Miami office market reports
Miami’s office market continued its positive momentum during the third quarter of 2022 with yet another quarter of positive net absorption, explosive rent growth and shrinking vacancy. As companies continue their return-to-office plans, it is evident that employees are returning to higher-quality, well-located assets at a stronger pace with urban office assets in Miami experiencing a recovery in office visitor volumes of 67.3%.
Nearly 1.6 million square feet (msf) of office space remains under construction in Miami with several large office completions on the horizon, including 830 Brickell and The Plaza Coral Gables – South Tower.
Return to office
As companies continue post-Labor Day push for employees to return to the workplace, office visitor volumes have been steadily increasing in Miami, with a recovery of 59.6% near the end of September compared to pre-pandemic levels. The strongest recovery has been within office assets located in urban areas, which have seen a recovery of 67.3%.
Direct asking rent
The city’s urban core is driving rent growth in Miami. While the overall market saw asking rates rise nearly $2 to $49.13 per square foot (psf) during the third quarter, high demand for quality office spaces pushed average rents in Brickell ($70.75) and the Biscayne Corridor ($66.67) up more than $5—far outperforming the rest of the market.
Net absorption ended the third quarter with positive 324,350 square feet (sf) in office space absorbed for the year-to-date. The urban core has been leading the way in terms of net absorption and has accounted for 79% of the positive net absorption in the market so far in 2022.
Miami’s overall vacancy has remained stable at 16.1%. As leasing activity remains strong and several large move-ins remain on the horizon, vacancies will likely continue to shrink over the coming quarters.
More than $355 million in investment sales closed during the third quarter, pushing Miami’s year-to-date total to $1.1 billion. Citadel CEO Ken Griffin’s announcement that the company was “all in” on Miami has helped drive speculation, pushing the twelve-month moving average price psf of investment assets up more than $30 to $380 psf.
Your source for the latest Miami office market reports
Get in-depth office market reports from commercial real estate experts in the Greater Miami area. Avison Young advisors look at Miami commercial real estate activities and the latest Miami statistics to provide you expert market research on Miami's office properties.
Explore different topics like the latest office market pricing trends and analysis of Miami's current office real estate market conditions. Gain a better understanding of Miami’s office real estate outlook and stay ahead of current office space trends. Make smart decisions when it comes to investing in office properties in Miami's competitive office real estate market. Avison Young is your trusted source for commercial real estate office market insights in Miami.
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