According to a recent study by Moody’s Analytics, a subsidiary of Moody’s (New York), the financial and tech sector in Miami Dade County keeps expanding. This has led to considerable development and extension of the office property market in this region, particularly during the COVID-19 pandemic. Experts believe that Miami now stands a good chance of becoming the next Silicon Valley.
Lu Chen, Senior Economist at Moody’s and co-author of The Growing Power of Tech on Miami’s Commercial Real Estate Market, believes that Miami is capable of turning into a flourishing tech center.
Many fintech companies have called this city the most attractive location for developing their businesses in the future. The survey shows that an increasing number of New York firms make a decision to move to Miami for the sake of low taxes, construction costs, and house prices.
Specifically, the report says that FundKite (a fintech company) moved its headquarters from New York to Miami “because the city has become a reliable financial industry hub and it possesses the relevant experience and workforce.”
This continued trend enabled owners of office premises in Miami Dade County to rise the rent faster than the national average – faster than even in San Francisco, California.
According to the survey, the revenue of STEM (Science, Technology, Engineering, and Mathematics) professionals in South Florida did not grow as much as the asking rent in Miami Dade. In 2021, the average salary in this industry increased by 6.8% nationwide. In San Francisco, STEM workers are now making 1.9% more; in South Florida, only 0.9% more.
As of this August, the average salary in STEM is $53,428 per year. In Florida, it’s $40,081; in California, $48,899.
Unlike the Bay Area and other renowned tech hubs, South Florida accounts for a very small share of the total number of jobs in finance and technology.
Chen says that high tech accounts for only 3% of jobs in South Florida, compared to 23.5% in San Francisco.
Other problems of Miami’s expanding tech sector, according to Moody’s, include the effects of the climate change, South Florida’s transport infrastructure, insufficient representation of minorities in management positions, and concerns about educational standards.
A study of the education sector shows that there are far more prestigious universities in the Bay Area that develop tech talents. According to the report, “Miami must attract more students interested in tech.”
Nevertheless, the study says there is good reason to hope for the better, as there are regional initiatives, such as Computer Equity Miami, that strive to make tech education available for all citizens. Miami’s advantages also include high concentration of banks and entrepreneurs. The city attracts entrepreneurs with the bitcoin business. Francis Suarez, Mayor of Miami, and other local leaders are currently betting on this niche.
All these factors make Miami one of the best places for investment in not only commercial but also residential property. The more companies move their headquarters here, the more professionals who need accommodation will tag along.