Miami’s retail market is experiencing remarkable growth as Michelin-starred chefs and high-end retailers flock to the city, following the influx of customers from places like New York, California, and Chicago.
Trendy neighborhoods like Brickell and Miami Beach have seen significant growth in asking rents, surpassing $70 per square foot, with some highly desirable locations commanding even higher prices. The rise in Miami’s retail scene is attributed to increased demand from restaurants and luxury retailers, with flagship stores becoming more prevalent in the city.
The food and beverage sector is a major driver of demand for retail space, with Miami boasting 12 restaurants with Michelin stars. The city’s vibrant food scene and the influx of new residents are attracting star chefs and creating expansion opportunities. Many new upscale restaurants cater to the wealthy newcomers who moved to South Florida during the pandemic.
The strong performance of Miami’s retail sector is mirrored throughout the region, with combined vacancy in Fort Lauderdale, West Palm Beach, and Miami at a low of 3%. Developers are responding to the demand by constructing more retail space, with over 3.5 million square feet of retail space under construction in South Florida.
Miami continues to be an attractive destination for retail tenants looking to expand their presence throughout the country.