Miami Beach & Padel X Team for 39K-SF Rooftop Court Project

Key Points

• A 39,000 sq ft facility is planned on the roof of the G5 Parking Garage at 640 17th St. in Miami Beach, replacing about 200 parking spaces

• An affiliate of Padel X will lease the space for about 10 years; first-year base rent is $200,000, increasing 3% annually. The developer also pays the city 3% of income above $4.5 million

• The facility will include 10 climate-controlled padel courts, a pro shop, lounge, spectator area, concessions, and locker rooms. Opening expected in 18 months

Miami Beach is moving forward with a creative reuse of part of its municipal parking infrastructure—turning the rooftop of the G5 garage into a premium court facility anchored by Padel X. 

Deal structure and terms

• The lease spans roughly 10 years. Year one rent is $200,000, with 3% annual increases

• The tenant will pay 3% of annual income exceeding $4.5 million

• The space measures 39,000 sq ft and replaces around 200 parking spaces

• The city will create a separate condominium parcel for the padel facility to maintain the garage’s tax-exempt status

• Project is scheduled to open in about 18 months

Location and strategic rationale

• Located at 640 17th St., adjacent to Lincoln Road—one of Miami Beach’s busiest retail corridors

• The city is repurposing parking into active amenity space, aiming to drive foot traffic and maximize the economic output per square foot

• The project aligns with urban real estate trends favoring experiential over static uses like parking

• Other padel court conversions in Miami suggest growing interest in this sport as a profitable urban tenant use

Market and investor implications

• Investors should note how sports and recreation uses are now entering unconventional platforms like garage rooftops

• The lease structure—fixed rent plus revenue share—allows for potential upside tied to tenant success

• The tradeoff: loss of 200 parking spaces, which may affect surrounding businesses if demand is high. However, added foot traffic could benefit adjacent retail

• The activation may improve area-wide property values if it successfully drives more visits and longer stays in the district

• Market risk includes potential padel demand saturation and the challenges of converting public infrastructure for private use

What to watch

• Will the new condominium parcel structure preserve tax status without complication?

• Can the facility generate enough revenue to trigger the city’s income share?

• How will reduced parking availability impact surrounding commercial activity?

• Will this amenity drive better performance for nearby retail and hospitality properties?

• Are there renewal options in the lease that affect long-term investment value or exit potential?

Urban Activation

The Padel X rooftop project in Miami Beach represents a novel approach to urban activation through sports and recreation. It reflects a broader shift in real estate, where nontraditional amenities are used to increase asset value and engagement. For landlords and investors, it signals an opportunity to rethink underutilized structures and explore shared upside models, especially in high-foot-traffic districts