Tenants are beginning to show interest in lease renewals in Miami-Dade County following months of office closures and other restrictions. The latest report from Colliers International shows that interest in lease renewals as well as sublease space increased in the third quarter compared to the second quarter.

Three of the five largest leases signed in the quarter were lease renewals and expansions, another sign of recovery. Those leases include the deal by co-working operator Regus. The company signed a 20,700-square-foot renewal/expansion at 6303 Blue Lagoon Drive in the Miami Airport submarket.

While lease renewals were a bright spot for the Miami-Dade County market, other fundamentals continues to show signs of market deterioration. According to the same Colliers report, the vacancy rate increase 1.1% over the second quarter, bringing it to 10.7%, and absorption was negative 836,566 square feet; however this number was a 100,000 increase from the second quarter. In addition the sublease supply increased to 1.15 million square feet, an alarming 42% bump compared to the previous quarter. The increase in sublease space is an illustration that companies are continuing to reassess their office needs following the pandemic.

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Kelsi Maree Borland

Kelsi Maree Borland is a freelance journalist and magazine writer based in Los Angeles, California. For more than 5 years, she has extensively reported on the commercial real estate industry, covering major deals across all commercial asset classes, investment strategy and capital markets trends, market commentary, economic trends and new technologies disrupting and revolutionizing the industry. Her work appears daily on GlobeSt.com and regularly in Real Estate Forum Magazine. As a magazine writer, she covers lifestyle and travel trends. Her work has appeared in Angeleno, Los Angeles Magazine, Travel and Leisure and more.