South Florida’s retail market is holding firm, with a historic-low vacancy rate of 3.5% for the third straight quarter, outperforming the national average of 4.2%, according to Colliers. However, a sharp imbalance is emerging: demand remains high, yet new construction is limited, with only 9.6 million square feet of vacant space across the tri-county region.

Investors remain focused on grocery-anchored retail centers, with major acquisitions continuing despite limited supply. However, Colliers warns that unless development accelerates, leasing activity may slow in 2025 due to a lack of available space. If development doesn’t keep up with tenant demand, pricing pressure will likely increase throughout the year.

(source: The Real Deal picture: Alejandro Luengo)