Miami Retail Market Report
Inflow of Consumers and Limited Available Stock
Propel Retail Construction Activity in Miami
Tourism tailwinds should benefit retailers. Retail vacancy was at 3.4 percent entering the second quarter, tied with Tampa for the second-lowest rate among major Florida markets. Consistent population growth and strong tourism continue to attract new retailers to the metro, and have underpinned consumer spending amid widespread inflation and elevated borrowing costs. In fact, local retail sales over the past year ending in March were roughly 30 percent above the pre-pandemic level. Areas like the Biscayne Corridor, Brickell, Coconut Grove, Coral Gables and Coral Way have observed robust space demand, as each submarket recorded vacancy declines of at least 100 basis points during this span. With an expected boost in visitation from the recovering cruise industry and international tourism this year, retail fundamentals are expected to remain tight by historical standards for the foreseeable future.