Miami Offices Defy National Trends

The sunny skies of South Florida appear to be benefiting not just beachgoers but office landlords as well. Rents are up, leasing activity is strong, and net absorption is positive. Nevertheless, clouds on the distant horizon could throw a shadow over the party. 

Colliers’ report on the Miami-Dade County office market found rents rising 11% from $46.58 in Q1 2022 to $51.70 per square foot in Q1 2023, a figure 3.8% higher than Q4 2022. The region had 134,800 square feet in new office supply and net absorption of 204,000 square feet in Q1 2023. Vacancy was stable at 10.1%. The region also experienced heavy leasing activity of over 950,000 square feet during the quarter. High-quality Class A assets continued to do well, especially in Brickell and Wynwood.