Developers are gaining more confidence in Miami’s retail market as vacancy rates remain steady and rents remain steady amid slower fundamentals.
Miami-Dade County’s retail construction pipeline reached 1.3M SF in the third quarter, double the amount built in the same period last year and the highest level since early 2023, according to third-quarter Colliers reports and data provided to Bisnow.
“The differentiating factor here is that there is a belief that if you build it, they will come,” said Colliers Executive Vice President of Retail Services Sabrina Stimming. “Tenants are still out there driving demand, which I think is the difference. There was just too much uncertainty a few years ago.”
Outright vacancy rose from 2.9% to 3% in the third quarter, hovering in the same 3% range last year, and remains below pre-pandemic levels, according to the report.
The uptick occurred in 59K SF of shipments and 94K SF of vacated, primarily focused in the Northeast and South Dade, creating negative absorption.
Leasing activity also slowed in the third quarter, with a total of 257K SF on 118 transactions, down from 413K SF of transactions on 150 transactions in the previous quarter, according to the report.
The largest lease in the third quarter was a 51K SF deal with a digital zoo concept called Holozoo Florida.
Even with a slower third quarter, asking rents continue to rise and “show no signs of cooling,” according to the report.
Triple-net asking rents hit a record $44.34 per SF in the third quarter, up from $42.83 in the third quarter of 2025 and up more than 18% from 2021, according to the report.
“It’s kind of surprising because you see the way rents keep going up, but so far it’s been sustainable,” Stimming said.
Retail is one of the country’s best performing asset classes, with rising rents, low vacancies and a lack of supply. But as developers across the country struggle to build more inventory due to high construction costs, large retail projects in Miami are making the market.
Miami-Dade County’s construction pipeline is nearly twice the size of Broward County’s, at 697K SF and larger than Palm Beach County’s 190K SF pipeline, according to the Colliers report.
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Wikimedia Commons/Charlie Brewer
“The recent uptick reflects continued developer confidence in existing retail projects in locations associated with population growth and mixed-use development activity across the county,” said Colliers Research Manager Haley Boatright. Bisnow in email.
Miami’s preleasing activity inspires confidence.
Among the largest projects in Miami’s pipeline, which includes 17 developments, is the 500K SF retail in Miami Freedom Park development.
The $1B project landed three retailers in December, totaling 120K SF in leasing activity. Tenants include Tiger Woods-backed golf entertainment venue PopStroke and Puerto Rico-based Toroverde adventure park.
Palm Springs Square under construction in Miami Gardens brings 230K SF of grocery-anchored retail and already has a Publix.
Most recently, David Martin’s Terra secured a 40K SF lease with Walmart for a new Neighborhood Market at 78K SF in the Doral Atrium, according to a release. The development, which is slated to open next year, is 95% leased to tenants including PNC Bank, Bonchon Chicken, Sushi Mas, Tremble Pilates and The Good Feet Store.
“There’s a lot of preleasing, so it’s easier for developers to pull the trigger at this point, by being able to justify the underwriting,” Stimming said.
But the uptick in development is not expected to relieve enough pressure to soften rents, especially in neighborhoods like Brickell, where the vacancy rate is 2.7%, or suburban markets like Aventura, Coconut Grove and Coral Gables, where the vacancy rate is less than 2%.
The increased competition means that renters looking to enter the Miami market may have to wait a little longer.
“I think retailers as a whole may have pinpointed where they want to enter the market, but I think that, for the most part, unless you are a special type of restaurateur, you will have to be flexible and you will have to be a little willing to consider alternatives to break in,” said Stimming.
“Not everyone is going to be in Coconut Grove this year, and not everyone is going to be in Aventura in 2028 or whatever their growth plans are,” he said. “I think he needs to be a little more flexible and quick on his feet.”