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Market Report

Miami Retail Market Report

2023 Investment Forecast

Robust Net In-Migration and Tourism Resurgence Elevate
Investor and Tenant Demand for Miami Retail

Sector outlook remains bright. Since the onset of the health crisis, Miami-Dade has gained nearly 50,000 new residents. This surge in population occurred alongside historic levels of domestic tourism, as evidenced by passenger arrivals at Miami International Airport reaching a record high in 2022. These factors spearheaded local consumer spending, which greatly benefited retail fundamentals. Entering this year, availability was sitting 80 basis points below the pre-pandemic rate. In addition, strong household formation is spurring leasing activity from grocers, gyms, and home and decor retailers. Medical tenants that have historically utilized offices are also taking advantage of household growth as well, leasing retail space in neighborhood shopping centers to provide health care access closer to residential clusters. Although a slowing economy may present short-term headwinds for the local retail sector, market conditions will remain tight. Over 85 percent of the 2023 pipeline was pre-leased entering this year, limiting upward supply pressure. Furthermore, net in-migration in 2023 is expected to exceed last year’s total, which may boost leasing activity as the region’s consumer base continues to broaden.
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