Miami-Dade County Office Market Report (Q4 2020)8 Feb 2021
Miami’s office market held steady and demonstrated some resiliency at the end of 2020, and positive market fundamentals remain in place due to unprecedented demand from new-to-market tenants seeking to relocate from high-tax states in the Northeast. While net absorption ended the year in negative territory, the velocity in which space has come back to the market has decelerated. During the fourth quarter, 248,182 sf of space was added back to the market due to tenants downsizing or giving back their space versus 408,461 sf that was added back during the third quarter. Overall vacancy rose by 120 basis points over the quarter to 15.0%, however sublease vacancy rose only slightly by 26 basis and has remained low at less than 1%. Although supply has increased through vacancy and new deliveries in 2020, pent-up demand from new-to-market tenants will likely offset some headwinds 2021.