Michael Fay, Principal & Managing Director, Miami, Avison Young

In an interview with Invest:, Michael Fay, principal and managing director for Miami at Avison Young, discussed the firm’s milestones, Miami’s growing global appeal, challenges in affordable housing and transportation, and the city’s evolution as a diverse, resilient, and thriving business hub.

What have been the most significant milestones for Avison Young in the Miami market over the last year?

Avison Young continues to grow its brand and expand its capital markets foothold in the Miami market. We’ve solidified ourselves as a go-to firm for large transactions. For example, the Genting site, which we have listed for sale, is a record-setting billion-dollar-plus transaction. The prime 16-acre waterfront site on Biscayne Bay is one of the largest undeveloped parcels on the waterfront. It is one of the most valuable and largest U.S. waterfront properties on the market in a major city.

We’ve managed to maintain momentum despite challenges like rising interest rates, increasing insurance costs, and elevated construction expenses. These issues have certainly impacted the market, but we’ve been strategic in navigating them. Miami has benefited from a significant influx of businesses ranging in size, and we’re at the forefront of the intersections between businesses, investors, and capital groups making their way to South Florida.

Lastly, the financial sector continues to grow rapidly. Groups like Citadel Securities, along with family offices and large investment firms, are increasingly establishing a presence in South Florida. These movements solidify the region as a hub for high-profile financial activity.

How has the economic landscape shaped your strategies for Miami-based investments, leasing, and property management?

At Avison Young, we strive to be partners and advisors to our clients as they tackle challenges such as rising interest rates, insurance costs, and construction expenses.

On interest rates, we’ve observed growing optimism in the market following the recent rate reductions. These adjustments give investors more confidence in their underwriting, which leads to an influx of equity and capital into the market. The CMBS market has been particularly active this year, and we anticipate those who have been sitting on the sidelines the past few years will reenter the marketplace more robustly in the near future.

Insurance has also been a complex issue. Earlier this year, rates were stabilizing, but the recent set of hurricanes that impacted the west coast of Florida have caused another reset. While it’s unfortunate to see storm impacts, many occurred in less populated areas, which could help mitigate widespread insurance cost increases.

Overall, Miami continues to benefit from strong investor interest and abundant capital. Despite economic pressures, the region remains a highly attractive market for new residents, investment and businesses.

What key trends are you observing within the commercial real estate market?

Industrial properties remain a standout asset class. In South Florida, where land is constrained by natural boundaries like the Bay and the Everglades, we’re seeing creative repositioning of properties. For example, some suburban office parks or retail spaces may be repurposed for industrial use depending on the zoning and demand.

Affordable housing is another critical area. With the wealth influx, the need for attainable housing has grown significantly. Legislation like the Live Local Act could drive positive developments in this space. Balancing high-end development with affordable housing is essential for the region’s sustainability.

At the high end, we’re seeing robust demand for luxury-branded developments, including condos and branded residential or hotel properties. This trend aligns with the influx of wealth into the area seen over the past few years. Waterfront land is in high demand for these developments, so we’ve been seeing an influx of mass condo buyouts to redevelop the land underneath for high-end condos.

Retail performance has been strong, and Miami-Dade County’s office space market has outperformed expectations. Unlike other cities in Florida and across the United States, Miami has avoided the widespread office market weakness seen elsewhere due to strong office utilization (one of the highest in the country according to the Avison Young Office Busyness Index). This is particularly evident in hotspots like Brickell, where demand remains high and top-tier buildings are achieving New York-level rents.

How is the region addressing ongoing challenges like sea level rise and infrastructure concerns?

Sea-level rise and infrastructure resilience are critical considerations for Miami. At Avison Young, we focus on aligning with our clients’ priorities, including environmental sustainability. Some investor groups are increasingly factoring these risks into their decision-making processes, creating opportunities for innovation in adaptive reuse and resilient development.

We consistently emphasize due diligence on climate-related risks, ensuring our strategies align with long-term market viability. Miami’s location makes it uniquely vulnerable, but it also positions the city as a leader in addressing these challenges, with investments increasingly flowing toward climate-adaptive infrastructure and sustainable design.

How has Miami’s diversity and connectivity influenced its growth as a business hub?

Miami is undeniably becoming a global financial base, supported by its unique geographic location. It’s a gateway to Latin America, Europe, and the rest of the United States, with major hubs like New York just a short flight away. This connectivity, coupled with a business-friendly environment, is drawing people and industries here in droves.

For businesses, community involvement is essential. Engaging with the community helps foster a level of understanding of its needs and how your business can contribute while fostering meaningful relationships. Connecting socially and professionally within the community gives insight into its strengths and challenges, helping businesses grow in alignment with local dynamics. As more residents and businesses relocate to South Florida, it’s critical our infrastructure and public services grow in tandem.

I was born and raised in Miami, and I’ve always loved its diversity. This diversity spans not only cultures but also industries — crypto, securities, banking, import/export, logistics, shipping, tourism, real estate, and more. Over the past decade, Miami has evolved remarkably, and its diversity has only enriched the city further.

And of course, Miami’s lifestyle adds to its appeal — the sun, fun, and vibrant energy. Even the occasional hurricane is manageable compared to events like earthquakes, which strike without warning. Hurricanes give us time to prepare and plan, reflecting Miami’s resilience and adaptability.

Miami’s evolution into a dynamic, multifaceted community is what makes it such an exciting place to live and do business. The opportunities here are as diverse as the people who call it home.

What is your vision for Miami over the next decade, and what role will Avison Young play in achieving it?

From a business and real estate perspective, Avison Young will continue to leave its mark on some of the most unique and impactful deals and developments in Miami. Our role is to bring together developers, bankers, equity partners, and other stakeholders to shape Miami in a thoughtful and sustainable way.

Looking ahead, I see Miami increasing its global appeal as a luxury destination while further diversifying its economy. However, two critical priorities will define the city’s future: affordable housing and transportation infrastructure.

Affordable housing is essential for Miami’s continued growth. As the city rises in prominence, we must ensure that housing remains accessible to a diverse population. This balance is crucial for maintaining Miami’s vibrancy and long-term sustainability.

Transportation infrastructure is another major challenge. While initiatives like the Brightline are impressive, we need to strengthen our internal transit systems within Miami-Dade County. We must address weaknesses in local transportation to make the city more navigable and efficient.

On a personal note, I’d like to highlight the visionary work of my father-in-law, Merrett Stierheim, a former Miami-Dade County manager. Decades ago, he spearheaded bond referendums to fund the Metrorail system. At the time, many thought the idea was overly ambitious, but today it stands as one of the city’s greatest public transportation achievements. His forward-thinking approach is a model for the kind of bold leadership Miami needs as it tackles its next phase of growth.

Avison Young will play a vital role in supporting these efforts by fostering collaboration, driving impactful projects, and advocating for strategic, sustainable development.