Office rents are experiencing explosive growth in Miami. A second quarter report from CBRE found that the prices in the market rose by 9.7 percent year-over-year to $64.36 per square foot. This marks the third consecutive quarter where rents have increased by roughly $5 per square foot.
"In terms of rent growth Airport/Doral stood out with Class A rates rising 1,150 bps year-over-year to $49.69/sq. ft," CBRE wrote.
"Such rent growth reflects the steadfast demand for premium suburban space despite Class A direct vacancy standing at a range of 16.0% to 18.1% since 2022."
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And yet even vacancy saw some relief too in the second quarter, falling by 40 basis points to 14.6 percent. Wynwood tightened the most, with its levels declining by nearly 1,400 basis points to 37.9 percent.
On the leasing front, the second quarter saw a slowdown, with 280,000 square feet of signings, about half of the first quarter's 543,000 square feet. However, the year-to-date amount is already 55 percent of the entirety recorded in 2024, putting 2025 on track to outpace last year. The bulk of the new leases in the second quarter were recorded in Brickell and Downtown Miami, which combined for 47 percent of the total.
Meanwhile, the high rents did weigh on one category — net absorption, which remained positive but saw a "slight dip" in the second quarter, according to CBRE.
"Hot bed submarkets such as Brickell [are] influencing relocations to prime but discount submarkets such as Coral Gables and Downtown Miami," it wrote.
Vacancy will be something to watch out for office in The Magic City. More than 150,000 square feet of product is set to be delivered in Miami Beach, with preleasing at about 40 percent.
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Anthony Russo
Anthony Russo has been contributing to GlobeSt. since July 2024. Along with CRE, his financial background expands to capital markets, the economy, and consumer issues. Previously, he has written for CapitalWatch and was a senior reporter for The US Sun.
