Is Miami’s Permitting Process Pushing Out Small Developers?
Miami is experiencing a construction boom like no other, boasting one of the highest number of planned buildings in the United States. Big-name developers are securing prime real estate and pushing forward with large-scale projects, reinforcing Miami’s reputation as a global development hotspot. But why are these large developers able to navigate the city’s permitting system while smaller developers are struggling—or leaving altogether?
Could it be that these larger firms have teams dedicated to handling Miami’s bureaucracy, or do they simply have the financial means to withstand the long and costly permitting process?
The Cost of Waiting: A Small Developer’s Struggle
In a recent conversation, I spoke with a small-scale developer—let’s call him Bob—who has decided to pack up and take his business elsewhere. Bob has had his plans under review for two years—two years of paying a mortgage on the land, architect fees, and possibly interest on construction loans, all while waiting for city approval.
The result? He’s selling his properties to recover some of his losses. This isn’t just an isolated case—many small-scale developers who could revitalize neighborhoods are finding themselves boxed out of Miami’s development boom simply because they can’t afford to wait.
Meanwhile, large-scale developers continue building, raising the question: Are they more adept at navigating the system, or is the permitting process inherently favoring those who can afford to wait?
Permitting Delays: A Systemic Issue?
Miami’s permitting delays don’t just affect housing developers—they also hinder small businesses trying to open. Entrepreneurs looking to launch a retail store, restaurant, or service business often wait months or even years to receive their certificate of use or other necessary permits. Who can afford to sit on an empty storefront, paying rent without revenue, while waiting for city approval?
For many entrepreneurs, starting a business requires significant personal investment—sometimes a second mortgage or an SBA loan. When unnecessary bureaucratic delays stretch that process out, it drives up costs and discourages investment in the local economy. Simply put, a small business should not have to budget $200,000 or more just to survive the permitting process before even opening its doors.
Is There an Alternative? Enter Miami-Dade’s Rapid Transit Zones (RTZ)
With these bottlenecks at the city level, some developers—large and small—are looking toward Miami-Dade County’s Rapid Transit Zones (RTZ) as an alternative. These zones allow for higher density and intensity development near public transit corridors, and—perhaps more importantly—they streamline permitting through the county rather than the city.
If Miami’s permitting delays remain unaddressed, will we see more developers shifting their projects to county-regulated areas where approvals are faster?
A Broken System? Reflections From Inside City Hall
During my time as Chief of Staff to a City of Miami Commissioner, I saw firsthand how frustrating and slow the permit application process can be. I spent countless hours helping residents and small businesses navigate the city’s bureaucracy, often stepping in to create urgency for applications that had been left in limbo for months.
If the process is this complicated for everyday residents trying to improve their property, how can we expect small developers and entrepreneurs to thrive?
A Bigger Issue? Join the Conversation
Is Miami the only city where permitting is a nightmare? Or are other municipalities experiencing similar issues? Leave a comment below and share your experience. If we want a more inclusive, business-friendly city, these roadblocks need to be addressed—before Miami’s development future is dictated only by those who can afford to wait.
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