FYI Miami: December 5, 2024

Below are some of the FYIs in this week’s edition. The entire content of this week’s FYIs and Insider sections is available by subscription only. To subscribe click here.

RETAIL GAIN EXPECTED: Florida retailers hope for record-breaking holiday sales, expecting a more than 3% spending gain over 2023. The Florida Retail Federation predicts consumers will spend $902 apiece on gifts, decorations and other items. More than half of all consumers are expected to shop online. They’re on the hunt for bargains this year, said federation spokeswoman Amanda Bevis. “Consumers have a lot of generosity heading into the holiday season, wanting to purchase gifts for their family. We are back up to pre-pandemic levels of spending. So, there is a lot of excitement about the holidays, and we are ready to get started,” Ms. Bevis said. The holiday season is the biggest for stores, with retailers making more than 20% of annual sales the month before Christmas.
RETAIL SPACE FILLS, RENTS RISE: The Miami metro area hit its lowest retail space vacancy on record and retail rent rates rose 8.3% in the year ended June 30 as the region ranked among the top three major US retail markets for lowest vacancy, highest rents and fastest rent growth, Marcus & Millichap reported. “Although consumers have pulled back on spending for non-essential goods,” the company wrote, “premier retail corridors like Wynwood and Brickell still reported elevated leasing activity from high-end restaurants and luxury brands, often signing for over $100 per square foot. Meanwhile, suburban areas like Coral Gables and South Dade have experienced comparatively faster rent growth” as construction of retail space dropped 0.4%, aligned with 2022 for the slowest pace since before 2007.
HIGHER RENTS FORECAST: Apartment rents in South Florida next year will rise faster than this year’s 0.3% increase, according to a quarterly report from Berkadia, which tracks multi-family rentals. In the 12 months ended Sept. 30, the region of Miami-Dade, Broward and Palm Beach counties added 18,285 multi-family units, bringing the total supply to 670,814, the company’s quarterly report said. During that same period, tenants absorbed 17,096 units, the report said, at an effective monthly average rent rate of $2,520 and an average occupancy of 94.7%, the highest occupancy rate in Florida. “While some industry experts were concerned that there was an oversupply, the robust absorption underscores the incredible demand for apartments in South Florida, due to population and continued job growth,” a company statement said.
GAS DIPS A DROP: Average gas prices in Miami fell a half-cent per gallon in the past week to $3.09, according to GasBuddy. Prices are 5 cents higher than a month ago but stand 8.7 cents per gallon lower than a year ago.