The proposed American Dream Mall in Miami Photo: Triple Five (via Miami Herald )
Miami’s commercial property market continues to outperform the US average, as vacancy rates rank among the lowest in Florida.
Miami’s vacancy rates for office (14.9 per cent), industrial (5.3 per cent), retail (6.3 per cent), and multifamily (4.4 per cent) are the lowest among major cities in Florida, according to a May 2015 Commercial Outlook report from the National Association of Realtors. Each of Miami’s commercial sectors are performing better than the US average, except for multifamily, which is 0.1 per cent lower. Indeed, the national vacancy rates in May were 15.6 per cent for office, 8.4 per cent for industrial, 9.6 per cent for retail and 4.3 per cent for multifamily, according to NAR and Reis.
This high rate of take-up is leading to more local investment from global companies and leaders who want to live, work, and play in a world-class city, says the Miami Association of Realtors.
Miami’s 14.9 per cent office vacancy rate in May ranks as the 21st lowest out of 82 major US cities. New York leads the nation at 8.9 per cent.
South Florida’s growing, multilingual workforce is one reason for its low office vacancy rate. Miami-Dade County added 33,700 jobs across several sectors from April 2014 to April 2015, a 3.1 per cent increase, according to job numbers released May 22. Miami had the third-largest job gain in Florida behind Orlando and Tampa.
Miami’s industrial vacancy rate of 5.3 percent is the third-lowest in the nation; only Orange County (Calif.) and Los Angeles performed better than Miami in the industrial sector in May.
Miami International Airport and PortMiami are two of South Florida’s international trade successes. Miami International ranks as the top airport in the US for international freight, and the ninth-best airport for foreign cargo in the world.
Miami’s tourism and multilingual employment base are just two reasons why major developers are bringing new retail ventures to the region. Earlier this year, the company that owns and runs the largest mall in America announced plans to build the nation’s largest shopping mall in northwestern Miami-Dade, a roughly 200-acre entertainment complex with submarines, a Legoland, sea lions and an artificial ski slope. American Dream Miami is projected to cost as much as $4 billion to build.
Brickell City Centre and The Mall at Miami World Center are two other significant Miami retail ventures. At Brickell City Centre, Hong Kong developer Swire Properties will deliver 565,000 square feet of retail space anchored by Saks Fifth Avenue by late 2016. The Mall at Miami Worldcenter, in the heart of downtown, will complete 765,000 square feet of restaurant, retail and entertainment space by 2017.
“Miami has become a launching pad for new industries,” comments Barbara Tria, the 2015 MIAMI Commercial President. “Technology companies and other businesses are moving to Miami largely because of the region’s top-tier cultural offerings, outdoor lifestyle, and affordability compared to other major cities around the globe.”