Even though the US economy has been steadily improving, many foreign real estate investors have shied away from retail developments. However, Miami area retail experts say the South Florida market is the best investment in the country, with vacancy rates at 3.1 percent, lower than Manhattan’s 3.7 percent.
While the average rent is over double the national average of $15.50 per square foot, South Florida’s average asking price of $32 per square foot pales in comparison to Manhattan ($88/sq ft).
Even though the rents may not seem lucrative when compared to other major US cities, retailers flock to South Florida because retail sales per square foot are the highest in the country at $7.60.
The influx of retirees and foreign tourists allow Florida retail to sell at a steady pace regardless of market conditions.
With plans to build the largest shopping and entertainment complex on 200 acres in Miami-Dade, the opportunities to invest in new retail developments as well as revitalization projects for outdated shopping centers in affluent areas are numerous.
Even though the Federal Reserve’s recent hold on interest rates keeps the market strong for native investments, US investors aren’t the only ones getting in on the South Florida retail market. The Real Deal reports Chinese investors are backing several projects in Miami.
In addition to Asian investment, many Turkish buyers are also turning to Miami to find more stable investments. With height restrictions lifted on Miami’s North Beach, there are even more opportunities for luxury real estate, which will bring along with it high-end retail.
The Florida market has a lot to offer, the international appeal, subtropical climate, and world class amenities make it one of the best places to invest. From pristine beaches to exclusive nightclubs, South Florida has something for everyone.