Commercial Real Estate in Miami

Overview of Commercial Real Estate in Miami

The 8th largest metropolitan area in in the United States, Miami is a cultural and economic force unlike any other city along the southern coast of the U.S. With a metropolitan population exceeding 5.5 million, Miami is a major tourist destination within the United States.

With an endless array of constantly blending neighborhoods surrounding the city’s core, Miami provides a limitless playground as well as plenty of opportunities for young families to establish their base and make the city their home.

More than 500 vacancies for commercial real estate are currently listed in Miami and the surrounding area, but very few spaces for large-scale needs are available. The median size available is a mere 310 square feet and the median rate exceeds $50 per square feet/year, so companies looking to pinch pennies without sacrificing available space should consider their options elsewhere. However, smaller spaces for retail, offices, and other commercial real estate types are plentiful.

Economy of Miami

The citizens of Miami enjoy luxury and relaxation on a scale unlike the majority of the United States. Sparkling beaches, world-class accommodations, and excellent nightlife are synonymous with Miami living. However, the city’s median household income levels are well below Florida's state average of $45,000, sitting at a surprisingly low $31,642. There are several possible causes for this low rate of income, with the first being that many working professionals choose to live outside of the bustling downtown corridor and settle down in the more affluent suburbs, such as Coral Gables, Key Biscayne, Miami Beach, or Palmetto Bay, where crime is lower and schools are higher quality.

Despite this, Miami was classified as an Alpha-level world city in the World Cities Study Group’s analysis, citing its impact on the global economic network and its platform on the world’s trading stage. A major center for finance and commerce, Miami’s annual GMP sits at a staggering $257 billion and currently ranks 20th among the highest grossing cities.

International companies headquartered within the Miami area include Burger King, Ryder Systems, U.S. Century Bank, Alienware, Perry Ellis International, Brightstar Corporation, and nearly a dozen cruise lines. Due to the city’s proximity and association to Latin American culture, the city also serves as the Latin American operational headquarters for AIG, American Airlines, Disney, Exxon, Fedex, Microsoft, Oracle, Sony, Visa, and Walmart.

Trends of Miami

As with many cities its size, Miami has experienced an explosion of new development and construction throughout the downtown region and beyond, expanding the number of projects in dramatic fashion in the last few years. According to the Miami Downtown Development Authority, the city currently has almost 200 major construction projects underway (or recently completed). Between these projects, over 32,000 condos, 16,000 apartments, and 12 million square feet of retail and office space are coming online in the next few years.

These projects aim to beautify the city, provide more mixed-use spaces, transform the city’s skyline, and accomodate an influx of new, young professionals flocking to the city for work and play.