop from last year. The area saw 27,000 SF of positive absorption, with rents at $74/SF—down 1.6% year-over-year. Mall vacancy remains tight at 0%, with 30,000 SF absorbed over the year. Rents in general retail and malls hover around $78/SF and $70/SF, respectively. The submarket has 200,000 SF under construction and 2.2 million SF in inventory.

Coconut Grove

Coconut Grove’s vacancy rate dropped to 1.5%, 1.9% lower than last year. The submarket experienced 37,000 SF of positive absorption, with rents rising 4.1% to $64/SF. No vacancies were reported in neighborhood centers, which saw 3,400 SF of positive absorption. Rents stand at $63/SF for general retail and $67/SF for malls. Coconut Grove’s retail inventory totals 1.8 million SF.

Coral Gables

Coral Gables’ retail vacancy rate fell to 1.1%, with 150,000 SF of positive absorption. The area’s rents increased 1.8% to $52/SF. General retail absorbed 150,000 SF, with no reported vacancies in malls or neighborhood centers. Coral Gables has seen significant investment, with 31 sales over three years totaling $264 million. The submarket comprises 5.5 million SF of retail space.

Downtown Miami

Downtown Miami’s retail vacancy rate rose to 16.2%, up 2.4% from last year. Despite this, the submarket saw 190,000 SF of positive absorption, and rents are holding steady around $41/SF. General retail buildings have a vacancy rate of 9.4%, while strip centers report 0% vacancy. There is 180,000 SF under construction, contributing to the 4.8 million SF total inventory.

Hialeah

Hialeah’s retail vacancy rate stands at 1.8%, up 0.6% from last year, with rents growing 5.4% to $36/SF. General retail absorbed 1,400 SF, while power centers experienced 670 SF of negative absorption. Malls remain fully occupied. Hialeah has seen strong rent growth, with a 22.4% increase over the past three years, higher than the broader Miami market.

Kendall

Kendall’s vacancy rate has decreased to 2.0%, with 300,000 SF of positive absorption over the past year. Rents have grown 4.8% to $48/SF, and 30,000 SF is currently under construction. General retail saw the highest absorption at 110,000 SF, with power centers facing 60,000 SF of negative absorption. The Kendall submarket consists of 22.9 million SF of retail space.

Miami Airport

The Miami Airport submarket reports a 2.7% vacancy rate, down slightly from last year. Rents have grown 4.9% to $46/SF, and 25,000 SF is under construction. General retail buildings absorbed 37,000 SF, while power centers saw a slight decline in occupancy. The submarket totals 14.4 million SF of retail inventory, with strong absorption trends in neighborhood centers.

Miami Gardens

Miami Gardens/Opa-Locka’s vacancy rate dropped to 1.9%, with 46,000 SF of positive absorption. Rents have surged 6.8% to $33/SF. General retail absorbed 17,000 SF, while malls saw a slight decline in occupancy. The submarket has 70,000 SF under construction, bringing the total retail inventory to 4.0 million SF.

Miami Lakes

Miami Lakes’ retail vacancy rate increased to 4.0%, with 84,000 SF of positive absorption over the past year. Rents grew 5.7%, with general retail buildings showing strong absorption at 84,000 SF. The submarket’s inventory totals 2.4 million SF, reflecting steady rent increases and high investor interest.

South Dade

South Dade’s retail market shows a tight 1.4% vacancy rate, down 0.2% year-over-year. Despite 36,000 square feet of negative absorption, rents jumped 6.8% to $36 per square foot. The submarket saw 31 sales totaling $118 million last year. Rents span from $31 to $55 per square foot, with growth ranging from 6.1% to 8.6% across asset types.

Wynwood

Wynwood’s retail scene reflects its rapid growth as an arts and dining hub. Leasing slowed to 140,000 square feet last year due to limited availability. Vacancies sit at 7.4%, below the area’s 10-year average but above Miami’s 3.1%. Rent growth hit 6.1%, moderating from 2022’s 10.1% peak. New supply of 55,000 square feet is expected to keep vacancies elevated relative to the broader market.