VOL. 4 - 2016/2017 DOWNTOWN MIAMI BUSINESS FIRST DOWNTOWN MIAMI BUSINESS FIRST 1 is to grow, strengthen and promote the economic health and vitality of OUR MISSION Downtown Miami. As an autonomous agency of the City, the Miami DDA advocates, facilitates, plans and executes business development, planning and capital improvements, and marketing and communication strategies. We commit to fulfill our mission collaboratively, ethically and professionally, consistent with the Authority’s public purpose. In Florida, Downtown Miami is the destination for global business. A thriving economy, strong business sectors, instant THE connectivity, extensive social and cultural offerings and an active and vibrant residential community come together to form our NEW global cosmopolitan city. Companies strategically choose Downtown Miami to be a part of the city’s core… a tropical waterfront paradise where worlds DOWNTOWN meet, entrepreneurs gather, and the Americas are centered. Whether opening, expanding or relocating a business, the Miami Downtown Development Authority will connect you to city, county MIAMI and state agencies as well as other businesses and organizations to facilitate real growth and sustained success. For more than 50 years the agency has been a catalyst for positive change and continues to work toward the enhancement of Downtown Miami for all area residents, businesses and visitors. DOWNTOWN MIAMI BUSINESS FIRST 5 “THE NEW GLOBAL CITY” WALL STREET JOURNAL GLOBAL CITY While Miami has long been known as the Gateway to Latin America, the city continues to increase its reach and position as a global hub through its strong ties to Europe, Asia and the Middle East. That trend is reflected in our trade numbers, which today exceed $120 billion. China, Brazil and Switzerland are our largest trade partners, and Miami International Airport (MIA) is the No. 1 airport in the U.S. in “Miami is joining the terms of international cargo. For international businesses, Miami is the location of choice ranks of the world’s most to serve their Latin American, American and European clients and customers. In fact, nearly 200 main offices and dynamic global cities.” U.S. branches of multinationals are located in Downtown Miami. Convenience of access is one of the key reasons CityLab Latino companies choose Downtown Miami. MIA is just 20 minutes away by car or the airport transit link. As the second largest airport in the U.S. for international passengers, MIA provides non-stop service to 154 destinations and more than 200 daily direct flights to major international cities across the globe. Add to all this a talented, diverse and globally oriented workforce and it becomes clear that Miami delivers all that is needed to succeed for international business. DOWNTOWN MIAMI BUSINESS FIRST 7 PEOPLE “The growing population of Downtown Miami is business-ready and merchant sophisticated young adults, 235,000 friendly. Our efficient urban business environment Daytime population is both a high-rise residential neighborhood and a many with disposable incomes, commercial center. has heralded a cultural Today more than 88,540 people live in greater Downtown Miami - double the population since 2000. transformation in Miami’s The majority of residents are young professionals who central core.” 88,540 enjoy the convenience of an active urban lifestyle, extensive public transportation options and exciting Residents cultural and entertainment offerings. In fact 45% of Travel Weekly the resident population is between 25 and 44 years of age with an average income that is almost double that of surrounding areas. $97,671 Housing options abound, with more than 13,000 new residential units currently under construction in Average Household Income Greater Downtown Miami. (40% higher than Miami-Dade County) More than 11,000 registered businesses provide jobs to 171,613 people, some commuting to Downtown, and Greater Downtown Population Pyramid, 2016 growing numbers of them living within easy walking distance to work. Add to the mix a growing visitor base, with Downtown welcoming countless local, national and international visitors per day. Residential Statistics 2016 Miami recently ranked 15 on The Atlantic’s list of global Greater Downtown Area cities where young professionals want to be, and Forbes Total Population 88,540 listed Miami as the happiest place in the U.S. to work. Median Age 35 Age Class % Population Age 25-44 45% College Educated 59% Sources: ESRI BAO; Synergos Technologies, Miami DDA 2016 DOWNTOWN MIAMI BUSINESS FIRST 9 OFFICE Office Statistics Total (RBA) 19.8M sq. ft. Class A Occupancy 85% Prime real estate meets tropical waterfront in Downtown Class B Occupancy 80% Miami, which features the highest concentration of prime office Under Construction 474,000 sq. ft. space in South Florida. Nearly 20 million square feet of Class Downtown Workers 160,000 A and B office space provides future tenants with a wealth of location choices and building options. Most Class A office space is contained within high performance, environmentally Retail Statistics sustainable, LEED certified buildings; many office buildings Existing Retail 3.6M sq. ft. feature fiber-optic connections, direct access to the Network Occupancy Rate 95% Access Point (NAP) of the Americas for extra band-width, cutting Under Construction 1.1M sq. ft. edge security systems, extra redundancy to ensure continued operation at all times, and other unique services. Sources: CoStar, Miami DDA RETAIL The rapidly expanding population base in the Downtown area is generating growing demand for retail, restaurants and entertainment offerings as 20 evidenced by the over 350 restaurants currently million square feet in downtown. An increased demand is fueling the Office development of new major retail centers, such as Brickell City Centre and Miami Worldcenter, which will join established shopping destinations, such as Bayside Marketplace, The Shops at Mary Brickell Village and Historic Flagler Street. Those projects alone will add over 1.5 million square feet of retail to the market thus fulfilling unmet consumer demand as well as solidifying the appeal of Downtown 3.6 Miami as a global shopping destination. The new million square feet developments will further provide opportunities Retail Space for major brand name retailers to enter the rapidly growing Miami market, often as their first foothold into the U.S. market. DOWNTOWN MIAMI BUSINESS FIRST 11 TAX CLIMATE The 2016 State Business Tax Climate Index, published by the Tax Foundation, ranks Florida as the 4th best in the U.S. The index is designed to rank states by how well they structure their tax systems. The 10 best states in the 2016 Index are: 1. Wyoming 2. South Dakota 3. Alaska Businesses in Downtown Miami also enjoy: 4. Florida • No local corporate income taxes 5. Nevada • No state personal income taxes 6. Montana • No local personal income taxes 7. New Hampshire 8. Indiana 9. Utah 10. Texas Tax Comparisons: Metropolitan Areas PERSONAL CORPORATE SALES TAX INCOME TAX INCOME TAX CITY STATE LOCAL STATE LOCAL STATE LOCAL MIAMI 0.0 0.0 5.5 0.0 6.0 1.0 NEW YORK 4.0 - 8.9 2.9 - 3.6 7.1 8.85 4.0 4.5 LOS ANGELES 1.0 - 9.55 0.0 8.84 0.0 8.25 1.5 CHICAGO 5.0 0.0 9.5 0.0 6.25 3.0 HOUSTON 0.0 0.0 1.0 0.0 6.25 2.0 DOWNTOWN MIAMI BUSINESS FIRST 13 In addition to the many traditional office spaces available, Downtown Miami has experienced a surge in the number of EXECUTIVE OFFICES executive office and co-working space providers. Those executive offices lease right-size portions to individuals and companies. & CO-WORKING They also provide additional services such as internet, telephones, kitchen and reception services. This concept has done well in Miami, where small businesses and satellite offices thrive. Co-working is a relatively new concept, where independents and small companies work in a shared environment. They often attempt to connect their tenants to the broader community through shared advocacy, events, and professional networking. The first co-working location successfully opened in Downtown Miami in 2010, and today there are more than 30 locations to choose from. Miami is a hotbed of entrepreneurial activity, with small businesses representing more than 80% of the total businesses in the district. In recent years, new business incubators, accelerators and the increase STARTUPS & in co-working spaces have accelerated the growth of small businesses and facilitated startup companies, which have also benefitted from the SMALL BUSINESS support of private, public and non-profit institutions. With lower fixed costs than many other U.S. markets, a strong entrepreneurial community, and a global orientation, Downtown Miami provides a wealth of opportunities for business development and growth. Photos featuring: Mingyl, Senzari, Keyworking, Venture Hive DOWNTOWN MIAMI BUSINESS FIRST 15 TECHNOLOGY The Idea Center at Miami Dade College Miami is emerging as new center for technology. Multiple www.theideacenter.co co-working spaces, incubators and educational institutions are providing technology companies with workspace, The Idea Center is an industry-agnostic ecosystem courses and seminars, and talented interns and graduates. of creativity, innovation and entrepreneurship Added to the mix are large IT departments of Miami’s for Miami-Dade College students. The center major business sectors including finance, cruising, legal, has tracks for exploration, idea development, architecture and design. launch and growth with a range of programming, mentorship and other services. Miami ranks #2 in Entrepreneurship according to the Kauffman Foundation and nowhere is that more apparent than our MAGIC burgeoning tech ecosystem. Downtown Miami has the ideal www.mdc.edu/magic environment to launch, grow and scale your business. Miami Dade College partnered with Pixar to Venture capital is attracted to Miami because of access create MAGIC – the Miami Animation & Gaming to South Florida and Latin American startups, access International Complex.