The Miami/Dade County retail market is already showing positive signs of recovery. Strong population growth and the return of tourism indicate a bubbling retail recovery, and according to the first quarter market report from Colliers, the metrics support the theory. The vacancy rate remained flat in the first months of the year, while rents actually increased.

The market vacancy rate landed at 4.6% at the end of the first quarter. This is flat from the previous quarter and only 30 basis points below the pre-pandemic vacancy rate. Rental rates increased an impressive 1.9% quarter-over-quarter to $36.99. While an improvement, rates have not returned to the pre-pandemic rate of $38.35. Rental rates increased in spite of new construction deliveries totaling 91,916 square feet—a total of three buildings all under 40,000 square feet and a construction pipeline totaling 2 million square feet.

Miami has been a hotspot for new retail development—largely due to the population growth, tourism and stable metrics. According to a report from Marcus & Millichap, Miami is set to deliver 1.5 million square feet of new retail space, the highest in the market since 2017. Mall redevelopment and mixed-use projects are driving the development activity, and much of it wrapped up in three projects. One of the largest projects in the market is the Miami Worldcenter, a mixed-use development with residential hospitality and 300,000 square feet of retail space.