Miami’s Commercial Real Estate Renaissance: Market Insights for 2024
The Commercial real estate market Miami is showing remarkable resilience in 2024, despite national headwinds. For investors and businesses looking to understand current market dynamics:
- Total commercial sales volume: $2.4 billion in first half of 2024 (down 33.3% YoY)
- Top performing sectors: Retail (+63.4% to $484M) and Office (+11% to $348M)
- Challenged sectors: Multifamily (-51.8% to $248M) and Industrial (-40.9% to $394M)
- Vacancy rates: Office (9.2%), Industrial (4.5%), Retail (3.1%)
- Price per square foot growth: Retail (+46.3%), Industrial (+11.3%), Office (+4.1%)
Miami continues to rank as the #2 most attractive market for commercial real estate investment in the U.S. according to CBRE’s 2025 Investor Intentions Survey. This appeal stems from robust population growth, with Miami-Dade County gaining a net household income of $2.2 billion in 2022 due to migration.
While transaction counts have decreased across all sectors, median sale prices per square foot have increased substantially, particularly in retail. This reflects investors’ willingness to pay premium prices for quality assets in prime locations, even as higher interest rates have reduced overall deal flow.
I’m Brett Sherman, a commercial real estate advisor specializing in the Commercial real estate market Miami with over a decade of experience helping investors steer market cycles through data-driven analytics.
Explore more about Commercial real estate market Miami:
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Understanding the Commercial Real Estate Market Miami: 2024 Mid-Year Snapshot
Miami’s commercial real estate landscape in mid-2024 continues to shine even as other markets struggle. Our local population growth is outpacing most major U.S. metros, with employment growing at 2.8% – nearly double the national rate of 1.5%.
Yes, overall commercial real estate sales volume in Miami-Dade County has dipped to $2.4 billion in the first half of 2024 – a 33.3% year-over-year decline. But behind this figure lies a much more nuanced story of sector-by-sector performance and continued pricing strength in Miami’s most desirable locations.
Cap rates tell an interesting story too. They’ve compressed across most sectors compared to 2021, with multifamily leading at 4.4% (down from 5.1%), industrial at 5.1% (down from 5.8%), retail at 5.4% (down from 5.9%), and office at 5.8% (down from 6.3%).
For real-time insights into this dynamic market, tools like the AVANT dashboard have become essential for investors looking to steer Miami’s commercial landscape with precision.
Why Miami Outperformed Gateway Peers
What’s making Miami shine while traditional powerhouses struggle? The secret sauce has three main ingredients:
First, sustained in-migration has transformed our market. Miami-Dade County gained a net household income of $2.2 billion in 2022 – a massive jump from $500 million in 2019.
Second, limited new supply has kept our market balanced. Unlike cities that overbuilt before the pandemic, Miami’s development pipeline was relatively controlled.
Third, the Sun Belt appeal just keeps growing stronger. Florida’s business-friendly environment, tax advantages, and quality of life continue attracting both companies and high-net-worth individuals.
Key 2024 Headline Numbers Investors Must Know
If you’re evaluating the Commercial real estate market Miami in 2024, these critical metrics deserve your attention:
Core commercial sales volume is down 18.2% year-over-year to $1.5 billion in H1 2024. Meanwhile, office vacancy sits at just 9.2% in Q2 2024 – significantly below national averages. Industrial vacancy remains tight at 4.5%, while retail vacancy is an impressive 3.1%.
The multifamily sector shows a vacancy rate of 11.1%, with asking rents averaging $1,586/month. Office asking rents continue to climb, reaching $54.29 per square foot – up 9.5% year-over-year compared to just 1.4% nationally.
Sales & Capital Markets Trends by Asset Class
The Commercial real estate market Miami tells a compelling story of contrasts in 2024. While overall transaction volume has cooled, certain sectors are heating up in surprising ways.
Retail and office properties are gaining momentum (with sales volume increases of 63.4% and 11% respectively), while multifamily and industrial have taken a breather (down 51.8% and 40.9%).
Despite fewer transactions across all sectors, median prices per square foot have increased substantially – investors are being more selective but willing to pay premium prices for quality assets in prime locations.
Office Capital Flows Shift
Miami’s office market is defying national trends. While many gateway cities struggle with remote work fallout, Miami’s office sales volume rose 11.0% to $348 million in the first half of 2024.
The median price per square foot jumped to $427 in Q2, a 4.1% year-over-year increase. Class A office space now commands average rents of $60.53 per square foot.
What’s behind this strength? Financial firms from New York and Chicago establishing Miami beachheads, tech companies expanding, and professional services firms upgrading their spaces.
This flight-to-quality is creating a two-tier market where premium buildings thrive while older, less amenitized properties face challenges.
Retail’s Resurgence Amid Tourism Boom
Retail property sales volume surged an impressive 63.4% to $484 million in the first half of 2024, with median sales price per square foot shooting up 46.3% to $461.
This renaissance stems from Miami’s tourism roaring back stronger than ever. Luxury retailers are competing fiercely for flagship locations, driving rents to $100+ per square foot in prime spots.
The experiential retail trend is also in full swing, particularly evident in areas like Lincoln Road and Brickell City Centre.
Industrial Demand Normalizes from 2023 Highs
After a record-shattering 2023, industrial properties are taking a breather, with sales volume declining 40.9% to $394 million in the first half of 2024.
Median sales prices per square foot for industrial buildings increased 11.3% to $295, showing continued strong pricing despite fewer deals. With vacancy rates at just 4.5% and asking rents holding steady at $18 per square foot, the sector remains fundamentally sound.
Multifamily Value-Add Sweet Spot
Multifamily has experienced the sharpest volume decline, with sales dropping 51.8% to $248 million in the first half of 2024.
A fascinating trend has emerged: 86% of multifamily acquisitions in Q2 2024 targeted buildings constructed before 1980. This reveals a strategic pivot toward value-add opportunities, where investors can renovate older properties to capture rent premiums while avoiding the premium pricing of newer assets.
Asset-Class Deep Dive & Operating Fundamentals
Beyond sales volumes and pricing, understanding the operating fundamentals of each asset class provides crucial insights for investors in the Commercial real estate market Miami:
Office: Trophy & Boutique Spaces Drive Rent Premiums
Miami’s office market continues to defy national trends, with asking rents rising 9.5% year-over-year in Q2 2024, compared to just 1.4% nationally.
Three factors consistently emerge: a clear flight to quality as companies seek newer, amenity-rich buildings; boutique appeal driving premium rents in neighborhoods like Wynwood; and companies adapting to hybrid work by reconfiguring spaces to improve collaboration rather than shrinking footprints.
Brickell remains the crown jewel of Miami’s office market, with Class A rents exceeding $75 per square foot in trophy buildings. Wynwood and the Design District command comparable rates for unique, character-rich spaces.
Developers share this confidence, with 2.9 million square feet currently under construction, including high-profile projects like 830 Brickell.
Retail: From High-Street to Neighborhood Centers
Retail fundamentals continue to strengthen, with vacancy rates at just 3.1% and asking rents reaching $44/SF (up from $37/SF in 2021). The 12-month net absorption of 1.3 million SF shows how dramatically the sector has rebounded.
This retail renaissance spans multiple formats: High-street retail corridors like Lincoln Road continue to attract luxury flagships; Mixed-use destinations like Brickell City Centre thrive by creating experiential environments; and neighborhood centers anchored by grocers see strong tenant demand in high-growth residential areas.
Adaptive reuse of retail spaces is another trend, with former department stores finding new life as food halls, entertainment venues, and mixed-use concepts.
Industrial: Airport West & Medley Logistics Hubs
Miami’s industrial market fundamentals remain rock-solid with a vacancy rate of 4.5% and asking rents of $18/sf. Nearly 5 million square feet is under construction, adding 2.7% to current inventory.
The Airport West/Doral and Medley submarkets continue to lead industrial demand, benefiting from proximity to Miami International Airport and major distribution arteries. Cold storage facilities command significant premiums due to limited supply and growing demand.
Last-mile distribution facilities serving Miami’s dense urban core often outperform larger distribution centers in peripheral locations on a per-square-foot basis.
Multifamily: Urban Core vs Suburban Gateway
The multifamily sector presents a complex picture with a vacancy rate of 11.1%, average asking rent of $1,586/month, and 24,000 units under construction (19% of existing stock).
This substantial pipeline suggests slower rent growth through 2027 as the market absorbs new supply. However, the story varies dramatically by location and property class.
Urban core luxury properties face the most competitive pressure from new supply. Meanwhile, Class B urban buildings perform strongly as renters seek more affordable alternatives. Suburban workforce housing sees limited new supply and strong demand supporting rent growth.
Hot Submarkets, Infrastructure Catalysts & International Capital
The Commercial real estate market Miami is being shaped by vibrant emerging neighborhoods, game-changing infrastructure investments, and international capital flows.
Miami’s commercial landscape is increasingly defined by distinct submarkets. Brickell remains the crown jewel of Miami’s financial district. The Downtown/OMNI district is evolving into a vibrant neighborhood where people live, work, and play around the clock.
Wynwood and Edgewater have perhaps the most dramatic change story, with former warehouses now housing creative offices, art galleries, and trendy retail concepts. Doral has matured from a purely industrial zone into a true mixed-use community, while Miami Beach continues to reinvent itself with boutique office conversions.
International capital continues to be a major market driver, with foreign nationals purchasing $6.8 billion of South Florida real estate in 2022 alone—a 34% jump from the previous year. Latin American investors remain particularly active, viewing Miami properties as both a safe haven and a solid investment with strong appreciation potential.
Transit-Oriented Development & Live-Work-Play Waves
Major infrastructure investments are creating new value centers throughout Miami. The MiamiCentral station Brightline High-Speed Rail has become a transformative catalyst for Downtown development, with nearby properties commanding premium rents.
The massive Miami Worldcenter mixed-use development represents another game-changer—a $6 billion, 27-acre master-planned community creating a new neighborhood in Downtown Miami. With its mix of luxury residences, experiential retail, office space, and hotel components, it embodies the live-work-play concept.
Even infrastructure projects like the Signature Bridge and I-395 reconstruction are opening up value in previously overlooked areas by improving connectivity.
These projects have sparked land assemblage activity as developers position themselves for future growth opportunities. Special zoning overlays that encourage density and mixed-use development near transit nodes are further accelerating this trend.
How Latin American & European Buyers Shape Pricing
The influence of international capital on the Commercial real estate market Miami cannot be overstated. Foreign buyers bring unique perspectives and priorities that shape market dynamics.
Latin American investors often view Miami real estate as more than just an investment—it’s a capital flight hedge against political and economic volatility, a currency diversification strategy, and a safe haven with strong appreciation potential. This helps explain why Miami’s commercial property values have remained resilient despite rising interest rates.
When economic conditions shift in countries like Colombia or Brazil, investors from those regions often pivot from development projects to income-producing assets while maintaining their overall commitment to Miami.
Risks, Challenges & 1-3 Year Opportunity Matrix
The Commercial real estate market Miami continues to shine brightly in 2024, but understanding potential challenges is essential for making smarter investment decisions.
Stress-Testing Returns Against Rising Costs
Costs are climbing across the board, putting pressure on returns. Interest rates have been on a steady climb, with the 10-year Treasury yield averaging 4.3% in June 2024, up from 3.8% a year earlier. This translates into significantly higher borrowing costs that impact expected returns.
Florida’s insurance situation presents another challenge. The state’s average home insurance premium now hovers around $6,000—three times the national average. Commercial properties aren’t faring any better, with premiums that directly impact bottom lines.
Meanwhile, construction costs remain stubbornly high, challenging the feasibility of both ground-up development and major renovation plays.
At Signature Realty, we’ve developed a proprietary AI deal analyzer that helps clients run multiple scenarios accounting for these rising costs—understanding vulnerability to different combinations of interest rates, operating expenses, and exit cap rates.
Climate Resilience & Regulatory Watchlist
Climate risk is no longer a theoretical concern for Miami real estate. The city’s vulnerability to sea-level rise and increasingly severe storms means that property elevation, flood mitigation measures, and building resilience are essential components of investment due diligence.
The regulatory landscape continues to evolve, sometimes in investors’ favor. Florida Senate Bill 50 recently reduced the commercial lease tax rate from 4.5% to nearly half, effective June 1, 2024.
A looming challenge for many property owners is the wave of loan maturities on the horizon. In 2024–2025, approximately $320 billion of U.S. commercial loans will mature, with 43% of these currently below 5% interest rates.
Despite these challenges, properties with strong fundamentals—prime locations, quality construction, and stable tenant rosters—continue to attract capital even as investors become more selective.
For property owners looking to steer these challenges proactively, our team offers comprehensive Miami Property Management Services designed to optimize performance and mitigate risks.
Platforms, Syndications & Supply Pipeline Impact
The way commercial real estate is bought, sold, and financed in Miami is evolving rapidly, with technology platforms, syndication structures, and careful supply pipeline management playing increasingly important roles:
Digital Marketplaces Accelerate Deal Cycles
Platforms like Brevitas are revolutionizing how properties change hands in the Commercial real estate market Miami. I’ve watched clients cut their marketing periods by two-thirds using these digital tools, with some sellers shortening their timeline from 90 days to just 30 days while securing better prices.
These platforms create transparency with built-in document management systems and secure virtual data rooms, allowing buyers to conduct due diligence more efficiently while sellers track who’s viewing their information. Comparative analytics tools help everyone understand fair market value better.
Syndication partnerships have also blossomed, democratizing commercial real estate investment by allowing smaller investors to join forces on larger deals. This approach particularly shines in value-add multifamily deals and development projects.
At Signature Realty, we’ve acceptd these digital tools while maintaining our human touch, combining technology with deep local expertise to identify opportunities others miss.
Want to dive deeper into market analytics? Check out our Commercial Real Estate Research Reports for more insights.
Forecast: When New Deliveries Tip the Balance
The Miami skyline tells the story – cranes everywhere! This substantial development pipeline will reshape market dynamics over the next few years.
The multifamily sector leads with 24,000 units under construction – representing 19% of existing inventory. Office follows with 2.9 million square feet, while industrial adds nearly 5 million square feet. Even retail is growing with 3.67 million square feet under construction.
We’re likely heading for a temporary rent plateau in some sectors as the market absorbs this new space. However, Miami’s population growth should support healthy absorption rates over the medium term.
Timing will be everything. Projects delivering in 2024-2025 face more competitive lease-up conditions, while those completing in 2026 and beyond may hit the market after this current wave has been absorbed.
Pre-leasing percentages tell an encouraging story: Office space is 77.1% pre-leased before completion, retail space is 86.9% pre-leased, and industrial stands at 58.5% pre-leased. These numbers suggest robust tenant demand despite economic uncertainties.
Frequently Asked Questions about the Commercial Real Estate Market Miami
What makes the Commercial Real Estate Market Miami attractive compared to other U.S. cities?
Miami’s commercial real estate market has several key factors that set it apart from other major U.S. cities:
Our remarkable population growth is a primary driver. Miami-Dade County gained a net household income of $2.2 billion in 2022 alone – bringing substantial wealth that drives demand across all commercial sectors.
Our position as the gateway to Latin America creates unique demand drivers you won’t find in other markets – deep cultural and business connections cultivated for generations.
Geography plays a crucial role too. With the Atlantic Ocean to our east and the Everglades to our west, Miami faces natural development constraints that support long-term value appreciation.
Miami has developed a surprisingly diverse economy beyond tourism, with thriving financial services, technology, healthcare, and logistics sectors creating economic resilience.
Florida’s lack of state income tax continues to attract high-net-worth individuals and businesses from higher-tax jurisdictions like New York, California, and Illinois.
These combined strengths explain why Miami ranks as the #2 most attractive market for commercial real estate investment in the U.S. according to CBRE’s 2025 Investor Intentions Survey.
How will new construction affect vacancies and rents in the Commercial Real Estate Market Miami?
The impact of new development will vary significantly across different property types:
In the multifamily sector, 24,000 units under construction (19% of existing stock) will likely moderate rent growth through 2027, especially in the luxury segment. Vacancy rates might temporarily increase from the current 11.1% before gradually declining.
For office properties, 2.9 million square feet under construction (increasing inventory by approximately 3.1%) might seem concerning, but 77.1% of this space is already preleased. Class A buildings in prime locations should continue performing well.
Industrial development adds nearly 5 million square feet, representing just 2.7% of inventory – a modest addition considering the exceptionally low 4.5% vacancy rates. Strong demand fundamentals should maintain healthy performance.
Retail development shows similar strength, with 3.67 million square feet under construction (2.6% of inventory) and an impressive 86.9% already preleased.
Are international buyers still active in the Commercial Real Estate Market Miami despite higher interest rates?
International buyers haven’t just remained active – they’ve doubled down. Foreign nationals purchased $6.8 billion worth of South Florida real estate in 2022, a 34% increase from the previous year, despite rising interest rates.
Many Latin American clients purchase with cash, making them relatively insensitive to interest rate fluctuations.
Despite significant price appreciation, Miami properties still offer relative value compared to global gateway cities like London, New York, or Hong Kong.
For buyers from countries with weakening currencies against the dollar, Miami real estate represents a dollar-denominated asset that provides essential currency diversification.
Investors from countries experiencing political or economic instability view Miami real estate as a safe haven for capital preservation.
Latin American buyers remain our dominant international force, but we’ve noticed increasing activity from European investors seeking both investment returns and lifestyle benefits.
Conclusion & Next Steps
The Commercial real estate market Miami is showing impressive staying power in 2024, even as national trends create headwinds. While overall transaction counts have dipped, rising prices across all major sectors tell the real story of Miami’s enduring appeal.
Retail and office properties have become the unexpected stars of 2024, with sales volumes climbing 63% and 11% respectively. Meanwhile, multifamily and industrial are taking a breather from their record-setting pace.
We’re seeing a clear flight to quality. Buyers are becoming more selective but willing to pay premium prices for the right properties in prime locations. This explains why median prices per square foot continue to rise even as fewer deals close.
Location matters more than ever. Areas near Miami’s transformative infrastructure projects – like the Brightline station and Miami Worldcenter – are seeing outsized growth potential.
The multifamily sector tells a particularly interesting story. With 86% of recent purchases involving buildings constructed before 1980, investors are clearly betting on value-add opportunities.
International buyers remain a powerful force shaping our market. That $6.8 billion in foreign investment provides crucial liquidity and support for commercial property values.
At Signature Realty, we’ve been navigating Miami’s market cycles for over 13 years. Our approach combines deep local expertise with cutting-edge tools like our proprietary AI deal analyzer. This blend of human insight and data-driven strategy has helped our clients consistently find opportunities others miss.
Our tenant representation specialists have saved clients more than $2 million in lease negotiations through market knowledge and exclusive off-market connections. Whether you’re looking to invest, find the perfect business location, or optimize your existing portfolio, our team across Miami, Doral, Hialeah, and Medley is ready to help.
The Commercial real estate market Miami will continue evolving, but its core strengths remain rock-solid: strategic location, population growth, diverse economy, and limited developable land.
Want to dive deeper into specific markets or property types? Visit our comprehensive Florida Market Reports or reach out directly to discuss your specific needs and objectives.
