Miami, FL Economic Overview
The beautiful city of Miami is in Southeast Florida and has a population of 430,332, according to the U.S. Census Bureau 2014 data. Known as the “Cruise Capital of the World” the Port of Miami is the busiest port in passenger traffic and cruise lines.
Miami is considered one of America’s “Cleanest Cities” by Forbes, and it is a major tourism city, which ranked #2 in tourism after New York City. Even with all the hits the City’s economy sustained during the recession, Miami is still one of the most desirable places to travel, in the U.S. As the market is steadily recovering after the housing crisis, the Miami commercial real estate market can only go up from here.
Major industries in Miami include tourism, finance, and international trade. The Port of Miami accounts for 176,000 jobs and, in 2011, had an annual economic impact of $18 billion. With 38 million tourists coming into Miami annually, the industry generates $17.1 billion for the city. There is a considerably high population of Latinos in Miami, making Spanish Media a very successful industry niche here. Major Spanish language media outlets in Miami include Univisión, Telemuno, and UniMÁS which are not only headquartered in Miami, but also have their production studios in the city. Other major music recording centers include Sony Music Latin and Universal Music Latin Entertainment.
Miami, FL Commercial Real Estate Market
As the market begins to recover in the years following the recession, Miami is starting to focus on commercial development. In 2016, the New York Times observed that Miami is emerging from the recession as residential and commercial developments grow. Commercial growth combined with employment growth and economic stability, Miami is catching the attention of developers and investors.
South: South Miami is a highly desirable location and it brings in a significant amount of the tourist traffic that comes to the region. When the economy of Miami started to show signs of recovering from the recession, developers looked to the south first because of its great views and beautiful beaches. There is a retail-driven mindset for developers in this area, with the intent of revitalizing the region. The Shops at Sunset Place commanded $110 million in the most recent sale and the buyers’ plan is to restore the aging outdoor mall. There are several other development plans similar to this which is a sign of good things to come in the near future for Miami.
North Miami: with the cost of living in South Miami skyrocketing, developers are looking north in an effort to find affordable development space. According to the New York Times, along the 24-mile-long coastal stretch, developers are planning 83 new residential towers, with roughly 7,900 units. As development in the south grows and becomes more expensive, the north will attract development as well, due to proximity and current affordability.
Downtown Miami: Located on the eastern side of the city, Downtown Miami is the central business district of South Florida and the largest, most influential business district in the state. Brickell in renowned for its skyline and rapid development. Downtown is home to several domestic and international banks, financial headquarters, and tourist attractions, while still maintaining a large residential population. The New York Times estimates that over the next five years, businesses in Miami are expected to add almost 20,000 office jobs and some 385,000 square feet of new office space is under construction. Commercial real estate is in high demand in all the city’s submarkets, including areas such as Wynwood, Allapattah and Miami Shores.
Miami, FL Office Rental Rates ($/SF/year)
Data provided by Yardi Matrix, for properties larger than 50K SF.
Miami, FL Office Sales
Data provided by Yardi Matrix, for properties larger than 50K SF, which sold at over $5M.
Miami, FL Commercial Inventory Breakdown
Total: 56,137,436 SF
By square footage range:
- 50k to 100k SF: 8,579,649 SF / 15.28% of total office
- 100k to 500k SF: 25,251,050 SF / 44.98% of total office
- 500k to 1M SF: 13,705,475 SF / 24.41% of total office
- > 1M SF: 8,601,262 SF / 15.32% of total office
- Class A+: 7,702,558 SF / 13.72% of total office
- Class A: 21,077,208 SF / 37.55% of total office
- Class B: 10,691,063 SF / 19.04% of total office
- Class C: 523,513 SF / 0.93% of total office
Total: 24,757,427 SF
By square footage range:
- 50k to 100k SF: 7,566,807 SF / 30.56% of total industrial
- 100k to 500k SF: 14,305,334 SF / 57.78% of total industrial
- 500k to 1M SF: 2,885,286 SF / 11.65% of total industrial
- Class A: 3,137,088 SF / 12.67% of total industrial
- Class B: 15,949,745 SF / 64.42% of total industrial
- Class C: 5,009,576 SF / 20.23% of total industrial
Office Spaces with Retail
Total: 32,627,702 SF
By square footage range:
- 50k to 100k SF: 8,268,121 SF / 25.34% of total office with retail
- 100k to 500k SF: 16,594,997 SF / 50.86% of total office with retail
- 500k to 1M SF: 5,274,170 SF / 16.16% of total office with retail
- > 1M SF: 2,490,414 SF / 7.63% of total office with retail
Employment in Miami, FL
Listed below are the top 5 professions and the percentage of Miami residents that they employ:
- Sales, Office, Administrative Support (22.63%)
- Management, Business, Finance (17.87%)
- Food Preparation, Serving (13.83%)
- Building Maintenance (6.77%)
- Production, Transportation, Material Moving (5.68)
The unemployment rate in Miami is 5.2%. which is roughly on par with the U.S. unemployment rate. Top employers in Miami include Publix Super Market, Baptist Health South Florida, The University of Miami, American Airlines, and Precision Response Corporation.
Education in Miami, FL
Approximately 73% of residents in Miami have a high school diploma or equivalent and 24% have a bachelor’s degree or higher. There are 49 colleges within 50 miles of Miami, among which are are The University of Miami, Al Miami International University of Art and Design, Miami Dade College, Miami Ad School, and Talmudic College of Florida.
Commuting Time in Miami, FL
The average commute time in Miami is 25 minutes, slightly above the U.S. average of 24.8 minutes. Approximately 53.01% of commuters travel by single car and 6.92% of commuters carpool. Roughly 10.41% of commuters use public transportation and 5.08% choose to bike. What is most notable here is that 12.92% of commuters walk, making Miami one of the country’s most walkable places to live.
- Total Population454,279
- Male Population(49.5 %) 224,810
- Female Population(50.5 %) 229,469
- Median Age40.10
- Average Household Income$68,100
- Median Household Income$39,049
- Median Income Under 25$32,150
- Median Income 25-44$51,718
- Median Income 45-64$42,637
- Median Income Over 65$19,602
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