Miami’s unemployment rate at its lowest level since 2008
Financial services will continue to provide a stable source of jobs and income over the next five years in Miami, which is home to the East Coast’s largest concentration of international banks south of New York City. Major construction projects underway include the Miami Central train station and several new office buildings, as well as Miami Worldcenter, a mixed-use development with retail, residences, and a hotel.
Investor and landlord confidence continue
Miami’s unemployment rate has fallen to its lowest level in a decade, with job growth seen in the international trade, healthcare, tourism, and transportation sectors. In recent months wage growth has slowed, making this a more competitive market for attracting business. Moody’s Analytics predicts that Miami’s economic growth will continue to outpace the nation due to its ability to attract a talented and productive workforce. New rail service promises to bring economic development to downtown.
The CBD leads dispositions, but other submarkets saw strong sales too
Investment sales increased during the second quarter of 2019. During the third quarter of 2018, annual sales volume reached over $1 trillion. Since then, volume has continued to increase quarter-over-quarter. Sales increased by over $100 million since the first quarter of 2019. Investment sales volume has been over the billion-dollar threshold since 2014. Average sales price per square foot has continued to rise, reaching an average of $302 PSF in the second quarter. That is a 35% gain over 2017’s average of $224 PSF. Miami continues to attract a variety of investor profiles, but institutional buyers have been especially active since the beginning of the year.