Prime retail addresses along Collins Avenue in Miami Beach have long commanded a premium, but the arrival of Florida’s medical cannabis industry – and the prospect of future adult-use legalization – is pushing some operators to pay record rates for storefronts.
Collins Avenue sits at the heart of South Beach’s shopping and tourism district, marketed as a “Capital of Cool” lined with fashion brands, boutique hotels, and constant pedestrian traffic. High-street corridors like Collins are exactly the type of “main street” locations where retail rents remain elevated in top U.S. markets such as Miami, supported by strong tourism and resilient consumer demand.
At the market level, Miami’s overall average asking rent for retail reached about $50 per square foot in 2025, a new high for the metro, with high-end streets significantly above that average. Listings on or near Collins routinely quote $50–$60 per square foot triple-net for small bays, illustrating how tightly priced this inventory is even before cannabis is factored in.
For cannabis companies, those numbers can still make sense. First, zoning and licensing constraints mean there are relatively few sites where a medical marijuana treatment center can legally operate in Miami Beach and Miami-Dade County. County regulations adopted in 2016 created specific districts for dispensaries, and Miami Beach followed with its own zoning rules several years later. With a limited map of eligible properties, competition among multi-state operators and local brands concentrates on the same handful of prime blocks.
Second, Collins Avenue delivers what cannabis retailers value most: tourist footfall and visibility. Greater Miami welcomes millions of visitors annually, and South Beach is promoted as a fashion-, nightlife- and entertainment hub where Collins and nearby Ocean Drive set trends for the region. For a dispensary, a highly visible corner or mid-block storefront can function as both retail outlet and billboard, capturing impulse visits from hotel guests and beachgoers who might never search for a shop in a secondary location.
Third, operators increasingly view these leases as long-term brand investments. National research on high-street retail shows that flagship locations in gateway corridors help retailers differentiate themselves, even when rents outpace short-term sales metrics. Cannabis brands seeking to position themselves alongside fashion and lifestyle tenants see Collins as a chance to normalize their image, align with luxury hospitality, and appeal to higher-spending tourists.
There is also a speculative element. Investors and operators are betting that if Florida ultimately approves adult-use cannabis, today’s medical dispensaries on Collins Avenue will be ideally placed to capture a surge in demand. Miami Beach already registers some of the highest retail property sale prices in Miami-Dade, reflecting expectations of future rent growth and continued tourism strength.
Of course, paying top-of-market rent comes with risk. Retail reports note that while average Miami rents are rising, growth has begun to normalize, and some corridors still struggle with vacancies. Cannabis tenants must navigate federal banking limitations, evolving state rules, and the possibility of local caps on store numbers. If sales underperform or regulations tighten, expensive Collins Avenue leases could squeeze margins.
Even so, for many cannabis operators the calculation is clear: in a constrained, competitive market, the right Collins Avenue address is worth paying for. Limited supply, zoning barriers, powerful branding benefits, and a long-term bet on Florida’s cannabis evolution all help explain why dispensaries and related businesses are willing to sign leases at record-setting rates on one of Miami Beach’s most iconic streets.