Miami’s unemployment rate (4.7%) at its lowest level since 2008
Miami’s wage growth exceeds the national rate, with nearly all gains over the last year occurring in services. House prices increased 7.5%, exceeding the statewide and national pace. 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. Construction growth is especially robust, with major projects underway including 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. Miami is expected to continue outpacing national economic growth with a 3.9% rise in 2017, due in large part to such major developments.
Investor and landlord confidence continues in 2017
Miami’s unemployment rate has fallen to its lowest level in a decade, with job growth seen in the international trade, 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. The area will also benefit from a rising stock market and a strong trade environment. New rail service promises to bring economic development to downtown. Within the next few months, the Brightline will inaugurate passenger service between MIA, Fort Lauderdale, and West Palm Beach.
The CBD leads 2017’s dispositions, but other submarkets saw strong sales too
Miami saw an abundance of sales transactions during 2017, with more than $3.1 billion in office sales. The 395,000 SF property at 1221 Brickell boasted a sale of $392 PSF and traded at $155 million, leading the market during this period. Also, the 281,785 SF Park Square at Doral traded for $96 million or $341 PSF.