Miami Retail Report & Team Qualifications

WHY IS MIAMI UNIQUE

ShadowMarket An extensive “Shadow Market” in South Florida drives the economic vitality of the region. The shadow customer comes from all over the world and are a significant portion of new home buyers, often paying all cash. These temporary seasonal residents do not show up in traditional demographic numbers and are not counted during the Census since they are here for only a few weeks or a few months during the year. The Shadow Market of international residents, primarily from Latin America, remains the main factor behind the region’s strong housing market, elevated retail sales growth and sharp up-tick in retailer expansion. The graph below illustrates how the shadow markets support stability in the retail sector despite local macro economic conditions.

RETAIL SALES IN BILLIONS V.S. HOUSEHOLD INCOME:

$250.00

$50,000.00 $45,000.00 $40,000.00 $35,000.00 $30,000.00 $25,000.00 $20,000.00 $15,000.00 $10,000.00 $5,000.00 $0

$200.00

$150.00

$100.00

$50.00

$0

2000

2001

2002

2003

2004

2005 Retail Sales 2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

Household Income

Source: Moody’s Analytics, 2017

NATIONALITY OF FOREIGN HOME BUYERS IN MIAMI-DADE

On average, foreign buyers spend more than double on residential properties in Miami (62% more).

Venezuela Brazil Argentina Colombia

Canada Mexico Italy Unknown Peru Dominican Republic China France Other

0%

5%

10%

15%

20%

2017 MIAMI RETAIL Major Markets Report | 9

Source: 2016 Profile of International Home Byers of Miami (NAR)