MIAMI—As Miami's office market recovers, the Coral Gables submarket is leading the way in office absorption. So says new stats from CBRE.

Tenants leased about 180,000 square feet of Coral Gables office space in the first three quarters of 2014. That's more than any other submarket so far this year.

Here's another noteworthy stat: Coral Gables vacancy dropped to 13.3% in the third quarter. That's the highest occupancy rate since 2010.

“Historically, Brickell has been the darling submarket, but lately we have seen a lot of tenants relocating from the Central Business District to Coral Gables because they like the ample parking, convenient access to Miami International Airport and the rich cultural/entertainment/dining options offered by Coral Gables' 'Miracle Mile,'” says CBRE's Diana Parker.  By way of comparison, the Brickell submarket saw about 126,000 square feet of office absorption.

So who's leasing office space in Coral Gables? Beacon Health Strategies, a new-to-submarket multinational behavioral health organization, signed the largest lease so far this year in Coral Gables. Beacon took down 17,217 square feet at The Alhambra, a class A property in the heart of Coral Gables.

Lease up in that building rose from 52% to 75% in less than 16 months. CBRE represented the landlord, an affiliate of USAA Real Estate Company, the largest owners of class A office space in Coral Gables.

“There is also a small tech hub forming both at The Alhambra and at Columbus Center, across the street,” says CBRE's Maggie Kurtz. “The clustering of tech-oriented talent is a key driver of both demand for office space and underlying property performance, especially in top submarkets where rent premiums have widened. We're already seeing some of the impact on the pricing in that area.” 

According to Parker and Kurtz, Coral Gables rates have risen about $1.50 per square foot over the past quarter. That puts direct asking lease rates at $37 to $43 per square foot.