Q1 2023 Retail Space Report: Miami-Dade County, FL
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Miami-Dade County, among other things, is known for its vibrant and colorful street art scene featuring unique and eye-catching murals and installations throughout.
In 2023, Miami-Dade County saw a population growth rate of about 0.75% as new residential and commercial tenants enter the market.
In Q1 2023, Miami-Dade County’s retail space saw positive absorption, rising vacancy rates, and slight declines in average rents as the sector continues to recover.
General Area Overview & Demographics
Miami-Dade County is one of the most populous counties in Florida, with a population of over 2.7 million people. Located on the southeastern coast of the state, Miami-Dade County is home to several cities, including Miami, Miami Beach, Coral Gables, and Homestead.
The county covers an area of approximately 2,400 square miles, which includes a mix of urban areas, suburban neighborhoods, and rural communities.
The economy of Miami-Dade County is one of the largest and most diverse in the state of Florida. The area’s strategic location as a gateway to Latin America and the Caribbean has made it a major center for international trade and commerce, with the Port of Miami being one of the busiest container ports in the country.
The tourism industry is also a significant contributor to the local economy, with millions of visitors each year attracted to the area’s beaches, nightlife, and cultural offerings.
Major Industries and Culture Found in Miami-Dade County
Other major industries in Miami-Dade County include finance, healthcare, and technology, with a growing startup scene and a number of co-working spaces and innovation hubs popping up throughout the area. Overall, Miami-Dade County’s economy is thriving and continues to attract businesses and entrepreneurs from all over the world.
Miami-Dade County is known for its vibrant culture, which is heavily influenced by its Latin American roots. The county is home to a thriving arts scene, with numerous galleries, museums, and performance venues.
Some of the most popular cultural attractions in the area include the Perez Art Museum, the Frost Museum of Science, and the Adrienne Arsht Center for the Performing Arts.
In addition to its cultural offerings, Miami-Dade County is also known for its beautiful beaches and outdoor activities. The county is home to several popular beach destinations, including South Beach, Miami Beach, and Key Biscayne.
Other popular outdoor attractions in the area include the Everglades National Park, Biscayne National Park, and Oleta River State Park.
Summary of Miami-Dade County Retail Space Performance in Q1 2023
Vacancies for Miami-Dade County retail space were at 3.3% in Q1 2023. Vacancies were highest in Downtown Miami at 16.7%, while Coral Way saw the lowest at 0.7%.
Retail absorption in the county was positive at 2,100 square feet.
What are retail space rents like in Miami-Dade County?
The direct asking lease rate averaged $43.89 per square foot for Miami-Dade County retail space in Q1 2023.
The Brickell submarket saw the highest average rent at $74.60 per square foot; the Hialeah Gardens submarket saw the lowest at $23.30 per square foot.
Purchase & Leasing Activity
The sales price for Miami-Dade County retail space averaged $375 per square foot in Q1 2023. Retail sales in the county have continued to decline over the last few quarters.
Despite the drop in sales activity, leasing activity for the county’s retail space remained strong in Q1 2023.
Notable Retail Space Deals in Miami-Dade County in Q1 2023
There were several notable deals for Miami-Dade County retail space that took place in Q1 2023:
- At Home leased 114,000 square feet at Kendale Lakes Plaza.
- Club Studio leased 38,400 square feet at Grove Central.
- AIR Communities purchased 233,325 square feet at Shoppes at West Avenue for $26.9 million at $115 per square foot.
- Fountainbleau Development bought 17,000 square feet at Story Nightclub for $23 million at $1,353 per square foot.
These are select examples among other activity.
New Retail Space Development Activity in Miami-Dade County in Q1 2023
New retail deliveries for the quarter totaled 137,291 square feet. The South Dade submarket saw the highest number of new deliveries at 89,101 square feet.
By the end of Q1 2023, about 3.1 million square feet of new retail space were under construction. Downtown Miami saw the highest number under construction, with Coral Gables close behind.
Market Forecast for Miami-Dade County’s Retail Space Market
Retail vacancies are projected to remain stable in the county as 2023 progresses.
Net absorption and asking rents are projected to increase, while new construction square footage is expected to decrease throughout the remainder of 2023.
Takeaways for Retail Space Investors
Miami-Dade County continues to experience an influx of new retailers: Big retailers are looking to resize their big box stores to smaller spaces to experiment with new ways to draw in customers. Investors should consider these factors when looking to acquire new space if looking to sell or lease to larger retailers.
Do your research, stay diligent, and happy investing.
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