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Florida Economic and Demographic Info & Stats

Florida is currently enjoying a major influx of out-of-state immigration from other states, especially New York. This population increase is creating a healthy, consistent stimulus to the economy, which is comprised primarily of the following sectors:

  1. Trade and Transportation
  2. Professional / Business Services
  3. Education and Health Care
  4. Government
  5. Leisure, Tourism, and Hospitality

Florida Statistics

Capital: Tallahassee
Total Area: 71,404 square miles
GDP: $1.2 trillion
Population: 21.5 million
College Educated: 40.6%
Median Income: $29,750

South Florida Retail Real Estate Summary: Leases, Sales & Construction Projects

 

Market Snapshot for South Florida Retail Real Estate

Here’s our quarterly summary South Florida commercial real estate focusing on Miami retail real estate. The report includes statistical highlights (cap rates, vacancy rates, absorption, etc), the latest retail transactions, signed leases, retail trends, and current market activity. The retail real estate report is updated by our CRE experts who focus on the retail real estate sector. The analysis is derived and compiled from leasing data, transaction reports, and under construction projects in order to better understand the overall health of the Miami retail real estate market.

Before we dive into the specific statistics for Miami’s retail market in Q4 2022, let’s take a look at the overall capital markets figures to give some context to the region’s retail real estate sector.

Miami Retail Capital Markets Statistics

Total Asset Value: $62.9B
12-Month Sales Volume: $2.3B
Average Market Cap Rate: 5.4%
12-Month Market Sale Price Change / SF: +7.8%

Miami Retail Real Estate Sales Volume by Buyer Type & Origin (Past 12 Months)

Below are the buyer types and their origins, i.e.: local, national, or international investors of retail properties in Miami.

Buyer Type:

Private: 71%
User: 11%
Institutional: 6%
Private Equity: 3%
REIT / Public: 9%

Buyer Origin:

Local: 37%
National: 60%
Foreign: 3%

Miami Retail Real Estate Asset Value by Owner Type & Origin (Past 12 Months)

Below are the owner types and the origins of retail property owners in Miami broken down by their percentage of representation.

Owner Type:

Private: 59%
User: 21%
REIT / Public: 9%
Institutional: 7%
Private Equity: 4%

Owner Origin:

Local: 56%
National: 40%
Foreign: 4%

Miami Retail Real Estate Statistics: Leases, Sales, and Projects Under Construction – Q4 2022

In Q4 2022 the Miami retail market’s vacancy rate dropped a fraction of a percent to 3.0% in contrast to Q3 2022 at 3.2%. The asking rate per sq. foot moved down slightly to an average of $44.44, which is -$0.44 per sq. foot compared to Q3 2022’s average asking rate of $44.88 / sq. foot. Meanwhile, the absorption rate went up from -21,684 in Q3 2022 to 6,148, which represents a +27,832 SF change quarter-to-quarter.

Absorbtion (Sq Ft)

%

Vacancy Rate

Asking Rate PSF

The Miami market is firing on all cylinders with an abundance of capital seeking limited inventory that is driving property prices and rents higher. Rent growth has been significant, and transactions that are currently under contract or have recently traded are setting record numbers, in all asset classes.

– Marcos Puente, Director of Acquisitions, MMG Equity Partners