By Gay Cororaton, MIAMI REALTORS + RWorld Chief Economist
KEY TAKEAWAYS
- The Miami market area has the lowest retail vacancy rate at 3% among the nation’s largest 90 markets, half the national rate of 6%.
- South Florida’s retail construction is regaining momentum, with 1.1 million square feet under construction as of September 2026, with the largest projects in Miami, Hialeah, Fort Lauderdale, and Palm Beach Gardens.
- Coconut Grove, Miami Beach, and Wynwood are the priciest retail spaces, with asking rents poised to rise further as South Florida continues to transform into a global finance, health, and education hub.
Read the October 2026 South Florida Office Market Insights HERE.
Miami has the lowest retail vacancy rate in the nation
The Miami market area has the lowest vacancy rate among the nation’s 90 market areas, at 3.0% as of 2026 Q2, just half the national vacancy rate of 6.0%, according to Cushman and Wakefield data.
With the lowest vacancy rate in the nation, retail leasing rates climbed to the second highest in the nation at $44 per square feet (PSF), ahead of San Francisco and New York at $42 PSF, Los Angeles at $35 PSF, and Washington DC at $36 PSF. Nationally, the average asking rent in 2026 Q2 was $26 PSF.
In the Fort Lauderdale market area, the retail vacancy rate was 5% with an average asking rent of $35 PSF, also outpacing the national metrics. In the Palm Beach market area, the retail vacancy rate was also 5%, with an average asking rent of $38 PSF, also above the national level.
It is not just retail that is experiencing a strong momentum, but the broader commercial market, driven by sustained out-of-state migration from retirees and corporate relocations, wealth migration, and South Florida’s continuing economic transformation as a hub for finance, technology, healthcare, and education. Miami has the most multifamily construction underway in the nation. South Florida Multifamily Market Gains Momentum as Rents Rise and Insurance Costs Fall – MIAMI REALTORS® + RWorld. Miami and West Palm Beach also have one of the lowest office vacancy rates in the nation and the most intense office construction underway relative to existing stock. South-Florida-Office-Insights-August-2026_Issue2.pdf . Cap rates are one of the lowest in the nation at around 5.5% (New York at 5% is the lowest), per CBRE.
South Florida Retail Regains Momentum with 1.1 MSF Under Construction
As of September 2026, 1.13 million square feet of retail space is under construction, according to Yardi Matrix. This will add 0.5% to the retail space in the Miami, Fort Lauderdale, and West Palm Beach-Boca Raton market areas.
With interest rates at historic lows, retail construction boomed in 2021-2022 when 5.8 MSF of retail space was delivered, of which about half was in Miami-Dade. As interest rates rose, construction activity slowed to just 286,000 square feet in 2025.
However, construction is regaining momentum despite elevated mortgage rates as South Florida continues to experience wealth migration, an economic transformation towards higher-wage and higher-skill industries, and a deepening talent pipeline.
As of September 2026, 334,000 SF was delivered as of September 2026, with another 386,000 SF projected for delivery through the end of 2026 (total of 720,000 SF). As of September 2026, the largest deliveries are the Doral Marketplace (83,323 SF), Avenir Town Center in West Palm Beach (80,401 SF), and Coconut Crossing in Palm Beach Gardens (59,350 SF).
In 2027, 703,240 SF is projected for completion. The largest expected deliveries of over 100,000 SF are the retail component of Cassi, a mixed-used development project in Miami by Dacra (182,444 SF), grocery-anchored Palm Springs Square in Hialeah by Dacar Management (128,260 SF), Oakwood Plaza-Phase 1 in Fort Lauderdale by New York-based developer Kimco (120,000), and the Palm Ice Arena by the Palm Beach North Athletic Foundation (123,245 SF).
Coconut Grove, Miami Beach and Wynwood: South Florida’s Priciest Retail Spaces
Coconut Grove is South Florida’s priciest retail space, with lease rate at $110 PSF, per Colliers. Lease rates in Coconut Grove are poised to stay elevated given the low vacancy rate of 0.6%. Coconut Grove’s retail sector is benefiting from an overall boom in the area. Iru (formerly Kandji) leased at 92,000 square foot space at the Mayfair in the Grove complex, Miami’s largest office deal. The area is attracting a wealthy demographic, gaining national prominence Google-co founder Larry Page purchased two luxury waterfront estates in Coconut Grove in late 2025 and early 2026.
Miami Beach is the next priciest with average asking lease rate at $95 PSF, although the market is highly segmented. National retailers are supporting strong leasing activity in the Lincoln Road and South Beach corridors at $250-$400 PSF. In the Mid-Beach and Faena District, boutique, local, and service (e.g., spas, fitness) tenants are achoring demand at $80 to $150 PSF. Retail in Miami Beach: What Investors and Tenants Should Expect in 2026
The Wynwood/Design District is the third most expensive, with average retail asking rent at $63 PSF. Retail rents are poised to rise further with the rise of the Carnegie Mellon University Miami Campus made possible through a $2 billion donation of Ken Griffin ($1 B to CMU Pittsburgh). CMU Miami is expected to be partly operational in 2028 and is envisioned have a student population of 3,000, a faculty of 300, and an administrative staff of about 600 when fully operational.
Retail rents in the West Palm Beach CBD are also poised to rise when the Vanderbilt University Graduate Campus becomes operational in 2029. Moreover, the opening of 10 City Place and 15 City Place in 2027/2028 will expand the local office population and boost nearby retail activity. South Florida Ranked No. 1 Office Market in the U.S. – MIAMI REALTORS® + RWorld
