Florida's Retail Sales Growth Outpaces National Average

Florida continues to dominate in the retail sector as more Americans migrate to the state. Currently, it has a multitude of strong fundamentals, as revealed in a recent report by Colliers.

For example, retail vacancies in The Sunshine State are at 3.2 percent, the lowest point since 2007.

When it comes to total transaction volume, Florida generated about $3.24 billion in sales in the first six months of 2024, up 35.8 percent year-over-year.

“Over the past decade, Florida’s retail sales growth has consistently outpaced the national average,” Colliers wrote.

Miami has seen the biggest explosion in year-over-year sales growth at 209 percent, with volume hitting $788 million. Palm Beach and Broward both surged over 100 percent. Not every region experienced strong sales  though. Tampa and Orlando’s retail sales dropped 19 percent and 21 percent, respectively.

Also, Florida has exceeded the country’s average in retail asking rents. Over the past 10 years, the state has achieved a 1.01 percent compound annual growth in the category versus the national average of 0.75 percent.

Overall in the first six months, Florida accounted for 21 percent of the nation’s retail supply. But it certainly isn’t going to waste, as net absorption was positive at over 3.6 million square feet. The state hosted nearly 1.3 billion square feet of retail inventory in the first half.

Colliers also released some trends on behaviors and demographics, relating to consumer spending in Florida. The average median household income in the state is $74,715.

Florida residents spend most of their money per year on food for home, which averages out to $6,885 per year for each household. Almost another half of that amount is forfeited on food away from home, which comes out to $3,706. That does not include alcoholic beverages, averaging $609 per year for the average household. The entertainment & recreational activities category is the second highest expenditure, clocking in at $3,821.

But one thing is clear – Americans are attracted to Florida’s lifestyle – whether that’s for the warm climate or avoiding state income tax. According to Colliers, 1,000 individuals move to Florida every day. In 2023, the state ranked first in domestic and second in international migration.