Miami, the driver for the U.S. luxury market
According to Cushman & Wakefield’s December 2015 Business Briefing on Miami, a booming tourist industry, the growing Millennial population, and urban revitalization have driven the city’s rapid expansion of luxury retailers. The city now leads the U.S. in terms of growth from the luxury sector.
Once centered at South Beach, stores have expanded to Brickell, Wynwood and the Design District, all High Street neighborhoods. Wynwood, home to Warby Parker, Shinola, and emerging brand Italia Independent, is Miami’s version of New York City’s Meatpacking district – edgy and creative. Brickell City Centre, which broke ground in 2012, is a $1.05 billion 5.4 million square feet (MSF) mixed-use project that will include 505,000 ft² of retail space. It is anticipated that by next year, Miami-Dade County will have 2.1 ft² of retail space under construction.
The emergence of the Millennial shopper and the rapid increase of Hispanic buying power have propelled Miami’s luxury sector, and are doing the same throughout U.S. urban centers. Miami is also a popular destination for international travellers. According to Cushman & Wakefield, international tourists spend about 30% on average of their travel budgets on shopping. No wonder the city is a magnet for luxury retailers.