Commercial Real Estate News / General CRE / Orlando, FL vs. Miami, FL: Which Is Better for Businesses?

Orlando, FL vs. Miami, FL: Which Is Better for Businesses?

Published: 05-16-22 Category: General CRE

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To succeed as a small business owner, you need to know where your business will thrive.

Competition among businesses within your industry, available resources, and growth potential are all important factors when it comes to determining if one city is better than another for starting and growing your business.

The state of Florida is home to more than 21.7 million residents, with the majority of them residing in two of its most populous cities: Miami and Orlando.

With both locations offering a unique set of benefits that can help businesses thrive, choosing one city over another can be challenging.

Both Orlando and Miami offer many advantages when it comes to opening or expanding a business but not every city is right for you and your company.

Here’s a look at how these two business-friendly communities stack up against each other.

Population Comparisons

Currently, the Miami metropolitan area has a population of 483,385 residents, whereas the Orlando metropolitan area has 292,059 residents.

Both have a substantial number of consumers and potential business clients in their markets.

Here are some other key population statistics about Orlando and Miami to know.

Average Demographics

In Orlando, the population demographics in 2022 were:

Median age is 33.3 years old.
51.6% of the population is female.
21.7% of the population is between the ages of 25 to 34.
38.1% of the population identifies as White.
25.1% of the population identifies as Black.
29.7% of the population identifies as Hispanic.

In Miami, the population demographics in 2022 were:

Median age is 40 years old.
50.6% of the population is female.
16.5% of the population is between the ages of 25 to 34.
10.5% of the population identifies as White.
15.8% of the population identifies as Black.
72.2% of the population identifies as Hispanic.

Orlando’s proximity to major theme parks such as Universal Studios Florida and the Walt Disney World Resort are huge drivers of tourism.

In 2019, before the COVID-19 impacted its attendance, 75.7 million people visited the city of Orlando.

Average Household Income

The average household income in Orlando is $75,669.

The median household income in Miami is $44,268.

Commercial Real Estate Comparisons

Property values have also increased considerably over the past decade in Orlando and Miami. Miami’s unique location on the south Florida coast makes it extremely accessible to ocean-based businesses and tourist attractions.

This city is a major shipping port and offers direct access to the Atlantic Ocean and the Gulf of Mexico.

Orlando’s location, on the other hand, is ideal for both tourists and small businesses seeking retail space, including luxury businesses, specialty stores, and high-end franchises.

Average Commercial Rents

The average cost of commercial rent in Orlando is:

Class A Office Space: $26.95 per square foot.
Class B Office Space: $21.92 per square foot.
Class C Office Space: $19.20 per square foot.

The average cost of commercial rent in Miami is:

Class A Office Space: $47.53 per square foot.
Class B Office Space: $28.86 per square foot.
Class C Office Space: $27.16 per square foot.

It is much more expensive to lease commercial real estate in Miami than it is to lease commercial real estate in Orlando.

Commercial Vacancy Rates

The commercial vacancy rate in Orlando is 11.39%.

The commercial vacancy rate in Miami is 14.37%.

Generally, tourism in Orlando ensures a high occupancy rate for the city.

CRE Market Outlook for 2022

Looking at the CRE market outlook for 2022, both locations offer small businesses a great opportunity for success via their growing populations and potential clientele.

Based on their population increases, Miami and Orlando ranked in the top 25 cities in the U.S. with large projected gains in employment between 2022 and 2025.

Commercial Activity Comparisons

In each of the commercial real estate sectors, both Orlando and Miami are strong. Here is some additional information about various commercial activity sectors in these cities:

Retail: In-Person Shopping

In the retail sector, Orlando is home to numerous big attractions and retail businesses, including several luxury shopping centers.

In Miami, tourists can find a huge selection of retail stores and boutiques both inside and outside of high-end tourist destinations.

Industrial: Warehouse Storage Activity

Orlando and Miami both have a thriving warehousing sector.

In fact, the industrial real estate market just outside of Orlando is booming due to several major commercial developments and manufacturing facilities.

Office: Office Space Activity

Local commercial office space is in high demand because of the many large corporations with headquarters in both cities.

Miami is home to more office space than Orlando.

Orlando isn’t just a popular tourist destination: it has also become a regional hub for businesses.

Many large companies maintain locations here. As a result and due to overdevelopment, there are fewer options for office space here.

Multifamily: Vacancy Rates & Leasing Activity

In Orlando and Miami, vacancy rates for multifamily housing are very low.

That’s because both cities are home to colleges and universities, seasonal employment, and large medical centers.

Deciding Which Location Is Right for Your Business

When opening a business in any location, it is important to research the local market conditions, including the number of businesses, rates of unemployment, the amount of available capital, the availability of labor, and the strength of the various industries present in the market.

Orlando will likely remain the most popular travel destination in the state of Florida. Miami is well-known for its large Hispanic demographic.

While there are many benefits to running a business in Orlando or Miami, you must keep in mind that not every business is a good fit for these cities.

You should determine if either location would be the best place for your business based on research. Consider the size of your business, where your customers are, and how you plan to reach them.

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